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REALTY INCOME CORP - Annual Report: 2011 (Form 10-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549

FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Fiscal Year Ended December 31, 2011
 
Commission File Number 1-13374
 
REALTY INCOME CORPORATION
(Exact name of registrant as specified in its charter)
 
Maryland
 
33-0580106
(State or Other Jurisdiction of
 
(IRS Employer
Incorporation or Organization)
 
Identification Number)
 
600 La Terraza Boulevard, Escondido, California  92025-3873
(Address of Principal Executive Offices)
 
Registrant’s telephone number, including area code: (760) 741-2111
 
Securities registered pursuant to Section 12 (b) of the Act:
 
 
Name of Each Exchange
Title of Each Class
On Which Registered
Common Stock, $0.01 Par Value
Class D Preferred Stock, $0.01 Par Value(1)
Class E Preferred Stock, $0.01 Par Value
Class F Preferred Stock, $0.01 Par Value
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
 
Securities registered pursuant to Section 12 (g) of the Act: None

(1)  
On January 31, 2012, we announced that we plan to redeem the Class D Preferred Stock on March 1, 2012.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  YES x     NO o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  YES o     NO x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES x     NO o
 
 
 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   YES x    NO o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x   Accelerated filer o  Non-accelerated filer o  Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES o     NO x

At June 30, 2011, the aggregate market value of the Registrant’s shares of common stock, $1.00 par value, held by non-affiliates of the Registrant was $4.2 billion based upon the last reported sale price of $33.49 per share on the New York Stock Exchange on June 30, 2011, the last business day of the Registrant's most recently completed second fiscal quarter.

At February 7, 2012, the number of shares of common stock outstanding was 133,384,973, the number of shares of Class D preferred stock outstanding was 5,100,000 and the number of shares of Class E preferred stock outstanding was 8,800,000. On February 7, 2012, we issued and had 14,950,000 shares of Class F preferred stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Part III, Items 10, 11, 12, 13 and 14 incorporate by reference certain specific portions of the definitive Proxy Statement for Realty Income Corporation’s Annual Meeting to be held on May 8, 2012, to be filed pursuant to Regulation 14A. Only those portions of the proxy statement which are specifically incorporated by reference herein shall constitute a part of this annual report.

 
 

 
 
REALTY INCOME CORPORATION
Index to Form 10-K

PART I
 
Page
 
Item 1:
     
 
The Company                                                                                               
    2  
 
Recent Developments                                                                                               
    3  
 
Distribution Policy                                                                                               
    6  
 
Business Philosophy and Strategy                                                                                               
    7  
 
Property Portfolio Information                                                                                               
    13  
 
Forward-Looking Statements                                                                                                
    19  
Item 1A:
Risk Factors                                                                                                  
    19  
Item 1B:
Unresolved Staff Comments                                                                                                  
    29  
Item 2:
Properties                                                                                                  
    29  
Item 3:
Legal Proceedings                                                                                                  
    29  
Item 4:
(Removed and Reserved)                                                                                                  
    29  
PART II
       
Item 5:
    29  
Item 6:
Selected Financial Data                                                                                                  
    30  
Item 7:
       
 
General                                                                                                
    31  
 
Liquidity and Capital Resources                                                                                               
    31  
 
Results of Operations                                                                                               
    38  
      44  
 
Adjusted Funds from Operations Available to Common Stockholders (AFFO)                                                                                            
    45  
 
Impact of Inflation                                                                                               
    46  
 
Impact of Recent Accounting Pronouncements                                                                                               
    46  
Item 7A:
    46  
Item 8:
Financial Statements and Supplementary Data                                                                                                  
    48  
Item 9:
    75  
Item 9A:
Controls and Procedures                                                                                                  
    76  
Item 9B:
Other Information                                                                                                  
    77  
PART III
       
Item 10:
    77  
Item 11:
Executive Compensation                                                                                                  
    77  
Item 12:
    77  
Item 13:
    77  
Item 14:
Principal Accounting Fees and Services                                                                                                  
    77  
PART IV
       
Item 15:
Exhibits and Financial Statement Schedules                                                                                                  
    78  
    83  



PART I

Item 1:                      Business
THE COMPANY

Realty Income Corporation, The Monthly Dividend Company®, is a Maryland corporation organized to operate as an equity real estate investment trust, or REIT. Our primary business objective is to generate dependable monthly cash distributions from a consistent and predictable level of funds from operations, or FFO, per share.  Our monthly distributions are supported by the cash flow from our portfolio of properties leased to retail and other commercial enterprises. We have in-house acquisition, leasing, legal, credit research, real estate research, portfolio management and capital markets expertise. Over the past 43 years, Realty Income and its predecessors have been acquiring and owning freestanding retail and other properties that generate rental revenue under long-term lease agreements (primarily 10 to 20 years).

In addition, we seek to increase distributions to stockholders and FFO per share through both active portfolio management and the acquisition of additional properties.
 
Generally, our portfolio management efforts seek to achieve:
 
  
Contractual rent increases on existing leases;
  
Rent increases at the termination of existing leases, when market conditions permit; and
  
The active management of our property portfolio, including re-leasing vacant properties, and selectively selling properties, thereby mitigating our exposure to certain tenants and markets.

In acquiring additional properties, our strategy is primarily to acquire properties that are:
 
  
Freestanding, single-tenant locations;
  
Leased to regional and national commercial enterprises; and
  
Leased under long-term, net-lease agreements.

At December 31, 2011, we owned a diversified portfolio:
 
  
Of 2,634 properties;
  
With an occupancy rate of 96.7%, or 2,547 properties leased and only 87 properties available for lease;
  
Leased to 136 different retail and other commercial enterprises doing business in 38 separate industries;
  
Located in 49 states;
  
With over 27.3 million square feet of leasable space; and
  
With an average leasable space per property of approximately 10,400 square feet.

Of the 2,634 properties in the portfolio, 2,619, or 99.4%, are single-tenant properties, and the remaining 15 are multi-tenant properties. At December 31, 2011, of the 2,619 single-tenant properties, 2,533 were leased with a weighted average remaining lease term (excluding rights to extend a lease at the option of the tenant) of approximately 11.3 years.

We typically acquire properties under long-term leases with regional and national retailers and other commercial enterprises. Our acquisition and investment activities generally focus on businesses providing goods and services that satisfy basic consumer and business needs.

In general, our net-lease agreements:
 
  
Are for initial terms of 10 to 20 years;
  
Require the tenant to pay minimum monthly rent and property operating expenses (taxes, insurance and maintenance); and
  
Provide for future rent increases based on increases in the consumer price index (typically subject to ceilings), additional rent calculated as a percentage of the tenants’ gross sales above a specified level, or fixed increases.
 

We commenced operations as a REIT on August 15, 1994 through the merger of 25 public and private real estate limited partnerships. Each of the partnerships was formed between 1970 and 1989 for the purpose of acquiring and managing long-term, net-leased properties.

Our nine senior officers owned 1.0% of our outstanding common stock with a market value of $47.2 million at January 31, 2012. Our directors and nine senior officers, as a group, owned 1.2% of our outstanding common stock with a market value of $57.7 million at January 31, 2012.

Our common stock is listed on The New York Stock Exchange, or NYSE, under the ticker symbol "O" with a cusip number of 756109-104. Our central index key number is 726728.

Our Class D cumulative redeemable preferred stock is listed on the NYSE under the ticker symbol "OprD" with a cusip number of 756109-609.

Our Class E cumulative redeemable preferred stock is listed on the NYSE under the ticker symbol "OprE" with a cusip number of 756109-708.

Our Class F cumulative redeemable preferred stock is listed on the NYSE under the ticker symbol “OprF” with a cusip number of ­­­­­­756109-807.

In February 2012, we had 83 employees as compared to 79 employees in February 2011.

We maintain an Internet website at www.realtyincome.com. On our website we make available, free of charge, copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, Form 3s, Form 4s, Form 5s, current reports on Form 8-K, and amendments to those reports, as soon as reasonably practicable after we electronically file these reports with the Securities and Exchange Commission, or SEC.  None of the information on our website is deemed to be part of this report.
 
RECENT DEVELOPMENTS

Increases in Monthly Distributions to Common Stockholders
We continue our 43-year policy of paying distributions monthly. Monthly distributions per common share increased by $0.0003125 in April 2011 to $0.1445625, in July 2011 to $0.144875, in October 2011 to $0.1451875 and in January 2012 to $0.1455. The increase in January 2012 was our 57th consecutive quarterly increase and the 64th increase in the amount of our dividend since our listing on the NYSE in 1994. In 2011, we paid three monthly cash distributions per common share in the amount of $0.14425, three in the amount of $0.1445625, three in the amount of $0.144875 and three in the amount of $0.1451875, totaling $1.736625. In December 2011, January 2012 and February 2012, we declared distributions of $0.1455 per share, which were paid in January 2012 and will be paid in February 2012 and March 2012, respectively.

The current monthly distribution of $0.1455 per share represents an annualized distribution of $1.746 per share, and an annualized distribution yield of approximately 5.0% based on the last reported sale price of our common stock on the NYSE of $34.96 on December 31, 2011. Although we expect to continue our policy of paying monthly distributions, we cannot guarantee that we will maintain our current level of distributions, that we will continue our pattern of increasing distributions per share, or what our actual distribution yield will be in any future period.

Acquisitions During 2011
During 2011, we invested $1.02 billion in 164 new properties, and properties under development, with an initial weighted average contractual lease rate of 7.8%. The majority of the lease revenue from these properties will be generated from tenants that have investment grade ratings on their senior debt securities. These 164 new properties, and properties under development, are located in 26 states, contain over 6.2 million leasable square feet, and are 100% leased with an average lease term of 13.4 years.
 

The initial weighted average contractual lease rate is computed as estimated contractual net operating income (in a net-leased property that is equal to the aggregate base rent or, in the case of a property under development, the estimated base rent) for the first year of each lease, divided by the estimated total cost of the properties. Since it is possible that a tenant could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above.

Included in the $1.02 billion invested during 2011 are:
 
(1)  
The acquisition of 33 single-tenant retail, distribution, office and manufacturing properties for approximately $543.8 million, under long-term, net lease agreements.
(2)  
The acquisition of 60 properties operating in the restaurant - quick service industry for $41.9 million, under long-term, net lease agreements.
(3)  
The acquisition of six properties operating in the wholesale clubs industry for $156.1 million, under long-term, net lease agreements.
(4)  
The acquisition of 36 properties operating in the grocery store industry for $151.4 million under long-term, net lease agreements.
(5)  
The acquisition of nine properties operating in the health and fitness industry for $63.2 million, under long-term, net lease agreements.
(6)  
The remaining 20 properties acquired totaled approximately $59.8 million.

Portfolio Discussion
 
Leasing Results
At December 31, 2011, we had 87 properties available for lease out of 2,634 properties in our portfolio, which represents a 96.7% occupancy rate.  Since December 31, 2010, when we reported 84 properties available for lease and a 96.6% occupancy rate, we:
 
  
Leased 37 properties;
  
Sold 21 properties available for lease; and
  
Have 61 new properties available for lease.

During 2011, 89 properties with expiring leases were leased to either existing or new tenants.  The rent on these leases was $9.6 million, as compared to the previous rent on these same properties of $10.4 million.  At December 31, 2011, our average annualized rental revenue per square foot was approximately $17.06.

Matters Pertaining To Certain Tenants
In January 2012, Friendly Ice Cream Corporation, or Friendly’s, one of our tenants, announced that it was emerging from voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code (which they had filed for in October 2011). Pursuant to the bankruptcy proceedings, Friendly’s accepted 102 of their 121 leases with us.  Friendly’s rejected 19 leases with us, representing approximately $1.8 million of annualized rent, and received rent concessions and term reductions on some of their accepted leases with us. We estimate that we will recover approximately 80% of the $16.1 million of annualized rent that Friendly’s was paying the Company before the bankruptcy filing.

Additionally, in January 2012, Buffets Holding, Inc., or Buffets, another one of our tenants, filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.  Buffets leases 86 properties from us that, as of December 31, 2011, represented approximately $18.2 million, or approximately 3.9% of our annualized rental revenue.  Buffets rejected the leases on seven of our 86 properties, representing approximately $1.8 million of annualized rent.  Additionally, we have reached a preliminary agreement (subject to bankruptcy court approval) with Buffets regarding rent concessions and term reductions on some of Buffets’ other leases with us. Overall, post-bankruptcy, we estimate that we will recover approximately 65% of the $18.2 million of annualized rent that Buffets was paying us before the bankruptcy filing.  Friendly’s and Buffets both operate casual dining restaurants.
 
For both Friendly’s and Buffets, any properties returned to us are immediately available for re-lease to other tenants. We believe that demand in the market for the rejected properties will allow us to find suitable replacement tenants within the next 18 months. However, there can be no assurance that we will be successful in finding replacement tenants for these properties within this timeframe, or at all, or that Friendly’s or Buffets will continue to pay rent for the remainder of the lease terms on their accepted leases.
 
 
In addition, we have recently concluded an analysis of our portfolio and have identified other tenants, whose leases represented approximately 2% to 3% of our total annualized rent as of December 31, 2011, that we believe may make similar bankruptcy filings in 2012. However, the foregoing percentages are estimates and are subject to numerous assumptions and uncertainties and the actual percentage of annualized rent represented by other tenants who make bankruptcy filings during 2012 may be different.

Investments in Existing Properties
In 2011, we capitalized costs of $4.2 million on existing properties in our portfolio, consisting of $1.7 million for re-leasing costs and $2.5 million for building and tenant improvements.  In 2010, we capitalized costs of $3.6 million on existing properties in our portfolio, consisting of $1.5 million for re-leasing costs and $2.1 million for building improvements.

As part of our re-leasing costs, we pay leasing commissions and sometimes provide tenant rent concessions.  Leasing commissions are paid based on the commercial real estate industry standard and any rent concessions provided are minimal.  We do not consider the collective impact of the leasing commissions or tenant rent concessions to be material to our financial position or results of operations.

The majority of our building and tenant improvements are related to roof repairs, HVAC improvements, and parking lot resurfacing and replacements.  It is not customary for us to offer significant tenant improvements on our properties as tenant incentives.  The amounts of our capital expenditures can vary significantly, depending on the rental market, credit worthiness, and the willingness of tenants to pay higher rents over the terms of the leases.

Issuance of Preferred Stock
In February 2012, we issued 14.95 million shares of 6.625% Monthly Income Class F cumulative redeemable preferred stock, including 1.95 million shares purchased by the underwriters upon the exercise of their overallotment option.  The net proceeds of approximately $361.7 million from this issuance will be used to redeem the outstanding Class D preferred stock, repay borrowings under our acquisition credit facility and for other general corporate purposes.  Beginning February 15, 2017, the Class F preferred shares are redeemable at our option for $25.00 per share. The initial dividend of $0.1702257 per share will be paid on March 15, 2012, and will cover 37 days.  Thereafter, dividends of $0.1380208 per share will be paid monthly.

Redemption of Preferred Stock
In January 2012, we announced that we plan to redeem our outstanding Class D preferred stock on March 1, 2012.  We will redeem the Class D preferred stock at $25.00 per share, plus accrued dividends.

Issuance of Common Stock
In September 2011, we issued 6,300,000 shares of common stock at a price of $34.00 per share.  After underwriting discounts and other offering costs of $10.6 million, the net proceeds of $203.6 million were used to repay borrowings under our acquisition credit facility, which were used to fund recent acquisitions.

In March 2011, we issued 8,625,000 shares of common stock at a price of $34.81 per share.  After underwriting discounts and offering costs of $14.6 million, the net proceeds of $285.6 million were used to fund property acquisitions.

Re-opening of Unsecured Bonds due 2035
In June 2011, we “re-opened” our 5.875% senior unsecured bonds due 2035, or the 2035 Bonds, and issued $150 million in aggregate principal amount of additional 2035 Bonds.  The public offering price for the additional 2035 Bonds was 94.578% of the principal amount for an effective yield of 6.318% per annum.  Those 2035 Bonds constituted an additional issuance of, and a single series with, the $100 million in aggregate principal amount of 2035 Bonds that we issued in March 2005.  The net proceeds of $140.1 million were used to fund property acquisitions.

 

 
-5-


Dividend Reinvestment and Stock Purchase Plan
In March 2011, we established a Dividend Reinvestment and Stock Purchase Plan, or The Plan, to provide our common shareholders, as well as new investors, with a convenient and economical method to purchase our common stock and/or reinvest their distributions.  The Plan authorizes up to 6,000,000 common shares to be issued.  Through December 31, 2011, we issued 59,605 shares and received net proceeds of approximately $1.9 million under The Plan.

Net Income Available to Common Stockholders
Net income available to common stockholders was $132.8 million in 2011 versus $106.5 million in 2010, an increase of $26.3 million. On a diluted per common share basis, net income was $1.05 in 2011, as compared to $1.01 in 2010.

The calculation to determine net income available to common stockholders includes gains from the sale of properties and excess land. The amount of gains varies from period to period based on the timing of property sales and can significantly impact net income available to common stockholders.

The gain from the sale of properties and excess real estate during 2011 was $5.7 million, as compared to $8.7 million during 2010.

Funds from Operations Available to Common Stockholders (FFO)
In 2011, our FFO increased by $55.5 million, or 28.6%, to $249.4 million versus $193.9 million in 2010.  On a diluted per common share basis, FFO was $1.98 in 2011, compared to $1.83 in 2010, an increase of $0.15, or 8.2%.

See our discussion of FFO (which is not a financial measure under U.S. generally accepted accounting principles, or GAAP), which includes a reconciliation of net income available to common stockholders to FFO, in the section entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in this annual report.

Adjusted Funds from Operations Available to Common Stockholders (AFFO)
In 2011, our AFFO increased by $56.1 million, or 28.4%, to $253.4 million versus $197.3 million in 2010. On a diluted per common share basis, AFFO was $2.01 in 2011, compared to $1.86 in 2010, an increase of $0.15, or 8.1%.

See our discussion of AFFO (which is not a financial measure under U.S. GAAP), which includes a reconciliation of net income available to common stockholders to FFO and AFFO, in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this annual report.
 
DISTRIBUTION POLICY

Distributions are paid monthly to our common, Class D preferred and Class E preferred stockholders if, and when, declared by our Board of Directors.

In order to maintain our tax status as a REIT for federal income tax purposes, we generally are required to distribute dividends to our stockholders aggregating annually at least 90% of our taxable income (excluding net capital gains), and we are subject to income tax to the extent we distribute less than 100% of our taxable income (including net capital gains). In 2011, our cash distributions totaled $243.6 million, or approximately 127.7% of our estimated taxable income of $190.8 million. Our estimated REIT taxable income reflects non-cash deductions for depreciation and amortization. Our estimated REIT taxable income is presented to show our compliance with REIT distribution requirements and is not a measure of our liquidity or performance.

We intend to continue to make distributions to our stockholders that are sufficient to meet this distribution requirement and that will reduce or eliminate our exposure to income taxes. Furthermore, we believe our funds from operations are more than sufficient to support our current level of cash distributions to our stockholders. Our 2011 cash distributions to common stockholders totaled $219.3 million, representing 87.9% of our funds from operations available to common stockholders of $249.4 million.

 
The Class D preferred stockholders receive cumulative distributions at a rate of 7.375% per annum on the $25 per share liquidation preference (equivalent to $1.84375 per annum per share). On January 31, 2012, we announced that the Class D preferred stock would be redeemed on March 1, 2012. The Class E preferred stockholders receive cumulative distributions at a rate of 6.75% per annum on the $25 per share liquidation preference (equivalent to $1.6875 per annum per share). The Class F preferred stockholders receive cumulative distributions at a rate of 6.625% per annum on the $25 per share liquidation preference (equivalent to $1.65625 per annum per share). The initial Class F preferred stock dividend will be paid on March 15, 2012. Dividends on our Class D and Class E preferred stock are current.

Future distributions will be at the discretion of our Board of Directors and will depend on, among other things, our results of operations, FFO, cash flow from operations, financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code of 1986, as amended, our debt service requirements and any other factors the Board of Directors may deem relevant. In addition, our credit facility contains financial covenants that could limit the amount of distributions payable by us in the event of a default, and which prohibit the payment of distributions on the common or preferred stock in the event that we fail to pay when due (subject to any applicable grace period) any principal or interest on borrowings under our credit facility.

Distributions of our current and accumulated earnings and profits for federal income tax purposes generally will be taxable to stockholders as ordinary income, except to the extent that we recognize capital gains and declare a capital gains dividend, or that such amounts constitute "qualified dividend income" subject to a reduced rate of tax. The maximum tax rate of non-corporate taxpayers for "qualified dividend income" has generally been reduced to 15% (until it “sunsets” or reverts to the provisions of prior law, which under current law will occur with respect to taxable years beginning after December 31, 2012). In general, dividends payable by REITs are not eligible for the reduced tax rate on qualified dividend income, except to the extent that certain holding requirements have been met with respect to the REIT’s stock and the REIT’s dividends are attributable to dividends received from taxable corporations (such as our taxable REIT subsidiary, Crest Net Lease, Inc., or Crest) or to income that was subject to tax at the corporate or REIT level (for example, if we distribute taxable income that we retained and paid tax on in the prior taxable year).

Distributions in excess of earnings and profits generally will be treated as a non-taxable reduction in the stockholders' basis in their stock. Distributions above that basis, generally, will be taxable as a capital gain to stockholders who hold their shares as a capital asset. Approximately 20.6% of the distributions to our common stockholders, made or deemed to have been made in 2011, were classified as a return of capital for federal income tax purposes. We are unable to predict the portion of future distributions that may be classified as a return of capital.
 
BUSINESS PHILOSOPHY AND STRATEGY

Capital Philosophy
Historically, we have met our long-term capital needs by issuing common stock, preferred stock and long-term unsecured notes and bonds. Over the long term, we believe that common stock should be the majority of our capital structure. However, we may issue additional preferred stock or debt securities from time to time. We may issue common stock when we believe that our share price is at a level that allows for the proceeds of any offering to be accretively invested into additional properties. In addition, we may issue common stock to permanently finance properties that were financed by our credit facility or debt securities. However, we cannot provide assurance that we will have access to the capital markets at times and at terms that are acceptable to us.

Our primary cash obligations, for the current year and subsequent years, are included in the “Table of Obligations,” which is presented in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  We expect to fund our operating expenses and other short-term liquidity requirements, including property acquisitions and development costs, payment of principal and interest on our outstanding indebtedness, property improvements, re-leasing costs and cash distributions to common and preferred stockholders, primarily through cash provided by operating activities, borrowing on our $425 million credit facility and occasionally through public securities offerings.
 
 
Conservative Capital Structure
We believe that our stockholders are best served by a conservative capital structure. Therefore, we seek to maintain a conservative debt level on our balance sheet and solid interest and fixed charge coverage ratios. At December 31, 2011, our total outstanding borrowings of senior unsecured notes, mortgages payable and credit facility borrowings were $2.06 billion, or approximately 29.1% of our total market capitalization of $7.06 billion.

We define our total market capitalization at December 31, 2011 as the sum of:
 
  
Shares of our common stock outstanding of 133,223,338 multiplied by the last reported sales price of our common stock on the NYSE of $34.96 per share on December 31, 2011, or $4.66 billion;
  
Aggregate liquidation value (par value of $25 per share) of the Class D preferred stock of $127.5 million;
  
Aggregate liquidation value (par value of $25 per share) of the Class E preferred stock of $220 million;
  
Outstanding mortgages payable of $67.8 million;
  
Outstanding borrowings of $237.4 million on our credit facility; and
  
Outstanding senior unsecured notes and bonds of $1.75 billion.

Investment Philosophy
We believe that owning an actively managed, diversified portfolio of commercial properties under long-term, net leases produces consistent and predictable income. Net leases typically require the tenant to be responsible for monthly rent and property operating expenses including property taxes, insurance and maintenance. In addition, tenants are typically subject to future rent increases based on increases in the consumer price index (typically subject to ceilings), additional rent calculated as a percentage of the tenants' gross sales above a specified level, or fixed increases. We believe that owning a portfolio of properties under long-term leases, coupled with the tenant's responsibility for property expenses, generally produces a more predictable income stream than many other types of real estate portfolios, while continuing to offer the potential for growth in rental income.

Investment Strategy
When identifying new properties for acquisition, our focus is generally on providing capital to owners and operators of retail and other commercial enterprises by acquiring, then leasing back, the real estate they consider important to the successful operation of their business.

We primarily focus on acquiring properties leased to retail and other commercial enterprises based on the following guidelines:

  
Tenants with reliable and sustainable cash flow;
  
Tenants with revenue and cash flow from multiple sources;
  
Large owners and users of real estate;
  
Real estate that is critical to the tenant’s ability to generate revenue (i.e. they need the property in which they operate in order to conduct their business);
  
Real estate and tenants that are willing to sign a long-term lease (10 or more years); and
  
Property transactions where we can achieve an attractive spread over our cost of capital.

Historically, our investment focus has primarily been on retail and other commercial enterprises that have a service component because we believe the lease revenue from these types of businesses is more stable. Because of this investment focus, for the quarter ended December 31, 2011, approximately 83% of our retail rental revenue was derived from tenants with a service component in their business. We believe these service-oriented businesses would generally be difficult to duplicate over the Internet and that our properties continue to perform well relative to competition from Internet-based businesses.

Credit Strategy
We typically acquire and lease properties to regional and national commercial enterprises and believe that within this market we can achieve an attractive risk-adjusted return. Since 1970, our occupancy rate at the end of each year has never been below 96%.

 

 
-8-


We believe the principal financial obligations of most commercial enterprises typically include their bank and other debt, payment obligations to suppliers and real estate lease obligations. Because we typically own the land and building in which a tenant conducts its business, we believe the risk of default on a tenant’s lease obligations is less than the tenant’s unsecured general obligations. It has been our experience that since tenants must retain their profitable locations in order to survive, in the event of reorganization they are less likely to reject a lease for a profitable location because this would terminate their right to use the property. Thus, as the property owner, we believe we will fare better than unsecured creditors of the same tenant in the event of reorganization. If a property is rejected by the tenant during reorganization, we own the property and can either lease it to a new tenant or sell the property. In addition, we believe that the risk of default on the real estate leases can be further mitigated by monitoring the performance of the tenants' individual unit locations and considering whether to sell locations that are weaker performers.

In order to qualify for inclusion in our portfolio, new property acquisitions must meet stringent investment and credit requirements. The properties must generate attractive current yields and the tenant must meet our credit profile.  We have established a three-part analysis that examines each potential investment based on:
 
  
Industry, company, market conditions and credit profile;
  
For retail locations, store profitability, if profitability data is available, and the importance of the location of the real estate to the operations of the company’s business; and
  
Overall real estate characteristics, including property value and comparative rental rates.

The typical profile of companies whose properties have been approved for acquisition are those with 50 or more locations. Generally the properties:

  
Are located in highly visible areas;
  
Have easy access to major thoroughfares; and
  
Have attractive demographics.

Acquisition Strategy
We seek to invest in industries in which several, well-organized, regional and national retailers and other commercial enterprises are capturing market share through service, quality control, economies of scale, strong consumer brands, advertising, and the selection of prime locations. We execute our acquisition strategy by acting as a source of capital to regional and national commercial enterprises by acquiring and leasing back their real estate locations. We undertake thorough research and analysis to identify what we consider to be appropriate industries, tenants and property locations for investment. Our research expertise is instrumental to uncovering net-lease opportunities in markets where our real estate financing program adds value. In selecting potential investments, we generally seek to acquire real estate that has the following characteristics:
 
  
Properties that are freestanding, commercially-zoned with a single tenant;
  
Properties that are important locations for regional and national commercial enterprises;
  
Properties that we deem to be profitable for the tenants and/or can generally be characterized as important to the operations of the company’s business;
  
Properties that are located within attractive demographic areas, relative to the business of our tenants, with high visibility and easy access to major thoroughfares; and
  
Properties that can be purchased with the simultaneous execution or assumption of long-term, net-lease agreements, offering both current income and the potential for rent increases.

Impact of Real Estate and Credit Markets
In the commercial real estate market, property prices generally continue to fluctuate. Likewise, the U.S. credit markets have experienced significant price volatility, dislocations and liquidity disruptions, which may impact our access to and cost of capital. We continue to monitor the commercial real estate and U.S. credit markets carefully and, if required, will make decisions to adjust our business strategy accordingly. See Item 1A entitled "Risk Factors" in this annual report.

 

 
-9-


Portfolio Management Strategy
The active management of the property portfolio is an essential component of our long-term strategy. We continually monitor our portfolio for any changes that could affect the performance of the industries, tenants and locations in which we have invested. We also regularly analyze our portfolio with a view toward optimizing its returns and enhancing our credit quality.

Our executives regularly review and analyze:
 
  
The performance of the various industries of our tenants; and
  
The operation, management, business planning, and financial condition of our tenants.

We have an active portfolio management program that incorporates the sale of assets when we believe the reinvestment of the sale proceeds will:

  
Generate higher returns;
  
Enhance the credit quality of our real estate portfolio;
  
Extend our average remaining lease term; or
  
Decrease tenant or industry concentration.

At December 31, 2011, we classified real estate with a carrying amount of $2.2 million as held for sale on our balance sheet. In 2012, we intend to employ more active disposition efforts to further enhance the credit quality of our real estate portfolio.  As a result, we anticipate selling investment properties from our portfolio that have not yet been specifically identified, from which we anticipate receiving between $25 million and $60 million in proceeds during the next 12 months. We intend to invest these proceeds into new property acquisitions, if there are attractive opportunities available. However, we cannot guarantee that we will sell properties during the next 12 months or be able to invest the proceeds from the sales of any properties in new properties.

Universal Shelf Registration
In March 2009, we filed a shelf registration statement with the SEC, which expires in March 2012. In accordance with the SEC rules, the amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit. The securities covered by this registration statement include common stock, preferred stock, debt securities, or any combination of these securities. We may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering. We plan to file a new shelf registration statement prior to the expiration of our existing shelf registration.

$425 Million Acquisition Credit Facility
We have a $425 million unsecured, revolving credit facility. The initial term of the credit facility expires in March 2014 and includes two, one-year extension options. Under the credit facility, the current investment grade credit ratings on our debt securities provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR. The borrowing rate is not subject to an interest rate floor or ceiling.  We also have other interest rate options available to us under the credit facility.  Our credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation. At December 31, 2011, we had a borrowing capacity of $187.6 million available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $237.4 million.  As a result of the issuance of our Class F preferred stock in February 2012, we paid off all outstanding credit facility borrowings on February 7, 2012.  The interest rate on borrowings outstanding under our credit facility at December 31, 2011 was 2.1% per annum. We must comply with various financial and other covenants in our credit facility. At December 31, 2011, we remain in compliance with these covenants.

We expect to use our credit facility to acquire additional properties and for other corporate purposes. Any additional borrowings will increase our exposure to interest rate risk. We have the right to request an increase in the borrowing capacity of the credit facility, up to $200 million, to a total borrowing capacity of $625 million.  Any increase in the borrowing capacity is subject to approval by the lending banks participating in our credit facility.

 

 
-10-


We generally use our credit facility for the short-term financing of new property acquisitions. Thereafter, when capital is available on acceptable terms, we generally seek to refinance those borrowings with the net proceeds of long-term or permanent financing, which may include the issuance of common stock, preferred stock or debt securities. We cannot assure you, however, that we will be able to obtain any such refinancing, or that market conditions prevailing at the time of refinancing will enable us to issue equity or debt securities upon acceptable terms.

Credit Agency Ratings
The borrowing rates under our credit facility are based upon our credit ratings.  We are currently assigned the following investment grade corporate credit ratings on our senior unsecured notes and bonds: Fitch Ratings has assigned a rating of BBB+, Moody’s Investors Service has assigned a rating of Baa1 and Standard & Poor’s Ratings Group has assigned a rating of BBB to our senior notes. All of these ratings have "stable" outlooks.

Based on our current ratings, the current facility interest rate is LIBOR plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR.  The credit facility provides that the interest rate can range between: (i) LIBOR plus 300 basis points if our credit facility is lower than BBB-/Baa3 and (ii) LIBOR plus 175 basis points if our credit rating is A-/A3 or higher.

In addition, our credit facility provides for a facility commitment fee based on our credit ratings, which ranges from: (i) 50 basis points for a rating lower than BBB-/Baa3, and (ii) 30 basis points for a credit rating of A-/A3 or higher.

We also issue senior debt securities from time to time and our credit ratings can impact the interest rates charged in those transactions.  If our credit ratings or ratings outlook change, our cost to obtain debt financing could increase or decrease.

The credit ratings assigned to us could change based upon, among other things, our results of operations and financial condition. These ratings are subject to ongoing evaluation by credit rating agencies and we cannot assure you that our ratings will not be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant. Moreover, a rating is not a recommendation to buy, sell or hold our debt securities, preferred stock or common stock.

Mortgage Debt
As of December 31, 2011, we have $67.2 million of mortgages payable to third-party lenders that were assumed in 2011, in connection with our property acquisitions.  We paid $279,000 in principal payments on these mortgages payable during 2011.  Additionally, net premiums totaling $820,000, in aggregate, were recorded upon assumption of the mortgages payable at the time of the respective property acquisitions to account for above-market interest rates.  We recorded amortization of $189,000 related to these net premiums during 2011.

Our mortgages payable are secured by the properties on which the debt was placed and are non-recourse.  We expect to pay off the mortgages payable as soon as prepayment penalties and costs make it economically feasible to do so.  We intend to continue our policy of primarily identifying property acquisitions that are free from mortgage indebtedness.

No Off-Balance Sheet Arrangements or Unconsolidated Investments
We have no unconsolidated or off-balance sheet investments in "variable interest entities" or off-balance sheet financing, nor do we engage in trading activities involving energy or commodity contracts or other derivative instruments. Additionally, we have no joint ventures or mandatorily redeemable preferred stock. As such, our financial position and results of operations are not affected by accounting regulations regarding the consolidation of off-balance sheet entities and classification of financial instruments with characteristics of both liabilities and equity.

 

 
-11-


Competitive Strategy
We believe that to successfully pursue our investment philosophy and strategy, we must seek to maintain the following competitive advantages:
 
  
Type of Investment Properties: We believe net-leased properties, whether purchased individually or as part of larger portfolio purchases, represent an attractive investment opportunity in today's real estate environment. The less intensive day-to-day property management required by net-lease agreements, coupled with the active management of a large portfolio of properties, is an effective investment strategy. The tenants of our freestanding properties generally provide goods and services that satisfy basic consumer needs. In order to grow and expand, they generally need capital. Since the acquisition of real estate is typically the single largest capital expenditure of many of these tenants, our method of purchasing the property and then leasing it back, under a net-lease arrangement, allows the commercial enterprise to free up capital.

  
Investment in New Industries: We will seek to further diversify our portfolio among a variety of industries. We believe diversification will allow us to invest in industries that currently are growing and have characteristics we find attractive. When analyzing new industries, we seek to acquire properties that are critical to the success of a commercial enterprise, through its distribution of the product or service. Other characteristics may include, but are not limited to, industries that are dominated by local store operators where regional and national store operators and other commercial enterprises can increase market share and dominance by consolidating local operators and streamlining their operations, as well as capitalizing on major demographic shifts in a population base.

  
Diversification: Diversification of the portfolio by industry type, tenant, and geographic location is key to our objective of providing predictable investment results for our stockholders, therefore further diversification of our portfolio is a continuing objective. At December 31, 2011, we owned a diversified property portfolio that consisted of 2,634 properties located in 49 states, leased to 136 different retail and other commercial enterprises doing business in 38 industry segments. Each of the 38 industry segments, represented in our property portfolio, individually accounted for no more than 17.2% of our rental revenue for the quarter ended December 31, 2011.

  
Management Specialization: We believe that our management's specialization in acquiring and managing single-tenant properties, operated under net-lease agreements, purchased individually or as part of a larger portfolio, is important to meeting our objectives. We plan to maintain this specialization and will seek to employ and train high-quality professionals in this specialized area of real estate ownership, finance and management.

  
Technology: We intend to stay at the forefront of technology in our efforts to carry out our operations efficiently and economically. We maintain sophisticated information systems that allow us to analyze our portfolio's performance and actively manage our investments. We believe that technology and information-based systems play an important role in our competitiveness as an investment manager and source of capital to a variety of industries and tenants.

 

 
-12-


PROPERTY PORTFOLIO INFORMATION

At December 31, 2011, we owned a diversified portfolio:

  
Of 2,634 properties;
  
With an occupancy rate of 96.7%, or 2,547 properties leased and only 87 properties available for lease;
  
Leased to 136 different retail and other commercial enterprises doing business in 38 separate industries;
  
Located in 49 states;
  
With over 27.3 million square feet of leasable space; and
  
With an average leasable space per property of approximately 10,400 square feet.

At December 31, 2011, of our 2,634 properties, 2,533 were leased under net-lease agreements. A net lease typically requires the tenant to be responsible for minimum monthly rent and certain property operating expenses including property taxes, insurance and maintenance. In addition, our tenants are typically subject to future rent increases based on increases in the consumer price index (typically subject to ceilings), additional rent calculated as a percentage of the tenants' gross sales above a specified level, or fixed increases.

In order to more accurately reflect our exposure to various industries, the following industry table has been modified from similar tables we have prepared in the past to reflect the changes below:

  
Properties previously included in the “distribution and office” industry were reclassified to the “home improvement,” “convenience store,” and “restaurant” industries, to better reflect the industry in which the tenant operates;
  
The “restaurant” industry was separated into the “restaurants - casual dining” industry, which includes dinner houses and family restaurants, and the “restaurants - quick service” industry, which includes fast food restaurants;
  
The “equipment rental” industry was renamed “equipment services;”
  
The “travel plazas” industry was renamed “transportation services;” and
  
The “wine and spirits” industry was renamed “beverages.”

 

 
-13-


Industry Diversification
The following table sets forth certain information regarding Realty Income's property portfolio classified according to the business of the respective tenants, expressed as a percentage of our total rental revenue:
 
   
Percentage of Rental Revenue(1)
 
   
For the Quarter
   
For the Years Ended
 
 
Industries
 
Ended
December 31,
2011
   
Dec 31,
2011
   
Dec 31,
2010
   
Dec 31,
2009
   
Dec 31,
2008
   
Dec 31,
2007
   
Dec 31,
2006
 
Apparel stores
    1.3 %     1.4 %     1.2 %     1.1 %     1.1 %     1.2 %     1.7 %
Automotive collision services
    0.9       0.9       1.0       1.1       1.0       1.1       1.3  
Automotive parts
    1.3       1.2       1.4       1.5       1.6       2.1       2.8  
Automotive service
    3.4       3.7       4.7       4.8       4.8       5.2       6.9  
Automotive tire services
    4.9       5.6       6.4       6.9       6.7       7.3       6.1  
Aviation
    0.8       0.5       --       --       --       --       --  
Beverages
    5.3       5.6       3.0       --       --       --       --  
Book stores
    0.1       0.1       0.1       0.2       0.2       0.2       0.2  
Business services
    *       *       *       *       *       0.1       0.1  
Child care
    4.7       5.2       6.5       7.3       7.6       8.4       10.3  
Consumer electronics
    0.5       0.5       0.6       0.7       0.8       0.9       1.1  
Convenience stores
    17.2       18.5       17.1       16.9       15.8       14.0       16.1  
Crafts and novelties
    0.2       0.2       0.3       0.3       0.3       0.3       0.4  
Drug stores
    3.6       3.8       4.1       4.3       4.1       2.7       2.9  
Education
    0.7       0.7       0.8       0.9       0.8       0.8       0.8  
Entertainment
    0.9       1.0       1.2       1.3       1.2       1.4       1.6  
Equipment services
    0.4       0.4       0.2       0.2       0.2       0.2       0.2  
Financial services
    0.6       0.5       0.2       0.2       0.2       0.2       0.1  
Food processing
    1.2       0.7       --       --       --       --       --  
General merchandise
    0.6       0.6       0.8       0.8       0.8       0.7       0.6  
Grocery stores
    1.7       1.6       0.9       0.7       0.7       0.7       0.7  
Health and fitness
    6.9       6.4       6.9       5.9       5.6       5.1       4.3  
Home furnishings
    1.0       1.1       1.3       1.3       2.4       2.6       3.1  
Home improvement
    1.6       1.7       2.0       2.2       2.1       2.4       3.4  
Motor vehicle dealerships
    2.1       2.2       2.6       2.7       3.2       3.1       3.4  
Office supplies
    0.8       0.9       0.9       1.0       1.0       1.1       1.3  
Packaging
    0.6       0.4       --       --       --       --       --  
Paper
    0.2       0.1       --       --       --       --       --  
Pet supplies and services
    0.7       0.7       0.9       0.9       0.8       0.9       1.1  
Restaurants - casual dining
    9.8       10.9       13.4       13.7       14.3       14.9       7.0  
Restaurants - quick service
    6.6       6.6       7.7       8.3       8.2       6.6       4.9  
Shoe stores
    0.1       0.2       0.1       --       --       --       --  
Sporting goods
    2.5       2.7       2.7       2.6       2.3       2.6       2.9  
Telecommunications
    0.9       0.7       --       --       --       --       --  
Theaters
    9.8       8.8       8.9       9.2       9.0       9.0       9.6  
Transportation services
    2.2       1.8       0.2       0.2       0.2       0.2       0.3  
Video rental
    0.0       0.0       0.2       1.0       1.1       1.7       2.1  
Wholesale clubs
    2.7       0.7       --       --       --       --       --  
Other
    1.2       1.4       1.7       1.8       1.9       2.3       2.7  
Totals
    100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

*  Less than 0.1%
 
 
(1) Includes rental revenue for all properties owned by Realty Income at the end of each period presented, including revenue from properties reclassified as discontinued operations. Excludes revenue from properties owned by Crest.

 

 
-14-


Property Type Diversification
The following table sets forth certain property type information regarding Realty Income’s property portfolio as of December 31, 2011 (dollars in thousands):
 
Property Type
 
Number of
Properties
   
Approximate
Leasable
Square Feet
   
Rental Revenue for
the Quarter Ended
December 31, 2011(1)
   
Percentage of
Revenue
 
Retail
    2,577       22,109,800     $ 97,841       86.4 %
Agriculture
    15       184,500       4,961       4.4  
Distribution
    13       2,027,100       3,520       3.1  
Manufacturing
    6       1,418,600       2,509       2.2  
Office
    8       778,500       2,897       2.6  
Industrial
    15       850,500       1,531       1.3  
Totals
    2,634       27,369,000     $ 113,259       100.0 %
 
 
(1) Includes rental revenue for all properties owned by Realty Income at December 31, 2011, including revenue from properties reclassified as discontinued operations of $52.  Excludes revenue of $23 from properties owned by Crest.

Tenant Diversification
The largest tenants based on percentage of total portfolio rental revenue at December 31, 2011 include the following:
 
AMC Theatres
5.3%
 
NPC International/Pizza Hut
2.7%
 
Diageo
5.0%
 
BJ’s Wholesale Club
2.6%
 
L.A. Fitness
4.6%
 
Rite Aid
2.6%
 
Northern Tier Energy/Super America
4.4%
 
Smart & Final
2.4%
 
Hometown Buffet
3.9%
 
FreedomRoads/Camping World
2.2%
 
Regal Cinemas
3.4%
 
TBC Corporation
2.2%
 
Friendly’s Ice Cream
3.2%
 
La Petite Academy
2.2%
 
The Pantry
3.1%
     


 

 
-15-


Service Category Diversification for our Retail Portfolio
The following table sets forth certain information regarding the 2,577 retail properties owned by Realty Income at December 31, 2011, classified according to the business types and the level of services they provide (dollars in thousands):
 
 
 
Retail Industry
 
Number of
Properties
   
Retail
Rental Revenue for the Quarter Ended
December 31, 2011(1)
   
Percentage of
Retail
Rental
Revenue
 
Tenants Providing Services
                 
Automotive collision services
    18     $ 967       1.0 %
Automotive service
    234       3,857       3.9  
Child care
    238       5,367       5.5  
Education
    14       807       0.8  
Entertainment
    8       1,074       1.1  
Equipment services
    2       150       0.2  
Financial services
    13       197       0.2  
Health and fitness
    46       7,829       8.0  
Theaters
    43       11,097       11.4  
Transportation services
    1       187       0.2  
Other
    9       115       0.1  
      626       31,647       32.4  
Tenants Selling Goods and Services
                 
Automotive parts (with installation)
    25       478       0.5  
Automotive tire services
    158       5,575       5.7  
Business services
    1       5       *  
Convenience stores
    719       19,341       19.8  
Motor vehicle dealerships
    15       2,391       2.4  
Pet supplies and services
    14       744       0.7  
Restaurants - casual dining
    316       10,461       10.7  
Restaurants - quick service
    373       7,500       7.7  
Video rental
    6       --       0.0  
      1,627       46,495       47.5  
Tenants Selling Goods
                       
Apparel stores
    10       1,494       1.5  
Automotive parts
    41       946       1.0  
Book stores
    1       83       0.1  
Consumer electronics
    9       592       0.6  
Crafts and novelties
    4       228       0.2  
Drug stores
    57       4,033       4.1  
General merchandise
    33       693       0.7  
Grocery stores
    57       1,959       2.0  
Home furnishings
    45       1,191       1.2  
Home improvement
    28       1,515       1.6  
Office supplies
    11       891       0.9  
Shoe stores
    1       168       0.2  
Sporting goods
    21       2,881       2.9  
Wholesale clubs
    6       3,025       3.1  
      324       19,699       20.1  
Totals
    2,577     $ 97,841       100.0 %
 
*  Less than 0.1%
 
(1)
Includes rental revenue for all retail properties owned by Realty Income at December 31, 2011, including revenue from properties reclassified as discontinued operations of $52. Excludes revenue of $23 from properties owned by Crest.

 

 
-16-


Lease Expirations
The following table sets forth certain information regarding Realty Income's property portfolio regarding the timing of the lease term expirations (excluding rights to extend a lease at the option of the tenant) on our 2,533 net leased, single-tenant properties as of December 31, 2011 (dollars in thousands):
 
   
Total Portfolio
   
Initial Expirations(3)
   
Subsequent Expirations(4)
 
 
 
 
 
 
Year
 
 
 
Number
 of Leases Expiring(1)
   
 
Approx.
Leasable
 Sq. Feet
   
Rental
Revenue
 for the
Quarter
Ended
Dec. 31, 2011(2)
   
 
% of
Total
 Rental Revenue
   
 
 
Number
 of Leases Expiring
   
Rental Revenue
for the
Quarter Ended
Dec. 31,
2011
   
 
% of 
Total 
 Rental   Revenue 
   
 
 
Number of Leases Expiring
   
Rental Revenue
for the
Quarter
Ended
Dec. 31,
2011
   
 
% of
Total
Rental Revenue
 
2012
    161       1,079,800     $ 3,700       3.3 %     39     $ 1,134       1.0 %     122     $ 2,566       2.3 %
2013
    162       1,348,000       4,968       4.5       64       2,658       2.4       98       2,310       2.1  
2014
    127       959,700       3,478       3.1       30       1,465       1.3       97       2,013       1.8  
2015
    157       888,800       4,283       3.9       79       2,537       2.3       78       1,746       1.6  
2016
    170       852,400       3,630       3.3       113       2,325       2.1       57       1,305       1.2  
2017
    70       842,400       2,890       2.6       41       2,341       2.1       29       549       0.5  
2018
    84       1,243,500       3,985       3.6       74       3,730       3.4       10       255       0.2  
2019
    140       1,520,700       7,303       6.6       132       6,878       6.2       8       425       0.4  
2020
    85       1,597,400       5,009       4.5       75       4,664       4.2       10       345       0.3  
2021
    186       1,975,600       8,761       7.9       178       8,257       7.4       8       504       0.5  
2022
    106       890,200       4,652       4.2       105       4,619       4.2       1       33       *  
2023
    252       2,094,000       10,000       9.0       250       9,926       8.9       2       74       0.1  
2024
    61       549,500       2,271       2.0       60       2,209       2.0       1       62       *  
2025
    208       1,724,400       11,655       10.5       203       11,522       10.4       5       133       0.1  
2026
    111       1,878,700       7,155       6.4       108       7,074       6.3       3       81       0.1  
2027
    170       1,424,100       5,984       5.4       169       5,966       5.4       1       18       *  
2028
    85       1,111,600       5,821       5.2       83       5,771       5.2       2       50       *  
2029
    53       960,800       2,258       2.0       50       2,197       2.0       3       61       *  
2030
    36       417,300       4,989       4.5       36       4,989       4.5       --       --       --  
2031
    90       1,876,900       6,216       5.6       89       6,197       5.6       1       19       *  
2032
    2       289,400       668       0.6       2       668       0.6       --       --       --  
2033
    8       94,000       540       0.5       8       540       0.5       --       --       --  
2034
    6       84,900       509       0.5       6       509       0.5       --       --       --  
2037
    2       48,800       354       0.3       2       354       0.3       --       --       --  
2043
    1       3,600       13       *       --       --       --       1       13       *  
Totals
    2,533       25,756,500     $ 111,092       100.0 %     1,996     $ 98,530       88.8 %     537     $ 12,562       11.2 %
 
*Less than 0.1%
 
(1) Excludes 14 multi-tenant properties and 87 vacant unleased properties, one of which is a multi-tenant property.  The lease expirations for properties under construction are based on the estimated date of completion of those properties.
(2) Includes rental revenue of $52 from properties reclassified as discontinued operations and excludes revenue of $2,167 from 14 multi-tenant properties and from 87 vacant and unleased properties at
December 31, 2011. Excludes revenue of $23 from three properties owned by Crest.
(3) Represents leases to the initial tenant of the property that are expiring for the first time.
(4) Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-tenanted.

 

 
-17-


Geographic Diversification
The following table sets forth certain state-by-state information regarding Realty Income's property portfolio as of December 31, 2011 (dollars in thousands):

State
 
Number of
Properties
   
Percent
Leased
   
Approximate
Leasable
Square Feet
   
Rental Revenue for
the Quarter Ended
December 31, 2011(1)
   
Percentage of
Rental
Revenue
 
Alabama
    62       95 %     420,200     $ 1,784       1.6 %
Alaska
    2       100       128,500       300       0.3  
Arizona
    87       98       619,500       2,879       2.5  
Arkansas
    17       88       92,400       315       0.3  
California
    123       99       2,670,100       13,054       11.5  
Colorado
    58       95       485,900       1,854       1.6  
Connecticut
    23       87       269,100       1,153       1.0  
Delaware
    17       100       33,300       433       0.4  
Florida
    184       95       1,881,000       7,839       6.9  
Georgia
    143       95       1,242,900       5,077       4.5  
Hawaii
    --       --       --       --       --  
Idaho
    12       83       80,700       324       0.3  
Illinois
    101       98       1,335,900       6,170       5.5  
Indiana
    81       96       799,000       3,633       3.2  
Iowa
    21       100       290,600       1,024       0.9  
Kansas
    37       92       642,900       1,397       1.2  
Kentucky
    23       100       134,700       709       0.6  
Louisiana
    34       100       344,200       1,183       1.1  
Maine
    3       100       22,500       163       0.1  
Maryland
    29       100       384,000       2,182       1.9  
Massachusetts
    64       91       575,400       2,517       2.2  
Michigan
    54       96       287,200       1,278       1.1  
Minnesota
    150       100       1,003,600       6,774       6.0  
Mississippi
    72       99       360,700       1,605       1.4  
Missouri
    76       96       1,027,500       3,848       3.4  
Montana
    2       100       30,000       77       0.1  
Nebraska
    19       95       196,300       492       0.4  
Nevada
    15       100       325,800       1,007       0.9  
New Hampshire
    15       93       217,200       974       0.9  
New Jersey
    33       91       260,400       1,948       1.7  
New Mexico
    9       100       58,400       212       0.2  
New York
    42       93       776,200       4,272       3.8  
North Carolina
    94       100       572,400       2,968       2.6  
North Dakota
    6       100       36,600       74       0.1  
Ohio
    134       96       1,124,800       3,973       3.5  
Oklahoma
    35       100       752,400       1,505       1.3  
Oregon
    20       100       384,200       1,305       1.2  
Pennsylvania
    103       99       905,800       4,207       3.7  
Rhode Island
    3       100       11,000       60       0.1  
South Carolina
    98       99       371,400       2,268       2.0  
South Dakota
    10       100       89,800       186       0.2  
Tennessee
    128       98       740,200       2,983       2.6  
Texas
    215       96       3,134,800       10,130       9.0  
Utah
    6       100       121,700       251       0.2  
Vermont
    4       100       12,700       131       0.1  
Virginia
    105       95       1,519,400       4,649       4.1  
Washington
    35       97       298,100       1,048       0.9  
West Virginia
    2       100       23,000       101       0.1  
Wisconsin
    27       93       269,200       943       0.8  
Wyoming
    1       0       5,400       0       0.0  
Totals/Average
    2,634       97 %     27,369,000     $ 113,259       100.0 %
 
 (1)
Includes rental revenue for all properties owned by Realty Income at December 31, 2011, including revenue from properties reclassified as discontinued operations of $52.  Excludes revenue of $23 from properties owned by Crest.

 

 
-18-

 
FORWARD-LOOKING STATEMENTS

This annual report on Form 10-K, including the documents incorporated by reference herein, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. When used in this annual report, the words "estimated", "anticipated", "expect", "believe", "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of strategy, plans or intentions of management. Forward-looking statements are subject to risks, uncertainties, and assumptions about Realty Income Corporation, including, among other things:

  
Our anticipated growth strategies;
  
Our intention to acquire additional properties and the timing of these acquisitions;
  
Our intention to sell properties and the timing of these property sales;
  
Our intention to re-lease vacant properties;
  
Anticipated trends in our business, including trends in the market for long-term net-leases of freestanding, single-tenant properties; and
  
Future expenditures for development projects.

Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements.  In particular, some of the factors that could cause actual results to differ materially are:

  
Our continued qualification as a real estate investment trust;
  
General business and economic conditions;
  
Competition;
  
Fluctuating interest rates;
  
Access to debt and equity capital markets;
  
Continued volatility and uncertainty in the credit markets and broader financial markets;
  
Other risks inherent in the real estate business including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments, and potential damages from natural disasters;
  
Impairments in the value of our real estate assets;
  
Changes in the tax laws of the United States of America;
  
The outcome of any legal proceedings to which we are a party or which may occur in the future; and
  
Acts of terrorism and war.

Additional factors that may cause risks and uncertainties include those discussed in the sections entitled "Business", "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this annual report.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date that this annual report was filed with the SEC. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We undertake 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 of this annual report or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, the forward-looking events discussed in this annual report might not occur.

Item 1A:                      Risk Factors

This "Risk Factors" section contains references to our "capital stock" and to our "stockholders."  Unless expressly stated otherwise, the references to our "capital stock" represent our common stock and any class or series of our preferred stock, while the references to our "stockholders" represent holders of our common stock and any class or series of our preferred stock.

 

 
-19-


In order to grow we need to continue to acquire investment properties.  The acquisition of investment properties may be subject to competitive pressures.
We face competition in the acquisition, operation and sale of property. We expect competition from:
 
  
Businesses;
  
Individuals;
  
Fiduciary accounts and plans; and
  
Other entities engaged in real estate investment and financing.
 
Some of these competitors are larger than we are and have greater financial resources. This competition may result in a higher cost for properties we wish to purchase.

Negative market conditions or adverse events affecting our existing or potential tenants, or the industries in which they operate, could have an adverse impact on our ability to attract new tenants, re-lease space, collect rent or renew leases, which could adversely affect our cash flow from operations and inhibit growth.
Cash flow from operations depends in part on the ability to lease space to tenants on economically favorable terms. We could be adversely affected by various facts and events over which we have limited or no control, such as:
 
  
Lack of demand in areas where our properties are located;
  
Inability to retain existing tenants and attract new tenants;
  
Oversupply of space and changes in market rental rates;
  
Declines in our tenants' creditworthiness and ability to pay rent, which may be affected by their operations, the current economic situation and competition within their industries from other operators;
  
Defaults by and bankruptcies of tenants, failure of tenants to pay rent on a timely basis, or failure of tenants to comply with their contractual obligations;
  
Economic or physical decline of the areas where the properties are located; and
  
Deterioration of physical condition of our properties.
 
At any time, any tenant may experience a downturn in its business that may weaken its operating results or overall financial condition. As a result, a tenant may delay lease commencement, fail to make rental payments when due, decline to extend a lease upon its expiration, become insolvent or declare bankruptcy. Any tenant bankruptcy or insolvency, leasing delay or failure to make rental payments when due could result in the termination of the tenant's lease and material losses to us.

If tenants do not renew their leases as they expire, we may not be able to rent or sell the properties.  Furthermore, leases that are renewed, and some new leases for properties that are re-leased, may have terms that are less economically favorable than expiring lease terms, or may require us to incur significant costs, such as renovations, tenant improvements or lease transaction costs. Negative market conditions may cause us to sell vacant properties for less than their carrying value, which could result in impairments. Any of these events could adversely affect cash flow from operations and our ability to make distributions to shareholders and service indebtedness. A significant portion of the costs of owning property, such as real estate taxes, insurance and maintenance, are not necessarily reduced when circumstances cause a decrease in rental revenue from the properties. In a weakened financial condition, tenants may not be able to pay these costs of ownership and we may be unable to recover these operating expenses from them.

Further, the occurrence of a tenant bankruptcy or insolvency could diminish the income we receive from the tenant's lease or leases. In addition, a bankruptcy court might authorize the tenant to terminate its leases with us. If that happens, our claim against the bankrupt tenant for unpaid future rent would be subject to statutory limitations that most likely would result in rent payments that would be substantially less than the remaining rent we are owed under the leases or we may elect not to pursue claims against the tenant for terminated leases. In addition, any claim we have for unpaid past rent, if any, may not be paid in full, or at all. Moreover, in the case of a tenant’s leases that are not terminated as a result of its bankruptcy, we may be required or elect to reduce the rent payable under those leases or provide other concessions, reducing amounts we receive under those leases. As a result, tenant bankruptcies may have a material adverse effect on our results of operations.  Any of these events could adversely affect cash from operations and our ability to make distributions to stockholders and service indebtedness.
 
 
Eighty-seven of our properties were available for lease or sale at December 31, 2011, all but one of which were single-tenant properties. At December 31, 2011, 33 of our properties under lease were unoccupied and available for sublease by the tenants, all of which were current with their rent and other obligations. During 2011, each of our tenants accounted for less than 10% of our rental revenue.

For the fourth quarter of 2011, our tenants in the “convenience stores” industry accounted for 17.2% of our rental revenue. A downturn in this industry, whether nationwide or limited to specific sectors of the United States, could adversely affect tenants in this industry, which in turn could have a material adverse affect on our financial position, results of operations and our ability to pay the principal of and interest on our debt securities and other indebtedness and to make distributions on our common stock and preferred stock.

We believe that the ongoing economic recession has also had an adverse effect on many casual dining restaurants, such as our tenants, Friendly Ice Cream Corporation and Buffets Holdings, Inc.  Both of these tenants filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code, and the impact of bankruptcy filings by these or other tenants in the casual dining industry could, as described in the immediately preceding sentence, adversely affect us. Individually, each of the other industries in our property portfolio accounted for less than 10% of our rental revenue for the fourth quarter of 2011. Nevertheless, downturns in these other industries could also adversely affect our tenants, which in turn could also have a material adverse effect on our financial position, results of operations and our ability to pay the principal of and interest on our debt securities and other indebtedness and to make distributions on our common and preferred stock.  In addition, we may in the future make additional investments in the “convenience stores” industry, which would increase this industry’s percentage of our rental revenues, thereby increasing the effect that such a downturn in this industry would have on us.

In addition, a substantial number of our properties are leased to middle-market retail and other commercial enterprises that generally have more limited financial and other resources than certain upper-market retail and other commercial enterprises, and therefore, they are more likely to be adversely affected by a downturn in their respective businesses or in the regional, national or international economy.

Furthermore, we have made and may continue to make selected acquisitions of properties that fall outside our historical focus on freestanding, single-tenant, net-lease retail locations in the United States. We may be exposed to a variety of new risks by expanding into new property types and/or new jurisdictions outside the United States and properties leased to tenants engaged in non-retail businesses. For example, our acquisitions in 2011 included distribution properties, office properties, and manufacturing properties leased to tenants in a range of non-retail businesses.  These risks may include a limited knowledge and understanding of the industry in which the tenant operates, limited experience in managing certain types of new properties, new types of real estate locations and lease structures, and the laws and culture of any non-U.S. jurisdiction.

As a property owner, we may be subject to unknown environmental liabilities.
Investments in real property can create a potential for environmental liability. An owner of property can face liability for environmental contamination created by the presence or discharge of hazardous substances on the property. We can face such liability regardless of:

  
Our knowledge of the contamination;
  
The timing of the contamination;
  
The cause of the contamination; or
  
The party responsible for the contamination of the property.

There may be environmental problems associated with our properties of which we are unaware. In that regard, a number of our properties are leased to operators of convenience stores that sell petroleum-based fuels, as well as to operators of oil change and tune-up facilities and operators that use chemicals and other waste products. These facilities, and some other of our properties, use, or may have used in the past, underground lifts or underground tanks for the storage of petroleum-based or waste products, which could create a potential for the release of hazardous substances.

 

 
-21-


The presence of hazardous substances on a property may adversely affect our ability to lease or sell that property and we may incur substantial remediation costs. Although our leases generally require our tenants to operate in compliance with all applicable federal, state and local environmental laws, ordinances and regulations, and to indemnify us against any environmental liabilities arising from the tenants’ activities on the property, we could nevertheless be subject to strict liability by virtue of our ownership interest. There also can be no assurance that our tenants could or would satisfy their indemnification obligations under their leases. The discovery of environmental liabilities attached to our properties could have an adverse effect on our results of operations, our financial condition or our ability to make distributions to stockholders and to pay the principal of and interest on our debt securities and other indebtedness.

In addition, several of our properties were built during the period when asbestos was commonly used in building construction and other buildings with asbestos may be acquired by us in the future. Environmental laws govern the presence, maintenance and removal of asbestos-containing materials, or ACMs, and require that owners or operators of buildings containing asbestos properly manage and maintain the asbestos, that they adequately inform or train those who may come into contact with asbestos and that they undertake special precautions, including removal or other abatement in the event that asbestos is disturbed during renovation or demolition of a building. These laws may impose fines and penalties on building owners or operators for failure to comply with these requirements and may allow third parties to seek recovery from owners or operators for personal injury associated with exposure to asbestos fibers.

It is also possible that some of our properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediation of the problem. When excessive moisture accumulates in buildings or on building materials, mold growth may occur, particularly if the moisture problem remains undiscovered or is not addressed over a period of time. Some molds may produce airborne toxins or irritants. Concern about indoor exposure to mold has been increasing, as exposure to mold may cause a variety of adverse health effects and symptoms, including allergic or other reactions. As a result, should our tenants or their employees or customers be exposed to mold at any of our properties we could be required to undertake a costly remediation program to contain or remove the mold from the affected property, which would reduce our cash available for distribution. In addition, exposure to mold by our tenants or others could expose us to liability if property damage or health concerns arise.

Compliance.  We have not been notified by any governmental authority, and are not otherwise aware, of any material noncompliance, liability or claim relating to hazardous substances, toxic substances, or petroleum products in connection with any of our present properties. In addition, we believe we are in compliance in all material respects with all present federal, state and local laws relating to ACMs. Nevertheless, if environmental contamination should exist, we could be subject to strict liability by virtue of our ownership interest.

Insurance and Indemnity.  In June 2005, we entered into a seven-year environmental insurance policy, or the June 2005 policy, which expires on June 1, 2012 on our property portfolio which replaced the previous five-year environmental insurance policy. The limits on our current policy are $10 million per occurrence, and $50 million in the aggregate, subject to a $40,000 self insurance retention, per occurrence, for properties with underground storage tanks and a $100,000 self insurance retention, per occurrence, for all other properties.

Additionally, in December 2009, we entered into a ten-year environmental insurance policy that expires in December 2019 that will initially act in an excess capacity to our June 2005 policy.  On June 1, 2012, this policy will become our primary environmental policy with the same limits as the June 2005 policy, except that once we pay a total of $1 million for self insurance retention, there will be a $50,000 per loss maintenance fee, rather than the $100,000 self insurance retention, per occurrence, for general environmental claims.

It is possible that our insurance could be insufficient to address any particular environmental situation and that, in the future, we could be unable to obtain insurance for environmental matters at a reasonable cost, or at all. Our tenants are generally responsible for, and indemnify us against, liabilities for environmental matters that occur on our properties.  For properties that have underground storage tanks, in addition to providing an indemnity in our favor, the tenants generally obtain environmental insurance or rely upon the state funds in the states where these properties are located to reimburse tenants for environmental remediation.
 

If we fail to qualify as a real estate investment trust, the amount of dividends we are able to pay would decrease, which could adversely affect the market price of our capital stock and could adversely affect the value of our debt securities.
Commencing with our taxable year ended December 31, 1994, we believe that we have been organized and have operated, and we intend to continue to operate, so as to qualify as a REIT under Sections 856 through 860 of the Code. However, we cannot assure you that we have been organized or have operated in a manner that has satisfied the requirements for qualification as a REIT, or that we will continue to be organized or operate in a manner that will allow us to continue to qualify as a REIT.

Qualification as a REIT involves the satisfaction of numerous requirements under highly technical and complex Code provisions, for which there are only limited judicial and administrative interpretations, as well as the determination of various factual matters and circumstances not entirely within our control.

For example, in order to qualify as a REIT, at least 95% of our gross income in each year must be derived from qualifying sources, and we must pay distributions to stockholders aggregating annually at least 90% of our REIT taxable income (as defined in the Code and determined without regard to the dividends paid deduction and by excluding net capital gains).

In the future, it is possible that legislation, new regulations, administrative interpretations or court decisions will change the tax laws with respect to qualification as a REIT, or the federal income tax consequences of such qualification.

If we fail to satisfy all of the requirements for qualification as a REIT, we may be subject to certain penalty taxes or, in some circumstances, we may fail to qualify as a REIT.  If we were to fail to qualify as a REIT in any taxable year:

  
We would be required to pay federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates;
  
We would not be allowed a deduction in computing our taxable income for amounts distributed to our stockholders;
  
We could be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost;
  
We would no longer be required to make distributions to stockholders; and
  
This treatment would substantially reduce amounts available for investment or distribution to stockholders because of the additional tax liability for the years involved, which could have a material adverse effect on the market price of our capital stock and the value of our debt securities.

Even if we qualify for and maintain our REIT status, we may be subject to certain federal, state and local taxes on our income and property. For example, if we have net income from a prohibited transaction, that income will be subject to a 100% tax. Our subsidiary, Crest, is subject to federal and state taxes at the applicable tax rates on its income and property.

Distributions requirements imposed by law limit our flexibility.
To maintain our status as a REIT for federal income tax purposes, we generally are required to distribute to our stockholders at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and by excluding net capital gains each year. We also are subject to tax at regular corporate rates to the extent that we distribute less than 100% of our REIT taxable income (including net capital gains) each year.

In addition, we are subject to a 4% nondeductible excise tax to the extent that we fail to distribute during any calendar year at least the sum of 85% of our ordinary income for that calendar year, 95% of our capital gain net income for the calendar year, and any amount of that income that was not distributed in prior years.

 

 
-23-


We intend to continue to make distributions to our stockholders to comply with the distribution requirements of the Code as well as to reduce our exposure to federal income taxes and the nondeductible excise tax. Differences in timing between the receipt of income and the payment of expenses to arrive at taxable income, along with the effect of required debt amortization payments, could require us to borrow funds on a short-term basis to meet the distribution requirements that are necessary to achieve the tax benefits associated with qualifying as a REIT.

Future issuances of equity securities could dilute the interest of holders of our common stock.
Our future growth will depend, in large part, upon our ability to raise additional capital. If we were to raise additional capital through the issuance of equity securities, we could dilute the interests of holders of our common stock. The interests of our common stockholders could also be diluted by the issuance of shares of common stock upon the exercise of outstanding options or pursuant to stock incentive plans. Likewise, our Board of Directors is authorized to cause us to issue preferred stock of any class or series (with dividend, voting and other rights as determined by the Board of Directors). Accordingly, the Board of Directors may authorize the issuance of preferred stock with voting, dividend and other similar rights that could dilute, or otherwise adversely affect, the interest of holders of our common stock.

We are subject to risks associated with debt and capital stock financing.
We intend to incur additional indebtedness in the future, including borrowings under our $425 million acquisition credit facility. At December 31, 2011, we had $237.4 million of outstanding borrowings under our acquisition credit facility, a total of $1.75 billion of outstanding unsecured senior debt securities and $67.8 million of outstanding mortgage debt. As a result of the issuance of our Class F preferred stock in February 2012, we paid off all outstanding credit facility borrowings on February 7, 2012. To the extent that new indebtedness is added to our current debt levels, the related risks that we now face would increase. As a result, we are and will be subject to risks associated with debt financing, including the risk that our cash flow could be insufficient to meet required payments on our debt. We also face variable interest rate risk as the interest rate on our acquisition credit facility is variable and could therefore increase over time.  We also face the risk that we may be unable to refinance or repay our debt as it comes due. Given past disruptions in the financial markets and the ongoing financial crisis in Europe (which relates primarily to concerns that certain European countries may be unable to repay their national debt), we also face the risk that one or more of the participants in our acquisition credit facility may not be able to lend us money.

In addition, our acquisition credit facility contains provisions that could limit or, in certain cases, prohibit the payment of distributions on our common stock and preferred stock.  In particular, our acquisition credit facility provides that, if an event of default (as defined in the credit facility) exists, neither we nor any of our subsidiaries may make any distributions on (except distributions payable in shares of a given class of our stock to the shareholders of that class), or repurchase or redeem, among other things, any shares of our common stock or preferred stock, during any period of four consecutive fiscal quarters in an aggregate amount in excess of the greater of:
 
  
The sum of (a) 95% of our adjusted funds from operations (as defined in the credit facility) for that period plus (b) the aggregate amount of cash distributions on our preferred stock for that period, and
  
The minimum amount of cash distributions required to be made to our shareholders in order to maintain our status as a REIT for federal income tax purposes,

except that we may repurchase or redeem preferred stock with the net proceeds from the issuance of our common stock or preferred stock. The acquisition credit facility further provides that, in the event of a failure to pay principal, interest or any other amount payable thereunder when due or upon the occurrence of certain events of bankruptcy, insolvency or reorganization with respect to us or with respect to any of our subsidiaries that has guaranteed amounts payable under the credit facility or that meets a significance test set forth in the credit facility, we and our subsidiaries may not pay any distributions on (except distributions payable in shares of a given class of our stock to the shareholders of that class), or repurchase or redeem, among other things, any shares of our common stock or preferred stock.  If any such event of default under our acquisition credit facility were to occur, it would likely have a material adverse effect on the market price of our outstanding common and preferred stock and on the market value of our debt securities, could limit the amount of distributions payable on our common stock and preferred stock or prevent us from paying those distributions altogether, and may adversely affect our ability to qualify, or prevent us from qualifying, as a REIT.

 

 
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Our indebtedness could also have other important consequences to holders of our common and preferred stock, including:

  
Increasing our vulnerability to general adverse economic and industry conditions;
  
Limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements;
  
Requiring the use of a substantial portion of our cash flow from operations for the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund working capital, acquisitions, capital expenditures and general corporate requirements;
  
Limiting our flexibility in planning for, or reacting to, changes in our business and our industry; and
  
Putting us at a disadvantage compared to our competitors with less indebtedness.

If we default under a mortgage loan, we will automatically be in default of any other loan that has cross-default provisions, and we may lose the properties securing these loans.

Our business operations may not generate the cash needed to make distributions on our capital stock or to service our indebtedness.
Our ability to make distributions on our common stock and preferred stock and payments on our indebtedness, and to fund planned acquisitions and capital expenditures will depend on our ability to generate cash in the future.  We cannot assure you that our business will generate sufficient cash flow from operations or that future borrowings will be available to us in an amount sufficient to enable us to make distributions on our common stock and preferred stock, to pay our indebtedness, or to fund our other liquidity needs.

The market value of our capital stock and debt securities could be substantially affected by various factors.
The market value of our capital stock and debt securities will depend on many factors, which may change from time to time, including:

  
Prevailing interest rates, increases in which may have an adverse effect on the market value of our capital stock and debt securities;
  
The market for similar securities issued by other REITs;
  
General economic and financial market conditions;
  
The financial condition, performance and prospects of us, our tenants and our competitors;
  
Changes in financial estimates or recommendations by securities analysts with respect to us, our competitors or our industry;
  
Changes in our credit ratings; and
  
Actual or anticipated variations in quarterly operating results of us and our competitors.

In addition, over the last several years, prices of common stock in the U.S. trading markets have been experiencing extreme price fluctuations, and the market price of our common stock has also fluctuated significantly during this period. As a result of these and other factors, investors who purchase our capital stock and debt securities may experience a decrease, which could be substantial and rapid, in the market value of our capital stock and debt securities, including decreases unrelated to our operating performance or prospects.

Real estate ownership is subject to particular economic conditions that may have a negative impact on our revenue.
We are subject to all of the inherent risks associated with the ownership of real estate.  In particular, we face the risk that rental revenue from our properties may be insufficient to cover all corporate operating expenses, debt service payments on indebtedness we incur and distributions on our capital stock. Additional real estate ownership risks include:

  
Adverse changes in general or local economic conditions;
  
Changes in supply of, or demand for, similar or competing properties;
  
Changes in interest rates and operating expenses;
  
Competition for tenants;
  
Changes in market rental rates;
 
 
  
Inability to lease properties upon termination of existing leases;
  
Renewal of leases at lower rental rates;
  
Inability to collect rents from tenants due to financial hardship, including bankruptcy;
  
Changes in tax, real estate, zoning and environmental laws that may have an adverse impact upon the value of real estate;
  
Uninsured property liability;
  
Property damage or casualty losses;
  
Unexpected expenditures for capital improvements or to bring properties into compliance with applicable federal, state and local laws;
  
The need to periodically renovate and repair our properties;
  
Physical or weather-related damage to properties;
  
The potential risk of functional obsolescence of properties over time;
  
Acts of terrorism and war; and
  
Acts of God and other factors beyond the control of our management.

An uninsured loss or a loss that exceeds the policy limits on our properties could subject us to lost capital or revenue on those properties.
Under the terms and conditions of the leases currently in force on our properties, tenants generally are required to indemnify and hold us harmless from liabilities resulting from injury to persons, air, water, land or property, due to activities conducted on the properties, except for claims arising from the negligence or intentional misconduct of us or our agents. Additionally, tenants are generally required, at the tenant's expense, to obtain and keep in full force during the term of the lease, liability and property damage insurance policies. The insurance policies our tenants are required to maintain for property damage are generally in amounts not less than the full replacement cost of the improvements less slab, foundations, supports and other customarily excluded improvements. Our tenants are generally required to maintain general liability coverage varying between $1,000,000 and $10,000,000 depending on the tenant and the industry in which the tenant operates.

In addition to the indemnities and required insurance policies identified above, many of our properties are also covered by flood and earthquake insurance policies (subject to substantial deductibles) obtained and paid for by the tenants as part of their risk management programs. Additionally, we have obtained blanket liability, flood and earthquake (subject to substantial deductibles) and property damage insurance policies to protect us and our properties against loss should the indemnities and insurance policies provided by the tenants fail to restore the properties to their condition prior to a loss. However, should a loss occur that is uninsured or in an amount exceeding the combined aggregate limits for the policies noted above, or in the event of a loss that is subject to a substantial deductible under an insurance policy, we could lose all or part of our capital invested in, and anticipated revenue from, one or more of the properties, which could have a material adverse effect on our results of operations or financial condition and on our ability to pay the principal of and interest on our debt securities and other indebtedness and to make distributions to our stockholders. Given the recent disruptions in the insurance industry, we also face the risk that our insurance carriers may not be able to provide payment under any potential claims that might arise under the terms of our insurance policies, and we may not have the ability to purchase insurance policies we desire.

 

 
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Compliance with the Americans with Disabilities Act of 1990 and fire, safety, and other regulations may require us to make unintended expenditures that could adversely impact our results of operations.
Our properties are generally required to comply with the Americans with Disabilities Act of 1990, or the ADA. The ADA has separate compliance requirements for "public accommodations" and "commercial facilities," but generally requires that buildings be made accessible to people with disabilities. Compliance with the ADA requirements could require removal of access barriers and non-compliance could result in imposition of fines by the U.S. government or an award of damages to private litigants. The retailers to whom we lease properties are obligated by law to comply with the ADA provisions, and we believe that these retailers may be obligated to cover costs associated with compliance. If required changes involve greater expenditures than anticipated, or if the changes must be made on a more accelerated basis than anticipated, the ability of these retailers to cover costs could be adversely affected and we could be required to expend our own funds to comply with the provisions of the ADA, which could materially adversely affect our results of operations or financial condition and our ability to pay the principal of and interest on our debt securities and other indebtedness and to make distributions to our stockholders. In addition, we are required to operate our properties in compliance with fire and safety regulations, building codes and other land use regulations, as they may be adopted by governmental agencies and bodies and become applicable to our properties. We may be required to make substantial capital expenditures to comply with those requirements and these expenditures could have a material adverse effect on our results of operations or financial condition and our ability to pay the principal of and interest on our debt securities and other indebtedness and to make distributions to our stockholders.

Property taxes may increase without notice.
The real property taxes on our properties and any other properties that we develop or acquire in the future may increase as property tax rates change and as those properties are assessed or reassessed by tax authorities.

We depend on key personnel.
We depend on the efforts of our executive officers and key employees. The loss of the services of our executive officers and key employees could have a material adverse effect on our results of operations or financial condition and on our ability to pay the principal and interest on our debt securities and other indebtedness and to make distributions to our stockholders. It is possible that we will not be able to recruit additional personnel with equivalent experience in the net-lease industry.

Terrorist attacks and other acts of violence or war may affect the value of our debt and equity securities, the markets in which we operate and our results of operations.
Terrorist attacks may negatively affect our operations, the market price of our capital stock and the value of our debt securities. There can be no assurance that there will not be further terrorist attacks against the United States or U.S. businesses. These attacks, or armed conflicts, may directly impact our physical facilities or the businesses of our tenants.

If events like these were to occur, they could cause consumer confidence and spending to decrease or result in increased volatility in the U.S. and worldwide financial markets and economy. They also could result in or prolong an economic recession in the U.S. or abroad. Any of these occurrences could have a significant adverse impact on our operating results and revenues and on the market price of our capital stock and on the value of our debt securities. It could also have an adverse effect on our ability to pay principal and interest on our debt securities or other indebtedness and to make distributions to our stockholders.

 

 
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Disruptions in the financial markets could affect our ability to obtain financing on reasonable terms and have other adverse effects on us and the market price of our common stock.
Over the last several years, the United States stock and credit markets have experienced significant price volatility, dislocations and liquidity disruptions, which have caused market prices of many stocks and debt securities to fluctuate substantially and the spreads on prospective debt financings to widen considerably. In addition, the ongoing financial crisis in Europe (which relates primarily to concerns that certain European countries may be unable to pay their national debt) has had a similar effect. These circumstances have materially impacted liquidity in the financial markets, making terms for certain financings less attractive, and in certain cases have resulted in the unavailability of certain types of financing. Unrest in certain Middle Eastern countries and resultant fluctuation in petroleum prices have added to the uncertainty in the capital markets.  Continued uncertainty in the stock and credit markets may negatively impact our ability to access additional financing at reasonable terms, which may negatively affect our ability to make acquisitions. A prolonged downturn in the stock or credit markets may cause us to seek alternative sources of potentially less attractive financing, and may require us to adjust our business plan accordingly. In addition, these factors may make it more difficult for us to sell properties or may adversely affect the price we receive for properties that we do sell, as prospective buyers may experience increased costs of financing or difficulties in obtaining financing. These events in the stock and credit markets may make it more difficult or costly for us to raise capital through the issuance of our common stock or preferred stock or debt securities. These disruptions in the financial markets also may have a material adverse effect on the market value of our common stock, preferred stock and debt securities, the income we receive from our properties and the lease rates we can charge for our properties, as well as other unknown adverse effects on us or the economy in general.

Inflation may adversely affect our financial condition and results of operations.
Although inflation has not materially impacted our results of operations in the recent past, increased inflation could have a more pronounced negative impact on any variable rate debt we incur in the future and on our results of operations. During times when inflation is greater than increases in rent, as provided for in our leases, rent increases may not keep up with the rate of inflation. Likewise, even though net leases reduce our exposure to rising property expenses due to inflation, substantial inflationary pressures and increased costs may have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue, which may adversely affect the tenants' ability to pay rent.

Current volatility in market and economic conditions may impact the accuracy of the various estimates used in the preparation of our financial statements and footnotes to the financial statements.
Various estimates are used in the preparation of our financial statements, including estimates related to asset and liability valuations (or potential impairments), and various receivables. Often these estimates require the use of market data values which are currently difficult to assess, as well as estimates of future performance or receivables collectability which can also be difficult to accurately predict. Although management believes it has been prudent and used reasonable judgment in making these estimates, it is possible that actual results may differ from these estimates.

Changes in accounting standards may adversely impact our financial condition and results of operations.
The SEC is currently considering whether issuers in the U.S. should be required to prepare financial statements in accordance with International Financial Reporting Standards, or IFRS, instead of U.S. generally accepted accounting principles, or GAAP.  IFRS is a comprehensive set of accounting standards promulgated by the International Accounting Standards Board, or IASB, which are rapidly gaining worldwide acceptance.  If the SEC decides to require IFRS, it expects that U.S. issuers would first report under the new standards beginning in approximately 2015 or 2016, although the timeframe has not been finalized.  Additionally, the Financial Accounting Standards Board, or FASB, is considering various changes to GAAP, some of which may be significant, as part of a joint effort with the IASB to converge accounting standards.  Although the FASB and IASB currently have a project on their agenda to examine the accounting for leases, the project may not result in the issuance of a final standard or a standard that would be comparable to current GAAP.  If IFRS is adopted, the potential issues associated with lease accounting, along with other potential changes associated with the adoption or convergence with IFRS, may adversely impact our financial condition and results of operations. 

 

 
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Item 1B:        Unresolved Staff comments

There are no unresolved staff comments.

Item 2:          Properties

Information pertaining to our properties can be found under Item 1.

Item 3:          Legal Proceedings

We are subject to certain claims and lawsuits in the ordinary course of business, the outcome of which cannot be determined at this time. In the opinion of management, any liability we might incur upon the resolution of these claims and lawsuits will not, in the aggregate, have a material adverse effect on our consolidated financial position or results of operations.

Item 4:          (Removed and Reserved)

PART II

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
 
A.  Our common stock is traded on the NYSE under the ticker symbol “O.” The following table shows the high and low sales prices per share for our common stock as reported by the NYSE, and distributions declared per share of common stock for the periods indicated.
 
   
Price Per Share
       
   
of Common Stock
   
Distributions
 
   
High
   
Low
   
Declared(1)
 
2011
                 
First quarter
  $ 36.12     $ 33.40     $ 0.4330625  
Second quarter
    36.35       32.19       0.4340000  
Third quarter
    35.03       27.95       0.4349375  
Fourth quarter
    35.76       29.79       0.4358750  
Total
                  $ 1.7378750  
2010
                       
First quarter
  $ 31.18     $ 25.30     $ 0.4293125  
Second quarter
    34.53       28.42       0.4302500  
Third quarter
    34.79       29.12       0.4311875  
Fourth quarter
    35.97       32.92       0.4321250  
Total
                  $ 1.7228750  
 
 
 (1) Common stock cash distributions currently are declared monthly by us based on financial results for the prior months.  At December 31, 2011, a distribution of $0.1455 per common share had been declared and was paid in January 2012.

There were 8,288 registered holders of record of our common stock as of December 31, 2011. We estimate that our total number of shareholders is just over 100,000 when we include both registered and beneficial holders of our common stock.

During the fourth quarter of 2011, no shares of stock were withheld for state and federal payroll taxes on the vesting of stock awards, as permitted under the 2003 Incentive Award Plan of Realty Income Corporation.

 

 
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Item 6:         Selected Financial Data
 
(not covered by Report of Independent Registered Public Accounting Firm)
 
(dollars in thousands, except for per share data)
 
As of or for the years ended December 31,
 
2011
   
2010
   
2009
   
2008
   
2007
 
Total assets (book value)
  $ 4,419,389     $ 3,535,590     $ 2,914,787     $ 2,994,179     $ 3,077,352  
Cash and cash equivalents
    4,165       17,607       10,026       46,815       193,101  
Total debt
    2,055,181       1,600,000       1,354,600       1,370,000       1,470,000  
Total liabilities
    2,164,535       1,688,625       1,426,778       1,439,518       1,539,260  
Total stockholders’ equity
    2,254,854       1,846,965       1,488,009       1,554,661       1,538,092  
Net cash provided by operating activities
    298,952       243,368       226,707       246,155       318,169  
Net change in cash and cash equivalents
    (13,442 )     7,581       (36,789 )     (146,286 )     182,528  
Total revenue
    421,059       343,492       322,550       322,211       286,050  
Income from continuing operations
    151,137       120,734       118,855       108,181       119,872  
Income from discontinued operations
    5,895       10,050       12,272       23,660       20,537  
Net income
    157,032       130,784       131,127       131,841       140,409  
Preferred stock cash dividends
    (24,253 )     (24,253 )     (24,253 )     (24,253 )     (24,253 )
Net income available to common stockholders
     132,779        106,531        106,874        107,588        116,156  
Cash distributions paid to common stockholders
     219,297        182,500        178,008        169,655        157,659  
Basic and diluted net income per common share
    1.05       1.01       1.03       1.06       1.16  
Cash distributions paid per common share
    1.736625       1.721625       1.706625       1.662250       1.560250  
Cash distributions declared per common share
     1.737875        1.722875        1.707875        1.667250        1.570500  
Basic weighted average number of common shares outstanding
     126,142,696        105,869,637        103,577,507        101,178,191        100,195,031  
Diluted weighted average number of common shares outstanding
     126,189,399        105,942,721        103,581,053        101,209,883        100,333,966  


Item 7:         Management’s Discussion and Analysis of Financial Condition and Results of Operations

GENERAL

Realty Income Corporation, The Monthly Dividend Company®, is a Maryland corporation organized to operate as an equity real estate investment trust, or REIT. Our primary business objective is to generate dependable monthly cash distributions from a consistent and predictable level of funds from operations, or FFO, per share.  Our monthly distributions are supported by the cash flow from our portfolio of properties leased to retail and other commercial enterprises. We have in-house acquisition, leasing, legal, credit research, real estate research, portfolio management and capital markets expertise. Over the past 43 years, Realty Income and its predecessors have been acquiring and owning freestanding retail and other properties that generate rental revenue under long-term lease agreements (primarily 10 to 20 years).

In addition, we seek to increase distributions to stockholders and FFO per share through both active portfolio management and the acquisition of additional properties.

At December 31, 2011, we owned a diversified portfolio:

  
Of 2,634 properties;
  
With an occupancy rate of 96.7%, or 2,547 properties leased and only 87 properties available for lease;
  
Leased to 136 different retail and other commercial enterprises doing business in 38 separate industries;
  
Located in 49 states;
  
With over 27.3 million square feet of leasable space; and
  
With an average leasable space per property of approximately 10,400 square feet.

Of the 2,634 properties in the portfolio, 2,619, or 99.4%, are single-tenant properties, and the remaining 15 are multi-tenant properties. At December 31, 2011, of the 2,619 single-tenant properties, 2,533 were leased with a weighted average remaining lease term (excluding rights to extend a lease at the option of the tenant) of approximately 11.3 years.
 
LIQUIDITY AND CAPITAL RESOURCES

Capital Philosophy
Historically, we have met our long-term capital needs by issuing common stock, preferred stock and long-term unsecured notes and bonds. Over the long term, we believe that common stock should be the majority of our capital structure. However, we may issue additional preferred stock or debt securities from time to time. We may issue common stock when we believe that our share price is at a level that allows for the proceeds of any offering to be accretively invested into additional properties. In addition, we may issue common stock to permanently finance properties that were financed by our credit facility or debt securities. However, we cannot assure you that we will have access to the capital markets at times and at terms that are acceptable to us.

Our primary cash obligations, for the current year and subsequent years, are included in the “Table of Obligations,” which is presented later in this section. We expect to fund our operating expenses and other short-term liquidity requirements, including property acquisitions and development costs, payment of principal and interest on our outstanding indebtedness, property improvements, re-leasing costs and cash distributions to common and preferred stockholders, primarily through cash provided by operating activities, borrowing on our $425 million credit facility and occasionally through public securities offerings.
 
Conservative Capital Structure
We believe that our stockholders are best served by a conservative capital structure. Therefore, we seek to maintain a conservative debt level on our balance sheet and solid interest and fixed charge coverage ratios. At December 31, 2011, our total outstanding borrowings of senior unsecured notes and bonds, mortgages payable and credit facility borrowings were $2.06 billion, or approximately 29.1% of our total market capitalization of $7.06 billion.

 

 
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We define our total market capitalization at December 31, 2011 as the sum of:
 
  
Shares of our common stock outstanding of 133,223,338 multiplied by the last reported sales price of our common stock on the NYSE of $34.96 per share on December 31, 2011, or $4.66 billion;
  
Aggregate liquidation value (par value of $25 per share) of the Class D preferred stock of $127.5 million;
  
Aggregate liquidation value (par value of $25 per share) of the Class E preferred stock of $220 million;
  
Outstanding mortgages payable of $67.8 million;
  
Outstanding borrowings of $237.4 million on our credit facility; and
  
Outstanding senior unsecured notes and bonds of $1.75 billion.

Mortgage Debt
As of December 31, 2011, we have $67.2 million of mortgages payable to third-party lenders that were assumed in 2011, in connection with our property acquisitions.  We paid $279,000 in principal payments on these mortgages payable during 2011.  Additionally, net premiums totaling $820,000, in aggregate, were recorded upon assumption of the mortgages payable at the time of the respective property acquisitions to account for above-market interest rates. We recorded amortization of $189,000 related to these net premiums during 2011.

Our mortgages payable are secured by the properties on which the debt was placed and are non-recourse. We expect to pay off the mortgages payable as soon as prepayment penalties and costs make it economically feasible to do so. We intend to continue our policy of primarily identifying property acquisitions that are free from mortgage indebtedness.

$425 Million Acquisition Credit Facility
We have a $425 million unsecured, revolving credit facility. The initial term of the credit facility expires in March 2014 and includes two, one-year extension options. Under the credit facility, the current investment grade credit ratings on our debt securities provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR. The borrowing rate is not subject to an interest rate floor or ceiling.  We also have other interest rate options available to us under the credit facility. At December 31, 2011, we had a borrowing capacity of $187.6 million available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $237.4 million. As a result of the issuance of our Class F preferred stock in February 2012, we paid off all outstanding credit facility borrowings on February 7, 2012. The interest rate on borrowings outstanding under our credit facility at December 31, 2011 was 2.1% per annum. We must comply with various financial and other covenants in our credit facility. At December 31, 2011, we remain in compliance with these covenants.

We expect to use our credit facility to acquire additional properties and for other corporate purposes. Any additional borrowings will increase our exposure to interest rate risk. We have the right to request an increase in the borrowing capacity of the credit facility, up to $200 million, to a total borrowing capacity of $625 million.  Any increase in the borrowing capacity is subject to approval by the lending banks participating in our credit facility.

Cash Reserves
We are organized to operate as an equity REIT that acquires and leases properties and distributes to stockholders, in the form of monthly cash distributions, a substantial portion of our net cash flow generated from leases on our properties. We intend to retain an appropriate amount of cash as working capital. At December 31, 2011, we had cash and cash equivalents totaling $4.2 million.

We believe that our cash and cash equivalents on hand, cash provided from operating activities, and borrowing capacity is sufficient to meet our liquidity needs for the foreseeable future. We intend, however, to use additional sources of capital to fund property acquisitions and to repay future borrowings under our credit facility.

 
Acquisitions During 2011
During 2011, we invested $1.02 billion in 164 new properties, and properties under development, with an initial weighted average contractual lease rate of 7.8%. The majority of the lease revenue from these properties will be generated from tenants that have investment grade ratings on their senior debt securities. These 164 new properties, and properties under development, are located in 26 states, contain over 6.2 million leasable square feet, and are 100% leased with an average lease term of 13.4 years.

The initial weighted average contractual lease rate is computed as estimated contractual net operating income (in a net-leased property that is equal to the aggregate base rent or, in the case of a property under development, the estimated base rent) for the first year of each lease, divided by the estimated total cost of the properties. Since it is possible that a tenant could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above.

Included in the $1.02 billion invested during 2011 are:
 
(1)  
The acquisition of 33 single-tenant retail, distribution, office and manufacturing properties for approximately $543.8 million, under long-term, net lease agreements.
(2)  
The acquisition of 60 properties operating in the restaurant - quick service industry for $41.9 million, under long-term, net lease agreements.
(3)  
The acquisition of six properties operating in the wholesale clubs industry for $156.1 million, under long-term, net lease agreements.
(4)  
The acquisition of 36 properties operating in the grocery store industry for $151.4 million under long-term, net lease agreements.
(5)  
The acquisition of nine properties operating in the health and fitness industry for $63.2 million, under long-term, net lease agreements.
(6)  
The remaining 20 properties acquired totaled approximately $59.8 million.

Portfolio Discussion

Leasing Results
At December 31, 2011, we had 87 properties available for lease out of 2,634 properties in our portfolio, which represents a 96.7% occupancy rate.  Since December 31, 2010, when we reported 84 properties available for lease and a 96.6% occupancy rate, we:

  
Leased 37 properties;
  
Sold 21 properties available for lease; and
  
Have 61 new properties available for lease.

During 2011, 89 properties with expiring leases were leased to either existing or new tenants.  The rent on these leases was $9.6 million, as compared to the previous rent on these same properties of $10.4 million.  At December 31, 2011, our average annualized rental revenue per square foot was approximately $17.06.

Investments in Existing Properties
In 2011, we capitalized costs of $4.2 million on existing properties in our portfolio, consisting of $1.7 million for re-leasing costs and $2.5 million for building and tenant improvements.  In 2010, we capitalized costs of $3.6 million on existing properties in our portfolio, consisting of $1.5 million for re-leasing costs and $2.1 million for building improvements.

As part of our re-leasing costs, we pay leasing commissions and sometimes provide tenant rent concessions.  Leasing commissions are paid based on the commercial real estate industry standard and any rent concessions provided are minimal.  We do not consider the collective impact of the leasing commissions or tenant rent concessions to be material to our financial position or results of operations.

 

 
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The majority of our building and tenant improvements are related to roof repairs, HVAC improvements, and parking lot resurfacing and replacements.  It is not customary for us to offer significant tenant improvements on our properties as tenant incentives.  The amounts of our capital expenditures can vary significantly, depending on the rental market, credit worthiness, and the willingness of tenants to pay higher rents over the terms of the leases.

Impact of Real Estate and Credit Markets
In the commercial real estate market, property prices generally continue to fluctuate. Likewise, the U.S. credit markets have experienced significant price volatility, dislocations and liquidity disruptions, which may impact our access to and cost of capital. We continue to monitor the commercial real estate and U.S. credit markets carefully and, if required, will make decisions to adjust our business strategy accordingly. See our discussion of "Risk Factors" in this annual report.

Increases in Monthly Distributions to Common Stockholders
We continue our 43-year policy of paying distributions monthly. Monthly distributions per common share increased $0.0003125 in April 2011 to $0.1445625, in July 2011 to $0.144875, in October 2011 to $0.1451875 and in January 2012 to $0.1455. The increase in January 2012 was our 57th consecutive quarterly increase and the 64th increase in the amount of our dividend since our listing on the NYSE in 1994. In 2011, we paid three monthly cash distributions per common share in the amount of $0.14425, three in the amount of $0.1445625, three in the amount of $0.144875 and three in the amount of $0.1451875, totaling $1.736625. In December 2011, January 2012 and February 2012, we declared distributions of $0.1455 per share, which were paid in January 2012 and will be paid in February 2012 and March 2012, respectively.

The current monthly distribution of $0.1455 per share represents an annualized distribution of $1.746 per share, and an annualized distribution yield of approximately 5.0% based on the last reported sale price of our common stock on the NYSE of $34.96 on December 31, 2011. Although we expect to continue our policy of paying monthly distributions, we cannot guarantee that we will maintain our current level of distributions, that we will continue our pattern of increasing distributions per share, or what our actual distribution yield will be in any future period.

Issuance of Preferred Stock
In February 2012, we issued 14.95 million shares of 6.625% Monthly Income Class F cumulative redeemable preferred stock, including 1.95 million shares purchased by the underwriters upon the exercise of their overallotment option. The net proceeds of approximately $361.7 million from this issuance will be used to redeem the outstanding Class D preferred stock, repay borrowings under our acquisition credit facility and for other general corporate purposes.  Beginning February 15, 2017, the Class F preferred shares are redeemable at our option for $25.00 per share. The initial dividend of $0.1702257 will be paid on March 15, 2012, and will cover 37 days.  Thereafter, dividends of $0.1380208 per share will be paid monthly.

Redemption of Preferred Stock
In January 2012, we announced that we plan to redeem our outstanding Class D preferred stock on March 1, 2012.  We will redeem the Class D preferred stock at $25.00 per share, plus accrued dividends.

Issuance of Common Stock
In September 2011, we issued 6,300,000 shares of common stock at a price of $34.00 per share.  After underwriting discounts and other offering costs of $10.6 million, the net proceeds of $203.6 million were used to repay borrowings under our acquisition credit facility, which were used to fund recent acquisitions.

In March 2011, we issued 8,625,000 shares of common stock at a price of $34.81 per share.  After underwriting discounts and offering costs of $14.6 million, the net proceeds of $285.6 million were used to fund property acquisitions.

In December 2010, we issued 7,360,000 shares of common stock at a price of $33.70 per share.  The net proceeds of approximately $235.7 million were used to repay borrowings of $179.8 million under our acquisition credit facility and to fund property acquisitions.  The remaining net proceeds were used for general corporate purposes and working capital.

 
In September 2010, we issued 6,198,500 shares of common stock at a price of $33.40 per share. The net proceeds of approximately $196.9 million were used to repay borrowings of $49.7 million under our acquisition credit facility and to fund $126.5 million of property acquisitions.  The remaining net proceeds were used for general corporate purposes and working capital.

Re-opening of Unsecured Bonds due 2035
In June 2011, we “re-opened” our 5.875% senior unsecured bonds due 2035, or the 2035 Bonds, and issued $150 million in aggregate principal amount of additional 2035 Bonds.  The public offering price for the additional 2035 Bonds was 94.578% of the principal amount for an effective yield of 6.318% per annum.  Those 2035 Bonds constituted an additional issuance of, and a single series with, the $100 million in aggregate principal amount of 2035 Bonds that we issued in March 2005.  The net proceeds of $140.1 million were used to fund property acquisitions.

Note Issuance
In June 2010, we issued $250.0 million in aggregate principal amount of 5.75% senior unsecured notes due January 2021, or the 2021 Notes.  The public offering price for the 2021 Notes was 99.404% of the principal amount for an effective yield of 5.826% per annum.  The net proceeds of $246.1 million from this offering were used to repay borrowings under our acquisition credit facility, which were incurred to finance the acquisition of our properties.

Dividend Reinvestment and Stock Purchase Plan
In March 2011, we established a Dividend Reinvestment and Stock Purchase Plan, or The Plan, to provide our common shareholders, as well as new investors, with a convenient and economical method to purchase our common stock and/or reinvest their distributions.  The Plan authorizes up to 6,000,000 common shares to be issued.  Through December 31, 2011, we issued 59,605 shares and received net proceeds of approximately $1.9 million under The Plan.

Universal Shelf Registration
In March 2009, we filed a shelf registration statement with the SEC, which expires in March 2012. In accordance with the SEC rules, the amount of securities to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit. The securities covered by this registration statement include common stock, preferred stock, debt securities, or any combination of these securities. We may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering. Our plan is to file a new shelf registration statement prior to the expiration of our existing shelf registration.

Credit Agency Ratings
The borrowing rates under our credit facility are based upon our credit ratings.  We are currently assigned the following investment grade corporate credit ratings on our senior unsecured notes and bonds: Fitch Ratings has assigned a rating of BBB+, Moody’s Investors Service has assigned a rating of Baa1 and Standard & Poor’s Ratings Group has assigned a rating of BBB to our senior notes. All of these ratings have "stable" outlooks.

Based on our current ratings, the current facility interest rate is LIBOR plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR.  The credit facility provides that the interest rate can range between: (i) LIBOR plus 300 basis points if our credit facility is lower than BBB-/Baa3 and (ii) LIBOR plus 175 basis points if our credit rating is A-/A3 or higher.

In addition, our credit facility provides for a facility commitment fee based on our credit ratings, which ranges from: (i) 50 basis points for a rating lower than BBB-/Baa3, and (ii) 30 basis points for a credit rating of A-/A3 or higher.

We also issue senior debt securities from time to time and our credit ratings can impact the interest rates charged in those transactions.  If our credit ratings or ratings outlook change, our cost to obtain debt financing could increase or decrease.
 
 
The credit ratings assigned to us could change based upon, among other things, our results of operations and financial condition. These ratings are subject to ongoing evaluation by credit rating agencies and we cannot assure you that our ratings will not be changed or withdrawn by a rating agency in the future if, in its judgment, circumstances warrant. Moreover, a rating is not a recommendation to buy, sell or hold our debt securities, preferred stock or common stock.

Notes Outstanding
Our senior unsecured note and bond obligations consist of the following as of December 31, 2011, sorted by maturity date (dollars in millions):
       
   5.375% notes, issued in March 2003 and due in March 2013
  $ 100  
   5.5% notes, issued in November 2003 and due in November 2015
    150  
   5.95% notes, issued in September 2006 and due in September 2016
    275  
   5.375% notes, issued in September 2005 and due in September 2017
    175  
   6.75% notes, issued in September 2007 and due in August 2019
    550  
   5.75% notes, issued in June 2010 and due in January 2021
    250  
   5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035
     250  
    $ 1,750  

All of our outstanding notes and bonds have fixed interest rates. Interest on all of our senior note and bond obligations is paid semiannually. All of these notes and bonds contain various covenants, including: (i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of our outstanding unsecured debt. At December 31, 2011, we remain in compliance with these covenants.

The following is a summary of the key financial covenants for our senior unsecured notes, as defined and calculated per the terms of our notes. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show our ability to incur additional debt under the terms of our notes only and are not measures of our liquidity or performance.  The actual amounts as of December 31, 2011 are:

Note Covenants
Required
 
Actual
 
Limitation on incurrence of total debt
≤ 60% of adjusted assets
    40.7 %
Limitation on incurrence of secured debt
≤ 40% of adjusted assets
    1.3 %
Debt service coverage (trailing 12 months)
≥ 1.5 x
    3.6 x
Maintenance of total unencumbered assets
≥ 150% of unsecured debt
    247.0 %

 

 
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The following table summarizes the maturity of each of our obligations as of December 31, 2011 (dollars in millions):

Table of Obligations
                                           
                           
Ground
   
Ground
             
                           
Leases
   
Leases
             
 
Year of
 
Credit
   
Notes and
   
Mortgages
         
Paid by
Realty
   
Paid by
Our
             
Maturity
 
Facility(1)
   
Bonds
   
Payable(2)
   
Interest (3)
   
Income(4)
   
Tenants(5)
   
Other (6)
   
Totals
 
2012
  $ --     $ --     $ 11.3     $ 114.3     $ 0.2     $ 4.1     $ 16.9     $ 146.8  
2013
    --       100.0       20.9       109.8       0.2       4.0       --       234.9  
2014
    237.4       --       11.4       103.2       0.2       3.8       --       356.0  
2015
    --       150.0       23.6       123.4       0.2       3.7       --       300.9  
2016
    --       275.0       --       87.2       0.2       3.7       --       366.1  
Thereafter
    --       1,225.0       --       429.3       0.4       49.0       --       1,703.7  
Totals
  $ 237.4     $ 1,750.0     $ 67.2     $ 967.2     $ 1.4     $ 68.3     $ 16.9     $ 3,108.4  
 
 
(1) The initial term of the credit facility expires in March 2014 and includes two, one-year extension options.
 
(2) Excludes net premiums of $820,000 recorded on the mortgages payable.
 
(3) Interest on the credit facility, notes, bonds and mortgages payable has been calculated based on outstanding balances as of December 31, 2011 through their respective maturity dates.
 
(4) Realty Income currently pays the ground lessors directly for the rent under the ground leases.
 
(5) Our tenants, who are generally sub-tenants under ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible.
 
(6) “Other” consists of $16.2 million of commitments under construction contracts and $621,000 of contingent payments for tenant improvements and leasing costs.

Our credit facility and notes payable obligations are unsecured. Accordingly, we have not pledged any assets as collateral for these obligations.  Our mortgages payable are secured by the properties on which the debt was placed and are non-recourse.

Preferred Stock Outstanding
In 2004, we issued 5.1 million shares of 7.375% Class D cumulative redeemable preferred stock. On May 27, 2009, shares of Class D preferred stock became redeemable at our option for $25 per share, plus any accrued and unpaid dividends. Dividends on shares of Class D preferred stock are paid monthly in arrears. On January 31, 2012, we announced that the Class D preferred stock would be redeemed on March 1, 2012.

In 2006, we issued 8.8 million shares of 6.75% Class E cumulative redeemable preferred stock. Beginning December 7, 2011, shares of Class E preferred stock are redeemable at our option for $25 per share, plus any accrued and unpaid dividends. Dividends on shares of Class E preferred stock are paid monthly in arrears.

In February 2012, we issued 14.95 million shares of 6.625% Class F cumulative redeemable preferred stock, including 1.95 million shares purchased by the underwriters upon the exercise of their overallotment option.  Beginning February 15, 2017, shares of Class F preferred stock are redeemable at our option for $25 per share, plus any accrued and unpaid dividends. The initial dividend for the Class F preferred stock will be paid on March 15, 2012.  Dividends on shares of Class F preferred stock will be paid monthly in arrears.

We are current in our obligations to pay dividends on our Class D and Class E preferred stock.  The initial dividend on shares of Class F preferred stock will be paid on March 15, 2012.

No Off-Balance Sheet Arrangements or Unconsolidated Investments
We have no unconsolidated or off-balance sheet investments in "variable interest entities" or off-balance sheet financing, nor do we engage in trading activities involving energy or commodity contracts or other derivative instruments. Additionally, we have no joint ventures or mandatorily redeemable preferred stock. As such, our financial position and results of operations are not affected by accounting regulations regarding the consolidation of off-balance sheet entities and classification of financial instruments with characteristics of both liabilities and equity.

 

 
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Matters Pertaining To Certain Tenants
In January 2012, Friendly Ice Cream Corporation, or Friendly’s, one of our tenants, announced that it was emerging from voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code (which they had filed for in October 2011). Pursuant to the bankruptcy proceedings, Friendly’s accepted 102 of their 121 leases with us.  Friendly’s rejected 19 leases with us, representing approximately $1.8 million of annualized rent, and received rent concessions and term reductions on some of their accepted leases with us.  Overall, post-bankruptcy, we estimate that we will recover approximately 80% of the $16.1 million of annualized rent that Friendly’s was paying the Company before the bankruptcy filing.

Additionally, in January 2012, Buffets Holding, Inc., or Buffets, another one of our tenants, filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.  Buffets leases 86 properties from us that, as of December 31, 2011, represented approximately $18.2 million, or approximately 3.9% of our annualized rental revenue.  Buffets rejected the leases on seven of our 86 properties, representing approximately $1.8 million of annualized rent.  Additionally, we have reached a preliminary agreement (subject to bankruptcy court approval) with Buffets regarding rent concessions and term reductions on some of Buffets’ other leases with us. Overall, post-bankruptcy, we estimate that we will recover approximately 65% of the $18.2 million of annualized rent that Buffets was paying us before the bankruptcy filing.  Friendly’s and Buffets both operate casual dining restaurants.
 
For both Friendly’s and Buffets, any properties returned to us are immediately available for re-lease to other tenants. We believe that demand in the market for the rejected properties will allow us to find suitable replacement tenants within the next 18 months. However, there can be no assurance that we will be successful in finding replacement tenants for these properties within this timeframe, or at all, or that Friendly’s or Buffets will continue to pay rent for the remainder of the lease terms on their accepted leases.

In addition, we have recently concluded an analysis of our portfolio and have identified other tenants, whose leases represented approximately 2% to 3% of our total annualized rent as of December 31, 2011, that we believe may make similar bankruptcy filings in 2012. However, the foregoing percentages are estimates and are subject to numerous assumptions and uncertainties and the actual percentage of annualized rent represented by other tenants who make bankruptcy filings during 2012 may be different.

RESULTS OF OPERATIONS

Critical Accounting Policies
Our consolidated financial statements have been prepared in accordance with generally accepted accounting principles, or GAAP, and are the basis for our discussion and analysis of financial condition and results of operations. Preparing our consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements. We believe that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. This summary should be read in conjunction with the more complete discussion of our accounting policies and procedures included in note 2 to our consolidated financial statements.

In order to prepare our consolidated financial statements according to the rules and guidelines set forth by GAAP, many subjective judgments must be made with regard to critical accounting policies. One of these judgments is our estimate for useful lives in determining depreciation expense for our properties. Depreciation on a majority of our buildings and improvements is computed using the straight–line method over an estimated useful life of 25 years. If we use a shorter or longer estimated useful life, it could have a material impact on our results of operations. We believe that 25 years is an appropriate estimate of useful life.

When acquiring a property for investment purposes, we allocate the fair value of real estate acquired to: 1) land and 2) building and improvements, based in each case on their estimated fair values. In addition, any assumed mortgages payable are recorded at their estimated fair values.

 
For properties acquired with in-place operating leases, we allocate the fair value of real estate to: (1) land, (2) building and improvements, and (3) identified intangible assets and liabilities, based in each case on their estimated fair values. Intangible assets and liabilities consist of above-market and below-market leases, the value of in-place leases and tenant relationships, as applicable.

Another significant judgment must be made as to if, and when, impairment losses should be taken on our properties when events or a change in circumstances indicate that the carrying amount of the asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key inputs that we estimate in this analysis include projected rental rates, estimated holding periods, capital expenditures, and property sales capitalization rates. If a property is held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell. The carrying value of our real estate is the largest component of our consolidated balance sheet. Our strategy of primarily holding properties, long-term, directly decreases the likelihood of their carrying values not being recoverable, thus requiring the recognition of an impairment. However, if our strategy, or one or more of the above assumptions were to change in the future, an impairment may need to be recognized. If events should occur that require us to reduce the carrying value of our real estate by recording provisions for impairment, it could have a material impact on our results of operations.

The following is a comparison of our results of operations for the years ended December 31, 2011, 2010 and 2009.

Rental Revenue
Rental revenue was $419.4 million for 2011 versus $342.8 million for 2010, an increase of $76.6 million, or 22.3%. Rental revenue was $321.7 million in 2009. The increase in rental revenue in 2011 compared to 2010 is primarily attributable to:
 
  
The 164 properties (6.2 million square feet) acquired by Realty Income in 2011, which generated $31.5 million of rent in 2011;
  
The 186 properties (2.3 million square feet) acquired by Realty Income in 2010, which generated $56.16 million of rent in 2011 compared to $15.94 million in 2010, an increase of $40.2 million;
  
Same store rents generated on 2,116 properties (16.5 million square feet) during the entire years of 2011 and 2010, increased by $4.3 million, or 1.3%, to $319.86 million from $315.61 million;
  
A  net increase of $681,000 relating to the aggregate of (i) rental revenue from 151 properties (1.3 million square feet) that were available for lease during part of 2011 or 2010, (ii) rental revenue related to 54 properties sold during 2011 and 2010, and (iii) lease termination settlements which, in aggregate, totaled $10.33 million in 2011 compared to $9.65 million in 2010; and
  
A net decrease in straight-line rent and other non-cash adjustments to rent of $7,000 in 2011 as compared to 2010.

For purposes of determining the same store rent property pool, we include all properties that were owned for the entire year-to-date period, for both the current and prior year except for properties during the current or prior year that; (i) were available for lease at any time, (ii) were under development, (iii) we have made an additional investment, (iv) were involved in eminent domain and rent was reduced and (v) were re-leased with rent-free periods.  Each of the exclusions from the same store pool is separately addressed within the applicable sentences above explaining the changes in rental revenue for the period.

Of the 2,634 properties in the portfolio at December 31, 2011, 2,619, or 99.4%, are single-tenant properties and the remaining 15 are multi-tenant properties. Of the 2,619 single-tenant properties, 2,533, or 96.7%, were net leased with a weighted average remaining lease term (excluding rights to extend a lease at the option of the tenant) of approximately 11.3 years at December 31, 2011. Of our 2,533 leased single-tenant properties, 2,341 or 92.4% were under leases that provide for increases in rents through:
 
  
Primarily base rent increases tied to a consumer price index (typically subject to ceilings);
  
Percentage rent based on a percentage of the tenants' gross sales;
  
Fixed increases; or
  
A combination of two or more of the above rent provisions.

 
Percentage rent, which is included in rental revenue, was $1.4 million in 2011, $1.3 million in 2010 and $1.3 million in 2009 (excluding percentage rent reclassified to discontinued operations of $17,000 in 2011, $55,000 in 2010 and $112,000 in 2009). Percentage rent in 2011 was less than 1% of rental revenue and we anticipate percentage rent to be less than 1% of rental revenue in 2012.

Our portfolio of real estate, leased primarily to regional and national commercial enterprises under net leases, continues to perform well and provides dependable lease revenue supporting the payment of monthly dividends to our stockholders.  At December 31, 2011, our portfolio of 2,634 properties was 96.7% leased with 87 properties available for lease as compared to 84 at December 31, 2010. It has been our experience that approximately 2% to 4% of our property portfolio will be unleased at any given time; however, it is possible that the number of properties available for lease could exceed these levels in the future.

Depreciation and Amortization
Depreciation and amortization was $121.8 million in 2011 versus $94.9 million in 2010 and $89.9 million in 2009. The increases in depreciation and amortization in 2011 and 2010 were primarily due to the acquisition of properties in 2011 and 2010, which was partially offset by property sales in those same years.  As discussed in the section entitled "Funds from Operations Available to Common Stockholders," depreciation and amortization is a non-cash item that is added back to net income available to common stockholders for our calculation of FFO and AFFO.

Interest Expense
Interest expense was $108.3 million in 2011 versus $93.2 million in 2010 and $85.5 million in 2009. The increase in interest expense from 2010 to 2011 was primarily due to an increase in borrowings attributable to the issuance of our $250 million of 5.75% senior unsecured notes in June 2010, the $150 million re-opening of our 5.875% senior unsecured bonds due 2035 in June 2011 and higher credit facility commitment fees and origination costs as a result of our $425 million acquisition credit facility, which was entered into in December 2010.

As a result of entering into our current credit facility, we incurred credit facility origination costs of $4.2 million that were classified as part of other assets on our consolidated balance sheet at December 31, 2010. At December 31, 2011, the balance of these credit facility origination costs was $3.1 million, which is being amortized over the remaining term of the credit facility.

The following is a summary of the components of our interest expense (dollars in thousands):
   
2011
   
2010
   
2009
 
Interest on our credit facility, notes, bonds and mortgages
  $ 104,452     $ 89,916     $ 82,460  
Interest included in discontinued operations
    (785 )     (557 )     (595 )
Credit facility commitment fees
    1,508       1,017       990  
Amortization of credit facility origination costs, deferred financing costs and net mortgage premiums
    3,564       2,871       2,678  
Interest capitalized
    (438 )     (10 )     (5 )
Interest expense
  $ 108,301     $ 93,237     $ 85,528  

Credit facility, mortgages and notes outstanding
 
2011
   
2010
   
2009
   
Average outstanding balances (dollars in thousands)
  $ 1,754,935     $ 1,496,150     $ 1,350,791  
Average interest rates
    6.0 %     6.0 %     6.1 %

At December 31, 2011, the weighted average interest rate on our:
 
  
Notes and bonds payable of $1.75 billion was 6.03%;
  
Mortgages payable of $67.8 million was 5.3%;
  
Credit facility outstanding borrowings of $237.4 million was 2.15%; and
  
Combined outstanding notes, bonds, mortgages and credit facility borrowings of $2.1 billion was 5.6%.

 

 
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EBITDA and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)
EBITDA and Adjusted EBITDA are non-GAAP financial measures. Our EBITDA and Adjusted EBITDA computation may not be comparable to EBITDA and Adjusted EBITDA reported by other companies that interpret the definitions of EBITDA and Adjusted EBITDA differently than we do. Management believes EBITDA and Adjusted EBITDA to be meaningful measures of a REIT's performance because it is widely followed by industry analysts, lenders and investors and is used by management as one measure of performance. In addition, management utilizes Adjusted EBITDA because our $425 million credit facility uses a similar metric to measure our compliance with certain covenants. EBITDA and Adjusted EBITDA should be considered along with, but not an alternative to, net income, cash flow and FFO, as measures of our operating performance.

The following is a reconciliation of net income, our most directly comparable GAAP measure, to Adjusted EBITDA (dollars in thousands):
   
2011
   
2010
   
2009
 
Net income
  $ 157,032     $ 130,784     $ 131,127  
Interest expense
    108,301       93,237       85,528  
Interest expense included in discontinued operations
    785       557       595  
Income taxes
    1,470       1,393       677  
Income tax benefit included in discontinued operations
    (351 )     (344 )     (645 )
Depreciation and amortization
    121,751       94,907       89,902  
Depreciation and amortization in discontinued operations
    428       1,242       2,045  
EBITDA
    389,416       321,776       309,229  
Provisions for impairment
    405       213       110  
Amortization of net premiums on mortgages payable
    (189 )     --       --  
Gain on property sales
    (540 )     --       --  
Gain on property sales in discontinued operations
    (5,193 )     (8,676 )     (8,059 )
Adjusted EBITDA
  $ 383,899     $ 313,313     $ 301,280  

Interest Coverage Ratio
Interest coverage ratio is calculated as: Adjusted EBITDA divided by interest expense, including interest recorded as discontinued operations. We consider interest coverage ratio to be an appropriate supplemental measure of a company’s ability to meet its interest expense obligations. Our calculation of interest coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures.
 
Dollars in thousands
 
2011
   
2010
   
2009
 
Adjusted EBITDA
  $ 383,899     $ 313,313     $ 301,280  
Divided by interest expense(1)
  $   109,086     $  93,794     $  86,123  
Interest coverage ratio
    3.5       3.3       3.5  
 
 
 (1) Includes interest expense recorded to discontinued operations.

Fixed Charge Coverage Ratio
Fixed charge coverage ratio is calculated in exactly the same manner as interest coverage ratio, except that preferred stock dividends are also added to the denominator.  We consider fixed charge coverage ratio to be an appropriate supplemental measure of a company’s ability to make its interest and preferred stock dividend payments. Our calculation of the fixed charge coverage ratio may be different from the calculation used by other companies and, therefore, comparability may be limited. This information should not be considered as an alternative to any GAAP liquidity measures or information presented in Exhibit 12.1 to this Annual Report.
 
   
2011
   
2010
   
2009
 
Adjusted EBITDA
  $ 383,899     $ 313,313     $ 301,280  
Divided by interest expense plus preferred stock dividends(1)
  $   133,339     $   118,047     $   110,376  
Fixed charge coverage ratio
    2.9       2.7       2.7  
 
 
 (1) Includes interest expense recorded to discontinued operations.
 
 
General and Administrative Expenses
General and administrative expenses increased by $5.7 million to $31.0 million in 2011 as compared to $25.3 million in 2010. General and administrative expenses were $20.9 million in 2009.  Included in general and administrative expenses are acquisition transaction costs of $1.5 million for 2011, $368,000 for 2010 and $62,000 for 2009.  General and administrative expenses increased during 2011 primarily due to increases in employee costs and higher acquisition transaction costs. General and administrative expenses as a percentage of total revenue were 7.4% in 2011, as compared to 7.4% in 2010 and 6.5% in 2009. In February 2012, we had 83 employees, as compared to 79 employees in February 2011 and 72 employees in February 2010.

Property Expenses
Property expenses consist of costs associated with unleased properties, non-net leased multi-tenant properties and general portfolio expenses. Expenses related to unleased properties and multi-tenant properties include, but are not limited to, property taxes, maintenance, insurance, utilities, property inspections, bad debt expense and legal fees. General portfolio costs include, but are not limited to, insurance, legal, property inspections, and title search fees. At December 31, 2011, 87 properties were available for lease, as compared to 84 at December 31, 2010 and 75 at December 31, 2009.

Property expenses were $7.4 million in 2011, $7.1 million in 2010 and $6.4 million in 2009. The increase in property expenses in 2011 is primarily attributable to an increase in insurance costs and legal fees associated with properties available for lease, partially offset by a decrease in bad debt expense.

Income Taxes
Income taxes were $1.5 million in 2011, as compared to $1.4 million in 2010 and $677,000 in 2009. These amounts are for city and state income and franchise taxes paid by Realty Income.  Income taxes for 2009 were lower primarily a result of a prior year review of our state tax filings, where we determined that it was appropriate to amend some prior year tax returns from which we realized a tax benefit of $308,000 in 2009. 

Discontinued Operations
Operations from five investment properties classified as held for sale at December 31, 2011, plus properties previously sold, have been classified as discontinued operations.  The following is a summary of income from discontinued operations on our consolidated statements of income (dollars in thousands):

Income from discontinued operations
 
2011
   
2010
   
2009
 
Gain on sales of investment properties
  $ 5,193     $ 8,676     $ 8,059  
Rental revenue
    1,125       3,016       5,730  
Other revenue
    43       32       588  
Depreciation and amortization
    (428 )     (1,242 )     (2,045 )
Property expenses
    (485 )     (1,207 )     (1,122 )
Provisions for impairment
    (395 )     (171 )     (110 )
Crest’s income from discontinued operations
    842       946       1,172  
Income from discontinued operations
  $   5,895     $   10,050     $   12,272  
Per common share, basic and diluted
  $ 0.05     $ 0.09     $ 0.12  

The above per share amounts have each been calculated independently.

Crest’s Assets and Property Sales
At December 31, 2011, our wholly-owned taxable REIT subsidiary, Crest Net Lease, Inc., or Crest, had an inventory of three properties, which are classified as held for investment. In addition to the three properties, Crest also holds notes receivable of $19.0 million at December 31, 2011.  During 2011, the principal balance of one note receivable was paid in full, from which we received proceeds of approximately $2.9 million.
 
During 2011 and 2010, Crest did not sell any properties.  During 2009, Crest sold two properties for $2.0 million, which resulted in no gain. Crest’s gains on sales are reported before income taxes and are included in discontinued operations.
 
 

 
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Gain on Sales of Investment Properties by Realty Income
During 2011, we sold 26 investment properties for $21.8 million, which resulted in a gain of $5.2 million. The results of operations for these properties have been reclassified as discontinued operations.  Additionally, we sold excess real estate from six properties for $2.3 million, which resulted in a gain of $540,000.  This gain is included in other revenue on our consolidated statement of income for 2011, because this excess real estate was associated with properties that continue to be owned as part of our core operations.

During 2010, we sold 28 investment properties and excess land from one property for $27.2 million, which resulted in a gain of $8.7 million.  The results of operations for these properties have been reclassified as discontinued operations.

During 2009, we sold 25 investment properties and excess land from one property for $20.5 million, which resulted in a gain of $8.1 million. The results of operations for these properties have been reclassified as discontinued operations.

We have an active portfolio management program that incorporates the sale of assets when we believe the reinvestment of the sale proceeds will:

  
Generate higher returns;
  
Enhance the credit quality of our real estate portfolio;
  
Extend our average remaining lease term; or
  
Decrease tenant or industry concentration.

At December 31, 2011, we classified real estate with a carrying amount of $2.2 million as held for sale on our balance sheet. In 2012, we intend to employ more active disposition efforts to further enhance the credit quality of our real estate portfolio. As a result, we anticipate selling investment properties from our portfolio that have not yet been specifically identified, from which we anticipate receiving between $25 million and $60 million in proceeds during the next 12 months. We intend to invest these proceeds into new property acquisitions, if there are attractive opportunities available. However, we cannot guarantee that we will sell properties during the next 12 months or be able to invest the proceeds from the sales of any properties in new properties.

Provisions for Impairment on Real Estate Acquired for Resale by Crest
During 2011, Crest did not record any provisions for impairment.

During 2010, Crest recorded total provisions for impairment of $807,000 on three properties held for investment at December 31, 2010. These provisions for impairment are included in continuing operations on our consolidated statement of income for 2010.

During 2009, Crest recorded total provisions for impairment of $199,000 on three properties classified as held for investment at December 31, 2010. These provisions for impairment are included in continuing operations on our consolidated statement of income for 2009.  Additionally, in 2009, Crest recorded total provisions for impairment of $78,000 on two properties which were sold in 2009.  These provisions for impairment are included in income from discontinued operations on our consolidated statement of income for 2009.

Provisions for Impairment on Realty Income Investment Properties
During 2011, Realty Income recorded total provisions for impairment of $405,000 on two properties in the automotive service industry, one property in the motor vehicle dealerships industry and one property in the pet supplies and services industry.  These provisions for impairment are included in income from discontinued operations, except for $10,000 which is included in income from continuing operations.

During 2010, Realty Income recorded total provisions for impairment of $213,000 on three properties in the restaurant industry and one property in the child care industry.  Provisions for impairment of $171,000 are included in income from discontinued operations.  Since one of these properties was subsequently reclassified from held for sale to held for investment during 2011, a provision for impairment of $42,000 is included in income from continuing operations.

 

 
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During 2009, we recorded a provision for impairment of $110,000 on one property in the convenience store industry, which was sold during 2010. This provision for impairment is included in income from discontinued operations.

Preferred Stock Dividends
Preferred stock cash dividends totaled $24.3 million in 2011, 2010 and 2009.

Net Income Available to Common Stockholders
Net income available to common stockholders was $132.8 million in 2011, an increase of $26.3 million as compared to $106.5 million in 2010. Net income available to common stockholders in 2009 was $106.9 million.

The calculation to determine net income available to common stockholders includes gains from the sale of properties and excess land. The amount of gains varies from period to period based on the timing of property sales and can significantly impact net income available to common stockholders.

Gain from the sale of investment properties and the sale of excess real estate recognized during 2011 was $5.7 million, as compared to an $8.7 million gain recognized during 2010 and an $8.1 million gain recognized during 2009.

FUNDS FROM OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS (FFO)

FFO for 2011 increased by $55.5 million, or 28.6%, to $249.4 million, as compared to $193.9 million in 2010 and $190.6 million in 2009. The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted computation per share (dollars in thousands, except per share amounts):

   
2011
   
2010
   
2009
 
Net income available to common stockholders
  $ 132,779     $ 106,531     $ 106,874  
Depreciation and amortization:
                       
   Continuing operations
    121,751       94,907       89,902  
   Discontinued operations
    428       1,242       2,045  
Depreciation of furniture, fixtures and equipment
    (238 )     (291 )     (318 )
Provisions for impairment on Realty Income investment properties
    405       213       110  
Gain on sales of land and investment properties:
                       
   Continuing operations
    (540 )     --       --  
   Discontinued operations
    (5,193 )     (8,676 )     (8,059 )
FFO available to common stockholders
  $ 249,392     $ 193,926     $ 190,554  
                         
FFO per common share, basic and diluted:
  $ 1.98     $ 1.83     $ 1.84  
                         
Distributions paid to common stockholders
  $ 219,297     $ 182,500     $ 178,008  
 
                       
FFO in excess of distributions paid to common stockholders
  $ 30,095     $ 11,426     $ 12,546  
                         
Weighted average number of common shares used for computation per share:
                       
   Basic
    126,142,696       105,869,637       103,577,507  
   Diluted
    126,189,399       105,942,721       103,581,053  

We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust’s definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, reduced by gains on sales of investment properties and extraordinary items.
 
 
We consider FFO to be an appropriate supplemental measure of a REIT’s operating performance as it is based on a net income analysis of property portfolio performance that adds back items such as depreciation and impairments. The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time. Since real estate values historically rise and fall with market conditions, presentations of operating results for a REIT, using historical accounting for depreciation, could be less informative. The use of FFO is recommended by the REIT industry as a supplemental performance measure. In addition, FFO is used as a measure of our compliance with the financial covenants of our credit facility.

Presentation of this information is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO is not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income as an indication of our performance. In addition, FFO should not be considered as an alternative to reviewing our cash flows from operating, investing and financing activities as a measure of liquidity, of our ability to make cash distributions or of our ability to pay interest payments.

ADJUSTED FUNDS FROM OPERATIONS AVAILABLE TO COMMON STOCKHOLDERS (AFFO)

AFFO for 2011 increased by $56.1 million, or 28.4%, to $253.4 million as compared to $197.3 million in 2010 and $192.7 million in 2009. We consider AFFO to be an appropriate supplemental measure of our performance. Most companies in our industry use a similar measurement, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution).

The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted computation per share (dollars in thousands, except per share amounts):

   
2011
   
2010
   
2009
 
Net income available to common stockholders
  $ 132,779     $ 106,531     $ 106,874  
Cumulative adjustments to calculate FFO(1)
    116,613       87,395       83,680  
FFO available to common stockholders
    249,392       193,926       190,554  
Amortization of share-based compensation
    7,873       6,166       4,726  
Amortization of deferred financing costs(2)
    1,881       1,548       1,363  
Provisions for impairment on real estate acquired for resale by Crest
    --       807       277  
Capitalized leasing costs and commissions
    (1,722 )     (1,501 )     (1,185 )
Capitalized building improvements
    (2,450 )     (2,077 )     (1,879 )
Other adjustments(3)
    (1,602 )     (1,613 )     (1,117 )
Total AFFO available to common stockholders
  $ 253,372     $ 197,256     $ 192,739  
                         
AFFO per common share, basic and diluted:
  $ 2.01     $ 1.86     $ 1.86  
                         
Distributions paid to common stockholders
  $ 219,297     $ 182,500     $ 178,008  
                         
AFFO in excess of distributions paid to common stockholders
  $ 34,075     $ 14,756     $ 14,731  
                         
Weighted average number of common shares used for computation per share:
                       
Basic
    126,142,696       105,869,637       103,577,507  
Diluted
    126,189,399       105,942,721       103,581,053  
 
 
(1) See reconciling items for FFO presented under “Funds from Operations Available To Common Stockholders (FFO).”

 

 
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(2)
Includes the amortization of costs incurred and capitalized when our senior notes were issued in March 2003, November 2003, March 2005, September 2005, September 2006, September 2007, June 2010 and June 2011. Additionally, this includes the amortization of deferred financing costs incurred and capitalized in connection with our assumption of the mortgages payable in 2011. These costs are being amortized over the lives of the respective mortgages. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included.
(3)
Includes straight-line rent revenue and the amortization of above and below-market leases.

We believe the non-GAAP financial measure AFFO provides useful information to investors because it is a widely accepted industry measure of the operating performance of real estate companies that is used by industry analysts and investors who look at and compare those companies. In particular, AFFO provides an additional measure by which to compare the operating performance of different REITs without having to account for differing depreciation assumptions and other unique revenue and expense items which are not pertinent to the measurement of the particular company’s on-going operating performance. Therefore, we believe that AFFO is an appropriate supplemental performance metric, and that the most appropriate GAAP performance metric to which AFFO should be reconciled is net income available to common stockholders.

Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. Furthermore, FFO and AFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income as an indication of our performance. FFO and AFFO should not be considered as an alternative to reviewing our cash flows from operating, investing, and financing activities.  In addition, FFO and AFFO should not be considered as a measure of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments.

IMPACT OF INFLATION
 
Tenant leases generally provide for limited increases in rent as a result of increases in the tenants' sales volumes, increases in the consumer price index (typically subject to ceilings), and/or fixed increases. We expect that inflation will cause these lease provisions to result in rent increases over time. During times when inflation is greater than increases in rent, as provided for in the leases, rent increases may not keep up with the rate of inflation.

Of our 2,634 properties in our portfolio, approximately 96.2% or 2,533 are leased to tenants under net leases where the tenant is responsible for property expenses. Net leases tend to reduce our exposure to rising property expenses due to inflation. Inflation and increased costs may have an adverse impact on our tenants if increases in their operating expenses exceed increases in revenue.

IMPACT OF RECENT ACCOUNTING PRONOUNCEMENTS
 
For information on the impact of recent accounting pronouncements on our business, see note 2 of the Notes to Consolidated Financial Statements.

Item 7A:        Quantitative and Qualitative Disclosures about Market Risk
 
We are exposed to interest rate changes primarily as a result of our credit facility and long-term notes and bonds used to maintain liquidity and expand our real estate investment portfolio and operations. Our interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flow and to lower our overall borrowing costs. To achieve these objectives we issue long-term notes and bonds, primarily at fixed rates. We do not enter into any derivative transactions for speculative or trading purposes.

 

 
-46-


The following table presents by year of expected maturity, the principal amounts, average interest rates and estimated fair values of our fixed and variable rate debt as of December 31, 2011. This information is presented to evaluate the expected cash flows and sensitivity to interest rate changes (dollars in millions):
 
Expected Maturity Data
 
Year of maturity
 
Fixed rate debt
   
Average interest rate
on fixed rate debt
   
Variable rate
debt
   
Average interest rate
on variable rate debt
 
2012(1)
  $ 11.3       5.91 %   $ --       -- %
2013(2)
    120.9       5.67       --       --  
2014(3)
    11.4       6.25       237.4       2.15  
2015(4)
    150.0       5.50       23.6       4.75  
2016(5)
    275.0       5.95       --       --  
Thereafter(6)
    1,225.0       6.17       --       --  
Totals(7)
  $ 1,793.6       6.05 %   $ 261.0       2.38 %
                                 
Fair Value(8)
  $ 1,946.3             $ 261.2          
 
(1)
$11.3 million of fixed rate mortgages mature in 2012. For one $10.7 million mortgage payable which matures in May 2012, we have provided notice to the lender that we will be paying it off in March 2012.
(2)
$100 million of fixed rate senior notes mature in March 2013 and $20.9 million of fixed rate mortgages mature in 2013.
(3)
$11.3 million of fixed rate mortgages mature in September 2014 and the credit facility expires in March 2014.
(4)
$150 million of fixed rate senior notes mature in November 2015 and $23.6 million of variable rate mortgages mature in June 2015. The variable interest rate on the mortgages of $23.6 million is capped at 5.5%.
(5)
$275 million of fixed rate senior notes mature in September 2016.
(6)
As it relates to fixed rate senior notes, $175 million matures in September 2017, $550 million matures in August 2019, $250 million matures in January 2021 and $250 million matures in March 2035.
(7)
Excludes net premiums of $820,000 recorded on mortgages payable.
(8)
We base the estimated fair value of the fixed rate senior notes at December 31, 2011 on the indicative market prices and recent trading activity of our notes payable. We base the estimated fair value of our fixed rate and variable rate mortgages at December 31, 2011 on the current 5-year Treasury yield curve, plus an applicable credit-adjusted spread. We believe that the carrying value of the credit facility balance reasonably approximates its estimated fair value at December 31, 2011.

The table incorporates only those exposures that exist as of December 31, 2011. It does not consider those exposures or positions that could arise after that date. As a result, our ultimate realized gain or loss, with respect to interest rate fluctuations, would depend on the exposures that arise during the period, our hedging strategies at the time, and interest rates.

All of our outstanding senior notes and bonds have fixed interest rates. All of our mortgages payable, except one, have fixed interest rates. Interest on our credit facility balance is variable. Based on our credit facility balance of $237.4 million at December 31, 2011, a 1% change in interest rates would change our interest costs by $2.4 milliion per year. As a result of the issuance of our Class F preferred stock in February 2012, we paid off all outstanding credit facility borrowings on February 7, 2012.

 

 
-47-


Item 8:       Financial Statements and Supplementary Data

Table of Contents
 
 
A.
Reports of Independent Registered Public Accounting Firm

 
B.
Consolidated Balance Sheets, December 31, 2011 and 2010
 
 
C.
Consolidated Statements of Income, Years ended December 31, 2011, 2010 and 2009
 
 
D.
Consolidated Statements of Stockholders’ Equity, Years ended December 31, 2011, 2010 and 2009
 
 
E.
Consolidated Statements of Cash Flows, Years ended December 31, 2011, 2010 and 2009
 
 
F.
Notes to Consolidated Financial Statements
 
 
G.
Consolidated Quarterly Financial Data (unaudited) for 2011 and 2010
 
 
H.
Schedule III Real Estate and Accumulated Depreciation

 
Schedules not filed:  All schedules, other than that indicated in the Table of Contents, have been omitted as the required information is either not material, inapplicable or the information is presented in the financial statements or related notes.

 

 
-48-

 
Report of Independent Registered Public Accounting Firm


The Board of Directors and Stockholders
Realty Income Corporation:

We have audited the accompanying consolidated balance sheets of Realty Income Corporation and subsidiaries as of December 31, 2011 and 2010, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2011. In connection with our audits of the consolidated financial statements, we also have audited financial statement schedule III. These consolidated financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.
 
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Realty Income Corporation and subsidiaries as of December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2011, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
 
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Realty Income Corporation’s internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 13, 2012 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
 

 
 /s/ KPMG LLP

San Diego, California
February 13, 2012

 

 
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Report of Independent Registered Public Accounting Firm


The Board of Directors and Stockholders
Realty Income Corporation:

We have audited Realty Income Corporation’s internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Realty Income Corporation’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
 
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
 
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
 
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
 
In our opinion, Realty Income Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
 
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Realty Income Corporation and subsidiaries as of December 31, 2011 and 2010, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2011, and our report dated February 13, 2012 expressed an unqualified opinion on those consolidated financial statements.
 

 
 /s/ KPMG LLP

San Diego, California
February 13, 2012

 
REALTY INCOME CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets

December 31, 2011 and 2010
(dollars in thousands, except per share data)
 
   
2011
   
2010
 
ASSETS
           
Real estate, at cost:
           
Land
  $ 1,749,378     $ 1,520,413  
Buildings and improvements
    3,222,603       2,592,449  
Total real estate, at cost
    4,971,981       4,112,862  
Less accumulated depreciation and amortization
    (814,126 )     (711,615 )
Net real estate held for investment
    4,157,855       3,401,247  
Real estate held for sale, net
    2,153       3,631  
Net real estate
    4,160,008       3,404,878  
Cash and cash equivalents
    4,165       17,607  
Accounts receivable, net
    15,375       11,301  
Goodwill
    17,206       17,206  
Other assets, net
    222,635       84,598  
Total assets
  $ 4,419,389     $ 3,535,590  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Distributions payable
  $ 21,405     $ 19,051  
Accounts payable and accrued expenses
    58,770       47,019  
Other liabilities
    29,179       22,555  
Line of credit payable
    237,400       --  
Mortgages payable, net
    67,781       --  
Notes payable
    1,750,000       1,600,000  
Total liabilities
    2,164,535       1,688,625  
                 
Commitments and contingencies
               
                 
Stockholders' equity:
               
Preferred stock and paid in capital, par value $0.01 per share and $1.00 per share as of December 31, 2011 and 2010, respectively, and 20,000,000 shares authorized, 13,900,000 shares issued and outstanding as of December 31,  2011 and 2010, respectively
    337,790       337,790  
Common stock and paid in capital, par value $0.01 per share, 200,000,000 shares authorized, 133,223,338 shares issued and outstanding as of December 31, 2011, and par value $1.00 per share, 200,000,000 shares authorized, 118,058,988 shares issued and outstanding as of December 31, 2010
    2,563,048       2,066,287  
Distributions in excess of net income
    (645,984 )     (557,112 )
Total stockholders' equity
    2,254,854       1,846,965  
Total liabilities and stockholders' equity
  $ 4,419,389     $ 3,535,590  
 
The accompanying notes to consolidated financial statements are an integral part of these statements.

 

 
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REALTY INCOME CORPORATION AND SUBSIDIARIES
Consolidated Statements Of Income

Years Ended December 31, 2011, 2010 and 2009
(dollars in thousands, except per share data)

   
2011
   
2010
   
2009
 
                   
REVENUE
                 
Rental
  $ 419,396     $ 342,835     $ 321,682  
Other
    1,663       657       868  
Total revenue
    421,059       343,492       322,550  
                         
EXPENSES
                       
Depreciation and amortization
    121,751       94,907       89,902  
Interest
    108,301       93,237       85,528  
General and administrative
    30,954       25,311       20,946  
Property
    7,436       7,061       6,443  
Income taxes
    1,470       1,393       677  
Provisions for impairment
    10       849       199  
Total expenses
    269,922       222,758       203,695  
Income from continuing operations
    151,137       120,734       118,855  
Income from discontinued operations
    5,895       10,050       12,272  
                         
Net income
    157,032       130,784       131,127  
Preferred stock cash dividends
    (24,253 )     (24,253 )     (24,253 )
Net income available to common stockholders
  $ 132,779     $ 106,531     $ 106,874  
                         
Amounts available to common stockholders per common share:
                       
Income from continuing operations:
                       
    Basic
  $ 1.01     $ 0.91     $ 0.91  
    Diluted
  $ 1.01     $ 0.91     $ 0.91  
Net income:
                       
    Basic
  $ 1.05     $ 1.01     $ 1.03  
    Diluted
  $ 1.05     $ 1.01     $ 1.03  
Weighted average common shares outstanding:
                       
Basic
    126,142,696       105,869,637       103,577,507  
Diluted
    126,189,399       105,942,721       103,581,053  
 
The accompanying notes to consolidated financial statements are an integral part of these statements.

 

 
-52-

 
REALTY INCOME CORPORATION AND SUBSIDIARIES
    Consolidated Statements Of Stockholders' Equity

Years Ended December 31, 2011, 2010 and 2009
(dollars in thousands)

   
Shares of preferred stock
   
Shares of common stock
   
Preferred stock and paid in capital
   
Common stock and paid in capital
   
Distributions in excess of net income
   
Total
 
Balance, December 31, 2008
    13,900,000       104,211,541     $ 337,790     $ 1,624,622     $ (407,751 )   $ 1,554,661  
Net income
    --       --       --       --       131,127       131,127  
Distributions paid and payable
    --       --       --       --       (202,394 )     (202,394 )
Share-based compensation
    --       75,164       --       4,615               4,615  
Balance, December 31, 2009
    13,900,000       104,286,705       337,790       1,629,237       (479,018 )     1,488,009  
Net income
    --       --       --       --       130,784       130,784  
Distributions paid and payable
    --       --       --       --       (208,878 )     (208,878 )
Shares issued in stock offerings, net of
   offering costs of $22,471
    --       13,558,500       --       432,591       --       432,591  
Share-based compensation
    --       213,783       --       4,459       --       4,459  
Balance, December 31, 2010
    13,900,000       118,058,988       337,790       2,066,287       (557,112 )     1,846,965  
Net income
    --       --       --       --       157,032       157,032  
Distributions paid and payable
    --       --       --       --       (245,904 )     (245,904 )
Shares issued in stock offerings, net of
   offering costs of $25,200
    --       14,925,000       --       489,236       --       489,236  
Shares issued pursuant to dividend reinvestment
   and stock purchase plan, net
    --       59,605       --       1,930       --       1,930  
Share-based compensation
    --       179,745       --       5,595       --       5,595  
Balance, December 31, 2011
    13,900,000       133,223,338     $ 337,790     $ 2,563,048     $ (645,984 )   $ 2,254,854  

The accompanying notes to consolidated financial statements are an integral part of these statements.


    REALTY INCOME CORPORATION AND SUBSIDIARIES
Consolidated Statements Of Cash Flows
 
Years Ended December 31, 2011, 2010 and 2009
(dollars in thousands)
 
   
2011
   
2010
   
2009
 
CASH FLOWS FROM OPERATING ACTIVITIES
                 
Net income
  $ 157,032     $ 130,784     $ 131,127  
Adjustments to net income:
                       
     Depreciation and amortization
    121,751       94,907       89,902  
     Income from discontinued operations
    (5,895 )     (10,050 )     (12,272 )
     Gain on sale of real estate
    (540 )     --       --  
     Amortization of share-based compensation
    7,873       6,166       4,726  
     Amortization of net premiums on mortgages payable
    (189 )     --       --  
     Provisions for impairment on real estate held for investment
    10       849       199  
Cash provided by discontinued operations:
                       
     Real estate
    1,525       2,787       6,446  
     Proceeds from sales of real estate
    --       --       1,987  
     Collection of principal on notes receivable
    3,032       138       129  
Changes in assets and liabilities:
                       
     Accounts receivable and other assets
    5,209       5,270       3,607  
     Accounts payable, accrued expenses and other liabilities
    9,144       12,517       856  
     Net cash provided by operating activities
    298,952       243,368       226,707  
CASH FLOWS FROM INVESTING ACTIVITIES
                       
Acquisition of income producing investment properties
    (957,347 )     (716,776 )     (61,319 )
Proceeds from sales of real estate:
                       
     Continuing operations
    2,268       --       --  
     Discontinued operations
    21,859       25,779       20,074  
Loan receivable
    (1,593 )     --       --  
Restricted escrow deposits
    (50 )     (6,361 )     (4,479 )
    Net cash used in investing activities
    (934,863 )     (697,358 )     (45,724 )
CASH FLOWS FROM FINANCING ACTIVITIES
                       
Cash distributions to common stockholders
    (219,297 )     (182,500 )     (178,008 )
Cash dividends to preferred stockholders
    (24,253 )     (24,253 )     (24,253 )
Borrowings under lines of credit
    612,800       612,200       4,600  
Payments on lines of credit
    (375,400 )     (616,800 )     --  
Principal payments on mortgages
    (279 )     --       --  
Proceeds from common stock offerings, net
    489,236       432,591       --  
Proceeds from bonds issued, net
    140,136       --       --  
Proceeds from notes payable issued, net
    --       246,131       --  
Debt issuance costs
    --       (4,091 )     --  
Principal payment on notes payable
    --       --       (20,000 )
Proceeds from dividend reinvestment and stock purchase plan, net
    1,894       --       --  
Other items
    (2,368 )     (1,707 )     (111 )
     Net cash provided by (used in) financing activities
    622,469       461,571       (217,772 )
Net increase (decrease) in cash and cash equivalents
    (13,442 )     7,581       (36,789 )
Cash and cash equivalents, beginning of year
    17,607       10,026       46,815  
Cash and cash equivalents, end of year
  $ 4,165     $ 17,607     $ 10,026  
 
For supplemental disclosures, see note 14.
 
The accompanying notes to consolidated financial statements are an integral part of these statements.

 

 
-54-


REALTY INCOME CORPORATION AND SUBSIDIARIES
Notes To Consolidated Financial Statements
December 31, 2011, 2010 and 2009
 
1.
Organization and Operation

Realty Income Corporation ("Realty Income," the "Company," "we", "our" or "us") is organized as a Maryland corporation. We invest in commercial real estate and have elected to be taxed as a real estate investment trust, or REIT.

At December 31, 2011, we owned 2,634 properties, located in 49 states, containing over 27.3 million leasable square feet, along with three properties owned by our wholly-owned taxable REIT subsidiary, Crest Net Lease, Inc., or Crest.

Information with respect to number of properties, square feet, average initial lease term and weighted average contractual lease rate is unaudited.

2.
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements

Federal Income Taxes. We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, or the Code. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct distributions paid to our stockholders and generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for the federal income taxes of Crest, which are included in discontinued operations. The income taxes recorded on our consolidated statements of income represent amounts paid by Realty Income for city and state income and franchise taxes.

Earnings and profits that determine the taxability of distributions to stockholders differ from net income reported for financial reporting purposes due to differences in the estimated useful lives and methods used to compute depreciation and the carrying value (basis) of the investments in properties for tax purposes, among other things.

The following reconciles our net income available to common stockholders to taxable income (dollars in thousands):
   
2011(1)
   
2010
   
2009
 
Net income available to common stockholders
  $ 132,779     $ 106,531     $ 106,874  
Preferred stock cash dividends
    24,253       24,253       24,253  
Depreciation and amortization timing differences
    32,215       23,024       27,094  
Tax gain on the sales of real estate less than book gain
    --       --       (5,436 )
Tax loss on the sale of real estate less than book gain
    (6,661 )     (10,063 )     --  
Elimination of net revenue and expenses from Crest
    418       1,337       378  
Compensation deduction per Section 162(m) of the Code
    4,896       2,915       2,144  
Adjustment for share-based compensation
    (622 )     562       1,824  
Adjustment for straight-line rent
    (1,562 )     (1,613 )     (1,117 )
Adjustment for acquisition expenses
    1,503       368       62  
Adjustment for an increase in prepaid rent
    3,584       4,223       1,273  
Other adjustments
    6       (30 )     (2,958 )
Taxable net income, before our dividends paid deduction
  $ 190,809     $ 151,507     $ 154,391  
 
(1) The 2011 information presented is a reconciliation of our net income available to common stockholders to estimated taxable net income.

We regularly analyze our various federal and state filing positions and only recognize the income tax effect in our financial statements when certain criteria regarding uncertain income tax positions have been met. We believe that our income tax positions would more likely than not be sustained upon examination by all relevant taxing authorities. Therefore, no reserves for uncertain income tax positions have been recorded in our financial statements.
 
 
Absent an election to the contrary, if a REIT acquires property that is or has been owned by a C corporation in a transaction in which the tax basis of the property in the hands of the REIT is determined by reference to the tax basis of the property in the hands of the C corporation, and the REIT recognizes gain on the disposition of such property during the 10 year period beginning on the date on which it acquired the property, then the REIT will be required to pay tax at the highest regular corporate tax rate on this gain to the extent of the excess of the fair value of the property over the REIT's adjusted basis in the property, in each case determined as of the date the REIT acquired the property. In August 2007, we acquired 100% of the stock of a C corporation that owned real property. At the time of acquisition, the C corporation became a Qualified REIT Subsidiary, was deemed to be liquidated for Federal income tax purposes, and the real property was deemed to be transferred to us with a carryover tax basis. As of December 31, 2011, we have built-in gains of $60.5 million with respect to such property. We do not expect that we will be required to pay income tax on the built-in gains in these properties during the ten-year period ending August 28, 2017. It is our intent, and we have the ability, to defer any dispositions of these properties to periods when the related gains would not be subject to the built-in gain income tax or otherwise to defer the recognition of the built-in gain related to these properties. However, our plans could change and it may be necessary to dispose of one or more of these properties in a taxable transaction before August 28, 2017, in which case we would be required to pay corporate level tax with respect to the built-in gains on these properties as described above.

Net Income Per Common Share. Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period.

The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation:
 
 
2011
2010
2009
Weighted average shares used for the basic net income per share computation
126,142,696
105,869,637
103,577,507
Incremental shares from share-based compensation
46,703
73,084
3,546
Adjusted weighted average shares used for diluted net income per share computation
126,189,399
105,942,721
103,581,053
Unvested shares from share-based compensation that were anti-dilutive
13,020
87,600
542,368

Other Assets. Other assets consist of the following (dollars in thousands) at:
December 31,
 
2011
   
2010
 
Value of in-place leases, net of accumulated amortization
  $ 123,255     $ 21,635  
Value of above-market leases, net of accumulated amortization
    30,081       4,586  
Deferred bond financing costs, net
    22,209       14,203  
Notes receivable issued in connection with Crest property sales
    19,025       22,075  
Prepaid expenses
    9,833       8,431  
Note receivable issued in connection with 2011 acquisitions
    8,780       --  
Credit facility origination costs, net
    3,141       4,619  
Loans receivable
    2,178       --  
Corporate assets, net of accumulated depreciation and amortization
    849       827  
Deferred financing costs on mortgages payable, net
    751       --  
Restricted escrow deposits
    50       6,361  
Other items
    2,483       1,861  
    $ 222,635     $ 84,598  

 

 
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Distributions Payable. Distributions payable consist of the following declared distributions (dollars in thousands) at:
December 31,
 
2011
   
2010
 
Common stock distributions
  $ 19,384     $ 17,030  
Preferred stock dividends
    2,021       2,021  
    $ 21,405     $ 19,051  

Accounts Payable and Accrued Expenses. Accounts payable and accrued expenses consist of the following (dollars in thousands) at:
December 31,
 
2011
   
2010
 
Bond interest payable
  $ 35,195     $ 33,240  
Accrued costs on properties under development
    4,766       420  
Other items
    18,809       13,359  
    $ 58,770     $ 47,019  

Other Liabilities. Other liabilities consist of the following (dollars in thousands) at:
December 31,
 
2011
   
2010
 
Rent received in advance
  $ 18,149     $ 14,564  
Value of in-place below-market leases, net of accumulated amortization
    6,423       3,452  
Security deposits
    4,607       4,539  
    $ 29,179     $ 22,555  

Discontinued Operations. Operations from five investment properties classified as held for sale at December 31, 2011, plus properties previously sold, are reported as discontinued operations. Their respective results of operations have been reclassified as income from discontinued operations on our consolidated statements of income. We do not depreciate properties that are classified as held for sale.

If we determine we have no plans to sell a property asset in the near term (i.e. within the next 12 months), and this property was previously classified as held for sale, the property is reclassified to real estate held for investment. A property that is reclassified to held for investment is measured and recorded at the lower of (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for investment, or (ii) the fair value at the date of the subsequent decision not to sell.

No debt was assumed by buyers of our investment properties, or repaid as a result of our investment property sales, and we do not allocate interest expense to discontinued operations related to real estate held for investment. We allocate interest expense related to borrowings specifically attributable to Crest.  The interest expense amounts allocated to Crest are included in income from discontinued operations.

The following is a summary of income from discontinued operations on our consolidated statements of income (dollars in thousands):
 
Income from discontinued operations
 
2011
   
2010
   
2009
 
Gain on sales of investment properties
  $ 5,193     $ 8,676     $ 8,059  
Rental revenue
    1,125       3,016       5,730  
Other revenue
    43       32       588  
Depreciation and amortization
    (428 )     (1,242 )     (2,045 )
Property expenses
    (485 )     (1,207 )     (1,122 )
Provisions for impairment
    (395 )     (171 )     (110 )
Crest’s income from discontinued operations
    842       946       1,172  
Income from discontinued operations
  $   5,895     $   10,050     $   12,272  
Per common share, basic and diluted
  $ 0.05     $ 0.09     $ 0.12  
 

The per share amounts for income from discontinued operations above and the income from continuing operations and net income reported on the consolidated statements of income have each been calculated independently.

Revenue Recognition and Accounts Receivable. All leases are accounted for as operating leases. Under this method, lease payments that have fixed and determinable rent increases are recognized on a straight-line basis over the lease term. Any rental revenue contingent upon a tenant's sales is recognized only after the tenant exceeds their sales breakpoint. Rental increases based upon changes in the consumer price indexes are recognized only after the changes in the indexes have occurred and are then applied according to the lease agreements.

We recognize an allowance for doubtful accounts relating to accounts receivable for amounts deemed uncollectible. We consider tenant specific issues, such as financial stability and ability to pay, when determining collectibility of accounts receivable and appropriate allowances to record. Our allowance for doubtful accounts was $507,000 at December 31, 2011 and $1.1 million at December 31, 2010.

Other revenue includes non-operating interest earned from investments in money market funds and other notes of $502,000 in 2011, $96,000 in 2010 and $51,000 in 2009.

Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Realty Income and other entities for which we make operating and financial decisions (i.e. control), after elimination of all material intercompany balances and transactions. We have no unconsolidated or off-balance sheet investments in variable interest entities.

Cash Equivalents. We consider all short-term, highly liquid investments that are readily convertible to cash and have an original maturity of three months or less at the time of purchase to be cash equivalents. Our cash equivalents are primarily investments in United States Treasury or government money market funds.

Gain on Sales of Properties. When real estate is sold, the related net book value of the applicable assets is removed and a gain from the sale is recognized in our consolidated statements of income. We record a gain from the sale of real estate provided that various criteria, relating to the terms of the sale and any subsequent involvement by us with the real estate, have been met.

Allocation of the Purchase Price of Real Estate Acquisitions. When acquiring a property for investment purposes, we allocate the fair value of real estate acquired to: 1) land and 2) building and improvements, based in each case on their estimated fair values.  In addition, assumed mortgages payable are recorded at their estimated fair values.

For properties acquired with in-place operating leases, we allocate the fair value of real estate acquired to: 1) land, 2) building and improvements, and 3) identified intangible assets and liabilities, based in each case on their estimated fair values. Intangible assets and liabilities consist of above-market and below-market leases, the value of in-place leases and tenant relationships, as applicable.

Our estimated fair value determinations are based on management’s judgment, which is based on various factors, including: (1) market conditions, (2) industry that tenant operates in, (3) characteristics of the real estate, i.e.: location, size, demographics, value and comparative rental rates, (4) tenant credit profile, (5) store profitability and the importance of the location of the real estate to the operations of the tenant’s business, and/or (6) real estate valuations, prepared by an independent valuation firm.  When real estate valuations are utilized, the measurement of fair value related to the allocation of the purchase price of real estate acquisitions is derived principally from observable market data that is not readily available to the public (and thus should be categorized as level 2 on FASB’s three-level valuation hierarchy).  Our other methodologies for measuring fair value related to the allocation of the purchase price of real estate acquisitions (except for independent third-party real estate valuations) include unobservable inputs that reflect our own internal assumptions and calculations (and thus should be categorized as level 3 on FASB’s three-level valuation hierarchy).

 

 
-58-


The fair value of the tangible assets of an acquired property with an in-place operating lease (which includes land and buildings/improvements) is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land and buildings/improvements based on our determination of the fair value of these assets. Our fair value determinations are based on a real estate valuation for each property, prepared by an independent valuation firm, and consider estimates of carrying costs during the expected lease-up periods, current market conditions, as well as costs to execute similar leases. In allocating the fair value to identified intangibles for above-market or below-market leases, an amount is recorded based on the present value of the difference between (i) the contractual amount to be paid pursuant to the in-place lease and (ii) our estimate of fair market lease rate for the corresponding in-place lease, measured over a period equal to the remaining term of the lease.

Capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining terms of the respective leases and expected below-market renewal option periods.  The amounts amortized as a net (decrease) increase to rental income for capitalized above-market and below-market leases for 2011 was $(1.1 million), for 2010 was $154,000 and for 2009 was $185,000.

The aggregate value of other acquired intangible assets consists of the value of in-place leases and tenant relationships, as applicable. These are measured by the excess of the purchase price paid for a property, after adjusting for above or below-market lease value, less the estimated fair value of the property "as if vacant," determined as set forth above. The value of in-place leases, exclusive of the value of above-market and below-market in-place leases, is amortized to expense over the remaining periods of the respective leases. The amount amortized to expense for 2011 was $8.3 million, for 2010 was $1.4 million and for 2009 was $1.1 million. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense as appropriate.

The following table presents the impact during the next five years and thereafter related to the net decrease to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense from the amortization of the in-place lease intangibles for properties owned at December 31, 2011 (in thousands):
 
   
Net decrease to rental revenue
   
Increase to amortization expense
 
2012
  $ (1,930 )   $ 13,280  
2013
    (1,930 )     13,281  
2014
    (2,015 )     13,069  
2015
    (1,962 )     12,275  
2016
    (1,957 )     12,196  
Thereafter
    (13,864 )     59,154  
Totals
  $ (23,658 )   $   123,255  

In allocating the fair value to assumed mortgages, amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows, which is calculated to account for either above or below-market interest rates.  These assumed mortgage payables are amortized as a reduction to interest expense over the remaining term of the respective mortgages.

Depreciation and Amortization. Land, buildings and improvements are recorded and stated at cost. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives, while ordinary repairs and maintenance are expensed as incurred. Buildings and improvements that are under redevelopment, or are being developed, are carried at cost and no depreciation is recorded on these assets. Additionally, amounts essential to the development of the property, such as pre-construction, development, construction, interest and any other costs incurred during the period of development are capitalized. We cease capitalization when the property is available for occupancy upon substantial completion of tenant improvements, but in any event no later than one year from the completion of major construction activity.

 

 
-59-


Properties are depreciated using the straight-line method over the estimated useful lives of the assets.  The estimated useful lives are as follows:
 
Buildings
Typically 25 years
Building improvements
4 to 15 years
Tenant improvements and lease commissions
The shorter of the term of the related lease or useful life
Acquired in-place leases
Remaining terms of the respective leases
 
Provisions for Impairment. We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment is recorded if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we use in this analysis include: projected rental rates, estimated holding periods, capital expenditures and property sales capitalization rates. Additionally, a property classified as held for sale is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell.

In 2011, Realty Income recorded total provisions for impairment of $405,000 on two properties in the automotive service industry, one property in the motor vehicle dealerships industry and one property in the pet supplies and services industry.  These provisions for impairment are included in income from discontinued operations, except for $10,000 which is included in income from continuing operations.

In 2010, Realty Income recorded total provisions for impairment of $213,000 on three properties in the restaurant industry and one property in the child care industry.  Provisions for impairment of $171,000 are included in income from discontinued operations.  Since one of these properties was subsequently reclassified from held for sale to held for investment during 2011, a provision for impairment of $42,000 is included in income from continuing operations.  Additionally, during 2010, Crest recorded total provisions for impairment of $807,000 on three properties held for investment at December 31, 2010 and 2011.  These provisions for impairment are included in income from continuing operations.

In 2009, Realty Income recorded a provision for impairment of $110,000 on one property in the convenience store industry, which was sold during 2010. This provision for impairment is included in income from discontinued operations. During 2009, Crest recorded total provisions for impairment of $199,000 on three properties classified as held for investment at December 31, 2011.  These provisions for impairment are included in income from continuing operations.  Additionally, Crest recorded total provisions for impairment of $78,000 on two properties which were sold in 2009. These provisions for impairment are included in income from discontinued operations.

Asset Retirement Obligations. We analyze our future legal obligations associated with the other-than-temporary removal of tangible long-lived assets, also referred to as asset retirement obligations. When we determine that we have a legal obligation to provide services upon the retirement of a tangible long-lived asset, we record a liability for this obligation based on the estimated fair value of this obligation and adjust the carrying amount of the related long-lived asset by the same amount. This asset is amortized over its estimated useful life. The estimated fair value of the asset retirement obligation is calculated by discounting the future cash flows using a credit-adjusted risk-free interest rate.

Goodwill. Goodwill is tested for impairment during the second quarter of each year as well as when events or circumstances occur indicating that our goodwill might be impaired.  During our tests for impairment of goodwill, during the second quarters of 2011, 2010 and 2009, we determined that the estimated fair values of our reporting units exceeded their carrying values.  We did not record any impairment on our existing goodwill during 2011, 2010 or 2009.

Government Taxes. We collect and remit sales and property taxes assessed by different governmental authorities that are both imposed on and concurrent with a revenue-producing transaction between us and our tenants. We report the collection of these taxes on a net basis (excluded from revenues). The amounts of these taxes are not significant to our financial position or results of operations.

 
Use of Estimates. The consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles, or GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

Impact of Recent Accounting Pronouncements. In August 2011, the FASB issued ASU No. 2011-08, Intangibles - Goodwill and Other (Topic 350), which is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Under the amendments in ASU No. 2011-08, an entity, through an assessment of qualitative factors, is not required to calculate the estimated fair value of a reporting unit, in connection with the two-step goodwill impairment test, unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. ASU No. 2011-08 will apply only to our disclosures related to our annual goodwill impairment test.

Par Value Change.  In August 2011, we changed the par value of our common and preferred stock from $1.00 per share to $0.01 per share.  This change did not have an impact on the amount of our total stockholders’ equity.

Reclassifications. We report, in discontinued operations, the results of operations of properties that have either been disposed of or are classified as held for sale.  As a result of these discontinued operations, certain of the 2010 and 2009 balances have been reclassified to conform to the 2011 presentation.

3.         Investments in Real Estate

We acquire the land, buildings and improvements that are necessary for the successful operations of retail and other commercial enterprises.

A.  During 2011, we invested $1.02 billion in 164 new properties, and properties under development, with an initial weighted average contractual lease rate of 7.8%. These 164 new properties, and properties under development, are located in 26 states, contain over 6.2 million leasable square feet, and are 100% leased with an average lease term of 13.4 years. The initial weighted average contractual lease rate is computed by dividing the estimated aggregate base rent for the first year of each lease by the estimated total cost of the properties. Acquisition transaction costs of $1.5 million were recorded to general and administrative expense on our consolidated statement of income for 2011.

Included in the $1.02 billion invested during 2011 are:
 
(1)  
The acquisition of 33 single-tenant retail, distribution, office and manufacturing properties for approximately $543.8 million, under long-term, net lease agreements. All of the properties acquired have in-place leases.
(2)  
The acquisition of 60 properties operating in the restaurant – quick service industry for $41.9 million, under long-term, net lease agreements.
(3)  
The acquisition of six properties operating in the wholesale clubs industry for $156.1 million, under long-term, net lease agreements.
(4)  
The acquisition of 36 properties operating in the grocery store industry for $151.4 million under long-term, net lease agreements.
(5)  
The acquisition of nine properties operating in the health and fitness industry for $63.2 million, under long-term, net lease agreements.
(6)  
The remaining 20 properties acquired totaled approximately $59.8 million.

The 2011 aggregate acquisitions were allocated as follows: $239.3 million to land, $645.0 million to buildings and improvements, $137.0 million to intangible assets and $5.1 million to intangible and assumed liabilities, which includes mortgage premiums of $820,000. The majority of our 2011 acquisitions were cash purchases, except for one that also included the assumption of $8.8 million in notes receivable and four that also included the assumption of $67.4 million of mortgages payable.  There was no contingent consideration associated with these acquisitions.
 
 
The properties acquired during 2011 generated total revenues of $32.4 million and income from continuing operations of $12.6 million.

The following pro forma total revenue and income from continuing operations, for 2011 and 2010, assumes the 2011 property acquisitions took place on January 1, 2010 (in millions):
 
   
Total revenue
   
Income from continuing operations
 
Supplemental pro forma for the year ended December 31, 2011(1)
  $ 467.9     $ 156.2  
Supplemental pro forma for the year ended December 31, 2010(1)
  $ 420.8     $ 130.5  
 
 
 (1) This unaudited pro forma supplemental information does not purport to be indicative of what our operating results would have been had the acquisitions occurred on January 1, 2010, and may not be indicative of future operating results. No material, non-recurring pro-forma adjustments were included in the calculation of this information.
 
In comparison, during 2010, we invested $713.5 million in 186 new properties with an initial weighted average contractual lease rate of 7.9%. These 186 properties are located in 14 states, contain over 2.2 million leasable square feet, and are 100% leased with an average lease term of 15.7 years. Acquisition transaction costs of $368,000 were recorded to general and administrative expense on our consolidated statement of income for 2010.

Included in the $713.5 million invested during 2010 are:
 
(1)  
The acquisition and lease-back of approximately $304.1 million of winery and vineyard properties under 20-year, triple-net lease arrangements with Diageo Chateau & Estates Wine Company, guaranteed by Diageo plc (NYSE: ADR: DEO), or, together with its subsidiaries, Diageo.  The properties are primarily located in California’s Napa Valley and include two wineries that produce wines for Diageo’s Sterling Vineyards, or Sterling, and Beaulieu Vineyards, or BV, brands and 14 vineyards producing grapes for their Sterling, BV and other brands.  The properties include approximately 3,600 acres and 426,000 square feet of winery, production, storage, shipping and tourist buildings.  Diageo will continue to operate the wineries and vineyards.
(2)  
The acquisition of 23 retail properties leased to 13 tenants in six states, for approximately $126.5 million, under long-term, net lease agreements.  The properties are in eight different industries, all of which are already in our portfolio.  All of the properties acquired have in-place leases.
(3)  
The acquisition of 135 SuperAmerica convenience stores and one support facility, for approximately $247.6 million, under long-term, triple-net lease agreements.  The stores are located in Minnesota and Wisconsin, and average approximately 3,500 leasable square feet on approximately 1.14 acres.
(4)  
The remaining 11 properties acquired totaled approximately $35.3 million.

The 2010 aggregate acquisitions were allocated as follows: $358.3 million to land, $339.8 million to buildings and improvements, $17.0 million to intangible assets and $1.6 million to intangible liabilities.  All of the 2010 acquisitions were cash purchases and there was no contingent consideration associated with these acquisitions.

In 2011, we capitalized costs of $4.2 million on existing properties in our portfolio, consisting of $1.7 million for re-leasing costs and $2.5 million for building and tenant improvements.  In 2010, we capitalized costs of $3.6 million on existing properties in our portfolio, consisting of $1.5 million for re-leasing costs and $2.1 million for building improvements.

B.  Of the $1.02 billion we invested in 2011, approximately $592.1 million was used to acquire 94 properties with existing leases.  Associated with these 94 properties, we recorded $109.9 million as the intangible value of the in-place leases, $27.1 million as the intangible value of above-market leases and $3.5 million as the intangible value of below-market leases for 2011.  The value of the in-place and above-market leases is recorded to other assets on our consolidated balance sheet, and the value of the below-market leases is recorded to other liabilities on our consolidated balance sheet. The value of the in-place leases is amortized as depreciation and amortization expense, while the value of the above-market and below-market leases is amortized as rental revenue on our consolidated statements of income. All of these amounts are amortized over the life of the respective leases.
 
 
Of the $713.5 million we invested in 2010, approximately $126.5 million was used to acquire 23 properties with existing leases. Associated with these 23 properties, we recorded $12.6 million as the intangible value of the in-place leases, $4.4 million as the intangible value of above-market leases and $1.6 million as the intangible value of below-market leases for 2010.

4.         Credit Facility

In December 2010, we entered into a $425 million unsecured, revolving credit facility that replaced our previous $355 million acquisition credit facility that was scheduled to expire in May 2011. The initial term of the credit facility expires in March 2014 and includes two, one-year extension options. Under this credit facility, the current investment grade credit ratings on our debt securities provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 185 basis points with a facility commitment fee of 35 basis points, for all-in drawn pricing of 220 basis points over LIBOR. The borrowing rate is not subject to an interest rate floor or ceiling. We also have other interest rate options available to us under the credit facility. Our credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation.
 
As a result of entering into our current credit facility, we incurred credit facility origination costs of $4.2 million that were classified as part of other assets on our consolidated balance sheet at December 31, 2010. At December 31, 2011, the balance of these credit facility origination costs was $3.1 million, which is being amortized over the remaining term of the credit facility.

At December 31, 2011, we had a borrowing capacity of $187.6 million available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $237.4 million, as compared to no borrowings at December 31, 2010.  The average interest rate on outstanding borrowings under our credit facility during 2011 was 2.1% per annum and, during 2010, was 1.3% per annum. During 2009, we did not utilize our credit facility until December and had an effective borrowing rate of 1.2% per annum at December 31, 2009. Our current and prior credit facilities are and were subject to various leverage and interest coverage ratio limitations. We are and have been in compliance with these covenants.

5.        Notes Payable

A.  
General

Our senior unsecured notes and bonds consisted of the following, sorted by maturity date (dollars in millions):
             
December 31,
 
2011
   
2010
 
   5.375% notes, issued in March 2003 and due in March 2013
  $ 100     $ 100  
   5.5% notes, issued in November 2003 and due in November 2015
    150       150  
   5.95% notes, issued in September 2006 and due in September 2016
    275       275  
   5.375% notes, issued in September 2005 and due in September 2017
    175       175  
   6.75% notes, issued in September 2007 and due in August 2019
    550       550  
   5.75% notes, issued in June 2010 and due in January 2021
    250       250  
   5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035
     250        100  
    $ 1,750     $ 1,600  

The following table summarizes the maturity of our notes and bonds payable as of December 31, 2011 (dollars in millions):

 Year of Maturity
 
Notes and Bonds
 
2012
  $ --  
2013
    100  
2014
    --  
2015
    150  
2016
    275  
Thereafter
    1,225  
Totals
  $ 1,750  

 
Interest incurred on all of the notes and bonds for 2011 was $101.5 million, for 2010 was $89.7 million and for 2009 was $82.5 million. The interest rate on each of these notes and bonds is fixed.

Our outstanding notes and bonds are unsecured; accordingly, we have not pledged any assets as collateral for these or any other obligations. Interest on all of the senior note and bond obligations is paid semiannually.

All of these notes and bonds contain various covenants, including: (i) a limitation on incurrence of any debt which would cause our debt to total adjusted assets ratio to exceed 60%; (ii) a limitation on incurrence of any secured debt which would cause our secured debt to total adjusted assets ratio to exceed 40%; (iii) a limitation on incurrence of any debt which would cause our debt service coverage ratio to be less than 1.5 times; and (iv) the maintenance at all times of total unencumbered assets not less than 150% of our outstanding unsecured debt. At December 31, 2011, we remain in compliance with these covenants.

B.  
Re-opening of Unsecured Bonds due 2035

In June 2011, we "re-opened" our 5.875% senior unsecured bonds due 2035, or the 2035 Bonds, and issued $150 million in aggregate principal amount of these 2035 Bonds. The public offering price for the additional 2035 Bonds was 94.578% of the principal amount for an effective yield of 6.318% per annum.  Those 2035 Bonds constituted an additional issuance of, and a single series with, the $100 million in aggregate principal amount of the 2035 Bonds that we issued in March 2005.  The net proceeds of $140.1 million were used to fund property acquisitions.  Interest is paid semiannually on the 2035 Bonds.
 
C.  
Note Issuance
 
In June 2010, we issued $250 million in aggregate principal amount of 5.75% senior unsecured notes due January 2021, or the 2021 Notes. The price to the investor for the 2021 Notes was 99.404% of the principal amount for an effective yield of 5.826% per annum.  The net proceeds of $246.1 million from this offering were used to repay borrowings under our acquisition credit facility, which were incurred to fund property acquisitions.  Interest is paid semiannually on the 2021 Notes.
 
D.  
Note Redemptions

On their maturity date in January 2009, we redeemed, using cash on hand, all of our outstanding 8.00% notes issued in January 1999 at a redemption price equal to 100% of the principal amount of $20 million, plus accrued and unpaid interest.
 
6.        Mortgages Payable

As part of the $1.02 billion invested in new properties during 2011, we assumed $67.4 million of mortgages payable to third-party lenders. These four mortgages are secured by the properties on which the debt was placed and are non-recourse. We expect to pay off the mortgages as soon as prepayment penalties and costs make it economically feasible to do so. We intend to continue our policy of primarily identifying property acquisitions that are free from mortgage indebtedness.

In aggregate, net premiums totaling $820,000 were recorded upon assumption of the mortgages at the time of the respective property acquisitions to account for above-market interest rates. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective notes, using a method that approximates the effective-interest method. These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage, without the prior consent of the lender.

As a result of assuming these mortgages payable in 2011, we incurred deferred financing costs of $917,000 that were classified as part of other assets on our consolidated balance sheet.  The balance of these deferred financing costs at December 31, 2011, was $751,000, which is being amortized over the remaining term of each mortgage.

 
The following is a summary of our mortgages payable as of December 31, 2011 (principal balance, unamortized premiums (discounts) and mortgage payable balances in thousands):
 
 
 
 
Tenant Name
 
 Stated
 Interest
 Rate(1)
   
Effective Interest Rate
 
 
 
Maturity Date(2)
 
Remaining
Principal Balance(2)
   
Amortized
Premium
(Discount) Balance
   
 Mortgage Payable Balance
 
T-Mobile USA, Inc. (3)
    5.89 %     5.19 %
5/6/12
  $ 10,664     $ 26     $ 10,690  
Aviall Services, Inc. (4)
    6.25 %     4.63 %
 12/1/13
    12,410       314       12,724  
Aviall Services, Inc. (4)
    6.25 %     5.09 %
9/1/14
    11,671       359       12,030  
MeadWestvaco Corporation
    4.73 %     4.84 %
6/10/15
    23,625       (68 )     23,557  
Solae, LLC(4)(5)
    8.26 %     8.26 %
12/28/13
    4,510       --       4,510  
Solae, LLC(4)(5)
    8.26 %     8.26 %
12/28/13
    4,270       --       4,270  
                      $ 67,150     $ 631     $ 67,781  
 
 
(1) With the exception of the MeadWestvaco Corporation mortgage, the mortgages are at fixed interest rates.  The MeadWestvaco Corporation mortgage is at a floating variable interest rate calculated as the sum of the current 1 month LIBOR plus 4.50%, not to exceed an all-in interest rate of 5.5%.
 
(2) The mortgages require monthly payments, with a principal payment due at maturity.
 
(3) We have notified the lender that the mortgage will be paid off on March 6, 2012, as allowed for in the agreement.
 
(4) These are mortgages associated with one property occupied by the applicable tenant.
 
(5) As part of the assumption of these mortgages payable related to our acquisition of Solae, LLC, we also assumed an $8.8 million note receivable, upon which we will receive interest income at a stated rate of 8.14% through December 28, 2013.

7.         Common Stock Offerings
 
In September 2011, we issued 6,300,000 shares of common stock at a price of $34.00 per share. After underwriting discounts and other offering costs of $10.6 million, the net proceeds of $203.6 million were used to repay borrowings under our acquisition credit facility, which were used to fund recent property acquisitions.

In March 2011, we issued 8,625,000 shares of common stock at a price of $34.81 per share. After underwriting discounts and other offering costs of $14.6 million, the net proceeds of $285.6 million were used to fund property acquisitions.

In December 2010, we issued 7,360,000 shares of common stock at a price of $33.70 per share.  The net proceeds of $235.7 million were used to repay borrowings of $179.8 million under our acquisition credit facility and to fund property acquisitions during December 2010.  The remaining net proceeds were used for general corporate purposes and working capital.

In September 2010, we issued 6,198,500 shares of common stock at a price of $33.40 per share.  The net proceeds of $196.9 million were used to repay borrowings of $49.7 million under our acquisition credit facility and to fund $126.5 million of property acquisitions during October 2010.  The remaining net proceeds were used for general corporate purposes and working capital.

8.         Preferred Stock
 
A.      In 2004, we issued 5.1 million shares of 7.375% Monthly Income Class D cumulative redeemable preferred stock. On May 27, 2009, the Class D preferred shares became redeemable, at our option, for $25 per share. During 2011, 2010 and 2009, we paid twelve monthly dividends to holders of our Class D preferred stock totaling $1.8437508 per share, or $9.4 million, and at December 31, 2011, a monthly dividend of $0.1536459 per share was payable and was paid in January 2012. On January 31, 2012, we announced that we plan to redeem our outstanding Class D preferred stock on March 1, 2012.  We will redeem the Class D preferred stock at $25.00 per share, plus accrued dividends.
 
B.      In 2006, we issued 8.8 million shares of 6.75% Monthly Income Class E cumulative redeemable preferred stock. Beginning December 7, 2011, the Class E preferred shares are redeemable, at our option, for $25 per share. During 2011, 2010 and 2009, we paid twelve monthly dividends to holders of our Class E preferred stock totaling $1.6875 per share, or $14.9 million, and at December 31, 2011, a monthly dividend of $0.140625 per share was payable and was paid in January 2012.
 
 
We are current in our obligations to pay dividends on our Class D and Class E preferred stock.
 
9.        Distributions Paid and Payable
 
A.  
Common Stock
 
We pay monthly distributions to our common stockholders.  The following is a summary of monthly distributions paid per common share for the years:
 
Month
 
2011
   
2010
   
2009
 
January
  $ 0.1442500     $ 0.1430000     $ 0.1417500  
February
    0.1442500       0.1430000       0.1417500  
March
    0.1442500       0.1430000       0.1417500  
April
    0.1445625       0.1433125       0.1420625  
May
    0.1445625       0.1433125       0.1420625  
June
    0.1445625       0.1433125       0.1420625  
July
    0.1448750       0.1436250       0.1423750  
August
    0.1448750       0.1436250       0.1423750  
September
    0.1448750       0.1436250       0.1423750  
October
    0.1451875       0.1439375       0.1426875  
November
    0.1451875       0.1439375       0.1426875  
December
    0.1451875       0.1439375       0.1426875  
Total
  $ 1.7366250     $ 1.7216250     $ 1.7066250  

The following presents the federal income tax characterization of distributions paid or deemed to be paid per common share for the years:
 
   
2011
   
2010
   
2009
 
Ordinary income
  $ 1.3787863     $ 1.2598879     $ 1.2739214  
Nontaxable distributions
    0.3578387       0.4617371       0.4113034  
Capital gain
    --       --       0.0214002  
Totals
  $ 1.7366250     $ 1.7216250     $ 1.7066250  

At December 31, 2011, a distribution of $0.1455 per common share was payable and was paid in January 2012. At December 31, 2010, a distribution of $0.14425 per common share was payable and was paid in January 2011.
 
B.  
Class D Preferred Stock

Dividends of $0.1536459 per share are paid monthly in arrears on the Class D preferred stock. We declared dividends to holders of our Class D preferred stock totaling $9.4 million in 2011, 2010 and 2009, respectively.  On January 31, 2012, we announced that we plan to redeem the Class D preferred stock on March 1, 2012.

The following presents the federal income tax characterization of dividends paid per share to our Class D preferred stockholders for the years:
 
   
2011
   
2010
   
2009
 
Ordinary income
  $ 1.8437508     $ 1.8437508     $ 1.8206316  
Capital gain
    --       --       0.0231192  
Totals
  $ 1.8437508     $ 1.8437508     $ 1.8437508  
 
C.  
Class E Preferred Stock

Dividends of $0.140625 per share are paid monthly in arrears on the Class E preferred stock.  We declared dividends to holders of our Class E preferred stock totaling $14.9 million in 2011, 2010 and 2009.
 
 
The following presents the federal income tax characterization of dividends paid per share to our Class E preferred stockholders for the years:
 
   
2011
   
2010
   
2009
 
Ordinary income
  $ 1.6875000     $ 1.6875000     $ 1.6663392  
Capital gain
    --       --       0.0211608  
Totals
  $ 1.6875000     $ 1.6875000     $ 1.6875000  
 
10.       Operating Leases

A.   At December 31, 2011, we owned 2,634 properties in 49 states, plus an additional three properties owned by Crest. Of the 2,634 properties, 2,619, or 99.4%, are single-tenant properties, and the remaining 15 are multi-tenant properties. At December 31, 2011, 87 properties were vacant and available for lease or sale.

Substantially all leases are net leases where the tenant pays property taxes and assessments, maintains the interior and exterior of the building and leased premises, and carries insurance coverage for public liability, property damage, fire and extended coverage.

Rent based on a percentage of a tenants' gross sales (percentage rents) for 2011, 2010 and 2009 was $1.4 million, including amounts recorded to discontinued operations of $17,000 in 2011, $55,000 in 2010 and $112,000 in 2009.

At December 31, 2011, minimum future annual rents to be received on the operating leases for the next five years and thereafter are as follows (dollars in thousands):
 
2012
  $ 454,695  
2013
    439,836  
2014
    422,577  
2015
    407,459  
2016
    392,067  
Thereafter
    3,105,365  
Total
  $ 5,221,999  

B.   Major Tenants - No individual tenant's rental revenue, including percentage rents, represented more than 10% of our total revenue for each of the years ended December 31, 2011, 2010 or 2009.

11.        Gain on Sales of Real Estate Acquired for Resale

During 2011 and 2010, Crest did not sell any properties.  During 2009, Crest sold two properties for $2.0 million, which resulted in no gain. Crest's gains on sales are reported before income taxes and are included in income from discontinued operations.

12.        Gain on Sales of Investment Properties

During 2011, we sold 26 investment properties for $21.8 million, which resulted in a gain of $5.2 million. The results of operations for these properties have been reclassified as discontinued operations.  Additionally, we sold excess real estate from six properties for $2.3 million, which resulted in a gain of $540,000.  This gain is included in other revenue on our consolidated statement of income for 2011, because this excess real estate was associated with properties that continue to be owned as part of our core operations.

During 2010, we sold 28 investment properties and excess land from one property for $27.2 million, which resulted in a gain of $8.7 million.  The results of operations for these properties have been reclassified as discontinued operations.

 
During 2009, we sold 25 investment properties and excess land from one property for $20.5 million, which resulted in a gain of $8.1 million. The results of operations for these properties have been reclassified as discontinued operations.

13.       Fair Value of Financial Instruments

Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The disclosure for assets and liabilities measured at fair value requires allocation to a three-level valuation hierarchy. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, and all liabilities, due to their short-term nature, except for our notes receivable issued in connection with property sales, mortgages payable and our senior notes and bonds payable, which are disclosed below (dollars in millions):

   
Carrying value per
   
Estimated fair
 
At December 31, 2011
 
balance sheet
   
market value
 
Notes receivable issued in connection with property sales
  $ 19.0     $ 19.6  
Note receivable issued in connection with 2011 acquisitions
  $ 8.8     $ 8.8  
Mortgages payable assumed in connection with 2011 acquisitions
  $ 67.8     $ 68.2  
Notes payable
  $ 1,750.0     $ 1,901.9  

   
Carrying value per
   
Estimated fair
 
At December 31, 2010
 
balance sheet
   
market value
 
Notes receivable issued in connection with property sales
  $ 22.1     $ 23.2  
Notes payable
  $ 1,600.0     $ 1,707.1  

The estimated fair value of our notes receivable, issued in connection with property sales, has been calculated by discounting the future cash flows using an interest rate based upon the current 5-year or 7-year Treasury yield curve, plus an applicable credit-adjusted spread. These notes receivable were issued in connection with the sale of three Crest properties. Payments to us on these notes receivable are current and no allowance for doubtful accounts has been recorded for them.

The estimated fair value of our mortgages payable has been calculated by discounting the future cash flows using an interest rate based upon the current 5-year Treasury yield curve, plus an applicable credit-adjusted spread.

The estimated fair value of our notes and bonds payable is based upon indicative market prices and recent trading activity of our notes and bonds payable. 

14.       Supplemental Disclosures of Cash Flow Information

Interest paid in 2011 was $102.0 million, in 2010 was $82.6 million and in 2009 was $83.2 million.

Interest capitalized to properties under development in 2011 was $438,000, in 2010 was $10,000 and in 2009 was $5,000.

Income taxes paid in 2011 were $871,000, in 2010 were $907,000 and in 2009 were $1.2 million.

The following non-cash investing and financing activities are included in the accompanying consolidated financial statements:

A.  
Share-based compensation expense for 2011 was $7.9 million, for 2010 was $6.2 million and for 2009 was $4.7 million.
 
 
B.  
See "Provisions for Impairment" in note 2 for a discussion of provisions for impairments recorded by Realty Income and Crest.

C.  
As part of the acquisition of four properties during 2011, we assumed $67.4 million of mortgages payable to third-party lenders and recorded $820,000 of net premiums.  Additionally, we assumed an $8.8 million note receivable.  See note 6 for a discussion of these transactions.

D.  
At December 31, 2010, we had escrow deposits of $6.4 million held for tax-deferred exchanges under Section 1031 of the Code.  The $6.4 million is included in "other assets" on our consolidated balance sheet at December 31, 2010.

E.  
At December 31, 2009, we had escrow deposits of $4.5 million held for tax-deferred exchanges under Section 1031 of the Code. The $4.5 million is included in "other assets" on our consolidated balance sheet at December 31, 2009.

F.  
In 2010, we recorded a $600,000 receivable for the sale of excess land.  This receivable is included in other assets on our consolidated balance sheet at December 31, 2010.  We received cash for this excess land in 2011.

G.  
In 2010, we recorded a $799,000 receivable for the sale of an investment property as a result of an eminent domain action.  This receivable is included in other assets on our consolidated balance sheet at December 31, 2011 and 2010.

H.  
In 2009, Realty Income and Crest amended certain prior year state tax returns and determined that it is more-likely-than-not that we will be collecting refunds in the future as a result of these amendments.  As a result of this, in 2009, Realty Income recorded a tax receivable of $454,000 and Crest recorded a tax receivable of $303,000.

I.  
In accordance with our policy, we recorded adjustments to our estimated legal obligations related to asset retirement obligations on two land leases in the following amounts: an increase of $152,000 in 2011, an increase of $82,000 in 2010 and a reduction of $63,000 in 2009. These asset retirement obligations account for the difference between our obligations to the landlord under the two land leases and our subtenant's obligations to us under the subleases.

J.  
Accrued costs on properties under development resulted in an increase in buildings and improvements and accounts payable of $3.7 million at December 31, 2011, and $337,000 at December 31, 2010.

K.  
In 2011, we entered into loan agreements to fund development of real estate.  These loans receivable are included in other assets on our consolidated balance sheet at December 31, 2011, and include accrued costs of $574,000.

15.       Employee Benefit Plan

We have a 401(k) plan covering substantially all of our employees. Under our 401(k) plan, employees may elect to make contributions to the plan up to a maximum of 60% of their compensation, subject to limits under the Code. We match 50% of our employee's contributions, up to 3% of the employee's compensation. Our aggregate matching contributions each year have been immaterial to our results of operations.

 

 
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16.       Common Stock Incentive Plan

In 2003, our Board of Directors adopted, and stockholders approved, the 2003 Incentive Award Plan of Realty Income Corporation, or the Stock Plan, to enable us to attract and retain the services of directors, employees and consultants, considered essential to our long-term success. The Stock Plan offers our directors, employees and consultants an opportunity to own stock in Realty Income and/or rights that will reflect our growth, development and financial success. The Stock Plan was amended and restated by our Board of Directors in February 2006 and in May 2007. Under the terms of this plan, the aggregate number of shares of our common stock subject to options, stock purchase rights, or SPR, stock appreciation rights, or SAR, and other awards will be no more than 3,428,000 shares. The maximum number of shares that may be subject to options, SPR, SAR and other awards granted under the plan to any individual in any calendar year may not exceed 1,600,000 shares. This plan has a term of 10 years from the date it was adopted by our Board of Directors, which was March 12, 2003. To date, we have not issued any SPR or SAR.

The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income during 2011 was $7.9 million, during 2010 was $6.2 million and during 2009 was $4.7 million.

The following table summarizes our common stock grant activity under our Stock Plan. Our common stock grants vest over periods ranging from immediately to 10 years.
 
   
2011
   
2010
   
2009
 
   
Number of shares
   
Weighted
 average price(1)
   
Number of shares
   
Weighted average price(1)
   
Number of shares
   
Weighted average price(1)
 
Outstanding nonvested shares, beginning of year
     924,294     $   19.69        853,234     $   19.14        994,453     $   19.70  
Shares granted
    247,214       33.94       278,200       28.99       142,860       22.86  
Shares vested
    (245,487 )     25.26       (206,153 )     23.70       (214,521 )     23.14  
Shares forfeited
    (495 )     31.37       (987 )     26.03       (69,558 )     25.95  
Outstanding nonvested shares, end of year
     925,526     $   20.21        924,294     $   19.69        853,234     $   19.14  
 
(1)
Grant date fair value.

During 2011, we issued 247,214 shares of common stock under our Stock Plan. These shares vest over the following service periods: 25,158 vested immediately, 5,000 vest over a service period of one year, 70,400 vest over a service period of three years and 146,656 vest over a service period of five years.

The vesting schedule for shares granted to non-employee directors is as follows:
 
-
For directors with less than six years of service at the date of grant, shares vest in 33.33% increments on each of the first three anniversaries of the date the shares of stock are granted;
-
For directors with six years of service at the date of grant, shares vest in 50% increments on each of the first two anniversaries of the date the shares of stock are granted;
-
For directors with seven years of service at the date of grant, shares are 100% vested on the first anniversary of the date the shares of stock are granted; and
-
For directors with eight or more years of service at the date of grant, there is immediate vesting as of the date the shares of stock are granted.

The vesting schedule for shares granted to employees is as follows:
 
-
For employees age 55 and below at the grant date, shares vest in 20% increments on each of the first five anniversaries of the grant date;
-
For employees age 56 at the grant date, shares vest in 25% increments on each of the first four anniversaries of the grant date;

 

 
-70-

 
-
For employees age 57 at the grant date, shares vest in 33.33% increments on each of the first three anniversaries of the grant date;
-
For employees age 58 at the grant date, shares vest in 50% increments on each of the first two anniversaries of the grant date;
-
For employees age 59 at the grant date, shares are 100% vested on the first anniversary of the grant date; and
-
For employees age 60 and above at the grant date, shares vest immediately on the grant date.

After they have been employed for six full months, all non-executive employees receive 200 shares of nonvested stock which vests over a five year period.  Additionally, depending on certain company performance metrics, non-executive employees may receive grants of nonvested stock which vests over a five year period.

As of December 31, 2011, the remaining unamortized share-based compensation expense totaled $18.7 million, which is being amortized on a straight-line basis over the service period of each applicable award. The amount of share-based compensation is based on the fair value of the stock at the grant date. We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and condition of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares.

Due to a historically low turnover rate, we do not estimate a forfeiture rate for our nonvested shares. Accordingly, unexpected forfeitures will lower share-based compensation expense during the applicable period. Under the terms of our Stock Plan, we pay non-refundable dividends to the holders of our nonvested shares. Applicable accounting guidance requires that the dividends paid to holders of these nonvested shares be charged as compensation expense to the extent that they relate to nonvested shares that do not or are not expected to vest. However, since we do not estimate forfeitures given our historical trends, we did not record any amount to compensation expense related to dividends paid in 2011, 2010 or 2009.

As of December 31, 2011, there were no remaining stock options outstanding.  All outstanding options were fully vested as of December 31, 2006. Stock options, none of which were granted after January 1, 2002, were granted with an exercise price equal to the underlying stock's fair value at the date of grant.

The following table summarizes our stock option activity for the years:

   
2011
   
2010
   
2009
 
   
 
Number of shares
   
Weighted average   exercise price
   
 
Number of shares
   
Weighted average exercise price
   
 
Number of shares
   
Weighted average exercise price
 
Outstanding options, beginning of year
     2,454     $  14.70        5,846     $  14.70        21,294     $  13.33  
Options exercised
    (2,454 )     14.70       (3,392 )     14.70       (15,448 )     12.81  
Outstanding and exercisable options, end of year
     --     $  --        2,454     $  14.70        5,846     $  14.70  

The intrinsic value of a stock option is the amount by which the market value of the underlying stock at December 31 of each year exceeds the exercise price of the option. The market value of our stock was $34.20 and $25.91 at December 31, 2010 and 2009, respectively. The total intrinsic value of options exercised during the years ended December 31, 2011, 2010 and 2009 was $48,000, $61,000 and $157,000, respectively. The aggregate intrinsic value of options outstanding and exercisable was $48,000 and $66,000 at December 31, 2010 and 2009, respectively.

 

 
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17.        Dividend Reinvestment and Stock Purchase Plan

In March 2011, we established a Dividend Reinvestment and Stock Purchase Plan, or The Plan, to provide our common stockholders, as well as new investors, with a convenient and economical method to purchase our common stock and/or reinvest their distributions. The Plan authorizes up to 6,000,000 common shares to be issued.  Through December 31, 2011, we issued 59,605 shares and received net proceeds of approximately $1.9 million under The Plan.

18.       Segment Information

We evaluate performance and make resource allocation decisions on an industry by industry basis. For financial reporting purposes, we have grouped our tenants into 39 industry and activity segments (including properties owned by Crest that are grouped together as a segment). All of the properties are incorporated into one of the applicable segments. Because almost all of our leases require the tenant to pay operating expenses, revenue is the only component of segment profit and loss we measure.

The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants, as of December 31, 2011 (dollars in thousands):

Assets, as of December 31:
 
2011
   
2010
 
Segment net real estate:
           
   Automotive service
  $ 101,280     $ 105,393  
   Automotive tire services
    191,577       197,997  
   Beverages
    314,832       302,159  
   Child care
    66,474       72,935  
   Convenience stores
    690,246       711,667  
   Drug stores
    154,015       143,739  
   Grocery stores
    221,678       72,122  
   Health and fitness
    296,188       220,856  
   Restaurants - casual dining
    472,471       487,048  
   Restaurants - quick service
    277,900       248,877  
   Theaters
    383,452       281,072  
   Transportation services
    107,632       4,961  
   Wholesale clubs
    154,964       --  
   26 non-reportable segments
    727,299       556,052  
Total segment net real estate
    4,160,008       3,404,878  
Intangible assets:
               
Automotive tire services
    529       588  
Beverages
    3,571       --  
Drug stores
    14,422       5,939  
Grocery stores
    5,655       6,031  
Health and fitness
    1,566       1,708  
Restaurants - quick service
    4,037       --  
Theaters
    31,162       1,579  
Transportation services
    28,944       --  
Other - non-reportable segments
    63,450       10,376  
Goodwill:
               
Automotive service
    1,338       1,338  
Child care
    5,353       5,353  
Convenience stores
    2,074       2,074  
Restaurants - casual dining
    2,461       2,461  
Restaurants - quick service
    1,318       1,318  
Other - non reportable segments
    4,662       4,662  
Other corporate assets
    88,839       87,285  
Total assets
  $ 4,419,389     $ 3,535,590  

 

 
-72-

   
Revenue
 
For the years ended December 31,
 
2011
   
2010
   
2009
 
Segment rental revenue:
                 
   Automotive service
  $ 15,661     $ 15,626     $ 15,285  
   Automotive tire services
    23,335       22,303       23,128  
   Beverages
    23,458       10,292       --  
   Child care
    22,011       21,981       22,612  
   Convenience stores
    77,808       58,837       55,054  
   Drug stores
    15,809       13,962       13,727  
   Grocery stores
    6,858       3,147       2,339  
   Health and fitness
    26,817       23,768       18,787  
   Restaurants - casual dining
    45,725       45,955       44,378  
   Restaurants - quick service
    27,522       26,519       27,204  
   Theaters
    36,812       30,634       30,078  
   Transportation services
    7,586       750       750  
   Wholesale clubs
    3,059       --       --  
   26 non-reportable segments
    86,935       69,061       68,340  
Total rental revenue
    419,396       342,835       321,682  
Other revenue
    1,663       657       868  
Total revenue
  $ 421,059     $ 343,492     $ 322,550  

19.       Commitments and Contingencies

In the ordinary course of our business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations.

At December 31, 2011, we have contingent payments of $621,000 for tenant improvements and leasing costs. In addition, we have committed $16.2 million under construction contracts, which is expected to be paid in the next twelve months.

We have certain properties that are subject to ground leases which are accounted for as operating leases.  At December 31, 2011, minimum future rental payments for the next five years and thereafter are as follows (dollars in thousands):
   
Ground Leases Paid by Realty Income (1)
   
Ground Leases Paid by Our Tenants (2)
   
 
 Total
 
2012
  $ 157     $ 4,083     $ 4,240  
2013
    158       4,016       4,174  
2014
    167       3,786       3,953  
2015
    170       3,729       3,899  
2016
    171       3,702       3,873  
Thereafter
    421       49,021       49,442  
Total
  $ 1,244     $ 68,337     $ 69,581  
 
 
 (1) Realty Income currently pays the ground lessors directly for the rent under the ground leases.
 
(2) Our tenants, who are generally sub-tenants under the ground leases, are responsible for paying the rent under these ground leases. In the event a tenant fails to pay the ground lease rent, we are primarily responsible.

 

 
-73-


20.       Subsequent Events

In January 2012 and February 2012, we declared the following dividends, which will be paid in February 2012 and March 2012, respectively:

-  
$0.1455 per share to our common stockholders;
-  
$0.1536459 per share to our Class D preferred stockholders; and
-  
$0.140625 per share to our Class E preferred stockholders.

In January 2012, Friendly Ice Cream Corporation, or Friendly’s, one of our tenants, announced that it was emerging from voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code (which they had filed for in October 2011). Friendly’s accepted 102 of their 121 leases with us, while they rejected 19 leases with us and received modifications to some of their other leases with us.

Additionally, in January 2012, Buffets Holding, Inc., or Buffets, another one of our tenants, filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.  As of December 31, 2011, Buffets leased 86 properties from us, representing approximately 3.9% of our annualized rental revenue.  Buffets rejected the leases on seven of our properties.  Additionally, we have reached a preliminary agreement (subject to bankruptcy court approval) with Buffets regarding modifications to some of Buffets’ other leases with us.

In February 2012, we issued 14.95 million shares of 6.625% Monthly Income Class F cumulative redeemable preferred stock, including 1.95 million shares purchased by the underwriters upon the exercise of their overallotment option. The net proceeds of approximately $361.7 million from this issuance will be used to redeem the outstanding Class D preferred stock on March 1, 2012, repay borrowings under our acquisition credit facility and for other general corporate purposes.  Beginning February 15, 2017, the Class F preferred shares are redeemable at our option for $25.00 per share. The initial dividend of $0.1702257 per share will be paid on March 15, 2012, and will cover 37 days.  Thereafter, dividends of $0.1380208 per share will be paid monthly.
 
As a result of the issuance of our Class F preferred stock in February 2012, we paid off all outstanding credit facility borrowings on February 7, 2012.
 
REALTY INCOME CORPORATION AND SUBSIDIARIES
Consolidated Quarterly Financial Data
(dollars in thousands, except per share data)
(not covered by Report of Independent Registered Public Accounting Firm)

   
First
   
Second
   
Third
   
Fourth
       
   
Quarter
   
Quarter
   
Quarter
   
Quarter
   
Year(2)
 
2011(1)
                             
Total revenue
  $ 97,546     $ 102,422     $ 107,084     $ 114,007     $ 421,059  
Depreciation and amortization expense
    26,672       28,909       31,824       34,346       121,751  
Interest expense
    25,122       25,647       28,550       28,983       108,301  
Other expenses
    9,978       9,988       9,199       10,704       39,870  
Income from continuing operations
    35,774       37,878       37,511       39,974       151,137  
Income from discontinued operations
    225       1,370       3,269       1,030       5,895  
Net income
    35,999       39,248       40,780       41,004       157,032  
Net income available to common stockholders
     29,936        33,185        34,717        34,941        132,779  
Net income per common share:
    Basic and diluted
    0.25       0.26       0.27       0.26       1.05  
Dividends paid per common share
    0.4327500       0.4336875       0.4346250       0.4355625       1.7366250  
                                         
2010(1)
                                       
Total revenue
  $ 82,302     $ 82,219     $ 86,726     $ 92,245     $ 343,492  
Depreciation and amortization expense
    22,911       23,205       23,897       24,894       94,907  
Interest expense
    21,395       21,576       25,135       25,131       93,237  
Other expenses
    8,913       8,559       8,235       8,906       34,614  
Income from continuing operations
    29,083       28,879       29,459       33,314       120,734  
Income from discontinued operations
    1,122       2,169       2,195       4,563       10,050  
Net income
    30,205       31,048       31,654       37,877       130,784  
Net income available to common stockholders
     24,142        24,985        25,591        31,814        106,531  
Net income per common share:
    Basic and diluted
    0.23       0.24       0.25       0.28       1.01  
Dividends paid per common share
    0.4290000       0.4299375       0.4308750       0.4318125       1.7216250  
 
(1)  
The consolidated quarterly financial data includes revenues and expenses from our continuing and discontinued operations. The results of operations related to certain properties, classified as held for sale or disposed of, have been reclassified to income from discontinued operations. Therefore, some of the information may not agree to our previously filed 10-Qs.
(2)  
Amounts for each period are calculated independently.  The sum of the quarters may differ from the annual amount.

Item 9:         Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

We have had no disagreements with our independent registered public accounting firm on accounting matters or financial disclosure, nor have we changed accountants in the two most recent fiscal years.


Item 9A:       Controls and Procedures

Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of and for the year ended December 31, 2011, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective and were operating at a reasonable assurance level.

Management's Report on Internal Control Over Financial Reporting
Internal control over financial reporting refers to the process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer, and effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and includes those policies and procedures that:
 
(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
 
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
 
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.
 
Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company.
 
Management has used the framework set forth in the report entitled "Internal Control--Integrated Framework" published by the Committee of Sponsoring Organizations of the Treadway Commission to evaluate the effectiveness of the Company's internal control over financial reporting. Management has concluded that the Company's internal control over financial reporting was effective as of the end of the most recent fiscal year.  KPMG LLP has issued an attestation report on the effectiveness of the Company's internal control over financial reporting.
 
Submitted on February 9, 2012 by,
 
Thomas A Lewis, Chief Executive Officer and Vice Chairman
Paul M. Meurer, Chief Financial Officer, Executive Vice President and Treasurer


Changes in Internal Controls
There were no changes to our internal control over financial reporting that occurred during the quarter ended December 31, 2011 that have materially affected, or are reasonably likely to material affect, our internal control over financial reporting.  As of December 31, 2011, there were no material weaknesses in our internal controls, and therefore, no corrective actions were taken.

Limitations on the Effectiveness of Controls
Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

Item 9B:       Other Information

None.


PART III

Item 10:        Directors, Executive Officers and Corporate Governance

The information required by this item is set forth under the captions “Board of Directors” and “Executive Officers of the Company” and “Section 16(a) Beneficial Ownership Reporting Compliance” in our definitive Proxy Statement for the 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference. The Annual Meeting of Stockholders is presently scheduled to be held on May 8, 2012.

Item 11:         Executive Compensation

The information required by this item is set forth under the caption “Executive Compensation” in our definitive Proxy Statement for the 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.

Item 12:         Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item is set forth under the caption “Security Ownership of Certain Beneficial Owners and Management” in our definitive Proxy Statement for the 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.

Item 13:          Certain Relationships, Related Transactions and Director Independence

The information required by this item is set forth under the caption “Related Party Transactions” in our definitive Proxy Statement for the 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.

Item 14:          Principal Accounting Fees and Services

The information required by this item is set forth under the caption “Independent Registered Public Accounting Firm Fees and Services” in our definitive Proxy Statement for the 2012 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A, and is incorporated herein by reference.
 
 
PART IV

Item 15:          Exhibits and Financial Statement Schedules

A.           The following documents are filed as part of this report.

1.  
Financial Statements (see Item 8)

a.     Reports of Independent Registered Public Accounting Firm

b.     Consolidated Balance Sheets, December 31, 2011 and 2010

c.     Consolidated Statements of Income, Years ended December 31, 2011, 2010 and 2009

d.     Consolidated Statements of Stockholders’ Equity, Years ended December 31, 2011, 2010 and 2009

e.     Consolidated Statements of Cash Flows, Years ended December 31, 2011, 2010 and 2009

f.     Notes to Consolidated Financial Statements

g.     Consolidated Quarterly Financial Data, (unaudited) for 2011 and 2010

2.  
Financial Statement Schedule.  Reference is made to page F-1 of this report for Schedule III Real Estate and Accumulated Depreciation (electronically filed with the Securities and Exchange Commission).

 
Schedules not Filed:  All schedules, other than those indicated in the Table of Contents, have been omitted as the required information is either not material, inapplicable or the information is presented in the financial statements or related notes.

3.  
Exhibits

Articles of Incorporation and By-Laws

    Exhibit No.       Description
 
 
3.1
Articles of Incorporation of the Company, as amended by amendment No. 1 dated May 10, 2005 and amendment No. 2 dated May 10, 2005 (filed as exhibit 3.1 to the Company’s Form 10-Q for the quarter ended June 30, 2005, and incorporated herein by reference) and amendment No. 3 dated July 29, 2011 (filed as exhibit 3.1 to the Company's Form 8-K, filed on August 2, 2011 and dated August 1, 2011 and incorporated herein by reference).

 
3.2
Amended and Restated Bylaws of the Company dated December 12, 2007 (filed as exhibit 3.1 to the Company's Form 8-K, filed on December 13, 2007 and dated December 12, 2007 and incorporated herein by reference), as amended on May 13, 2008 (amendment filed as exhibit 3.1 to the Company’s Form 8-K, filed on May 14, 2008 and dated May 13, 2008 and incorporated herein by reference).

 
3.3
Articles Supplementary to the Articles of Incorporation of the Company classifying and designating the 7.375% Monthly Income Class D Cumulative Redeemable Preferred Stock (filed as exhibit 3.8 to the Company’s Form 8-A, filed on May 25, 2004 and incorporated herein by reference).

 

 
-78-

 
 
3.4
Articles Supplementary to the Articles of Incorporation of the Company classifying and designating additional shares of the 7.375% Monthly Income Class D Cumulative Redeemable Preferred Stock (filed as exhibit 3.2 to the Company’s Form 8-K, filed on October 19, 2004 and dated October 12, 2004 incorporated herein by reference).
 
 
3.5
Articles Supplementary to the Articles of Incorporation of the Company classifying and designating the 6.75% Class E Cumulative Redeemable Preferred Stock (filed as exhibit 3.5 to the Company’s Form 8-A, filed on December 5, 2006 and incorporated herein by reference).

 
3.6
Articles Supplementary to the Articles of Incorporation of the Company classifying and designating the 6.625% Class F Cumulative Redeemable Preferred Stock (filed as exhibit 3.1 to the Company’s Form 8-K, filed on February 3, 2012 and incorporated herein by reference).

 
Instruments defining the rights of security holders, including indentures
 
 
4.1
Indenture dated as of October 28, 1998 between the Company and The Bank of New York (filed as exhibit 4.1 to the Company’s Form 8-K, filed on October 28, 1998 and dated October 27, 1998 and incorporated herein by reference).

 
4.2
Form of 5.375% Senior Notes due 2013 (filed as exhibit 4.2 to the Company’s Form 8-K, filed on March 7, 2003 and dated March 5, 2003 and incorporated herein by reference).

 
4.3
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York, as Trustee, establishing a series of securities entitled 5.375% Senior Notes due 2013 (filed as exhibit 4.3 to the Company’s Form 8-K, filed on March 7, 2003 and dated March 5, 2003 and incorporated herein by reference).

 
4.4
Form of 5.50% Senior Notes due 2015 (filed as exhibit 4.2 to the Company’s Form 8-K, filed on November 24, 2003 and dated November 19, 2003 and incorporated herein by reference).

 
4.5
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York, as Trustee, establishing a series of securities entitled 5.50% Senior Notes due 2015 (filed as exhibit 4.3 to the Company’s Form 8-K, filed on November 24, 2003 and dated November 19, 2003 and incorporated herein by reference).

 
4.6
Form of 5.875% Senior Notes due 2035 (filed as exhibit 4.2 to the Company’s Form 8-K, filed on March 11, 2005 and dated March 8, 2005 and incorporated herein by reference).

 
4.7
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York, as Trustee, establishing a series of securities entitled 5.875% Senior Debentures due 2035 (filed as exhibit 4.3 to the Company’s Form 8-K, filed on March 11, 2005 and dated March 8, 2005 and incorporated herein by reference).

 
4.8
Form of 5.375% Senior Notes due 2017 (filed as exhibit 4.2 to the Company’s Form 8-K, filed on September 16, 2005 and dated September 8, 2005 and incorporated herein by reference).

 
4.9
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York, as Trustee, establishing a series of securities entitled 5.375% Senior Notes due 2017 (filed as exhibit 4.3 to the Company’s Form 8-K, filed on September 16, 2005 and dated September 8, 2005 and incorporated herein by reference).
 
 
 
4.10
Form of 5.95% Senior Notes due 2016 (filed as exhibit 4.2 to the Company’s Form 8-K, filed on September 18, 2006 and dated September 6, 2006 and incorporated herein by reference).

 
4.11
Officer's Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York, as Trustee, establishing a series of securties entitled 5.95% Senior Notes due 2016 (filed as exhibit 4.3 to the Company's Form 8-K, filed on September 18, 2006 and dated September 6, 2006 and incorporated herein by reference).
 
 
4.12
Form of 6.75% Notes due 2019 (filed as exhibit 4.2 to Company’s Form 8-K, filed on September 5, 2007 and dated August 30, 2007 and incorporated herein by reference).

 
4.13
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York Trust Company, N.A., as Trustee, establishing a series of securities entitled 6.75% Senior Notes due 2019 (filed as exhibit 4.3 to the Company's Form 8-K, filed on September 5, 2007 and dated August 30, 2007 and incorporated herein by reference).

 
4.14
Form of 5.750% Notes due 2021 (filed as exhibit 4.2 to Company’s Form 8-K, filed on June 29, 2010 and dated June 24, 2010 and incorporated herein by reference).

 
4.15
Officer’s Certificate pursuant to sections 201, 301 and 303 of the Indenture dated October 28, 1998 between the Company and The Bank of New York Mellon Trust Company, N.A., as Successor Trustee, establishing a series of securities entitled 5.750% Notes due 2021 (filed as exhibit 4.3 to the Company's Form 8-K, filed on June 29, 2010 and dated June 24, 2010 and incorporated herein by reference).

 
4.16
Form of Common Stock Certificate (filed as exhibit 4.16 to the Company’s Form 10-Q for the quarter ended September 30, 2011 and incorporated herein by reference)

 
4.17
Form of Preferred Stock Certificate representing the 7.375% Monthly Income Class D Cumulative Redeemable Preferred Stock (filed as exhibit 4.1 to the Company's Form 8-A, filed on May 25, 2004 and incorporated herein by reference).
 
 
4.18
Form of Preferred Stock Certificate representing the 6.75% Monthly Income Class E Cumulative Redeemable Preferred Stock (filed as exhibit 4.1 to the Company's Form 8-A, filed on December 5, 2006 and incorporated herein by reference).
 
 
4.19
Form of Preferred Stock Certificate representing the 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock (filed as exhibit 4.1 to the Company's Form 8-K, filed on February 3, 2012 and incorporated herein by reference).

 
Material Contracts
 
 
10.1
Form indemnification agreement between the Company and each executive officer and each director of the Board of Directors of the Company (filed as exhibit 10.1 to the Company’s Form 8-K, filed on May 4, 2011 and dated May 3, 2011 and incorporated herein by reference).

 
10.2
1994 Stock Option and Incentive Plan (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (registration number 33-95708), dated August 11, 1995 and incorporated herein by reference).

 
 
10.3
First Amendment to the 1994 Stock Option and Incentive Plan, dated June 12, 1997 (filed as Exhibit 10.9 to the Company’s Form 8-B, filed on July 29, 1997 and incorporated herein by reference).

 
10.4
Second Amendment to the 1994 Stock Option and Incentive Plan, dated December 16, 1997 (filed as Exhibit 10.9 to the Company’s Form 10-K for the year ended December 31, 1997 and incorporated herein by reference).

 
10.5
Management Incentive Plan (filed as Exhibit 10.10 to the Company’s Form 10-K for the year ended December 31, 1997 and incorporated herein by reference).

 
10.6
Form of Nonqualified Stock Option Agreement for Independent Directors (filed as Exhibit 10.11 to the Company’s Form 10-K for the year ended December 31, 1997 and incorporated herein by reference).
 
 
10.7
Form of Restricted Stock Agreement between the Company and Executive Officers (filed as exhibit 10.11 to the Company's Form 8-K, filed on January 6, 2005 and dated January 1, 2005 and incorporated herein by reference).
 
 
10.8
2003 Stock Incentive Award Plan of Realty Income Corporation, as amended and restated February 21, 2006 (filed as exhibit 10.10 to the Company’s Form 10-K for the year ended December 31, 2005 and incorporated herein by reference).

 
10.9
Amendment dated May 15, 2007 to the Amended and Restated 2003 Stock Incentive Award Plan of Realty Income Corporation (filed as exhibit 10.1 to the Company’s Form 10-Q, for the quarter ended June 30, 2007 and incorporated herein by reference).

 
10.10
Form of Restricted Stock Agreement (filed as exhibit 10.2 to the Company’s Form 10-Q, for the quarter ended June 30, 2007 and incorporated herein by reference).

 
10.11
Amended and Restated Form of Employment Agreement between the Company and its Executive Officers (filed as exhibit 10.1 to the Company’s Form 8-K, filed on January 7, 2010 and dated January 5, 2010 and incorporated herein by reference).

 
10.12
Form of Restricted Stock Agreement for John P. Case (filed as exhibit 10.1 to the Company’s Form 10-Q, filed on April 29, 2010 and dated March 31, 2010 and incorporated herein by reference).

 
10.13
Credit Agreement dated December 13, 2010 (filed as exhibit 10.1 to the Company’s Form 8-K, filed on and dated December 13, 2010 and incorporated herein by reference).

 
10.14
Dividend Reinvestment and Stock Purchase Plan (filed as Company’s Registration Statement 333-158169 on Form 424B5, filed on and dated March 23, 2011 and incorporated herein by reference).

 
10.15
The First Amendment to Credit Agreement among the Company, as Borrower, each of the Lenders party thereto (as defined in the original Credit Agreement, dated December 13, 2010), and Wells Fargo Bank, National Association (filed as exhibit 10.1 to the Company’s Form 8-K, filed on March 29, 2011 and dated March 25, 2011 and incorporated herein by reference).
 
Statement of Ratios
 
 
*12.1
Statements re computation of ratios.
 
Subsidiaries of the Registrant
 
 
*21.1
Subsidiaries of the Company as of February 9, 2012.

 
Consents of Experts and Counsel
 
 
*23.1
Consent of Independent Registered Public Accounting Firm.
 
Certifications
 
 
*31.1
Rule 13a-14(a) Certifications as filed by the Chief Executive Officer pursuant to SEC release No. 33-8212 and 34-47551.

 
*31.2
Rule 13a-14(a) Certifications as filed by the Chief Financial Officer pursuant to SEC release No. 33-8212 and 34-47551.

 
*32
Section 1350 Certifications as furnished by the Chief Executive Officer and the Chief Financial Officer pursuant to SEC release No. 33-8212 and 34-47551.
 
 
* Filed herewith.
 
 
SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

REALTY INCOME CORPORATION

By:       /s/THOMAS A. LEWIS                                                                 Date: February 9, 2012
Thomas A. Lewis
Vice Chairman of the Board of Directors,
Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:       /s/DONALD R. CAMERON                                                           Date: February 9, 2012
Donald R. Cameron
Non-Executive Chairman of the Board of Directors

By:       /s/THOMAS A. LEWIS                                                                 Date: February 9, 2012
Thomas A. Lewis
Vice Chairman of the Board of Directors,
Chief Executive Officer
(Principal Executive Officer)

By:       /s/KATHLEEN R. ALLEN, Ph.D.                                                    Date: February 9, 2012
Kathleen R. Allen, Ph.D.
Director

By:       /s/PRIYA CHERIAN HUSKINS                                                       Date: February 9, 2012
Priya Cherian Huskins
Director

By:       /s/MICHAEL D. MCKEE                                                                Date: February 9, 2012
Michael D. McKee
Director

By:       /s/GREGORY T. MCLAUGHLIN                                                     Date: February 9, 2012
Gregory T. McLaughlin
Director

By:       /s/RONALD L. MERRIMAN                                                            Date: February 9, 2012
Ronald L. Merriman
Director

By:       /s/PAUL M. MEURER                                                                   Date: February 9, 2012
Paul M. Meurer
Executive Vice President, Chief Financial Officer and Treasurer
(Principal Financial Officer)

By:       /s/GREGORY J. FAHEY                                                                Date: February 9, 2012
Gregory J. Fahey
Vice President, Controller
(Principal Accounting Officer)
 
-83-

 
REALTY INCOME CORPORATION AND SUBSIDIARIES
                     
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
                     
                             
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
 
 at Close of Period (Notes 2, 3, 5, 6 and 7)
     
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
     
 Improvements
         
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Apparel Stores
                           
Mesa
AZ
619,035
867,013
 
                 6,484
             43,549
 
619,035
              917,046
          1,536,081
                      490,761
 
02/11/99
300
South Lake Tahoe
CA
3,110,000
3,176,091
 
 None
 None
 
3,110,000
          3,176,091
          6,286,091
                      153,511
 
10/22/10
300
Danbury
CT
1,096,861
6,217,688
 
               70,819
                     56
 
1,096,861
          6,288,563
          7,385,424
                   3,594,048
 
09/30/97
300
Manchester
CT
771,660
3,653,539
 
                 1,661
                   161
 
771,660
          3,655,361
          4,427,021
                   2,016,077
 
03/26/98
300
Manchester
CT
1,250,464
5,917,037
 
                 3,555
 None
 
1,250,464
          5,920,592
          7,171,056
                   3,265,459
 
03/26/98
300
Deerfield Beach
FL
3,160,000
4,832,848
 
 None
 None
 
3,160,000
          4,832,848
          7,992,848
                      233,588
 
10/22/10
300
Staten Island
NY
4,202,093
3,385,021
 
 None
 None
 
4,202,093
          3,385,021
          7,587,114
                   1,867,092
 
03/26/98
300
Dallas
TX
1,210,000
2,675,265
 
 None
 None
 
1,210,000
          2,675,265
          3,885,265
                      129,304
 
10/22/10
300
The Colony
TX
2,580,000
2,214,133
 
               20,700
 None
 
2,580,000
          2,234,833
          4,814,833
                      107,793
 
10/22/10
300
                             
Automotive Collision Services
                           
Denver
CO
480,348
525,270
 
 None
 None
 
480,348
              525,270
          1,005,618
                                32
In-progress
09/30/11
300
Highlands Ranch
CO
583,289
2,139,057
 
 None
 None
 
583,289
          2,139,057
          2,722,346
                      658,832
07/10/07
08/11/03
300
Littleton
CO
601,388
2,169,898
 
 None
 None
 
601,388
          2,169,898
          2,771,286
                      521,563
02/02/06
11/12/04
300
Parker
CO
868,768
2,101,248
 
 None
 None
 
868,768
          2,101,248
          2,970,016
                      653,832
02/20/04
07/03/03
300
Thornton
CO
693,323
1,896,616
 
 None
                   128
 
693,323
          1,896,744
          2,590,067
                      532,338
10/05/04
10/15/03
300
Cumming
GA
661,624
1,822,363
 
 None
 None
 
661,624
          1,822,363
          2,483,987
                      599,673
09/18/03
12/31/02
300
Douglasville
GA
679,868
1,935,515
 
 None
 None
 
679,868
          1,935,515
          2,615,383
                      642,652
08/11/03
12/30/02
300
Morrow
GA
725,948
1,846,315
 
 None
 None
 
725,948
          1,846,315
          2,572,263
                      618,450
07/07/03
08/30/02
300
Peachtree City
GA
1,190,380
689,284
 
 None
 None
 
1,190,380
              689,284
          1,879,664
                      247,836
12/16/02
09/19/02
300
Roswell
GA
1,825,000
1,632,396
 
 None
 None
 
1,825,000
          1,632,396
          3,457,396
                                35
In-progress
08/10/11
300
Warner Robbins
GA
1,250,000
798,619
 
 None
 None
 
1,250,000
              798,619
          2,048,619
                                21
In-progress
09/01/11
300
Ham Lake
MN
192,610
1,930,958
 
 None
 None
 
192,610
          1,930,958
          2,123,568
                      544,099
07/01/04
10/31/03
300
Olive Branch
MS
350,000
1,965,718
 
 None
 None
 
350,000
          1,965,718
          2,315,718
                        39,448
06/29/11
11/02/10
300
Cary
NC
610,389
1,492,235
 
 None
 None
 
610,389
          1,492,235
          2,102,624
                      335,753
 
05/25/06
300
Durham
NC
680,969
1,323,140
 
 None
                     24
 
680,969
          1,323,164
          2,004,133
                      297,724
 
05/25/06
300
Wilmington
NC
378,813
1,150,679
 
 None
 None
 
378,813
          1,150,679
          1,529,492
                      296,306
07/15/05
12/21/04
300
Bartlett
TN
648,526
1,960,733
 
 None
 None
 
648,526
          1,960,733
          2,609,259
                      552,495
08/03/04
10/27/03
300
Salt Lake City
UT
2,900,000
772,471
 
 None
 None
 
2,900,000
              772,471
          3,672,471
                                13
In-progress
10/11/11
300
                             
Automotive Parts
                           
Millbrook
AL
108,000
518,741
 
                 4,157
                   211
 
108,000
              523,109
              631,109
                      269,776
12/10/98
01/21/99
300
Montgomery
AL
254,465
502,350
 
               10,819
                   295
 
254,465
              513,464
              767,929
                      275,520
 
06/30/98
300
Phoenix
AZ
231,000
513,057
 
 None
 None
 
231,000
              513,057
              744,057
                      494,505
 
11/09/87
300
Phoenix
AZ
222,950
495,178
 
 None
                   102
 
222,950
              495,280
              718,230
                      438,459
 
11/02/89
300
Tucson
AZ
194,250
431,434
 
 None
 None
 
194,250
              431,434
              625,684
                      417,376
 
10/30/87
300
Grass Valley
CA
325,000
384,955
 
 None
 None
 
325,000
              384,955
              709,955
                      362,675
 
05/20/88
300
Sacramento
CA
210,000
466,419
 
 None
                   127
 
210,000
              466,546
              676,546
                      449,679
 
11/25/87
300
Turlock
CA
222,250
493,627
 
 None
 None
 
222,250
              493,627
              715,877
                      474,017
 
12/30/87
300
Denver
CO
141,400
314,056
 
 None
                     82
 
141,400
              314,138
              455,538
                      302,703
 
11/18/87
300
Denver
CO
315,000
699,623
 
 None
                   211
 
315,000
              699,834
          1,014,834
                      659,544
 
05/16/88
300
Littleton
CO
252,925
561,758
 
 None
                   181
 
252,925
              561,939
              814,864
                      535,560
 
02/12/88
300
Smyrna
DE
232,273
472,855
 
 None
 None
 
232,273
              472,855
              705,128
                      252,978
 
08/07/98
300
Deerfield Beach
FL
475,000
871,738
 
                 2,420
             31,798
 
475,000
              905,956
          1,380,956
                      458,176
 
01/29/99
300
Merritt Island
FL
309,652
482,459
 
               25,854
             21,831
 
309,652
              530,144
              839,796
                      294,225
 
11/26/96
300
Atlanta
GA
652,551
763,360
 
 None
             45,476
 
652,551
              808,836
          1,461,387
                      405,701
 
12/18/98
300
Council Bluffs
IA
194,355
431,668
 
 None
 None
 
194,355
              431,668
              626,023
                      406,876
 
05/19/88
300
Lewiston
ID
138,950
308,612
 
 None
 None
 
138,950
              308,612
              447,562
                      299,662
 
09/16/87
300

 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
 
 at Close of Period (Notes 2, 3, 5, 6 and 7)
     
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
     
 Improvements
         
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Moscow
ID
117,250
260,417
 
 None
 None
 
117,250
              260,417
              377,667
                      252,865
 
09/14/87
300
Peoria
IL
193,868
387,737
 
               19,808
                     85
 
193,868
              407,630
              601,498
                      240,058
 
11/26/96
300
Brazil
IN
183,952
453,831
 
                 8,942
                   173
 
183,952
              462,946
              646,898
                      234,623
 
03/31/99
300
Muncie
IN
148,901
645,660
 
             147,678
             28,327
 
148,901
              821,665
              970,566
                      454,452
 
11/26/96
300
Plainfield
IN
453,645
908,485
 
               42,619
             47,114
 
453,645
              998,218
          1,451,863
                      508,762
 
01/30/98
300
Princeton
IN
134,209
560,113
 
 None
                   211
 
134,209
              560,324
              694,533
                      286,723
 
03/31/99
300
Vincennes
IN
185,312
489,779
 
 None
                   173
 
185,312
              489,952
              675,264
                      250,740
 
03/31/99
300
Kansas City
KS
222,000
455,881
 
               18,738
                   146
 
222,000
              474,765
              696,765
                      438,402
 
05/16/88
300
Alma
MI
155,000
600,282
 
               13,902
                   122
 
155,000
              614,306
              769,306
                      303,640
04/29/99
02/10/99
300
Lansing
MI
265,000
574,931
 
             100,951
                   209
 
265,000
              676,091
              941,091
                      328,024
04/30/99
12/03/98
300
Sturgis
MI
109,558
550,274
 
               10,272
 None
 
109,558
              560,546
              670,104
                      287,336
 
12/30/98
300
Batesville
MS
190,124
485,670
 
 None
                   168
 
190,124
              485,838
              675,962
                      261,475
 
07/27/98
300
Horn Lake
MS
142,702
514,779
 
 None
                   211
 
142,702
              514,990
              657,692
                      279,040
 
06/30/98
300
Richland
MS
243,565
558,645
 
               10,302
                   211
 
243,565
              569,158
              812,723
                      270,199
 
12/21/99
300
Missoula
MT
163,100
362,249
 
 None
 None
 
163,100
              362,249
              525,349
                      350,446
 
10/30/87
300
Omaha
NE
196,000
435,321
 
 None
 None
 
196,000
              435,321
              631,321
                      410,320
 
05/26/88
300
Omaha
NE
199,100
412,042
 
 None
 None
 
199,100
              412,042
              611,142
                      388,211
 
05/27/88
300
Rio Rancho
NM
211,577
469,923
 
 None
 None
 
211,577
              469,923
              681,500
                      447,915
 
02/26/88
300
Las Vegas
NV
161,000
357,585
 
             260,000
 None
 
161,000
              617,585
              778,585
                      475,934
 
10/29/87
300
Canton
OH
396,560
597,553
 
 None
             25,682
 
396,560
              623,235
          1,019,795
                      323,568
 
08/14/98
300
Hamilton
OH
183,000
515,727
 
                 2,941
                   122
 
183,000
              518,790
              701,790
                      263,766
04/07/99
12/03/98
300
Albany
OR
152,250
338,153
 
 None
 None
 
152,250
              338,153
              490,403
                      329,562
 
08/24/87
300
Beaverton
OR
210,000
466,419
 
 None
 None
 
210,000
              466,419
              676,419
                      454,568
 
08/26/87
300
Portland
OR
190,750
423,664
 
 None
 None
 
190,750
              423,664
              614,414
                      412,899
 
08/12/87
300
Portland
OR
147,000
326,493
 
 None
 None
 
147,000
              326,493
              473,493
                      318,197
 
08/26/87
300
Salem
OR
136,500
303,170
 
 None
 None
 
136,500
              303,170
              439,670
                      295,467
 
08/20/87
300
Butler
PA
339,929
633,078
 
               20,558
                   230
 
339,929
              653,866
              993,795
                      348,575
 
08/07/98
300
Dover
PA
265,112
593,341
 
 None
 None
 
265,112
              593,341
              858,453
                      321,392
 
06/30/98
300
Enola
PA
220,228
546,026
 
               11,416
                   172
 
220,228
              557,614
              777,842
                      287,698
 
11/10/98
300
Hanover
PA
132,500
719,511
 
 None
                   232
 
132,500
              719,743
              852,243
                      356,468
07/26/99
05/13/99
300
Harrisburg
PA
283,417
352,473
 
 None
                   172
 
283,417
              352,645
              636,062
                      187,409
 
09/30/98
300
Harrisburg
PA
327,781
608,291
 
                 7,138
                   172
 
327,781
              615,601
              943,382
                      330,061
 
06/30/98
300
Lancaster
PA
199,899
774,838
 
               24,235
 None
 
199,899
              799,073
              998,972
                      424,151
 
08/14/98
300
New Castle
PA
180,009
525,774
 
               91,802
                   230
 
180,009
              617,806
              797,815
                      291,004
 
06/30/98
300
Reading
PA
378,961
658,879
 
                 9,928
                   202
 
378,961
              669,009
          1,047,970
                      338,151
06/09/99
12/04/98
300
Columbia
TN
273,120
431,716
 
 None
                   211
 
273,120
              431,927
              705,047
                      216,713
 
06/30/99
300
Bellevue
WA
185,500
411,997
 
 None
                   107
 
185,500
              412,104
              597,604
                      401,536
 
08/06/87
300
Bellingham
WA
168,000
373,133
 
 None
                   107
 
168,000
              373,240
              541,240
                      363,659
 
08/20/87
300
Hazel Dell
WA
168,000
373,135
 
 None
 None
 
168,000
              373,135
              541,135
                      351,332
 
05/23/88
300
Kenmore
WA
199,500
443,098
 
 None
                   107
 
199,500
              443,205
              642,705
                      431,847
 
08/20/87
300
Kent
WA
199,500
443,091
 
 None
                   107
 
199,500
              443,198
              642,698
                      431,840
 
08/06/87
300
Lakewood
WA
191,800
425,996
 
 None
                   107
 
191,800
              426,103
              617,903
                      415,179
 
08/18/87
300
Moses Lake
WA
138,600
307,831
 
 None
                   107
 
138,600
              307,938
              446,538
                      300,018
 
08/12/87
300
Renton
WA
185,500
412,003
 
 None
                   107
 
185,500
              412,110
              597,610
                      400,062
 
09/15/87
300
Seattle
WA
162,400
360,697
 
 None
                   107
 
162,400
              360,804
              523,204
                      351,540
 
08/20/87
300
Silverdale
WA
183,808
419,777
 
 None
                   107
 
183,808
              419,884
              603,692
                      407,610
 
09/16/87
300
Tacoma
WA
196,000
435,324
 
 None
                   107
 
196,000
              435,431
              631,431
                      421,147
 
10/15/87
300
Vancouver
WA
180,250
400,343
 
 None
 None
 
180,250
              400,343
              580,593
                      390,171
 
08/20/87
300
Wenatchee
WA
148,400
329,602
 
 None
                   107
 
148,400
              329,709
              478,109
                      321,235
 
08/25/87
300


         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
 
 at Close of Period (Notes 2, 3, 5, 6 and 7)
     
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
     
 Improvements
         
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Automotive Service
                           
Flagstaff
AZ
144,821
417,485
 
 None
 None
 
144,821
              417,485
              562,306
                      222,939
04/11/02
08/29/97
300
Mesa
AZ
210,620
475,072
 
 None
 None
 
210,620
              475,072
              685,692
                      182,899
 
05/14/02
300
Phoenix
AZ
384,608
279,824
 
 None
 None
 
384,608
              279,824
              664,432
                      107,730
 
05/14/02
300
Phoenix
AZ
189,341
546,984
 
 None
                   110
 
189,341
              547,094
              736,435
                      210,674
 
05/14/02
300
Sierra Vista
AZ
175,114
345,508
 
 None
 None
 
175,114
              345,508
              520,622
                      133,019
 
05/14/02
300
Tucson
AZ
226,596
437,972
 
 None
 None
 
226,596
              437,972
              664,568
                      168,617
 
05/14/02
300
Tucson
AZ
287,369
533,684
 
 None
 None
 
287,369
              533,684
              821,053
                        38,247
 
03/25/10
300
Bakersfield
CA
65,165
206,927
 
 None
 None
 
65,165
              206,927
              272,092
                        79,665
 
05/14/02
300
Chula Vista
CA
313,293
409,654
 
 None
 None
 
313,293
              409,654
              722,947
                      256,033
05/01/96
01/19/96
300
Dublin
CA
415,620
1,153,928
 
 None
 None
 
415,620
          1,153,928
          1,569,548
                      444,260
 
05/14/02
300
Folsom
CA
471,813
325,610
 
 None
 None
 
471,813
              325,610
              797,423
                      125,358
 
05/14/02
300
Indio
CA
264,956
265,509
 
 None
 None
 
264,956
              265,509
              530,465
                      102,219
 
05/14/02
300
Los Angeles
CA
580,446
158,876
 
 None
 None
 
580,446
              158,876
              739,322
                        61,165
 
05/14/02
300
Oxnard
CA
186,980
198,236
 
 None
 None
 
186,980
              198,236
              385,216
                        76,319
 
05/14/02
300
Simi Valley
CA
213,920
161,012
 
 None
 None
 
213,920
              161,012
              374,932
                        61,988
 
05/14/02
300
Vacaville
CA
358,067
284,931
 
 None
 None
 
358,067
              284,931
              642,998
                      109,696
 
05/14/02
300
Aurora
CO
231,314
430,495
 
 None
                   115
 
231,314
              430,610
              661,924
                        73,936
 
09/04/07
300
Broomfield
CO
154,930
503,626
 
 None
                   135
 
154,930
              503,761
              658,691
                      309,768
08/22/96
03/15/96
300
Denver
CO
239,024
444,785
 
 None
                   115
 
239,024
              444,900
              683,924
                        76,389
 
09/04/07
300
Denver
CO
79,717
369,587
 
 None
                   128
 
79,717
              369,715
              449,432
                      369,685
 
10/08/85
300
Lakewood
CO
70,422
132,296
 
 None
 None
 
70,422
              132,296
              202,718
                        22,711
 
09/04/07
300
Longmont
CO
87,385
163,169
 
 None
                   115
 
87,385
              163,284
              250,669
                        28,045
 
09/04/07
300
Thornton
CO
276,084
415,464
 
 None
                   115
 
276,084
              415,579
              691,663
                      248,463
12/31/96
10/31/96
300
Hartford
CT
248,540
482,460
 
                 2,114
                     31
 
248,540
              484,605
              733,145
                      295,135
 
09/30/96
300
Southington
CT
225,882
672,910
 
 None
                   172
 
225,882
              673,082
              898,964
                      391,305
 
06/06/97
300
Vernon
CT
81,529
300,518
 
 None
 None
 
81,529
              300,518
              382,047
                      114,698
 
06/27/02
300
Jacksonville
FL
76,585
355,066
 
                 6,980
                   420
 
76,585
              362,466
              439,051
                      357,861
 
12/23/85
300
Lauderdale Lakes
FL
65,987
305,931
 
 None
                     79
 
65,987
              306,010
              371,997
                      305,956
 
02/19/86
300
Miami Gardens
FL
163,239
262,726
 
 None
 None
 
163,239
              262,726
              425,965
                      100,274
 
06/27/02
300
Orange City
FL
99,613
139,008
 
 None
 None
 
99,613
              139,008
              238,621
                        53,516
 
05/14/02
300
Seminole
FL
68,000
315,266
 
 None
 None
 
68,000
              315,266
              383,266
                      315,266
 
12/23/85
300
Sunrise
FL
80,253
372,070
 
 None
 None
 
80,253
              372,070
              452,323
                      372,070
 
02/14/86
300
Tampa
FL
70,000
324,538
 
 None
 None
 
70,000
              324,538
              394,538
                      324,538
 
12/27/85
300
Tampa
FL
67,000
310,629
 
 None
 None
 
67,000
              310,629
              377,629
                      310,629
 
12/27/85
300
Tampa
FL
86,502
401,041
 
 None
                     79
 
86,502
              401,120
              487,622
                      401,067
 
07/23/86
300
Atlanta
GA
309,474
574,737
 
 None
 None
 
309,474
              574,737
              884,211
                        41,190
 
03/25/10
300
Bogart
GA
66,807
309,733
 
 None
 None
 
66,807
              309,733
              376,540
                      309,733
 
12/20/85
300
Douglasville
GA
214,771
129,519
 
 None
 None
 
214,771
              129,519
              344,290
                        49,863
 
05/14/02
300
Duluth
GA
290,842
110,056
 
 None
 None
 
290,842
              110,056
              400,898
                        42,369
 
05/14/02
300
Duluth
GA
222,275
316,925
 
 None
                     84
 
222,275
              317,009
              539,284
                      177,399
10/24/97
06/20/97
300
Gainesville
GA
53,589
248,452
 
 None
 None
 
53,589
              248,452
              302,041
                      248,452
 
12/19/85
300
Kennesaw
GA
266,865
139,425
 
 None
 None
 
266,865
              139,425
              406,290
                        53,677
 
05/14/02
300
Marietta
GA
69,561
346,024
 
 None
                   281
 
69,561
              346,305
              415,866
                      346,118
 
06/03/86
300
Marietta
GA
60,900
293,461
 
               67,871
                   499
 
60,900
              361,831
              422,731
                      308,514
 
12/26/85
300
Norcross
GA
244,124
151,831
 
 None
 None
 
244,124
              151,831
              395,955
                        58,453
 
05/14/02
300
Norcross
GA
503,773
937,121
 
               39,032
             21,600
 
503,773
              997,753
          1,501,526
                      209,273
 
11/22/06
300
Riverdale
GA
58,444
270,961
 
 None
 None
 
58,444
              270,961
              329,405
                      270,961
 
01/15/86
300
Rome
GA
56,454
261,733
 
 None
 None
 
56,454
              261,733
              318,187
                      261,733
 
12/19/85
300
Snellville
GA
253,316
132,124
 
 None
 None
 
253,316
              132,124
              385,440
                        50,866
 
05/14/02
300


         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)      
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Tucker
GA
78,646
364,625
 
 None
               9,589
 
78,646
              374,214
              452,860
                      368,887
 
12/18/85
300
Arlington Hts
IL
441,437
215,983
 
 None
 None
 
441,437
              215,983
              657,420
                        83,152
 
05/14/02
300
Chicago
IL
329,076
255,294
 
 None
 None
 
329,076
              255,294
              584,370
                        98,286
 
05/14/02
300
Round Lake Beach
IL
472,132
236,585
 
 None
 None
 
472,132
              236,585
              708,717
                        91,083
 
05/14/02
300
Westchester
IL
421,239
184,812
 
 None
 None
 
421,239
              184,812
              606,051
                        71,151
 
05/14/02
300
Anderson
IN
232,170
385,661
 
 None
                     85
 
232,170
              385,746
              617,916
                      216,619
 
12/19/97
300
Indianapolis
IN
231,384
428,307
 
 None
                   130
 
231,384
              428,437
              659,821
                      262,016
 
09/27/96
300
Michigan City
IN
392,638
297,650
 
                (3,065)
 None
 
389,573
              297,650
              687,223
                      114,594
 
05/14/02
300
Warsaw
IN
140,893
228,116
 
 None
 None
 
140,893
              228,116
              369,009
                        87,823
 
05/14/02
300
Olathe
KS
217,995
367,055
 
 None
                     21
 
217,995
              367,076
              585,071
                      214,726
04/22/97
11/11/96
300
Topeka
KS
32,022
60,368
 
 None
 None
 
32,022
                60,368
                92,390
                        10,363
 
09/04/07
300
Louisville
KY
56,054
259,881
 
 None
 None
 
56,054
              259,881
              315,935
                      259,881
 
12/17/85
300
Newport
KY
323,511
289,017
 
 None
                     85
 
323,511
              289,102
              612,613
                      165,169
 
09/17/97
300
Billerica
MA
399,043
462,240
 
 None
                   172
 
399,043
              462,412
              861,455
                      271,860
 
04/02/97
300
East Falmouth
MA
191,302
340,539
 
 None
 None
 
191,302
              340,539
              531,841
                      131,106
 
05/14/02
300
East Wareham
MA
149,680
278,669
 
 None
 None
 
149,680
              278,669
              428,349
                      107,285
 
05/14/02
300
Fairhaven
MA
138,957
289,294
 
 None
 None
 
138,957
              289,294
              428,251
                      111,376
 
05/14/02
300
Gardner
MA
138,990
289,361
 
 None
 None
 
138,990
              289,361
              428,351
                      111,402
 
05/14/02
300
Hyannis
MA
180,653
458,522
 
 None
 None
 
180,653
              458,522
              639,175
                      175,003
 
06/27/02
300
Lenox
MA
287,769
535,273
 
 None
                   232
 
287,769
              535,505
              823,274
                      274,021
 
03/31/99
300
Newburyport
MA
274,698
466,449
 
 None
 None
 
274,698
              466,449
              741,147
                      178,028
 
06/27/02
300
North Reading
MA
180,546
351,161
 
 None
 None
 
180,546
              351,161
              531,707
                      135,195
 
05/14/02
300
Orleans
MA
138,212
394,065
 
 None
 None
 
138,212
              394,065
              532,277
                      151,713
 
05/14/02
300
Aberdeen
MD
223,617
225,605
 
 None
 None
 
223,617
              225,605
              449,222
                        86,106
 
06/27/02
300
Bethesda
MD
282,717
525,928
 
 None
 None
 
282,717
              525,928
              808,645
                        90,284
 
09/04/07
300
Capital Heights
MD
547,173
219,979
 
             (12,319)
 None
 
534,854
              219,979
              754,833
                        84,688
 
05/14/02
300
Clinton
MD
70,880
328,620
 
               11,440
 None
 
70,880
              340,060
              410,940
                      331,957
 
11/15/85
300
Lexington Park
MD
111,396
335,288
 
                (7,600)
 None
 
103,796
              335,288
              439,084
                      129,082
 
05/14/02
300
Kalamazoo
MI
391,745
296,975
 
                (2,196)
 None
 
389,549
              296,975
              686,524
                      114,334
 
05/14/02
300
Portage
MI
402,409
286,441
 
                (2,112)
 None
 
400,297
              286,441
              686,738
                      110,278
 
05/14/02
300
Southfield
MI
275,952
350,765
 
 None
 None
 
275,952
              350,765
              626,717
                      135,043
 
05/14/02
300
Troy
MI
214,893
199,299
 
 None
 None
 
214,893
              199,299
              414,192
                        76,728
 
05/14/02
300
St. Cloud
MN
203,338
258,626
 
 None
 None
 
203,338
              258,626
              461,964
                        98,709
 
06/27/02
300
Independence
MO
297,641
233,152
 
 None
 None
 
297,641
              233,152
              530,793
                      140,280
 
12/20/96
300
Asheville
NC
441,746
242,565
 
 None
 None
 
441,746
              242,565
              684,311
                        93,386
 
05/14/02
300
Concord
NC
237,688
357,976
 
 None
 None
 
237,688
              357,976
              595,664
                      192,796
 
11/05/97
300
Durham
NC
354,676
361,203
 
                 3,400
                   168
 
354,676
              364,771
              719,447
                      209,923
08/29/97
03/31/97
300
Durham
NC
55,074
255,336
 
 None
               1,490
 
55,074
              256,826
              311,900
                      256,042
 
11/13/85
300
Fayetteville
NC
224,326
257,733
 
 None
                   205
 
224,326
              257,938
              482,264
                      144,927
 
12/03/97
300
Greensboro
NC
286,068
244,606
 
 None
 None
 
286,068
              244,606
              530,674
                        94,165
 
05/14/02
300
Matthews
NC
295,580
338,472
 
               10,000
             13,703
 
295,580
              362,175
              657,755
                      191,648
08/28/98
02/27/98
300
Pineville
NC
254,460
355,630
 
 None
                   358
 
254,460
              355,988
              610,448
                      203,471
08/28/97
04/16/97
300
Raleigh
NC
89,145
413,301
 
 None
 None
 
89,145
              413,301
              502,446
                      413,301
 
10/28/85
300
Raleigh
NC
398,694
263,621
 
 None
 None
 
398,694
              263,621
              662,315
                      149,789
 
10/01/97
300
Salisbury
NC
235,614
150,592
 
 None
 None
 
235,614
              150,592
              386,206
                        57,976
 
05/14/02
300
Fargo
ND
53,973
100,262
 
 None
 None
 
53,973
              100,262
              154,235
                        17,212
 
09/04/07
300
Lincoln
NE
337,138
316,958
 
 None
 None
 
337,138
              316,958
              654,096
                      122,026
 
05/14/02
300
Scotts Bluff
NE
33,307
63,355
 
 None
 None
 
33,307
                63,355
                96,662
                        10,876
 
09/04/07
300
Cherry Hill
NJ
463,808
862,240
 
 None
 None
 
463,808
              862,240
          1,326,048
                      148,018
 
09/04/07
300
Edison
NJ
448,936
238,773
 
 None
 None
 
448,936
              238,773
              687,709
                        91,924
 
05/14/02
300

 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Glassboro
NJ
182,013
312,480
 
 None
 None
 
182,013
              312,480
              494,493
                      119,263
 
06/27/02
300
Hamilton Square
NJ
422,477
291,555
 
 None
 None
 
422,477
              291,555
              714,032
                      112,245
 
05/14/02
300
Hamilton Township
NJ
265,238
298,167
 
 None
 None
 
265,238
              298,167
              563,405
                      114,791
 
05/14/02
300
Pleasantville
NJ
77,105
144,693
 
 None
 None
 
77,105
              144,693
              221,798
                        24,839
 
09/04/07
300
Randolph
NJ
452,629
390,163
 
 None
 None
 
452,629
              390,163
              842,792
                      150,210
 
05/14/02
300
Westfield
NJ
705,337
288,720
 
 None
 None
 
705,337
              288,720
              994,057
                      111,153
 
05/14/02
300
Woodbury
NJ
212,788
320,283
 
 None
 None
 
212,788
              320,283
              533,071
                      123,305
 
05/14/02
300
Albuquerque
NM
231,553
430,026
 
 None
 None
 
231,553
              430,026
              661,579
                        30,819
 
03/25/10
300
Las Vegas
NV
326,879
359,101
 
 None
 None
 
326,879
              359,101
              685,980
                      138,252
 
05/14/02
300
Las Vegas
NV
316,441
369,768
 
 None
 None
 
316,441
              369,768
              686,209
                      142,359
 
05/14/02
300
Las Vegas
NV
252,169
562,715
 
 None
 None
 
252,169
              562,715
              814,884
                      216,643
 
05/14/02
300
Sparks
NV
326,813
306,311
 
 None
 None
 
326,813
              306,311
              633,124
                      117,928
 
05/14/02
300
Albion
NY
170,589
317,424
 
 None
 None
 
170,589
              317,424
              488,013
                      162,407
 
03/31/99
300
Bethpage
NY
334,120
621,391
 
 None
 None
 
334,120
              621,391
              955,511
                      106,672
 
09/04/07
300
Commack
NY
400,427
744,533
 
 None
 None
 
400,427
              744,533
          1,144,960
                      127,811
 
09/04/07
300
Dansville
NY
181,664
337,991
 
 None
 None
 
181,664
              337,991
              519,655
                      172,931
 
03/31/99
300
East Amherst
NY
260,708
484,788
 
 None
                   156
 
260,708
              484,944
              745,652
                      248,112
 
03/31/99
300
East Syracuse
NY
250,609
466,264
 
 None
                   156
 
250,609
              466,420
              717,029
                      238,631
 
03/31/99
300
Freeport
NY
134,828
251,894
 
 None
 None
 
134,828
              251,894
              386,722
                        43,242
 
09/04/07
300
Johnson City
NY
242,863
451,877
 
 None
                   156
 
242,863
              452,033
              694,896
                      231,269
 
03/31/99
300
Queens Village
NY
242,775
451,749
 
 None
 None
 
242,775
              451,749
              694,524
                        77,550
 
09/04/07
300
Riverhead
NY
143,929
268,795
 
 None
 None
 
143,929
              268,795
              412,724
                        46,143
 
09/04/07
300
Wellsville
NY
161,331
300,231
 
 None
 None
 
161,331
              300,231
              461,562
                      153,610
 
03/31/99
300
West Amherst
NY
268,692
499,619
 
 None
                   156
 
268,692
              499,775
              768,467
                      255,700
 
03/31/99
300
Akron
OH
139,126
460,334
 
 None
                   114
 
139,126
              460,448
              599,574
                      263,135
 
09/18/97
300
Beaver Creek
OH
349,091
251,127
 
 None
 None
 
349,091
              251,127
              600,218
                        73,245
 
09/17/04
300
Beavercreek
OH
205,000
492,538
 
 None
 None
 
205,000
              492,538
              697,538
                      291,418
02/13/97
09/09/96
300
Canal Winchester
OH
443,751
825,491
 
 None
 None
 
443,751
              825,491
          1,269,242
                      296,846
12/19/02
08/21/02
300
Centerville
OH
305,000
420,448
 
 None
 None
 
305,000
              420,448
              725,448
                      259,977
07/24/96
06/28/96
300
Cincinnati
OH
211,185
392,210
 
 None
 None
 
211,185
              392,210
              603,395
                      127,468
 
11/03/03
300
Cincinnati
OH
305,556
244,662
 
 None
 None
 
305,556
              244,662
              550,218
                        71,359
 
09/17/04
300
Cincinnati
OH
589,286
160,932
 
 None
 None
 
589,286
              160,932
              750,218
                        46,938
 
09/17/04
300
Cincinnati
OH
159,375
265,842
 
 None
 None
 
159,375
              265,842
              425,217
                        77,537
 
09/17/04
300
Cincinnati
OH
350,000
300,217
 
 None
 None
 
350,000
              300,217
              650,217
                        84,561
 
12/20/04
300
Cincinnati
OH
293,005
0
 
 None
                     85
 
293,005
                        85
              293,090
                                   3
 
09/17/97
300
Cleveland
OH
215,111
216,517
 
 None
 None
 
215,111
              216,517
              431,628
                        82,637
 
06/27/02
300
Columbus
OH
71,098
329,627
 
 None
 None
 
71,098
              329,627
              400,725
                      329,627
 
10/02/85
300
Columbus
OH
75,761
351,247
 
 None
 None
 
75,761
              351,247
              427,008
                      351,247
 
10/24/85
300
Columbus
OH
432,110
386,553
 
 None
 None
 
432,110
              386,553
              818,663
                      133,360
 
05/27/03
300
Columbus
OH
466,696
548,133
 
 None
 None
 
466,696
              548,133
          1,014,829
                      189,105
 
05/27/03
300
Columbus
OH
337,679
272,484
 
 None
 None
 
337,679
              272,484
              610,163
                        79,474
 
09/17/04
300
Columbus
OH
190,000
260,162
 
 None
 None
 
190,000
              260,162
              450,162
                        75,880
 
09/17/04
300
Columbus
OH
371,429
278,734
 
 None
 None
 
371,429
              278,734
              650,163
                        81,297
 
09/17/04
300
Columbus
OH
214,737
85,425
 
               24,485
                   118
 
214,737
              110,028
              324,765
                        29,892
 
09/17/04
300
Cuyahoga Falls
OH
253,750
271,400
 
 None
 None
 
253,750
              271,400
              525,150
                        79,158
 
09/17/04
300
Dayton
OH
70,000
324,538
 
 None
                   122
 
70,000
              324,660
              394,660
                      324,615
 
10/31/85
300
Dublin
OH
437,887
428,046
 
 None
 None
 
437,887
              428,046
              865,933
                      147,675
 
05/27/03
300
Eastlake
OH
321,347
459,774
 
 None
                   209
 
321,347
              459,983
              781,330
                      295,124
 
12/22/95
300
Fairfield
OH
323,408
235,024
 
 None
                     85
 
323,408
              235,109
              558,517
                      134,300
 
09/17/97
300
Fairlawn
OH
280,000
270,150
 
 None
 None
 
280,000
              270,150
              550,150
                        78,793
 
09/17/04
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Findlay
OH
283,515
397,004
 
 None
                   114
 
283,515
              397,118
              680,633
                      223,003
 
12/24/97
300
Hamilton
OH
252,608
413,279
 
 None
 None
 
252,608
              413,279
              665,887
                      240,387
03/31/97
10/04/96
300
Huber Heights
OH
282,000
449,381
 
 None
 None
 
282,000
              449,381
              731,381
                      268,879
12/03/96
07/18/96
300
Lima
OH
241,132
114,085
 
 None
 None
 
241,132
              114,085
              355,217
                        33,275
 
09/17/04
300
Marion
OH
100,000
275,162
 
 None
 None
 
100,000
              275,162
              375,162
                        77,504
 
12/20/04
300
Mason
OH
310,990
405,373
 
 None
 None
 
310,990
              405,373
              716,363
                      139,853
 
05/27/03
300
Middleburg Hghts
OH
317,308
307,842
 
 None
 None
 
317,308
              307,842
              625,150
                        89,787
 
09/17/04
300
Milford
OH
353,324
269,997
 
             (36,723)
                     85
 
314,484
              272,199
              586,683
                      154,354
 
09/18/97
300
Mt. Vernon
OH
216,115
375,357
 
 None
                   114
 
216,115
              375,471
              591,586
                      210,841
 
12/30/97
300
Norwalk
OH
200,205
366,000
 
 None
                   114
 
200,205
              366,114
              566,319
                      205,584
 
12/19/97
300
Parma
OH
268,966
381,184
 
 None
 None
 
268,966
              381,184
              650,150
                      111,178
 
09/17/04
300
Reynoldsburg
OH
267,750
497,371
 
 None
 None
 
267,750
              497,371
              765,121
                      145,067
 
09/15/04
300
Reynoldsburg
OH
374,000
176,162
 
 None
 None
 
374,000
              176,162
              550,162
                        51,380
 
09/17/04
300
S. Euclid
OH
337,593
451,944
 
 None
 None
 
337,593
              451,944
              789,537
                      155,921
 
05/27/03
300
Sandusky
OH
264,708
404,011
 
 None
                   343
 
264,708
              404,354
              669,062
                      227,118
 
12/19/97
300
Solon
OH
794,305
222,797
 
 None
 None
 
794,305
              222,797
          1,017,102
                        76,865
 
05/27/03
300
Springboro
OH
191,911
522,902
 
 None
 None
 
191,911
              522,902
              714,813
                      309,225
 
03/07/97
300
Springfield
OH
320,000
280,217
 
 None
 None
 
320,000
              280,217
              600,217
                        81,730
 
09/17/04
300
Springfield
OH
189,091
136,127
 
 None
 None
 
189,091
              136,127
              325,218
                        39,703
 
09/17/04
300
Stow
OH
310,000
415,150
 
 None
 None
 
310,000
              415,150
              725,150
                      121,085
 
09/17/04
300
Toledo
OH
120,000
230,217
 
 None
 None
 
120,000
              230,217
              350,217
                        67,146
 
09/17/04
300
Toledo
OH
320,000
280,217
 
 None
 None
 
320,000
              280,217
              600,217
                        81,730
 
09/17/04
300
Toledo
OH
250,000
530,217
 
 None
 None
 
250,000
              530,217
              780,217
                      154,646
 
09/17/04
300
Toledo
OH
250,000
175,217
 
 None
                     25
 
250,000
              175,242
              425,242
                        51,120
 
09/17/04
300
West Chester
OH
446,449
768,644
 
 None
 None
 
446,449
              768,644
          1,215,093
                      259,162
06/27/03
03/11/03
300
Zanesville
OH
125,000
300,162
 
 None
 None
 
125,000
              300,162
              425,162
                        87,547
 
09/17/04
300
Midwest City
OK
106,312
333,551
 
 None
 None
 
106,312
              333,551
              439,863
                      178,531
08/06/98
08/08/97
300
Oklahoma City
OK
143,655
295,422
 
 None
 None
 
143,655
              295,422
              439,077
                      162,005
03/06/98
07/29/97
300
Tulsa
OK
133,648
249,702
 
 None
 None
 
133,648
              249,702
              383,350
                        42,865
 
09/04/07
300
Portland
OR
251,499
345,952
 
 None
 None
 
251,499
              345,952
              597,451
                      128,001
 
09/26/02
300
Salem
OR
337,711
253,855
 
 None
 None
 
337,711
              253,855
              591,566
                        97,732
 
05/14/02
300
Bethel Park
PA
299,595
331,264
 
 None
                   114
 
299,595
              331,378
              630,973
                      186,083
 
12/19/97
300
Bethlehem
PA
229,162
310,526
 
 None
                   172
 
229,162
              310,698
              539,860
                      174,415
 
12/24/97
300
Bethlehem
PA
275,328
389,067
 
 None
                   629
 
275,328
              389,696
              665,024
                      218,963
 
12/19/97
300
Bridgeville
PA
275,000
375,150
 
 None
 None
 
275,000
              375,150
              650,150
                      109,418
 
09/17/04
300
Coraopolis
PA
225,000
375,150
 
 None
 None
 
225,000
              375,150
              600,150
                      109,418
 
09/17/04
300
Harrisburg
PA
131,529
220,317
 
                (2,515)
 None
 
129,014
              220,317
              349,331
                        84,818
 
05/14/02
300
Monroeville
PA
275,000
250,150
 
 None
 None
 
275,000
              250,150
              525,150
                        72,960
 
09/17/04
300
Philadelphia
PA
858,500
877,744
 
                 2,319
               1,701
 
858,500
              881,764
          1,740,264
                      627,677
05/19/95
12/05/94
300
Pittsburgh
PA
378,715
685,374
 
 None
 None
 
378,715
              685,374
          1,064,089
                      251,658
08/22/02
01/17/02
300
Pittsburgh
PA
219,938
408,466
 
 None
 None
 
219,938
              408,466
              628,404
                      132,752
 
11/03/03
300
Pittsburgh
PA
175,000
300,150
 
 None
 None
 
175,000
              300,150
              475,150
                        87,543
 
09/17/04
300
Pittsburgh
PA
243,750
406,400
 
 None
 None
 
243,750
              406,400
              650,150
                      118,533
 
09/17/04
300
Pittsburgh
PA
208,333
416,817
 
 None
 None
 
208,333
              416,817
              625,150
                      121,571
 
09/17/04
300
Pittsburgh
PA
121,429
303,721
 
 None
 None
 
121,429
              303,721
              425,150
                        88,585
 
09/17/04
300
Warminster
PA
323,847
216,999
 
                (3,929)
 None
 
319,918
              216,999
              536,917
                        83,541
 
05/14/02
300
Wexford
PA
284,375
240,775
 
 None
 None
 
284,375
              240,775
              525,150
                        70,226
 
09/17/04
300
York
PA
249,436
347,424
 
 None
                   404
 
249,436
              347,828
              597,264
                      195,295
 
12/30/97
300
Charleston
SC
217,250
294,079
 
 None
                   159
 
217,250
              294,238
              511,488
                      169,051
07/14/97
03/13/97
300
Columbia
SC
267,622
298,594
 
 None
                   428
 
267,622
              299,022
              566,644
                      164,128
03/31/98
11/05/97
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Greenville
SC
221,946
315,163
 
 None
                   168
 
221,946
              315,331
              537,277
                      179,168
09/05/97
03/31/97
300
Lexington
SC
241,534
342,182
 
 None
                   302
 
241,534
              342,484
              584,018
                      174,325
 
09/24/98
300
North Charleston
SC
174,980
341,466
 
                 5,875
               5,413
 
174,980
              352,754
              527,734
                      188,569
08/06/98
03/12/98
300
Sioux Falls
SD
48,833
91,572
 
 None
 None
 
48,833
                91,572
              140,405
                        15,720
 
09/04/07
300
Brentwood
TN
305,546
505,728
 
 None
 None
 
305,546
              505,728
              811,274
                      282,357
03/13/98
05/28/97
300
Hendersonville
TN
175,764
327,096
 
 None
 None
 
175,764
              327,096
              502,860
                      117,209
 
01/21/03
300
Hermitage
TN
204,296
172,695
 
 None
 None
 
204,296
              172,695
              376,991
                        66,486
 
05/14/02
300
Madison
TN
175,769
327,068
 
 None
 None
 
175,769
              327,068
              502,837
                      117,199
 
01/21/03
300
Memphis
TN
108,094
217,079
 
 None
 None
 
108,094
              217,079
              325,173
                        83,573
 
05/14/02
300
Memphis
TN
214,110
193,591
 
 None
 None
 
214,110
              193,591
              407,701
                        74,530
 
05/14/02
300
Memphis
TN
215,017
216,794
 
 None
 None
 
215,017
              216,794
              431,811
                        82,743
 
06/27/02
300
Murfreesboro
TN
150,411
215,528
 
 None
 None
 
150,411
              215,528
              365,939
                        82,976
 
05/14/02
300
Nashville
TN
342,960
227,440
 
 None
 None
 
342,960
              227,440
              570,400
                      129,970
 
09/17/97
300
Carrollton
TX
174,284
98,623
 
 None
 None
 
174,284
                98,623
              272,907
                        37,968
 
05/14/02
300
Carrolton
TX
177,041
199,088
 
 None
 None
 
177,041
              199,088
              376,129
                        76,647
 
05/14/02
300
Dallas
TX
234,604
325,951
 
               12,719
             15,373
 
234,604
              354,043
              588,647
                      201,254
08/09/96
02/19/96
300
Fort Worth
TX
83,530
111,960
 
 None
 None
 
83,530
              111,960
              195,490
                        43,103
 
05/14/02
300
Houston
TX
285,000
369,697
 
 None
                   128
 
285,000
              369,825
              654,825
                      210,085
08/08/97
08/08/97
300
Humble
TX
257,169
325,652
 
 None
 None
 
257,169
              325,652
              582,821
                      125,374
 
05/14/02
300
Hurst
TX
373,084
871,163
 
               23,096
 None
 
373,084
              894,259
          1,267,343
                      476,364
 
07/29/98
300
Lake Jackson
TX
197,170
256,376
 
 None
 None
 
197,170
              256,376
              453,546
                        98,703
 
05/14/02
300
Lewisville
TX
130,238
207,683
 
 None
 None
 
130,238
              207,683
              337,921
                        79,266
 
06/27/02
300
Lewisville
TX
199,942
324,736
 
 None
                   149
 
199,942
              324,885
              524,827
                      199,745
08/02/96
02/14/96
300
Mansfield
TX
420,000
780,000
 
 None
 None
 
420,000
              780,000
          1,200,000
                        55,900
 
03/25/10
300
Waco
TX
232,105
431,053
 
 None
 None
 
232,105
              431,053
              663,158
                        30,892
 
03/25/10
300
Wylie
TX
252,000
468,000
 
 None
 None
 
252,000
              468,000
              720,000
                        33,540
 
03/25/10
300
Richmond
VA
403,549
876,981
 
 None
 None
 
403,549
              876,981
          1,280,530
                      278,112
07/08/04
10/17/02
300
Roanoke
VA
349,628
322,545
 
 None
                   153
 
349,628
              322,698
              672,326
                      181,194
 
12/19/97
300
Warrenton
VA
186,723
241,173
 
 None
 None
 
186,723
              241,173
              427,896
                        92,848
 
05/14/02
300
Bremerton
WA
261,172
373,080
 
 None
               2,621
 
261,172
              375,701
              636,873
                      225,488
03/19/97
07/24/96
300
Tacoma
WA
109,127
202,691
 
 None
 None
 
109,127
              202,691
              311,818
                        34,795
 
09/04/07
300
Milwaukee
WI
173,005
499,244
 
 None
 None
 
173,005
              499,244
              672,249
                      320,348
 
12/22/95
300
Milwaukee
WI
152,509
475,480
 
 None
                   197
 
152,509
              475,677
              628,186
                      290,887
 
09/27/96
300
New Berlin
WI
188,491
466,268
 
 None
                   375
 
188,491
              466,643
              655,134
                      299,354
 
12/22/95
300
Racine
WI
184,002
114,167
 
 None
 None
 
184,002
              114,167
              298,169
                        43,953
 
05/14/02
300
                             
Automotive Tire Services
                         
Athens
AL
760,031
1,413,494
 
 None
 None
 
760,031
          1,413,494
          2,173,525
                      289,762
 
11/22/06
300
Auburn
AL
660,210
1,228,112
 
 None
                   500
 
660,210
          1,228,612
          1,888,822
                      252,034
 
11/22/06
300
Birmingham
AL
635,111
1,180,909
 
 None
                   500
 
635,111
          1,181,409
          1,816,520
                      242,357
 
11/22/06
300
Daphne
AL
876,139
1,629,123
 
 None
                   500
 
876,139
          1,629,623
          2,505,762
                      334,241
 
11/22/06
300
Decatur
AL
635,111
1,181,499
 
 None
                   500
 
635,111
          1,181,999
          1,817,110
                      242,478
 
11/22/06
300
Dothan
AL
455,651
565,343
 
 None
 None
 
455,651
              565,343
          1,020,994
                        71,227
10/17/08
06/10/08
300
Foley
AL
870,031
1,617,357
 
 None
                   500
 
870,031
          1,617,857
          2,487,888
                      331,829
 
11/22/06
300
Gardendale
AL
610,055
1,134,554
 
 None
                   500
 
610,055
          1,135,054
          1,745,109
                      232,295
 
11/22/06
300
Hoover
AL
504,396
938,299
 
 None
 None
 
504,396
              938,299
          1,442,695
                      192,347
 
11/22/06
300
Hoover
AL
620,270
1,153,493
 
 None
 None
 
620,270
          1,153,493
          1,773,763
                      236,462
 
11/22/06
300
Huntsville
AL
635,111
1,181,499
 
 None
 None
 
635,111
          1,181,499
          1,816,610
                      242,203
 
11/22/06
300
Huntsville
AL
499,843
929,863
 
 None
                   500
 
499,843
              930,363
          1,430,206
                      190,893
 
11/22/06
300
Madison
AL
635,111
1,181,532
 
 None
 None
 
635,111
          1,181,532
          1,816,643
                      242,210
 
11/22/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Mobile
AL
635,111
1,181,499
 
 None
 None
 
635,111
          1,181,499
          1,816,610
                      242,203
 
11/22/06
300
Mobile
AL
525,750
977,810
 
 None
 None
 
525,750
              977,810
          1,503,560
                      200,447
 
11/22/06
300
Montgomery
AL
544,181
654,046
 
 None
                   500
 
544,181
              654,546
          1,198,727
                        93,574
 
01/24/08
300
Orange Beach
AL
630,244
1,172,036
 
 None
                   500
 
630,244
          1,172,536
          1,802,780
                      240,538
 
11/22/06
300
Pelham
AL
635,111
1,180,909
 
 None
 None
 
635,111
          1,180,909
          1,816,020
                      242,083
 
11/22/06
300
Phenix City
AL
630,244
1,172,024
 
 None
                   500
 
630,244
          1,172,524
          1,802,768
                      240,536
 
11/22/06
300
Tucson
AZ
178,297
396,004
 
 None
 None
 
178,297
              396,004
              574,301
                      345,954
 
01/19/90
300
Arvada
CO
301,489
931,092
 
 None
 None
 
301,489
              931,092
          1,232,581
                      414,374
09/22/00
11/18/99
300
Aurora
CO
221,691
492,382
 
 None
 None
 
221,691
              492,382
              714,073
                      430,151
 
01/29/90
300
Aurora
CO
353,283
1,135,051
 
 None
 None
 
353,283
          1,135,051
          1,488,334
                      490,000
01/03/01
03/10/00
300
Colorado Springs
CO
280,193
622,317
 
 None
 None
 
280,193
              622,317
              902,510
                      543,663
 
01/23/90
300
Colorado Springs
CO
192,988
433,542
 
 None
 None
 
192,988
              433,542
              626,530
                      331,276
 
05/20/93
300
Denver
CO
688,292
1,331,224
 
 None
 None
 
688,292
          1,331,224
          2,019,516
                      479,016
01/10/03
05/30/02
300
Westminster
CO
526,620
1,099,523
 
 None
 None
 
526,620
          1,099,523
          1,626,143
                      474,662
01/12/01
01/18/00
300
Destin
FL
1,034,411
1,922,591
 
 None
 None
 
1,034,411
          1,922,591
          2,957,002
                      394,127
 
11/22/06
300
Ft. Walton Bch
FL
635,111
1,181,032
 
 None
                   500
 
635,111
          1,181,532
          1,816,643
                      242,383
 
11/22/06
300
Ft. Walton Bch
FL
635,111
1,181,032
 
 None
                   500
 
635,111
          1,181,532
          1,816,643
                      242,383
 
11/22/06
300
Lakeland
FL
500,000
645,402
 
 None
 None
 
500,000
              645,402
          1,145,402
                      343,327
06/04/98
12/31/97
300
Milton
FL
635,111
1,181,145
 
 None
 None
 
635,111
          1,181,145
          1,816,256
                      242,131
 
11/22/06
300
Niceville
FL
920,803
1,711,621
 
 None
 None
 
920,803
          1,711,621
          2,632,424
                      350,878
 
11/22/06
300
Orlando
FL
630,244
1,172,023
 
 None
 None
 
630,244
          1,172,023
          1,802,267
                      240,261
 
11/22/06
300
Orlando
FL
635,111
1,181,076
 
 None
                   500
 
635,111
          1,181,576
          1,816,687
                      242,391
 
11/22/06
300
Oviedo
FL
971,996
1,806,780
 
 None
 None
 
971,996
          1,806,780
          2,778,776
                      370,386
 
11/22/06
300
Pace
FL
630,244
1,171,993
 
 None
                   500
 
630,244
          1,172,493
          1,802,737
                      240,530
 
11/22/06
300
Panama City
FL
635,111
1,181,076
 
 None
                   500
 
635,111
          1,181,576
          1,816,687
                      242,391
 
11/22/06
300
Pensacola
FL
635,111
1,181,063
 
 None
 None
 
635,111
          1,181,063
          1,816,174
                      242,114
 
11/22/06
300
Pensacola
FL
588,305
1,094,130
 
 None
 None
 
588,305
          1,094,130
          1,682,435
                      224,293
 
11/22/06
300
Pensacola
FL
308,067
573,708
 
               23,430
                   143
 
308,067
              597,281
              905,348
                      125,782
 
11/22/06
300
Sanford
FL
630,244
1,172,023
 
 None
 None
 
630,244
          1,172,023
          1,802,267
                      240,261
 
11/22/06
300
St. Cloud
FL
525,207
976,968
 
 None
 None
 
525,207
              976,968
          1,502,175
                      200,274
 
11/22/06
300
Tallahassee
FL
419,902
781,405
 
 None
 None
 
419,902
              781,405
          1,201,307
                      160,184
 
11/22/06
300
Tallahassee
FL
611,916
1,137,986
 
 None
                   500
 
611,916
          1,138,486
          1,750,402
                      233,558
 
11/22/06
300
Tampa
FL
427,395
472,030
 
 None
 None
 
427,395
              472,030
              899,425
                      251,122
06/10/98
12/05/97
300
Union Park
FL
1,004,103
1,866,287
 
 None
 None
 
1,004,103
          1,866,287
          2,870,390
                      382,585
 
11/22/06
300
Alpharetta
GA
630,244
1,171,870
 
 None
                   500
 
630,244
          1,172,370
          1,802,614
                      240,504
 
11/22/06
300
Atlanta
GA
55,840
258,889
 
                 1,750
               7,080
 
55,840
              267,719
              323,559
                      259,010
 
11/27/85
300
Columbus
GA
630,244
1,171,988
 
 None
 None
 
630,244
          1,171,988
          1,802,232
                      240,253
 
11/22/06
300
Conyers
GA
531,935
1,180,296
 
 None
 None
 
531,935
          1,180,296
          1,712,231
                      458,034
03/28/02
11/13/01
300
Conyers
GA
635,111
1,181,027
 
 None
 None
 
635,111
          1,181,027
          1,816,138
                      242,106
 
11/22/06
300
Duluth
GA
638,509
1,186,594
 
 None
 None
 
638,509
          1,186,594
          1,825,103
                      385,639
 
11/29/03
300
Hiram
GA
635,111
1,181,017
 
 None
 None
 
635,111
          1,181,017
          1,816,128
                      242,104
 
11/22/06
300
Kennesaw
GA
519,903
967,180
 
 None
 None
 
519,903
              967,180
          1,487,083
                      198,268
 
11/22/06
300
Lawrenceville
GA
635,111
1,181,137
 
 None
                   500
 
635,111
          1,181,637
          1,816,748
                      242,404
 
11/22/06
300
Marietta
GA
500,293
930,657
 
 None
 None
 
500,293
              930,657
          1,430,950
                      190,781
 
11/22/06
300
McDonough
GA
635,111
1,181,032
 
 None
                   500
 
635,111
          1,181,532
          1,816,643
                      242,383
 
11/22/06
300
Peachtree City
GA
625,316
1,162,827
 
 None
 None
 
625,316
          1,162,827
          1,788,143
                      238,375
 
11/22/06
300
Roswell
GA
515,617
959,138
 
 None
 None
 
515,617
              959,138
          1,474,755
                      196,619
 
11/22/06
300
Sandy Springs
GA
586,211
1,090,241
 
 None
 None
 
586,211
          1,090,241
          1,676,452
                      223,495
 
11/22/06
300
Stockbridge
GA
632,128
1,175,478
 
 None
                   500
 
632,128
          1,175,978
          1,808,106
                      241,244
 
11/22/06
300
Aurora
IL
513,204
953,885
 
 None
 None
 
513,204
              953,885
          1,467,089
                      310,009
 
11/29/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Joliet
IL
452,267
840,716
 
 None
 None
 
452,267
              840,716
          1,292,983
                      273,229
 
11/29/03
300
Lombard
IL
428,170
795,965
 
 None
               2,000
 
428,170
              797,965
          1,226,135
                      259,416
 
11/29/03
300
Niles
IL
366,969
682,306
 
 None
 None
 
366,969
              682,306
          1,049,275
                      221,745
 
11/29/03
300
Orland Park
IL
663,087
1,232,240
 
 None
 None
 
663,087
          1,232,240
          1,895,327
                      400,474
 
11/29/03
300
Vernon Hills
IL
524,948
975,668
 
 None
 None
 
524,948
              975,668
          1,500,616
                      317,088
 
11/29/03
300
West Dundee
IL
530,835
986,628
 
 None
 None
 
530,835
              986,628
          1,517,463
                      320,650
 
11/29/03
300
Overland Park
KS
1,101,841
2,047,067
 
 None
 None
 
1,101,841
          2,047,067
          3,148,908
                      665,293
 
11/29/03
300
Winchester
KY
355,474
929,177
 
               20,045
             22,651
 
355,474
              971,873
          1,327,347
                      505,544
 
06/30/98
300
Allston
MA
576,505
1,071,520
 
 None
 None
 
576,505
          1,071,520
          1,648,025
                      348,239
 
11/29/03
300
Shrewsbury
MA
721,065
1,339,913
 
 None
 None
 
721,065
          1,339,913
          2,060,978
                      435,468
 
11/29/03
300
Waltham
MA
338,955
630,279
 
 None
 None
 
338,955
              630,279
              969,234
                      204,837
 
11/29/03
300
Weymouth
MA
752,234
1,397,799
 
 None
 None
 
752,234
          1,397,799
          2,150,033
                      454,280
 
11/29/03
300
Woburn
MA
676,968
1,258,018
 
 None
 None
 
676,968
          1,258,018
          1,934,986
                      408,852
 
11/29/03
300
Annapolis
MD
780,806
1,450,860
 
 None
 None
 
780,806
          1,450,860
          2,231,666
                      471,525
 
11/29/03
300
Bowie
MD
734,558
1,364,970
 
 None
 None
 
734,558
          1,364,970
          2,099,528
                      443,611
 
11/29/03
300
Capital Heights
MD
701,705
1,303,958
 
 None
 None
 
701,705
          1,303,958
          2,005,663
                      423,782
 
11/29/03
300
Germantown
MD
808,296
1,501,913
 
 None
 None
 
808,296
          1,501,913
          2,310,209
                      488,118
 
11/29/03
300
Waldorf
MD
427,033
793,854
 
 None
 None
 
427,033
              793,854
          1,220,887
                      257,998
 
11/29/03
300
Eagan
MN
902,443
845,536
 
 None
 None
 
902,443
              845,536
          1,747,979
                      452,387
06/19/98
02/20/98
300
Ferguson
MO
386,112
717,856
 
 None
 None
 
386,112
              717,856
          1,103,968
                      233,299
 
11/29/03
300
Grandview
MO
347,150
711,024
 
 None
 None
 
347,150
              711,024
          1,058,174
                      378,061
08/20/98
02/20/98
300
Independence
MO
721,020
1,339,829
 
 None
 None
 
721,020
          1,339,829
          2,060,849
                      435,440
 
11/29/03
300
Charlotte
NC
508,100
457,295
 
 None
 None
 
508,100
              457,295
              965,395
                      157,767
 
05/27/03
300
Charlotte
NC
181,662
338,164
 
 None
 None
 
181,662
              338,164
              519,826
                      109,899
 
11/29/03
300
Clemmons
NC
630,000
1,100,160
 
 None
 None
 
630,000
          1,100,160
          1,730,160
                      181,526
 
11/09/07
300
Jamestown
NC
650,000
857,823
 
 None
 None
 
650,000
              857,823
          1,507,823
                      141,541
 
11/09/07
300
Matthews
NC
489,063
909,052
 
 None
 None
 
489,063
              909,052
          1,398,115
                      295,438
 
11/29/03
300
Omaha
NE
253,128
810,922
 
 None
 None
 
253,128
              810,922
          1,064,050
                      398,752
07/22/99
03/04/99
300
Manchester
NH
722,532
1,342,636
 
 None
 None
 
722,532
          1,342,636
          2,065,168
                      436,353
 
11/29/03
300
Newington
NH
690,753
1,283,624
 
 None
 None
 
690,753
          1,283,624
          1,974,377
                      417,174
 
11/29/03
300
Salem
NH
597,833
1,111,059
 
 None
 None
 
597,833
          1,111,059
          1,708,892
                      361,090
 
11/29/03
300
Deptford
NJ
619,376
1,151,062
 
 None
 None
 
619,376
          1,151,062
          1,770,438
                      374,091
 
11/29/03
300
Maple Shade
NJ
508,285
944,750
 
 None
 None
 
508,285
              944,750
          1,453,035
                      307,040
 
11/29/03
300
Akron
OH
242,133
450,467
 
 None
 None
 
242,133
              450,467
              692,600
                      146,398
 
11/29/03
300
Cambridge
OH
103,368
192,760
 
 None
 None
 
103,368
              192,760
              296,128
                        62,643
 
11/29/03
300
Canton
OH
337,161
626,948
 
 None
 None
 
337,161
              626,948
              964,109
                      203,754
 
11/29/03
300
Cleveland
OH
582,107
1,081,848
 
 None
 None
 
582,107
          1,081,848
          1,663,955
                      351,597
 
11/29/03
300
Columbus
OH
385,878
717,422
 
 None
 None
 
385,878
              717,422
          1,103,300
                      233,158
 
11/29/03
300
Oklahoma City
OK
509,370
752,691
 
 None
 None
 
509,370
              752,691
          1,262,061
                      377,771
04/14/99
09/24/98
300
Oklahoma City
OK
404,815
771,625
 
 None
 None
 
404,815
              771,625
          1,176,440
                      387,254
04/09/99
10/16/98
300
Greensburg
PA
594,891
1,105,589
 
 None
 None
 
594,891
          1,105,589
          1,700,480
                      359,312
 
11/29/03
300
Lancaster
PA
431,050
801,313
 
 None
 None
 
431,050
              801,313
          1,232,363
                      260,423
 
11/29/03
300
Mechanicsburg
PA
455,854
847,377
 
 None
 None
 
455,854
              847,377
          1,303,231
                      275,393
 
11/29/03
300
Monroeville
PA
723,660
1,344,733
 
 None
 None
 
723,660
          1,344,733
          2,068,393
                      437,034
 
11/29/03
300
Philadelphia
PA
334,939
622,821
 
 None
 None
 
334,939
              622,821
              957,760
                      202,413
 
11/29/03
300
Pittsburgh
PA
384,756
715,339
 
 None
 None
 
384,756
              715,339
          1,100,095
                      232,481
 
11/29/03
300
York
PA
389,291
723,760
 
 None
 None
 
389,291
              723,760
          1,113,051
                      235,218
 
11/29/03
300
Columbia
SC
343,785
295,001
 
             183,130
 None
 
343,785
              478,131
              821,916
                      308,846
05/27/97
02/07/97
300
Sioux Falls
SD
332,979
498,108
 
 None
 None
 
332,979
              498,108
              831,087
                      266,502
06/01/99
02/27/98
300
Goodlettsville
TN
601,306
1,117,504
 
 None
 None
 
601,306
          1,117,504
          1,718,810
                      363,185
 
11/29/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Hermitage
TN
560,443
1,011,799
 
 None
 None
 
560,443
          1,011,799
          1,572,242
                      380,907
10/15/01
05/09/01
300
Arlington
TX
599,558
1,114,256
 
 None
 None
 
599,558
          1,114,256
          1,713,814
                      362,129
 
11/29/03
300
Austin
TX
185,454
411,899
 
 None
 None
 
185,454
              411,899
              597,353
                      358,448
 
02/06/90
300
Austin
TX
710,485
1,320,293
 
 None
 None
 
710,485
          1,320,293
          2,030,778
                      429,090
 
11/29/03
300
Austin
TX
590,828
1,098,073
 
 None
 None
 
590,828
          1,098,073
          1,688,901
                      356,869
 
11/29/03
300
Austin
TX
569,909
1,059,195
 
 None
 None
 
569,909
          1,059,195
          1,629,104
                      344,234
 
11/29/03
300
Austin
TX
532,497
989,715
 
 None
 None
 
532,497
              989,715
          1,522,212
                      321,653
 
11/29/03
300
Carrollton
TX
568,401
1,056,394
 
 None
 None
 
568,401
          1,056,394
          1,624,795
                      343,324
 
11/29/03
300
Conroe
TX
396,068
736,346
 
 None
 None
 
396,068
              736,346
          1,132,414
                      239,308
 
11/29/03
300
Dallas
TX
191,267
424,811
 
 None
                     73
 
191,267
              424,884
              616,151
                      371,168
 
01/26/90
300
Fort Worth
TX
543,950
1,010,984
 
 None
 None
 
543,950
          1,010,984
          1,554,934
                      328,566
 
11/29/03
300
Garland
TX
242,887
539,461
 
 None
 None
 
242,887
              539,461
              782,348
                      471,279
 
01/19/90
300
Harlingen
TX
134,599
298,948
 
 None
 None
 
134,599
              298,948
              433,547
                      261,165
 
01/17/90
300
Houston
TX
151,018
335,417
 
 None
 None
 
151,018
              335,417
              486,435
                      293,024
 
01/25/90
300
Houston
TX
392,113
729,002
 
 None
 None
 
392,113
              729,002
          1,121,115
                      236,921
 
11/29/03
300
Houston
TX
1,030,379
1,914,353
 
 None
 None
 
1,030,379
          1,914,353
          2,944,732
                      622,161
 
11/29/03
300
Houston
TX
619,101
1,150,551
 
 None
 None
 
619,101
          1,150,551
          1,769,652
                      373,925
 
11/29/03
300
Houston
TX
642,495
1,193,997
 
 None
 None
 
642,495
          1,193,997
          1,836,492
                      388,045
 
11/29/03
300
Houston
TX
872,866
1,621,829
 
 None
 None
 
872,866
          1,621,829
          2,494,695
                      527,090
 
11/29/03
300
Humble
TX
612,414
1,138,132
 
 None
 None
 
612,414
          1,138,132
          1,750,546
                      369,889
 
11/29/03
300
Leon Valley
TX
178,221
395,834
 
 None
 None
 
178,221
              395,834
              574,055
                      345,805
 
01/17/90
300
Leon Valley
TX
529,967
985,046
 
 None
 None
 
529,967
              985,046
          1,515,013
                      320,135
 
11/29/03
300
Mesquite
TX
591,538
1,099,363
 
 None
 None
 
591,538
          1,099,363
          1,690,901
                      357,289
 
11/29/03
300
N. Richland Hills
TX
509,861
947,707
 
           (189,562)
                     95
 
320,299
              947,802
          1,268,101
                      308,021
 
11/29/03
300
Pasadena
TX
107,391
238,519
 
 None
 None
 
107,391
              238,519
              345,910
                      208,373
 
01/24/90
300
Plano
TX
494,407
918,976
 
 None
 None
 
494,407
              918,976
          1,413,383
                      298,663
 
11/29/03
300
Plano
TX
187,564
417,157
 
                     700
 None
 
187,564
              417,857
              605,421
                      364,255
 
01/18/90
300
Richardson
TX
555,188
1,031,855
 
 None
 None
 
555,188
          1,031,855
          1,587,043
                      335,349
 
11/29/03
300
San Antonio
TX
245,164
544,518
 
 None
 None
 
245,164
              544,518
              789,682
                      473,857
 
02/14/90
300
San Antonio
TX
688,249
1,278,967
 
 None
 None
 
688,249
          1,278,967
          1,967,216
                      415,660
 
11/29/03
300
Stafford
TX
706,786
1,313,395
 
 None
 None
 
706,786
          1,313,395
          2,020,181
                      426,849
 
11/29/03
300
Waco
TX
401,999
747,362
 
 None
 None
 
401,999
              747,362
          1,149,361
                      242,888
 
11/29/03
300
Webster
TX
600,261
1,115,563
 
 None
 None
 
600,261
          1,115,563
          1,715,824
                      362,554
 
11/29/03
300
Bountiful
UT
183,750
408,115
 
 None
                   111
 
183,750
              408,226
              591,976
                      356,591
 
01/30/90
300
Alexandria
VA
542,791
1,008,832
 
 None
 None
 
542,791
          1,008,832
          1,551,623
                      327,866
 
11/29/03
300
Alexandria
VA
592,698
1,101,517
 
 None
 None
 
592,698
          1,101,517
          1,694,215
                      357,989
 
11/29/03
300
Chesapeake
VA
770,000
1,112,334
 
 None
 None
 
770,000
          1,112,334
          1,882,334
                      183,535
 
11/09/07
300
Lynchburg
VA
342,751
637,329
 
 None
 None
 
342,751
              637,329
              980,080
                      207,128
 
11/29/03
300
Virginia Beach
VA
780,000
1,026,384
 
 None
 None
 
780,000
          1,026,384
          1,806,384
                      169,353
 
11/09/07
300
Woodbridge
VA
774,854
1,439,806
 
 None
 None
 
774,854
          1,439,806
          2,214,660
                      467,933
 
11/29/03
300
Tacoma
WA
187,111
415,579
 
 None
 None
 
187,111
              415,579
              602,690
                      363,054
 
01/25/90
300
Brown Deer
WI
257,408
802,141
 
 None
 None
 
257,408
              802,141
          1,059,549
                      418,513
12/15/98
07/16/98
300
Delafield
WI
324,574
772,702
 
 None
 None
 
324,574
              772,702
          1,097,276
                      379,257
07/29/99
02/26/99
300
Madison
WI
452,630
811,977
 
 None
 None
 
452,630
              811,977
          1,264,607
                      429,051
10/20/98
04/07/98
300
Oak Creek
WI
420,465
852,408
 
 None
 None
 
420,465
              852,408
          1,272,873
                      450,415
08/07/98
03/20/98
300
                             
Aviation
                           
Dallas Fort Worth Airport
TX
0
37,503,886
 
 None
 None
 
0
        37,503,886
        37,503,886
                      809,251
 
06/20/11
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Beverages
                           
Calistoga
CA
12,677,285
2,750,715
 
 None
 None
 
12,677,285
          2,750,715
        15,428,000
                      173,313
 
06/25/10
300
Calistoga
CA
5,445,030
21,154,970
 
 None
 None
 
5,445,030
        21,154,970
        26,600,000
                   1,304,556
 
06/25/10
300
Calistoga
CA
6,039,131
1,576,869
 
 None
 None
 
6,039,131
          1,576,869
          7,616,000
                        97,240
 
06/25/10
300
Calistoga
CA
4,988,527
1,999,473
 
 None
 None
 
4,988,527
          1,999,473
          6,988,000
                      123,989
 
06/25/10
300
Calistoga
CA
8,146,907
2,067,093
 
 None
 None
 
8,146,907
          2,067,093
        10,214,000
                      127,471
 
06/25/10
300
Calistoga
CA
12,675,172
4,907,828
 
 None
 None
 
12,675,172
          4,907,828
        17,583,000
                      303,305
 
06/25/10
300
Calistoga
CA
45,184,528
10,437,472
 
 None
 None
 
45,184,528
        10,437,472
        55,622,000
                      645,364
 
06/25/10
300
Calistoga
CA
10,630,191
5,580,929
 
 None
 None
 
10,630,191
          5,580,929
        16,211,120
                      232,804
 
12/15/10
300
Napa
CA
6,000,000
25,000,000
 
 None
 None
 
6,000,000
        25,000,000
        31,000,000
                   1,541,667
 
06/25/10
300
Napa
CA
11,253,989
2,846,011
 
 None
 None
 
11,253,989
          2,846,011
        14,100,000
                      176,880
 
06/25/10
300
Napa
CA
17,590,091
5,898,149
 
 None
 None
 
17,590,091
          5,898,149
        23,488,240
                      379,248
 
06/25/10
300
Napa
CA
10,777,485
390,515
 
 None
 None
 
10,777,485
              390,515
        11,168,000
                        21,582
 
09/17/10
300
Napa
CA
4,675,262
298,928
 
 None
 None
 
4,675,262
              298,928
          4,974,190
                        12,455
 
12/15/10
300
Napa
CA
6,860,862
524,117
 
 None
 None
 
6,860,862
              524,117
          7,384,979
                              874
 
12/15/11
300
Paicines
CA
12,058,127
1,607,783
 
 None
 None
 
12,058,127
          1,607,783
        13,665,910
                        87,143
 
12/15/10
300
St. Helena
CA
15,254,700
4,150,300
 
 None
 None
 
15,254,700
          4,150,300
        19,405,000
                      260,613
 
06/25/10
300
St. Helena
CA
23,471,336
6,589,664
 
 None
 None
 
23,471,336
          6,589,664
        30,061,000
                      408,820
 
06/25/10
300
Shreveport
LA
1,320,003
8,130,438
 
 None
                   147
 
1,320,003
          8,130,585
          9,450,588
                      230,375
 
04/22/11
300
                             
Book Stores
                           
Tampa
FL
998,250
3,696,707
 
 None
                     79
 
998,250
          3,696,786
          4,695,036
                   2,187,176
 
03/11/97
300
                             
Business Services
                           
Midland
TX
45,500
101,058
 
 None
                   295
 
45,500
              101,353
              146,853
                        98,035
 
10/27/87
300
                             
Child Care
                           
Birmingham
AL
63,800
295,791
 
 None
                     84
 
63,800
              295,875
              359,675
                      295,803
 
10/31/84
300
Avondale
AZ
242,723
1,129,139
 
 None
 None
 
242,723
          1,129,139
          1,371,862
                      566,538
04/20/99
07/28/98
300
Chandler
AZ
271,695
603,446
 
                 9,758
                     39
 
271,695
              613,243
              884,938
                      579,687
 
12/14/87
300
Chandler
AZ
291,720
647,923
 
 None
                   171
 
291,720
              648,094
              939,814
                      622,289
 
12/11/87
300
Mesa
AZ
308,951
1,025,612
 
 None
 None
 
308,951
          1,025,612
          1,334,563
                      504,297
07/26/99
01/13/99
300
Phoenix
AZ
318,500
707,397
 
               32,420
 None
 
318,500
              739,817
          1,058,317
                      658,209
 
09/29/88
300
Phoenix
AZ
115,000
285,172
 
               39,971
             22,279
 
115,000
              347,422
              462,422
                      321,242
 
02/08/84
180
Phoenix
AZ
260,719
516,181
 
 None
             32,234
 
260,719
              548,415
              809,134
                      441,575
 
12/26/90
300
Scottsdale
AZ
291,993
648,529
 
 None
                   171
 
291,993
              648,700
              940,693
                      622,875
 
12/14/87
300
Scottsdale
AZ
264,504
587,471
 
 None
             27,466
 
264,504
              614,937
              879,441
                      506,679
 
06/29/90
300
Tempe
AZ
292,200
648,989
 
 None
             16,613
 
292,200
              665,602
              957,802
                      622,716
 
03/10/88
300
Tucson
AZ
304,500
676,303
 
 None
                     61
 
304,500
              676,364
              980,864
                      628,003
 
09/28/88
300
Tucson
AZ
283,500
546,878
 
 None
                   254
 
283,500
              547,132
              830,632
                      507,930
 
09/29/88
300
Calabasas
CA
156,430
725,248
 
             100,838
             58,741
 
156,430
              884,827
          1,041,257
                      780,338
 
09/26/85
300
Carmichael
CA
131,035
607,507
 
               43,568
 None
 
131,035
              651,075
              782,110
                      609,648
 
08/22/86
300
Chino
CA
155,000
634,071
 
 None
                     22
 
155,000
              634,093
              789,093
                      634,082
 
10/06/83
180
Chula Vista
CA
350,563
778,614
 
 None
             43,353
 
350,563
              821,967
          1,172,530
                      762,595
 
10/30/87
300
El Cajon
CA
157,804
731,621
 
                 2,540
             44,802
 
157,804
              778,963
              936,767
                      732,418
 
12/19/85
300
Escondido
CA
276,286
613,638
 
                 5,000
             44,389
 
276,286
              663,027
              939,313
                      608,130
 
12/31/87
300
Folsom
CA
281,563
625,363
 
 None
                     46
 
281,563
              625,409
              906,972
                      605,068
 
10/23/87
300
Mission Viejo
CA
353,891
744,367
 
               12,500
 None
 
353,891
              756,867
          1,110,758
                      583,892
 
06/24/93
300
Oceanside
CA
145,568
674,889
 
               17,000
 None
 
145,568
              691,889
              837,457
                      681,999
 
12/23/85
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
     at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Palmdale
CA
249,490
554,125
 
                 9,864
 None
 
249,490
              563,989
              813,479
                      522,837
 
09/14/88
300
Rancho Cordova
CA
276,328
613,733
 
               24,967
 None
 
276,328
              638,700
              915,028
                      572,355
 
03/22/89
300
Rancho Cucamonga
CA
471,733
1,047,739
 
               49,000
                     80
 
471,733
          1,096,819
          1,568,552
                   1,016,796
 
12/30/87
300
Roseville
CA
297,343
660,411
 
               27,496
 None
 
297,343
              687,907
              985,250
                      655,805
 
10/21/87
300
Sacramento
CA
290,734
645,732
 
 None
                   127
 
290,734
              645,859
              936,593
                      624,816
 
10/05/87
300
Santee
CA
248,418
551,748
 
 None
 None
 
248,418
              551,748
              800,166
                      539,716
 
07/23/87
300
Simi Valley
CA
208,585
967,055
 
               22,800
                     31
 
208,585
              989,886
          1,198,471
                      985,258
 
12/20/85
300
Valencia
CA
301,295
669,185
 
               67,995
                     46
 
301,295
              737,226
          1,038,521
                      647,837
 
06/23/88
300
Walnut
CA
217,365
1,007,753
 
                 1,200
             51,164
 
217,365
          1,060,117
          1,277,482
                   1,022,917
 
08/22/86
300
Aurora
CO
287,000
637,440
 
 None
                   278
 
287,000
              637,718
              924,718
                      612,233
 
12/31/87
300
Broomfield
CO
155,306
344,941
 
               25,000
                   211
 
155,306
              370,152
              525,458
                      343,715
 
03/15/88
300
Colorado Springs
CO
115,542
535,700
 
 None
 None
 
115,542
              535,700
              651,242
                      535,700
 
12/04/86
300
Colorado Springs
CO
58,400
271,217
 
               25,000
                   211
 
58,400
              296,428
              354,828
                      284,693
 
12/22/82
180
Fort Collins
CO
55,200
256,356
 
 None
 None
 
55,200
              256,356
              311,556
                      256,356
 
12/22/82
180
Fort Collins
CO
137,734
638,593
 
               41,477
             22,120
 
137,734
              702,190
              839,924
                      664,084
 
03/25/86
300
Greeley
CO
58,400
270,755
 
               25,000
                   278
 
58,400
              296,033
              354,433
                      286,394
 
11/21/84
300
Greenwood Village
CO
131,216
608,372
 
                 6,862
             21,189
 
131,216
              636,423
              767,639
                      618,138
 
12/05/86
300
Littleton
CO
161,617
358,956
 
 None
                     82
 
161,617
              359,038
              520,655
                      344,699
 
12/10/87
300
Longmont
CO
115,592
535,931
 
 None
                     71
 
115,592
              536,002
              651,594
                      535,933
 
03/25/86
300
Louisville
CO
58,089
269,313
 
 None
                   211
 
58,089
              269,524
              327,613
                      269,415
 
06/22/84
300
Parker
CO
153,551
341,042
 
 None
                   211
 
153,551
              341,253
              494,804
                      330,068
 
10/19/87
300
Westminster
CO
306,387
695,737
 
 None
                   504
 
306,387
              696,241
          1,002,628
                      628,923
 
09/27/89
300
Bradenton
FL
160,060
355,501
 
               25,000
                     79
 
160,060
              380,580
              540,640
                      351,482
 
05/05/88
300
Clearwater
FL
42,223
269,380
 
 None
                     79
 
42,223
              269,459
              311,682
                        269,405
 
12/22/81
180
Jacksonville
FL
184,800
410,447
 
               22,872
                   189
 
184,800
              433,508
              618,308
                      386,583
 
03/30/89
300
Jacksonville
FL
48,000
243,060
 
 None
                   420
 
48,000
              243,480
              291,480
                      243,195
 
12/22/81
180
Margate
FL
66,686
309,183
 
 None
                   240
 
66,686
              309,423
              376,109
                      309,295
 
12/16/86
300
Melbourne
FL
256,439
549,345
 
 None
                     79
 
256,439
              549,424
              805,863
                      425,251
 
04/16/93
300
Niceville
FL
73,696
341,688
 
 None
                   420
 
73,696
              342,108
              415,804
                      341,823
 
12/03/86
300
Orlando
FL
159,177
353,538
 
 None
                   154
 
159,177
              353,692
              512,869
                      345,844
 
07/02/87
300
Orlando
FL
68,001
313,922
 
 None
                   189
 
68,001
              314,111
              382,112
                      314,054
 
09/04/85
300
Orlando
FL
190,050
422,107
 
                 5,707
                   342
 
190,050
              428,156
              618,206
                      387,751
 
03/30/89
300
Oviedo
FL
166,409
369,598
 
 None
                   154
 
166,409
              369,752
              536,161
                      356,250
 
11/20/87
300
Panama City
FL
69,500
244,314
 
               78,565
               4,560
 
69,500
              327,439
              396,939
                      262,364
 
06/15/82
180
Pensacola
FL
147,000
326,492
 
               20,000
                   240
 
147,000
              346,732
              493,732
                      301,294
 
03/28/89
300
Royal Palm Beach
FL
194,193
431,309
 
               25,000
 None
 
194,193
              456,309
              650,502
                      408,182
 
11/15/88
300
St. Augustine
FL
44,800
213,040
 
               23,090
                   189
 
44,800
              236,319
              281,119
                      220,463
 
12/22/81
180
Sunrise
FL
245,000
533,280
 
               92,266
             28,616
 
245,000
              654,162
              899,162
                      525,053
 
05/25/89
300
Tampa
FL
53,385
199,846
 
 None
                   154
 
53,385
              200,000
              253,385
                      199,862
 
12/22/81
180
Duluth
GA
310,000
1,040,008
 
 None
 None
 
310,000
          1,040,008
          1,350,008
                      507,920
08/25/99
06/07/99
300
Ellenwood
GA
119,678
275,414
 
               58,545
                   479
 
119,678
              334,438
              454,116
                      259,545
 
11/16/88
300
Lawrenceville
GA
141,449
314,161
 
             110,068
               7,446
 
141,449
              431,675
              573,124
                      306,109
 
07/07/88
300
Lithia Springs
GA
187,444
363,358
 
 None
                     84
 
187,444
              363,442
              550,886
                      320,551
 
12/28/89
300
Lithonia
GA
239,715
524,459
 
               24,410
             25,836
 
239,715
              574,705
              814,420
                      464,058
 
08/20/91
300
Marietta
GA
292,250
649,095
 
 None
 None
 
292,250
              649,095
              941,345
                      595,942
 
12/02/88
300
Marietta
GA
148,620
330,090
 
               25,000
                   205
 
148,620
              355,295
              503,915
                      322,362
 
09/16/88
300
Marietta
GA
301,000
668,529
 
               36,480
               9,981
 
301,000
              714,990
          1,015,990
                      619,404
 
12/30/88
300
Marietta
GA
295,750
596,299
 
 None
             17,678
 
295,750
              613,977
              909,727
                      554,987
 
12/30/88
300
Smyrna
GA
274,750
610,229
 
 None
                   415
 
274,750
              610,644
              885,394
                      562,625
 
11/15/88
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements        
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Stockbridge
GA
168,700
374,688
 
               24,894
                   499
 
168,700
              400,081
              568,781
                      354,649
 
03/28/89
300
Stone Mountain
GA
65,000
0
 
 None
                     84
 
65,000
                        84
                65,084
                                   4
 
06/19/85
300
Cedar Rapids
IA
194,950
427,085
 
 None
 None
 
194,950
              427,085
              622,035
                      343,157
 
09/24/92
300
Iowa City
IA
186,900
408,910
 
 None
 None
 
186,900
              408,910
              595,810
                      328,448
 
09/24/92
300
Addison
IL
125,780
583,146
 
 None
                   134
 
125,780
              583,280
              709,060
                      583,186
 
03/25/86
300
Algonquin
IL
241,500
509,629
 
               28,260
                   134
 
241,500
              538,023
              779,523
                      436,216
 
07/10/90
300
Aurora
IL
468,000
1,259,926
 
 None
 None
 
468,000
          1,259,926
          1,727,926
                      606,955
10/26/99
06/14/99
300
Aurora
IL
165,679
398,738
 
               27,450
             21,087
 
165,679
              447,275
              612,954
                      390,942
 
12/21/88
300
Bartlett
IL
120,824
560,166
 
 None
 None
 
120,824
              560,166
              680,990
                      560,166
 
03/25/86
300
Carol Stream
IL
122,831
586,416
 
 None
                   134
 
122,831
              586,550
              709,381
                      586,457
 
03/25/86
300
Crystal Lake
IL
400,000
1,259,424
 
 None
 None
 
400,000
          1,259,424
          1,659,424
                      610,901
09/28/99
05/14/99
300
Elk Grove Village
IL
126,860
588,175
 
                 2,394
 None
 
126,860
              590,569
              717,429
                      588,205
 
03/26/86
300
Glendale Heights
IL
318,500
707,399
 
 None
                   172
 
318,500
              707,571
          1,026,071
                      652,038
 
11/16/88
300
Hoffman Estates
IL
318,500
707,399
 
 None
                   257
 
318,500
              707,656
          1,026,156
                      642,249
 
03/31/89
300
Lake in the Hills
IL
375,000
1,127,678
 
 None
 None
 
375,000
          1,127,678
          1,502,678
                      547,001
09/03/99
05/14/99
300
Lockport
IL
189,477
442,018
 
 None
                     85
 
189,477
              442,103
              631,580
                      427,617
 
10/29/87
300
Naperville
IL
425,000
1,230,654
 
 None
 None
 
425,000
          1,230,654
          1,655,654
                      592,848
10/06/99
05/19/99
300
O'Fallon
IL
141,250
313,722
 
 None
                   232
 
141,250
              313,954
              455,204
                      303,518
 
10/30/87
300
Oswego
IL
380,000
1,165,818
 
 None
 None
 
380,000
          1,165,818
          1,545,818
                      569,361
08/18/99
06/30/99
300
Palatine
IL
121,911
565,232
 
 None
                   134
 
121,911
              565,366
              687,277
                      565,273
 
03/25/86
300
Roselle
IL
297,541
561,037
 
 None
                   172
 
297,541
              561,209
              858,750
                      515,206
 
12/30/88
300
Schaumburg
IL
218,798
485,955
 
               20,461
 None
 
218,798
              506,416
              725,214
                      473,487
 
12/17/87
300
Vernon Hills
IL
132,523
614,430
 
 None
                   134
 
132,523
              614,564
              747,087
                      614,471
 
03/25/86
300
Westmont
IL
124,742
578,330
 
 None
                   172
 
124,742
              578,502
              703,244
                      578,442
 
03/25/86
300
Fishers
IN
60,000
278,175
 
                 2,500
                     85
 
60,000
              280,760
              340,760
                      278,517
 
04/30/85
300
Fishers
IN
212,118
419,958
 
 None
                   278
 
212,118
              420,236
              632,354
                      351,614
 
12/27/90
300
Highland
IN
220,460
436,476
 
 None
                   314
 
220,460
              436,790
              657,250
                      365,381
 
12/26/90
300
Indianapolis
IN
245,000
544,153
 
 None
                   211
 
245,000
              544,364
              789,364
                      466,357
 
06/29/90
300
Lenexa
KS
318,500
707,399
 
               14,200
 None
 
318,500
              721,599
          1,040,099
                      651,247
 
03/31/89
300
Olathe
KS
304,500
676,308
 
               66,918
                   186
 
304,500
              743,412
          1,047,912
                      642,889
 
09/28/88
300
Overland Park
KS
357,500
1,115,171
 
 None
 None
 
357,500
          1,115,171
          1,472,671
                      548,329
07/23/99
05/14/99
300
Shawnee
KS
288,246
935,875
 
 None
 None
 
288,246
              935,875
          1,224,121
                      482,016
12/29/98
08/24/98
300
Shawnee
KS
315,000
699,629
 
 None
                   302
 
315,000
              699,931
          1,014,931
                      647,351
 
10/27/88
300
Wichita
KS
108,569
352,287
 
                 8,286
                   100
 
108,569
              360,673
              469,242
                        32,533
 
12/16/86
300
Wichita
KS
209,890
415,549
 
               26,399
             16,270
 
209,890
              458,218
              668,108
                      372,180
 
12/26/90
300
Lexington
KY
210,427
420,883
 
 None
                   187
 
210,427
              421,070
              631,497
                      346,854
 
08/20/91
300
Acton
MA
315,533
700,813
 
 None
                   278
 
315,533
              701,091
          1,016,624
                      650,942
 
09/30/88
300
Marlborough
MA
352,765
776,488
 
 None
                   232
 
352,765
              776,720
          1,129,485
                      715,749
 
11/04/88
300
Westborough
MA
359,412
773,877
 
               42,842
             12,173
 
359,412
              828,892
          1,188,304
                      713,940
 
11/01/88
300
Ellicott City
MD
219,368
630,839
 
               26,550
 None
 
219,368
              657,389
              876,757
                      592,602
 
12/19/88
300
Frederick
MD
203,352
1,017,109
 
 None
 None
 
203,352
          1,017,109
          1,220,461
                      547,544
 
07/06/98
300
Olney
MD
342,500
760,701
 
                 4,400
             41,605
 
342,500
              806,706
          1,149,206
                      744,537
 
12/18/87
300
Waldorf
MD
237,207
526,844
 
 None
                   172
 
237,207
              527,016
              764,223
                      505,921
 
12/31/87
300
Waldorf
MD
130,430
604,702
 
 None
                   278
 
130,430
              604,980
              735,410
                      604,906
 
09/26/84
300
Canton
MI
55,000
378,848
 
                 2,913
             10,977
 
55,000
              392,738
              447,738
                      384,796
 
10/06/82
180
Apple Valley
MN
113,523
526,319
 
 None
                   197
 
113,523
              526,516
              640,039
                      526,371
 
03/26/86
300
Brooklyn Park
MN
118,111
547,587
 
 None
                   197
 
118,111
              547,784
              665,895
                      547,639
 
03/26/86
300
Eden Prairie
MN
124,286
576,243
 
 None
                   197
 
124,286
              576,440
              700,726
                      576,295
 
03/27/86
300
Maple Grove
MN
313,250
660,149
 
 None
                   278
 
313,250
              660,427
              973,677
                      564,679
 
07/11/90
300
Plymouth
MN
134,221
622,350
 
 None
                   197
 
134,221
              622,547
              756,768
                      622,402
 
12/12/86
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
White Bear Lake
MN
242,165
537,856
 
 None
                   278
 
242,165
              538,134
              780,299
                      457,429
 
08/30/90
300
Florissant
MO
318,500
707,399
 
               78,556
             10,975
 
318,500
              796,930
          1,115,430
                      655,218
 
03/30/89
300
Florissant
MO
181,300
402,672
 
               34,635
             12,499
 
181,300
              449,806
              631,106
                      376,688
 
03/29/89
300
Gladstone
MO
294,000
652,987
 
 None
               9,295
 
294,000
              662,282
              956,282
                      607,205
 
09/29/88
300
Lee's Summit
MO
330,000
993,787
 
 None
 None
 
330,000
              993,787
          1,323,787
                      488,641
07/26/99
06/17/99
300
Lee's Summit
MO
313,740
939,367
 
 None
 None
 
313,740
              939,367
          1,253,107
                      458,771
09/08/99
06/30/99
300
Lee's Summit
MO
239,627
532,220
 
 None
                   179
 
239,627
              532,399
              772,026
                      472,100
 
09/27/89
300
Liberty
MO
65,400
303,211
 
               25,000
                   123
 
65,400
              328,334
              393,734
                      318,008
 
06/18/85
300
North Kansas City
MO
307,784
910,401
 
 None
 None
 
307,784
              910,401
          1,218,185
                      474,405
09/28/99
08/21/98
300
Jackson
MS
248,483
572,522
 
               17,627
             17,780
 
248,483
              607,929
              856,412
                      284,319
 
11/16/99
300
Pearl
MS
121,801
270,524
 
               18,837
               4,207
 
121,801
              293,568
              415,369
                      259,738
 
11/15/88
300
Tupelo
MS
121,697
637,691
 
               26,216
               9,587
 
121,697
              673,494
              795,191
                      390,556
 
11/26/96
300
Cary
NC
75,200
262,973
 
               15,000
                   187
 
75,200
              278,160
              353,360
                      266,248
 
01/25/84
180
Charlotte
NC
134,582
268,222
 
               24,478
                   139
 
134,582
              292,839
              427,421
                      261,834
 
11/16/88
300
Concord
NC
32,441
190,859
 
 None
                   326
 
32,441
              191,185
              223,626
                      191,060
 
12/23/81
180
Durham
NC
175,700
390,234
 
               26,312
                   187
 
175,700
              416,733
              592,433
                      371,081
 
03/29/89
300
Durham
NC
220,728
429,380
 
 None
                   321
 
220,728
              429,701
              650,429
                      379,062
 
12/29/89
300
Kernersville
NC
162,216
316,300
 
 None
                   223
 
162,216
              316,523
              478,739
                      279,410
 
12/14/89
300
Bellevue
NE
60,568
280,819
 
 None
                   179
 
60,568
              280,998
              341,566
                      280,935
 
12/16/86
300
Omaha
NE
142,867
317,315
 
 None
                   146
 
142,867
              317,461
              460,328
                      304,833
 
12/09/87
300
Omaha
NE
60,500
280,491
 
 None
                   179
 
60,500
              280,670
              341,170
                      280,607
 
08/01/84
300
Omaha
NE
53,000
245,720
 
               22,027
                   179
 
53,000
              267,926
              320,926
                      252,274
 
10/11/84
300
Londonderry
NH
335,467
745,082
 
 None
                   278
 
335,467
              745,360
          1,080,827
                      663,770
 
08/18/89
300
Clementon
NJ
279,851
554,060
 
               18,899
 None
 
279,851
              572,959
              852,810
                      447,515
 
09/09/91
300
Las Vegas
NV
201,250
446,983
 
 None
                   126
 
201,250
              447,109
              648,359
                      383,058
 
06/29/90
300
Beavercreek
OH
179,552
398,786
 
 None
                   122
 
179,552
              398,908
              578,460
                      391,607
 
06/30/87
300
Centerville
OH
174,519
387,613
 
 None
                   237
 
174,519
              387,850
              562,369
                      379,270
 
07/23/87
300
Dublin
OH
84,000
389,446
 
 None
                   230
 
84,000
              389,676
              473,676
                      389,626
 
10/08/85
300
Englewood
OH
74,000
343,083
 
 None
                   258
 
74,000
              343,341
              417,341
                      343,228
 
10/23/85
300
Forest Park
OH
170,778
379,305
 
 None
                     85
 
170,778
              379,390
              550,168
                      368,356
 
09/28/87
300
Huber Heights
OH
245,000
544,153
 
 None
                   122
 
245,000
              544,275
              789,275
                      460,840
 
09/27/90
300
Pickerington
OH
87,580
406,055
 
 None
                   116
 
87,580
              406,171
              493,751
                      406,088
 
12/11/86
300
Westerville
OH
82,000
380,173
 
 None
                   122
 
82,000
              380,295
              462,295
                      380,250
 
10/08/85
300
Westerville
OH
294,350
646,557
 
 None
                   122
 
294,350
              646,679
              941,029
                      548,848
 
09/26/90
300
Broken Arrow
OK
78,705
220,434
 
 None
 None
 
78,705
              220,434
              299,139
                      220,434
 
01/27/83
180
Midwest City
OK
67,800
314,338
 
 None
 None
 
67,800
              314,338
              382,138
                      314,338
 
08/14/85
300
Oklahoma City
OK
50,800
214,474
 
 None
                   173
 
50,800
              214,647
              265,447
                      214,587
 
06/15/82
180
Oklahoma City
OK
79,000
366,261
 
               17,659
                   173
 
79,000
              384,093
              463,093
                      381,092
 
11/14/84
300
Yukon
OK
61,000
282,812
 
               27,000
                   173
 
61,000
              309,985
              370,985
                      299,846
 
05/02/85
300
Charleston
SC
140,700
312,498
 
               25,000
                   376
 
140,700
              337,874
              478,574
                      299,023
 
03/28/89
300
Charleston
SC
125,593
278,947
 
 None
                   514
 
125,593
              279,461
              405,054
                      263,233
 
05/26/88
300
Columbia
SC
58,160
269,643
 
 None
                   139
 
58,160
              269,782
              327,942
                      269,778
 
11/14/84
300
Columbia
SC
160,831
313,600
 
 None
                   223
 
160,831
              313,823
              474,654
                      277,027
 
12/14/89
300
Goose Creek
SC
61,635
192,905
 
 None
                   376
 
61,635
              193,281
              254,916
                        193,077
 
12/22/81
180
Summerville
SC
44,400
174,500
 
 None
                   321
 
44,400
              174,821
              219,221
                      174,584
 
12/22/81
180
Sumter
SC
56,010
268,903
 
 None
                   344
 
56,010
              269,247
              325,257
                      269,222
 
06/18/85
300
Memphis
TN
238,263
504,897
 
 None
 None
 
238,263
              504,897
              743,160
                      468,820
 
09/29/88
300
Memphis
TN
238,000
528,608
 
                 2,734
                   111
 
238,000
              531,453
              769,453
                      492,184
 
09/30/88
300
Arlington
TX
241,500
550,559
 
               33,725
                     54
 
241,500
              584,338
              825,838
                      533,698
 
09/22/89
300
Arlington
TX
82,109
380,677
 
               12,321
                     95
 
82,109
              393,093
              475,202
                      382,242
 
12/13/84
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction  
Acquired
(in Months)
                             
Arlington
TX
238,000
528,604
 
             (24,713)
                   605
 
238,000
              504,496
              742,496
                      495,796
 
09/26/88
300
Austin
TX
217,878
483,913
 
               29,469
 None
 
217,878
              513,382
              731,260
                      451,746
 
06/22/89
300
Austin
TX
103,600
230,532
 
                 8,750
                   142
 
103,600
              239,424
              343,024
                      237,870
 
10/29/82
180
Austin
TX
236,733
640,023
 
               36,746
                   254
 
236,733
              677,023
              913,756
                      534,980
 
09/27/88
300
Austin
TX
191,636
425,629
 
               15,530
                   294
 
191,636
              441,453
              633,089
                      402,956
 
12/22/88
300
Austin
TX
134,383
623,103
 
                 2,379
               7,064
 
134,383
              632,546
              766,929
                      623,676
 
12/23/86
300
Austin
TX
88,872
222,684
 
               48,416
             15,026
 
88,872
              286,126
              374,998
                      254,097
 
01/12/83
180
Bedford
TX
241,500
550,559
 
               34,949
                     73
 
241,500
              585,581
              827,081
                      513,989
 
09/22/89
300
Carrollton
TX
277,850
617,113
 
               12,086
             18,443
 
277,850
              647,642
              925,492
                      608,652
 
12/11/87
300
Cedar Park
TX
168,857
375,036
 
                 5,200
                   282
 
168,857
              380,518
              549,375
                      349,173
 
11/21/88
300
Colleyville
TX
250,000
1,070,360
 
 None
 None
 
250,000
          1,070,360
          1,320,360
                      522,737
08/17/99
05/14/99
300
Converse
TX
217,000
481,963
 
 None
                   294
 
217,000
              482,257
              699,257
                      447,710
 
09/28/88
300
Corinth
TX
285,000
1,041,626
 
 None
 None
 
285,000
          1,041,626
          1,326,626
                      515,600
06/04/99
05/19/99
300
Euless
TX
234,111
519,962
 
 None
                   217
 
234,111
              520,179
              754,290
                      512,569
 
05/08/87
300
Flower Mound
TX
281,735
1,099,726
 
 None
 None
 
281,735
          1,099,726
          1,381,461
                      551,668
04/23/99
01/13/99
300
Flower Mound
TX
202,773
442,845
 
               32,069
             16,315
 
202,773
              491,229
              694,002
                      446,086
 
04/20/87
300
Fort Worth
TX
216,160
427,962
 
 None
                   149
 
216,160
              428,111
              644,271
                      355,360
 
02/07/91
300
Fort Worth
TX
238,000
528,608
 
 None
               2,095
 
238,000
              530,703
              768,703
                      490,978
 
09/26/88
300
Fort Worth
TX
85,518
396,495
 
               33,279
               6,266
 
85,518
              436,040
              521,558
                      413,632
 
12/03/86
300
Garland
TX
211,050
468,749
 
               19,199
             17,532
 
211,050
              505,480
              716,530
                      424,321
 
12/12/89
300
Grand Prairie
TX
167,164
371,276
 
               58,206
             16,412
 
167,164
              445,894
              613,058
                      358,938
 
12/13/88
300
Houston
TX
294,582
919,276
 
 None
 None
 
294,582
              919,276
          1,213,858
                      470,412
01/11/99
08/14/98
300
Houston
TX
149,109
323,314
 
                 5,000
                     87
 
149,109
              328,401
              477,510
                      292,529
 
06/26/89
300
Houston
TX
139,125
308,997
 
               19,128
                   128
 
139,125
              328,253
              467,378
                      313,375
 
05/22/87
300
Houston
TX
219,100
486,631
 
 None
                   261
 
219,100
              486,892
              705,992
                      451,959
 
09/30/88
300
Houston
TX
60,000
278,175
 
               22,168
                   597
 
60,000
              300,940
              360,940
                      282,960
 
05/01/85
300
Houston
TX
141,296
313,824
 
               12,442
               2,308
 
141,296
              328,574
              469,870
                      314,310
 
07/24/87
300
Humble
TX
278,915
1,034,868
 
 None
 None
 
278,915
          1,034,868
          1,313,783
                      508,840
07/19/99
05/14/99
300
Katy
TX
309,898
983,041
 
 None
 None
 
309,898
              983,041
          1,292,939
                      509,568
11/30/98
08/21/98
300
Lewisville
TX
192,777
428,121
 
 None
                     95
 
192,777
              428,216
              620,993
                      426,627
 
01/07/87
300
Mansfield
TX
181,375
402,839
 
               46,878
             17,274
 
181,375
              466,991
              648,366
                      376,128
 
12/20/89
300
Mesquite
TX
85,000
394,079
 
                 9,855
             12,885
 
85,000
              416,819
              501,819
                      405,987
 
10/24/84
300
Mesquite
TX
139,466
326,525
 
               39,638
             13,047
 
139,466
              379,210
              518,676
                      292,190
 
10/08/92
300
Pasadena
TX
60,000
278,173
 
               21,315
             14,967
 
60,000
              314,455
              374,455
                      283,899
 
10/23/84
300
Plano
TX
250,514
556,399
 
               19,869
             10,306
 
250,514
              586,574
              837,088
                      539,440
 
12/10/87
300
Plano
TX
261,912
581,658
 
               30,831
             18,268
 
261,912
              630,757
              892,669
                      605,583
 
01/06/87
300
Round Rock
TX
186,380
413,957
 
               30,800
                   272
 
186,380
              445,029
              631,409
                      393,821
 
04/19/89
300
Round Rock
TX
80,525
373,347
 
 None
             19,117
 
80,525
              392,464
              472,989
                      380,022
 
12/16/86
300
San Antonio
TX
182,868
406,155
 
               18,940
 None
 
182,868
              425,095
              607,963
                      388,280
 
12/06/88
300
San Antonio
TX
220,500
447,108
 
 None
                   115
 
220,500
              447,223
              667,723
                      405,930
 
03/30/89
300
San Antonio
TX
217,000
481,967
 
               32,529
                   115
 
217,000
              514,611
              731,611
                      458,931
 
10/14/88
300
San Antonio
TX
130,833
606,596
 
 None
                   254
 
130,833
              606,850
              737,683
                      606,671
 
03/24/86
300
San Antonio
TX
81,530
378,007
 
 None
                   266
 
81,530
              378,273
              459,803
                      378,143
 
12/11/86
300
San Antonio
TX
234,500
520,831
 
 None
                   282
 
234,500
              521,113
              755,613
                      500,264
 
12/29/87
300
San Antonio
TX
102,512
475,288
 
 None
                   294
 
102,512
              475,582
              578,094
                      475,472
 
12/03/86
300
San Antonio
TX
181,412
402,923
 
 None
                   396
 
181,412
              403,319
              584,731
                      394,331
 
07/07/87
300
San Antonio
TX
139,125
308,997
 
               30,885
             13,386
 
139,125
              353,268
              492,393
                      321,387
 
05/22/87
300
Sugar Land
TX
339,310
1,000,876
 
 None
 None
 
339,310
          1,000,876
          1,340,186
                      498,768
05/30/99
01/13/99
300
Layton
UT
136,574
269,008
 
 None
                   314
 
136,574
              269,322
              405,896
                      236,315
 
02/01/90
300
Sandy
UT
168,089
373,330
 
 None
                   314
 
168,089
              373,644
              541,733
                      325,104
 
02/01/90
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Centreville
VA
371,000
824,003
 
 None
                   290
 
371,000
              824,293
          1,195,293
                      731,148
 
09/29/89
300
Chesapeake
VA
190,050
422,107
 
               24,568
 None
 
190,050
              446,675
              636,725
                      398,179
 
03/28/89
300
Glen Allen
VA
74,643
346,060
 
 None
                   283
 
74,643
              346,343
              420,986
                      346,151
 
06/20/84
300
Portsmouth
VA
171,575
381,073
 
               24,932
 None
 
171,575
              406,005
              577,580
                      364,556
 
12/21/88
300
Richmond
VA
269,500
598,567
 
                 2,740
                   199
 
269,500
              601,506
              871,006
                      543,460
 
03/28/89
300
Virginia Beach
VA
69,080
320,270
 
               29,024
             13,825
 
69,080
              363,119
              432,199
                      330,377
 
11/15/84
300
Federal Way
WA
150,785
699,101
 
 None
                   107
 
150,785
              699,208
              849,993
                      699,108
 
12/17/86
300
Federal Way
WA
261,943
581,782
 
               27,500
                   107
 
261,943
              609,389
              871,332
                      550,588
 
11/21/88
300
Kent
WA
128,300
539,141
 
 None
 None
 
128,300
              539,141
              667,441
                      539,141
 
06/03/83
180
Kent
WA
140,763
678,809
 
               36,500
 None
 
140,763
              715,309
              856,072
                      688,973
 
12/17/86
300
Kirkland
WA
301,000
668,534
 
 None
                   107
 
301,000
              668,641
              969,641
                      634,865
 
03/31/88
300
Puyallup
WA
195,552
434,327
 
               27,000
                   107
 
195,552
              461,434
              656,986
                      414,855
 
12/06/88
300
Redmond
WA
279,830
621,513
 
 None
                   107
 
279,830
              621,620
              901,450
                      607,967
 
07/27/87
300
Renton
WA
111,183
515,490
 
 None
 None
 
111,183
              515,490
              626,673
                      515,490
 
03/24/86
300
Appleton
WI
196,000
424,038
 
 None
                   370
 
196,000
              424,408
              620,408
                      362,898
 
07/10/90
300
Waukesha
WI
233,100
461,500
 
 None
                   370
 
233,100
              461,870
              694,970
                      386,335
 
12/13/90
300
Waukesha
WI
215,950
427,546
 
 None
                   370
 
215,950
              427,916
              643,866
                      357,923
 
12/13/90
300
                             
Consumer Electronics
                           
Mary Esther
FL
149,696
363,263
 
               60,014
                     57
 
149,696
              423,334
              573,030
                      228,074
 
11/26/96
300
Melbourne
FL
269,697
522,414
 
 None
                   716
 
269,697
              523,130
              792,827
                      316,345
 
11/26/96
300
Tampa
FL
401,874
933,768
 
             103,336
             31,913
 
401,874
          1,069,017
          1,470,891
                      548,348
 
12/23/97
300
Smyrna
GA
1,094,058
3,090,236
 
 None
 None
 
1,094,058
          3,090,236
          4,184,294
                   1,797,373
 
06/09/97
300
Richmond
IN
93,999
193,753
 
                 2,822
                     85
 
93,999
              196,660
              290,659
                      118,157
 
11/26/96
300
Jackson
MI
550,162
571,590
 
 None
 None
 
550,162
              571,590
          1,121,752
                      294,493
01/15/99
09/25/98
300
Pineville
NC
567,864
840,284
 
               37,249
             39,217
 
567,864
              916,750
          1,484,614
                      462,251
 
12/31/98
300
Westbury
NY
6,333,590
3,952,773
 
               20,493
 None
 
6,333,590
          3,973,266
        10,306,856
                   2,267,121
 
09/29/97
300
Bartlett
TN
420,000
674,437
 
               38,966
               6,323
 
420,000
              719,726
          1,139,726
                      341,427
05/12/99
02/23/99
300
                             
Convenience Stores
                           
Daphne
AL
140,000
391,637
 
 None
 None
 
140,000
              391,637
              531,637
                      122,058
 
03/18/04
300
Mobile
AL
190,000
301,637
 
 None
 None
 
190,000
              301,637
              491,637
                        94,008
 
03/18/04
300
Mobile
AL
180,000
421,637
 
 None
 None
 
180,000
              421,637
              601,637
                      131,408
 
03/18/04
300
Florence
AZ
150,000
371,637
 
 None
 None
 
150,000
              371,637
              521,637
                      115,824
 
03/18/04
300
Gilbert
AZ
680,000
1,111,637
 
 None
 None
 
680,000
          1,111,637
          1,791,637
                      346,458
 
03/18/04
300
Litchfield Park
AZ
610,000
531,637
 
 None
 None
 
610,000
              531,637
          1,141,637
                      165,691
 
03/18/04
300
Marana
AZ
180,000
331,637
 
 None
 None
 
180,000
              331,637
              511,637
                      103,358
 
03/18/04
300
Marana
AZ
330,000
911,637
 
 None
 None
 
330,000
              911,637
          1,241,637
                      284,124
 
03/18/04
300
Maricopa
AZ
170,000
361,637
 
 None
 None
 
170,000
              361,637
              531,637
                      112,708
 
03/18/04
300
Mesa
AZ
560,000
821,637
 
 None
 None
 
560,000
              821,637
          1,381,637
                      256,074
 
03/18/04
300
Mesa
AZ
750,000
1,071,637
 
 None
 None
 
750,000
          1,071,637
          1,821,637
                      333,991
 
03/18/04
300
Mesa
AZ
810,000
1,061,637
 
 None
 None
 
810,000
          1,061,637
          1,871,637
                      330,874
 
03/18/04
300
Mesa
AZ
890,000
1,081,637
 
 None
 None
 
890,000
          1,081,637
          1,971,637
                      337,108
 
03/18/04
300
Mesa
AZ
780,000
1,071,637
 
 None
 None
 
780,000
          1,071,637
          1,851,637
                      333,991
 
03/18/04
300
Mesa
AZ
900,000
1,191,637
 
 None
 None
 
900,000
          1,191,637
          2,091,637
                      371,391
 
03/18/04
300
Payson
AZ
210,000
351,637
 
 None
 None
 
210,000
              351,637
              561,637
                      109,591
 
03/18/04
300
Payson
AZ
260,000
311,637
 
 None
 None
 
260,000
              311,637
              571,637
                        97,124
 
03/18/04
300
Peoria
AZ
520,000
751,637
 
 None
 None
 
520,000
              751,637
          1,271,637
                      234,258
 
03/18/04
300
Phoenix
AZ
440,000
511,637
 
 None
 None
 
440,000
              511,637
              951,637
                      159,458
 
03/18/04
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Phoenix
AZ
360,000
421,637
 
 None
 None
 
360,000
              421,637
              781,637
                      131,408
 
03/18/04
300
Phoenix
AZ
710,000
591,637
 
 None
 None
 
710,000
              591,637
          1,301,637
                      184,391
 
03/18/04
300
Phoenix
AZ
320,000
661,637
 
 None
 None
 
320,000
              661,637
              981,637
                      206,208
 
03/18/04
300
Phoenix
AZ
450,000
651,637
 
 None
 None
 
450,000
              651,637
          1,101,637
                      203,091
 
03/18/04
300
Phoenix
AZ
430,000
711,637
 
 None
 None
 
430,000
              711,637
          1,141,637
                      221,791
 
03/18/04
300
Phoenix
AZ
730,000
931,637
 
 None
 None
 
730,000
              931,637
          1,661,637
                      290,358
 
03/18/04
300
Phoenix
AZ
400,000
931,637
 
 None
 None
 
400,000
              931,637
          1,331,637
                      290,358
 
03/18/04
300
Phoenix
AZ
790,000
1,051,637
 
 None
 None
 
790,000
          1,051,637
          1,841,637
                      327,758
 
03/18/04
300
Pinetop
AZ
170,000
311,637
 
 None
 None
 
170,000
              311,637
              481,637
                        97,124
 
03/18/04
300
Queen Creek
AZ
520,000
891,637
 
 None
 None
 
520,000
              891,637
          1,411,637
                      277,891
 
03/18/04
300
Scottsdale
AZ
210,000
201,637
 
 None
 None
 
210,000
              201,637
              411,637
                        62,841
 
03/18/04
300
Scottsdale
AZ
660,000
1,031,637
 
 None
 None
 
660,000
          1,031,637
          1,691,637
                      321,524
 
03/18/04
300
Sierra Vista
AZ
110,000
301,637
 
 None
 None
 
110,000
              301,637
              411,637
                        94,008
 
03/18/04
300
Tempe
AZ
620,000
1,071,637
 
 None
 None
 
620,000
          1,071,637
          1,691,637
                      333,991
 
03/18/04
300
Tempe
AZ
270,000
461,637
 
 None
 None
 
270,000
              461,637
              731,637
                      143,874
 
03/18/04
300
Tolleson
AZ
460,000
1,231,637
 
 None
 None
 
460,000
          1,231,637
          1,691,637
                      383,858
 
03/18/04
300
Tombstone
AZ
110,000
381,637
 
 None
 None
 
110,000
              381,637
              491,637
                      118,941
 
03/18/04
300
Tucson
AZ
220,000
311,637
 
 None
 None
 
220,000
              311,637
              531,637
                        97,124
 
03/18/04
300
Tucson
AZ
240,000
341,637
 
 None
 None
 
240,000
              341,637
              581,637
                      106,474
 
03/18/04
300
Tucson
AZ
550,000
511,637
 
 None
 None
 
550,000
              511,637
          1,061,637
                      159,458
 
03/18/04
300
Tucson
AZ
126,000
234,565
 
 None
 None
 
126,000
              234,565
              360,565
                        72,324
 
04/14/04
300
Wellton
AZ
120,000
291,637
 
 None
 None
 
120,000
              291,637
              411,637
                        90,891
 
03/18/04
300
Wickenburg
AZ
150,000
291,637
 
 None
 None
 
150,000
              291,637
              441,637
                        90,891
 
03/18/04
300
Manchester
CT
118,262
305,510
 
 None
 None
 
118,262
              305,510
              423,772
                      205,201
 
03/03/95
300
Vernon
CT
179,646
319,372
 
 None
 None
 
179,646
              319,372
              499,018
                      214,511
 
03/09/95
300
Westbrook
CT
98,247
373,340
 
 None
 None
 
98,247
              373,340
              471,587
                      250,760
 
03/09/95
300
Camden
DE
113,811
174,435
 
 None
 None
 
113,811
              174,435
              288,246
                        61,336
 
03/19/03
300
Camden
DE
250,528
379,165
 
 None
 None
 
250,528
              379,165
              629,693
                      133,333
 
03/19/03
300
Dewey
DE
147,465
224,665
 
 None
 None
 
147,465
              224,665
              372,130
                        79,000
 
03/19/03
300
Dover
DE
278,804
421,707
 
 None
 None
 
278,804
              421,707
              700,511
                      148,293
 
03/19/03
300
Dover
DE
367,137
554,207
 
 None
 None
 
367,137
              554,207
              921,344
                      194,889
 
03/19/03
300
Dover
DE
367,425
554,884
 
 None
 None
 
367,425
              554,884
              922,309
                      195,127
 
03/19/03
300
Felton
DE
307,260
464,391
 
 None
 None
 
307,260
              464,391
              771,651
                      163,304
 
03/19/03
300
Greenwood
DE
632,303
1,176,711
 
 None
 None
 
632,303
          1,176,711
          1,809,014
                      194,155
 
11/29/07
300
Harrington
DE
563,812
849,220
 
 None
 None
 
563,812
              849,220
          1,413,032
                      298,635
 
03/19/03
300
Milford
DE
310,049
468,575
 
 None
 None
 
310,049
              468,575
              778,624
                      164,775
 
03/19/03
300
Newcastle
DE
589,325
887,488
 
 None
 None
 
589,325
              887,488
          1,476,813
                      312,093
 
03/19/03
300
Smyrna
DE
121,774
186,436
 
 None
 None
 
121,774
              186,436
              308,210
                        65,556
 
03/19/03
300
Smyrna
DE
401,135
605,332
 
 None
 None
 
401,135
              605,332
          1,006,467
                      212,868
 
03/19/03
300
Townsend
DE
241,416
365,749
 
 None
 None
 
241,416
              365,749
              607,165
                      128,614
 
03/19/03
300
Wilmington
DE
280,682
424,525
 
 None
 None
 
280,682
              424,525
              705,207
                      149,284
 
03/19/03
300
Archer
FL
296,238
578,145
 
 None
 None
 
296,238
              578,145
              874,383
                      291,962
 
05/07/99
300
Bushnell
FL
130,000
291,637
 
 None
 None
 
130,000
              291,637
              421,637
                        90,891
 
03/18/04
300
Clearwater
FL
359,792
311,845
 
 None
 None
 
359,792
              311,845
              671,637
                        97,189
 
03/18/04
300
Cocoa
FL
323,827
287,810
 
 None
 None
 
323,827
              287,810
              611,637
                        89,698
 
03/18/04
300
Deltona
FL
140,000
321,637
 
 None
 None
 
140,000
              321,637
              461,637
                      100,241
 
03/18/04
300
Ellenton
FL
250,000
261,637
 
 None
 None
 
250,000
              261,637
              511,637
                        81,541
 
03/18/04
300
Englewood
FL
270,000
331,637
 
 None
 None
 
270,000
              331,637
              601,637
                      103,358
 
03/18/04
300
Gainesville
FL
515,834
873,187
 
 None
 None
 
515,834
              873,187
          1,389,021
                      440,958
 
05/07/99
300
Gainesville
FL
480,318
600,633
 
 None
 None
 
480,318
              600,633
          1,080,951
                      303,318
 
05/07/99
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Gainesville
FL
347,310
694,859
 
 None
 None
 
347,310
              694,859
          1,042,169
                      350,902
 
05/07/99
300
Gainesville
FL
339,263
658,807
 
 None
 None
 
339,263
              658,807
              998,070
                      332,696
 
05/07/99
300
Gainesville
FL
351,921
552,557
 
 None
 None
 
351,921
              552,557
              904,478
                      279,040
 
05/07/99
300
Gainesville
FL
500,032
850,291
 
 None
 None
 
500,032
              850,291
          1,350,323
                      429,396
 
05/07/99
300
Homosassa Springs
FL
740,000
621,637
 
 None
 None
 
740,000
              621,637
          1,361,637
                      193,741
 
03/18/04
300
Hudson
FL
300,000
351,637
 
 None
 None
 
300,000
              351,637
              651,637
                      109,591
 
03/18/04
300
Intercession City
FL
161,776
319,861
 
 None
 None
 
161,776
              319,861
              481,637
                        99,687
 
03/18/04
300
Jacksonville
FL
522,188
371,885
 
 None
 None
 
522,188
              371,885
              894,073
                      187,801
 
05/07/99
300
Jacksonville
FL
266,111
494,206
 
 None
 None
 
266,111
              494,206
              760,317
                      152,380
 
04/01/04
300
Key West
FL
873,700
627,937
 
 None
 None
 
873,700
              627,937
          1,501,637
                      195,704
 
03/18/04
300
Key West
FL
492,785
208,852
 
 None
 None
 
492,785
              208,852
              701,637
                        65,090
 
03/18/04
300
Lakeland
FL
527,076
464,561
 
 None
 None
 
527,076
              464,561
              991,637
                      144,785
 
03/18/04
300
Lakeland
FL
300,000
321,637
 
 None
 None
 
300,000
              321,637
              621,637
                      100,241
 
03/18/04
300
Lakeport
FL
180,342
331,295
 
 None
 None
 
180,342
              331,295
              511,637
                      103,251
 
03/18/04
300
Land O' Lakes
FL
120,000
361,637
 
 None
 None
 
120,000
              361,637
              481,637
                      112,708
 
03/18/04
300
Lutz
FL
480,000
421,637
 
 None
 None
 
480,000
              421,637
              901,637
                      131,408
 
03/18/04
300
Naples
FL
150,000
301,637
 
 None
 None
 
150,000
              301,637
              451,637
                        94,008
 
03/18/04
300
Naples
FL
620,000
381,637
 
 None
 None
 
620,000
              381,637
          1,001,637
                      118,941
 
03/18/04
300
New Port Richey
FL
190,000
601,637
 
 None
 None
 
190,000
              601,637
              791,637
                      187,508
 
03/18/04
300
North Fort Meyers
FL
140,000
281,637
 
 None
 None
 
140,000
              281,637
              421,637
                        87,774
 
03/18/04
300
Okeechobee
FL
195,075
346,562
 
 None
 None
 
195,075
              346,562
              541,637
                      108,009
 
03/18/04
300
Orlando
FL
240,000
301,637
 
 None
 None
 
240,000
              301,637
              541,637
                        94,008
 
03/18/04
300
Palm Bay
FL
230,880
300,757
 
 None
 None
 
230,880
              300,757
              531,637
                        93,733
 
03/18/04
300
Palm Harbor
FL
510,000
381,637
 
 None
 None
 
510,000
              381,637
              891,637
                      118,941
 
03/18/04
300
Panama City
FL
210,000
431,637
 
 None
 None
 
210,000
              431,637
              641,637
                      134,524
 
03/18/04
300
Pensacola
FL
168,000
312,727
 
 None
 None
 
168,000
              312,727
              480,727
                        96,422
 
04/14/04
300
Port Charlotte
FL
170,000
311,637
 
 None
 None
 
170,000
              311,637
              481,637
                        97,124
 
03/18/04
300
Port Charlotte
FL
200,000
356,637
 
 None
 None
 
200,000
              356,637
              556,637
                      111,149
 
03/18/04
300
Port Orange
FL
609,438
512,199
 
 None
 None
 
609,438
              512,199
          1,121,637
                      159,633
 
03/18/04
300
Punta Gorda
FL
400,000
511,637
 
 None
 None
 
400,000
              511,637
              911,637
                      159,458
 
03/18/04
300
Tallahassee
FL
600,000
341,637
 
 None
 None
 
600,000
              341,637
              941,637
                      106,474
 
03/18/04
300
Tampa
FL
300,000
301,637
 
 None
 None
 
300,000
              301,637
              601,637
                        94,008
 
03/18/04
300
Tampa
FL
380,000
361,637
 
 None
 None
 
380,000
              361,637
              741,637
                      112,708
 
03/18/04
300
Tampa
FL
320,000
591,637
 
 None
 None
 
320,000
              591,637
              911,637
                      184,391
 
03/18/04
300
Webster
FL
640,000
1,071,637
 
 None
 None
 
640,000
          1,071,637
          1,711,637
                      333,991
 
03/18/04
300
Winter Springs
FL
150,000
291,637
 
 None
 None
 
150,000
              291,637
              441,637
                        90,891
 
03/18/04
300
Augusta
GA
620,000
383,232
 
 None
 None
 
620,000
              383,232
          1,003,232
                      190,972
 
07/22/99
300
Augusta
GA
540,000
337,853
 
 None
 None
 
540,000
              337,853
              877,853
                      168,359
 
07/22/99
300
Augusta
GA
510,000
392,929
 
 None
 None
 
510,000
              392,929
              902,929
                      195,805
 
07/22/99
300
Augusta
GA
180,000
422,020
 
 None
 None
 
180,000
              422,020
              602,020
                      210,303
 
07/22/99
300
Augusta
GA
260,000
392,171
 
 None
 None
 
260,000
              392,171
              652,171
                      195,429
 
07/22/99
300
Augusta
GA
240,000
451,637
 
 None
 None
 
240,000
              451,637
              691,637
                      140,758
 
03/18/04
300
Cahutta
GA
437,500
813,742
 
 None
 None
 
437,500
              813,742
          1,251,242
                      267,172
 
10/16/03
300
Calhoun
GA
122,500
228,742
 
 None
 None
 
122,500
              228,742
              351,242
                        75,097
 
10/16/03
300
Calhoun
GA
262,500
488,742
 
 None
 None
 
262,500
              488,742
              751,242
                      160,464
 
10/16/03
300
Cartersville
GA
262,500
488,742
 
 None
 None
 
262,500
              488,742
              751,242
                      160,464
 
10/16/03
300
Chatsworth
GA
140,000
261,242
 
 None
                     47
 
140,000
              261,289
              401,289
                        85,795
 
10/16/03
300
Chatsworth
GA
140,000
261,242
 
 None
                     47
 
140,000
              261,289
              401,289
                        85,795
 
10/16/03
300
Chatsworth
GA
140,000
261,242
 
 None
                     47
 
140,000
              261,289
              401,289
                        85,795
 
10/16/03
300
Chickamauga
GA
181,731
338,742
 
 None
 None
 
181,731
              338,742
              520,473
                      111,214
 
10/16/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Dalton
GA
171,500
319,742
 
 None
 None
 
171,500
              319,742
              491,242
                      104,976
 
10/16/03
300
Dalton
GA
87,500
163,742
 
 None
 None
 
87,500
              163,742
              251,242
                        53,756
 
10/16/03
300
Dalton
GA
485,650
903,162
 
 None
 None
 
485,650
              903,162
          1,388,812
                      296,532
 
10/16/03
300
Dalton
GA
146,000
272,385
 
 None
 None
 
146,000
              272,385
              418,385
                        89,427
 
10/16/03
300
Dalton
GA
420,000
781,242
 
 None
 None
 
420,000
              781,242
          1,201,242
                      256,501
 
10/16/03
300
Dalton
GA
210,000
391,242
 
 None
 None
 
210,000
              391,242
              601,242
                      128,451
 
10/16/03
300
Dalton
GA
332,500
618,742
 
 None
 None
 
332,500
              618,742
              951,242
                      203,147
 
10/16/03
300
Decatur
GA
529,383
532,429
 
 None
 None
 
529,383
              532,429
          1,061,812
                      309,635
 
06/27/97
300
Dunwoody
GA
545,462
724,254
 
 None
 None
 
545,462
              724,254
          1,269,716
                      421,205
 
06/27/97
300
Flintstone
GA
157,500
293,742
 
 None
 None
 
157,500
              293,742
              451,242
                        96,439
 
10/16/03
300
Lafayette
GA
122,500
228,742
 
 None
 None
 
122,500
              228,742
              351,242
                        75,097
 
10/16/03
300
Lithonia
GA
386,784
776,436
 
 None
 None
 
386,784
              776,436
          1,163,220
                      451,570
 
06/27/97
300
Mableton
GA
491,069
355,957
 
 None
 None
 
491,069
              355,957
              847,026
                      207,000
 
06/27/97
300
Martinez
GA
450,000
402,777
 
 None
 None
 
450,000
              402,777
              852,777
                      200,713
 
07/22/99
300
Martinez
GA
830,000
871,637
 
 None
 None
 
830,000
              871,637
          1,701,637
                      271,658
 
03/18/04
300
Norcross
GA
384,162
651,273
 
 None
 None
 
384,162
              651,273
          1,035,435
                      378,764
 
06/27/97
300
Ringgold
GA
385,000
716,242
 
             (21,175)
 None
 
363,825
              716,242
          1,080,067
                      235,160
 
10/16/03
300
Ringgold
GA
350,000
0
 
 None
 None
 
350,000
                         -
              350,000
                                  -
 
10/16/03
300
Ringgold
GA
234,500
1,168,914
 
 None
 None
 
234,500
          1,168,914
          1,403,414
                      332,564
 
10/16/03
300
Ringgold
GA
482,251
896,851
 
 None
 None
 
482,251
              896,851
          1,379,102
                      294,460
 
10/16/03
300
Rocky Face
GA
164,231
306,241
 
 None
 None
 
164,231
              306,241
              470,472
                      100,543
 
10/16/03
300
Rome
GA
210,000
391,242
 
 None
 None
 
210,000
              391,242
              601,242
                      128,451
 
10/16/03
300
Rome
GA
199,199
371,183
 
 None
 None
 
199,199
              371,183
              570,382
                      121,865
 
10/16/03
300
Rome
GA
201,791
375,997
 
 None
 None
 
201,791
              375,997
              577,788
                      123,446
 
10/16/03
300
Rome
GA
315,000
586,242
 
 None
 None
 
315,000
              586,242
              901,242
                      192,476
 
10/16/03
300
Rossville
GA
157,500
293,742
 
 None
 None
 
157,500
              293,742
              451,242
                        96,439
 
10/16/03
300
Summerville
GA
66,231
124,242
 
 None
 None
 
66,231
              124,242
              190,473
                        40,787
 
10/16/03
300
Trenton
GA
129,231
241,242
 
 None
 None
 
129,231
              241,242
              370,473
                        79,202
 
10/16/03
300
Belvidere
IL
768,748
1,426,176
 
                 1,500
 None
 
768,748
          1,427,676
          2,196,424
                      116,771
 
12/28/09
300
Dekalb
IL
661,500
1,226,500
 
                 2,000
 None
 
661,500
          1,228,500
          1,890,000
                      100,564
 
12/28/09
300
Godfrey
IL
374,586
733,190
 
 None
                   314
 
374,586
              733,504
          1,108,090
                      426,557
 
06/27/97
300
Granite City
IL
362,287
737,255
 
 None
                   314
 
362,287
              737,569
          1,099,856
                      428,923
 
06/27/97
300
Harford
IL
599,172
1,110,747
 
                 2,000
 None
 
599,172
          1,112,747
          1,711,919
                        91,111
 
12/28/09
300
Loves Park
IL
547,582
1,016,523
 
                 1,500
 None
 
547,582
          1,018,023
          1,565,605
                      164,937
 
12/20/07
300
Loves Park
IL
760,725
1,410,775
 
                 2,000
 None
 
760,725
          1,412,775
          2,173,500
                      115,613
 
12/28/09
300
Machesney Park
IL
562,275
1,043,225
 
                 1,000
 None
 
562,275
          1,044,225
          1,606,500
                        85,397
 
12/28/09
300
Madison
IL
173,812
625,030
 
 None
                   314
 
173,812
              625,344
              799,156
                      363,664
 
06/27/97
300
Marengo
IL
501,948
930,688
 
                 1,500
 None
 
501,948
              932,188
          1,434,136
                        76,306
 
12/28/09
300
Rochelle
IL
607,418
1,128,145
 
                 1,000
 None
 
607,418
          1,129,145
          1,736,563
                      182,782
 
12/20/07
300
Rockford
IL
463,050
858,450
 
                 1,500
 None
 
463,050
              859,950
          1,323,000
                        70,407
 
12/28/09
300
Rockford
IL
388,631
720,244
 
                 1,500
 None
 
388,631
              721,744
          1,110,375
                        59,120
 
12/28/09
300
Tuscola
IL
752,456
1,394,419
 
                 3,000
 None
 
752,456
          1,397,419
          2,149,875
                      114,478
 
12/28/09
300
Albany
IN
427,437
794,632
 
                 2,000
 None
 
427,437
              796,632
          1,224,069
                      147,920
 
05/25/07
300
Alexandria
IN
139,219
259,369
 
 None
 None
 
139,219
              259,369
              398,588
                        47,980
 
05/25/07
300
Anderson
IN
147,263
274,307
 
 None
 None
 
147,263
              274,307
              421,570
                        50,744
 
05/25/07
300
Anderson
IN
283,430
527,190
 
                 2,000
 None
 
283,430
              529,190
              812,620
                        98,443
 
05/25/07
300
Elkhart
IN
495,914
922,471
 
                 1,500
 None
 
495,914
              923,971
          1,419,885
                      171,341
 
05/25/07
300
Frankfort
IN
208,666
388,345
 
                 2,000
 None
 
208,666
              390,345
              599,011
                        72,757
 
05/25/07
300
Greenwood
IN
173,250
323,022
 
 None
 None
 
173,250
              323,022
              496,272
                        59,756
 
05/25/07
300
Hartford City
IN
250,310
465,702
 
                 2,000
 None
 
250,310
              467,702
              718,012
                        87,068
 
05/25/07
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Indianapolis
IN
129,938
242,134
 
 None
 None
 
129,938
              242,134
              372,072
                        44,791
 
05/25/07
300
Indianapolis
IN
269,294
500,939
 
                 1,500
 None
 
269,294
              502,439
              771,733
                        93,358
 
05/25/07
300
Indianapolis
IN
318,432
592,193
 
                 1,500
 None
 
318,432
              593,693
              912,125
                      110,240
 
05/25/07
300
Knox
IN
341,250
633,499
 
                 1,500
 None
 
341,250
              634,999
              976,249
                      107,276
 
10/09/07
300
Lafayette
IN
147,263
274,309
 
 None
 None
 
147,263
              274,309
              421,572
                        50,744
 
05/25/07
300
Lafayette
IN
112,613
209,959
 
 None
 None
 
112,613
              209,959
              322,572
                        38,839
 
05/25/07
300
Marion
IN
209,196
389,995
 
                 1,500
 None
 
209,196
              391,495
              600,691
                        72,833
 
05/25/07
300
Michigan City
IN
227,500
422,249
 
                 1,500
 None
 
227,500
              423,749
              651,249
                        71,716
 
10/09/07
300
Mishawaka
IN
123,983
231,743
 
                 2,000
 None
 
123,983
              233,743
              357,726
                        43,786
 
05/25/07
300
Morristown
IN
366,590
682,082
 
                 2,000
 None
 
366,590
              684,082
          1,050,672
                      127,098
 
05/25/07
300
Muncie
IN
103,950
193,870
 
 None
 None
 
103,950
              193,870
              297,820
                        35,863
 
05/25/07
300
Muncie
IN
184,237
342,974
 
                 2,000
 None
 
184,237
              344,974
              529,211
                        64,363
 
05/25/07
300
New Albany
IN
181,459
289,353
 
 None
                   211
 
181,459
              289,564
              471,023
                      194,486
 
03/03/95
300
New Albany
IN
262,465
331,796
 
 None
                   211
 
262,465
              332,007
              594,472
                      222,993
 
03/06/95
300
New Castle
IN
138,600
258,672
 
 None
 None
 
138,600
              258,672
              397,272
                        47,851
 
05/25/07
300
New Castle
IN
79,854
149,572
 
                 1,000
 None
 
79,854
              150,572
              230,426
                        28,126
 
05/25/07
300
New Castle
IN
203,941
380,019
 
                 1,500
 None
 
203,941
              381,519
              585,460
                        70,988
 
05/25/07
300
Richmond
IN
281,248
523,589
 
                 1,500
 None
 
281,248
              525,089
              806,337
                        97,548
 
05/25/07
300
Richmond
IN
255,908
476,528
 
                 2,000
 None
 
255,908
              478,528
              734,436
                        89,071
 
05/25/07
300
Rushville
IN
138,600
258,672
 
 None
 None
 
138,600
              258,672
              397,272
                        47,851
 
05/25/07
300
Rushville
IN
121,275
226,497
 
 None
 None
 
121,275
              226,497
              347,772
                        41,899
 
05/25/07
300
South Bend
IN
372,387
693,064
 
                 2,000
 None
 
372,387
              695,064
          1,067,451
                      129,130
 
05/25/07
300
Wabash
IN
334,923
623,488
 
                 1,500
 None
 
334,923
              624,988
              959,911
                      116,029
 
05/25/07
300
Wabash
IN
430,437
800,871
 
                 2,000
 None
 
430,437
              802,871
          1,233,308
                      149,075
 
05/25/07
300
Warsaw
IN
415,275
772,713
 
                 1,500
 None
 
415,275
              774,213
          1,189,488
                      143,636
 
05/25/07
300
West Lafayette
IN
1,052,628
1,340,855
 
                 2,000
 None
 
1,052,628
          1,342,855
          2,395,483
                      248,748
 
05/25/07
300
Zionsville
IN
910,595
1,691,926
 
                 2,000
 None
 
910,595
          1,693,926
          2,604,521
                      313,920
 
05/25/07
300
Berea
KY
252,077
360,815
 
 None
                   197
 
252,077
              361,012
              613,089
                      242,460
 
03/08/95
300
Elizabethtown
KY
286,106
286,106
 
 None
                   364
 
286,106
              286,470
              572,576
                      192,310
 
03/03/95
300
Lebanon
KY
158,052
316,105
 
 None
                   350
 
158,052
              316,455
              474,507
                      212,434
 
03/03/95
300
Louisville
KY
216,849
605,697
 
 None
                   187
 
216,849
              605,884
              822,733
                      376,474
06/18/96
11/17/95
300
Louisville
KY
198,926
368,014
 
 None
                   211
 
198,926
              368,225
              567,151
                      247,320
 
03/03/95
300
Mt. Washington
KY
327,245
479,593
 
 None
 None
 
327,245
              479,593
              806,838
                      290,185
12/06/96
05/31/96
300
Owensboro
KY
360,000
590,000
 
 None
 None
 
360,000
              590,000
              950,000
                      386,450
 
08/25/95
300
Alexandria
LA
170,000
371,637
 
 None
 None
 
170,000
              371,637
              541,637
                      115,824
 
03/18/04
300
Baton Rouge
LA
500,000
521,637
 
 None
 None
 
500,000
              521,637
          1,021,637
                      162,574
 
03/18/04
300
Baton Rouge
LA
210,000
361,637
 
 None
 None
 
210,000
              361,637
              571,637
                      112,708
 
03/18/04
300
Bossier City
LA
230,000
431,637
 
 None
 None
 
230,000
              431,637
              661,637
                      134,524
 
03/18/04
300
Destrehan
LA
200,000
411,637
 
 None
 None
 
200,000
              411,637
              611,637
                      128,291
 
03/18/04
300
Lafayette
LA
240,000
391,637
 
 None
 None
 
240,000
              391,637
              631,637
                      122,058
 
03/18/04
300
Shreveport
LA
192,500
358,227
 
 None
 None
 
192,500
              358,227
              550,727
                      110,451
 
04/14/04
300
Amherst
MA
110,969
639,806
 
 None
 None
 
110,969
              639,806
              750,775
                      214,335
 
08/18/03
300
North Reading
MA
574,601
756,174
 
 None
 None
 
574,601
              756,174
          1,330,775
                      253,318
 
08/18/03
300
Seekonk
MA
298,354
268,518
 
 None
 None
 
298,354
              268,518
              566,872
                      180,355
 
03/03/95
300
Berlin
MD
255,951
387,395
 
 None
 None
 
255,951
              387,395
              643,346
                      136,226
 
03/19/03
300
Crisfield
MD
219,704
333,024
 
 None
 None
 
219,704
              333,024
              552,728
                      117,106
 
03/19/03
300
Hebron
MD
376,251
567,844
 
 None
 None
 
376,251
              567,844
              944,095
                      199,685
 
03/19/03
300
La Plata
MD
1,017,544
2,706,729
 
 None
 None
 
1,017,544
          2,706,729
          3,724,273
                   1,014,776
 
08/06/02
300
Mechanicsville
MD
1,540,335
2,860,928
 
 None
 None
 
1,540,335
          2,860,928
          4,401,263
                   1,091,861
 
06/27/02
300
Millersville
MD
830,737
2,696,245
 
 None
 None
 
830,737
          2,696,245
          3,526,982
                   1,029,113
 
06/27/02
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Breckenridge
MI
437,500
811,968
 
                 1,500
 None
 
437,500
              813,468
          1,250,968
                      137,319
 
10/09/07
300
Carson City
MI
262,500
486,468
 
                 2,000
 None
 
262,500
              488,468
              750,968
                        82,739
 
10/09/07
300
Charlevoix
MI
385,000
713,013
 
                 2,500
 None
 
385,000
              715,513
          1,100,513
                      121,086
 
10/09/07
300
Cheboygan
MI
280,000
518,013
 
                 2,500
 None
 
280,000
              520,513
              800,513
                        88,261
 
10/09/07
300
Clare
MI
229,250
426,218
 
                     500
 None
 
229,250
              426,718
              655,968
                        71,959
 
10/09/07
300
Clare
MI
306,250
567,718
 
                 2,000
 None
 
306,250
              569,718
              875,968
                        96,416
 
10/09/07
300
Comstock
MI
315,000
583,761
 
                 2,500
 None
 
315,000
              586,261
              901,261
                        99,329
 
10/09/07
300
Farwell
MI
437,500
811,468
 
                 2,000
 None
 
437,500
              813,468
          1,250,968
                      137,447
 
10/09/07
300
Flint
MI
194,492
476,504
 
 None
                   348
 
194,492
              476,852
              671,344
                      305,901
 
12/21/95
300
Gladwin
MI
140,000
259,013
 
                 1,500
 None
 
140,000
              260,513
              400,513
                        44,238
 
10/09/07
300
Grand Rapids
MI
437,500
812,261
 
                 1,500
 None
 
437,500
              813,761
          1,251,261
                      137,368
 
10/09/07
300
Kalamazoo
MI
238,000
442,249
 
                 1,000
 None
 
238,000
              443,249
              681,249
                        74,870
 
10/09/07
300
Kalkaska
MI
437,500
809,513
 
                 3,500
 None
 
437,500
              813,013
          1,250,513
                      137,756
 
10/09/07
300
Lake City
MI
115,500
213,513
 
                 1,500
 None
 
115,500
              215,013
              330,513
                        36,579
 
10/09/07
300
Lakeview
MI
96,250
177,718
 
                 2,000
 None
 
96,250
              179,718
              275,968
                        30,766
 
10/09/07
300
Mackinaw City
MI
455,000
844,513
 
                 1,000
 None
 
455,000
              845,513
          1,300,513
                      142,585
 
10/09/07
300
Mecosta
MI
122,500
227,468
 
                 1,000
 None
 
122,500
              228,468
              350,968
                        38,715
 
10/09/07
300
Midland
MI
437,500
811,013
 
                 2,000
 None
 
437,500
              813,013
          1,250,513
                      137,371
 
10/09/07
300
Mount Pleasant
MI
463,750
860,718
 
                 1,500
 None
 
463,750
              862,218
          1,325,968
                      145,525
 
10/09/07
300
Mount Pleasant
MI
350,000
649,468
 
                 1,500
 None
 
350,000
              650,968
          1,000,968
                      109,965
 
10/09/07
300
Mount Pleasant
MI
175,000
324,468
 
                 1,500
 None
 
175,000
              325,968
              500,968
                        55,256
 
10/09/07
300
Mount Pleasant
MI
210,000
388,968
 
                 2,000
 None
 
210,000
              390,968
              600,968
                        66,326
 
10/09/07
300
Mount Pleasant
MI
162,750
300,794
 
                 2,500
 None
 
162,750
              303,294
              466,044
                        51,695
 
10/09/07
300
Mount Pleasant
MI
437,500
810,968
 
                 2,500
 None
 
437,500
              813,468
          1,250,968
                      137,575
 
10/09/07
300
Petoskey
MI
490,000
909,513
 
                 1,000
 None
 
490,000
              910,513
          1,400,513
                      153,526
 
10/09/07
300
Prudenville
MI
133,000
245,013
 
                 2,500
 None
 
133,000
              247,513
              380,513
                        42,306
 
10/09/07
300
Saginaw
MI
262,500
486,513
 
                 1,500
 None
 
262,500
              488,013
              750,513
                        82,534
 
10/09/07
300
Standish
MI
92,750
171,263
 
                 1,500
 None
 
92,750
              172,763
              265,513
                        29,467
 
10/09/07
300
Traverse City
MI
210,000
389,002
 
                 2,000
 None
 
210,000
              391,002
              601,002
                        66,332
 
10/09/07
300
Walker
MI
586,250
1,088,499
 
                 1,500
 None
 
586,250
          1,089,999
          1,676,249
                      183,868
 
10/09/07
300
Alexandria
MN
132,924
244,858
 
                 2,000
 None
 
132,924
              246,858
              379,782
                        10,419
 
12/01/10
300
Andover
MN
888,706
1,648,454
 
                 2,000
 None
 
888,706
          1,650,454
          2,539,160
                        68,902
 
12/01/10
300
Apple Valley
MN
350,000
648,000
 
                 2,000
 None
 
350,000
              650,000
          1,000,000
                        27,217
 
12/01/10
300
Baxter
MN
350,000
648,000
 
                 2,000
 None
 
350,000
              650,000
          1,000,000
                        27,217
 
12/01/10
300
Blaine
MN
767,270
1,422,929
 
                 2,000
 None
 
767,270
          1,424,929
          2,192,199
                        59,505
 
12/01/10
300
Bloomington
MN
676,771
1,255,359
 
                 1,500
 None
 
676,771
          1,256,859
          1,933,630
                        52,469
 
12/01/10
300
Bloomington
MN
262,500
485,500
 
                 2,000
 None
 
262,500
              487,500
              750,000
                        20,446
 
12/01/10
300
Brainerd
MN
490,000
907,000
 
                 3,000
 None
 
490,000
              910,000
          1,400,000
                        38,117
 
12/01/10
300
Brooklyn Center
MN
979,764
1,818,061
 
                 1,500
 None
 
979,764
          1,819,561
          2,799,325
                        75,915
 
12/01/10
300
Brooklyn Center
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Brooklyn Center
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Brooklyn Park
MN
830,336
1,540,052
 
                 2,000
 None
 
830,336
          1,542,052
          2,372,388
                        64,386
 
12/01/10
300
Brooklyn Park
MN
578,964
1,073,220
 
                 2,000
 None
 
578,964
          1,075,220
          1,654,184
                        44,934
 
12/01/10
300
Burnsville
MN
615,240
1,141,089
 
                 1,500
 None
 
615,240
          1,142,589
          1,757,829
                        47,708
 
12/01/10
300
Burnsville
MN
515,298
954,981
 
                 2,000
 None
 
515,298
              956,981
          1,472,279
                        40,008
 
12/01/10
300
Burnsville
MN
350,000
648,000
 
                 2,000
 None
 
350,000
              650,000
          1,000,000
                        27,217
 
12/01/10
300
Burnsville
MN
932,558
1,729,892
 
                 2,000
 None
 
932,558
          1,731,892
          2,664,450
                        72,296
 
12/01/10
300
Chaska
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Chaska
MN
490,000
908,000
 
                 2,000
 None
 
490,000
              910,000
          1,400,000
                        38,050
 
12/01/10
300
Columbia Heights
MN
673,068
1,248,483
 
                 1,500
 None
 
673,068
          1,249,983
          1,923,051
                        52,183
 
12/01/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)      
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Coon Rapids
MN
490,000
908,000
 
                 2,000
 None
 
490,000
              910,000
          1,400,000
                        38,050
 
12/01/10
300
Cottage Grove
MN
805,888
1,494,650
 
                 2,000
 None
 
805,888
          1,496,650
          2,302,538
                        62,494
 
12/01/10
300
Crystal
MN
552,641
1,024,332
 
                 2,000
 None
 
552,641
          1,026,332
          1,578,973
                        42,897
 
12/01/10
300
Crystal
MN
740,518
1,373,248
 
                 2,000
 None
 
740,518
          1,375,248
          2,115,766
                        57,435
 
12/01/10
300
Eagan
MN
699,277
1,296,658
 
                 2,000
 None
 
699,277
          1,298,658
          1,997,935
                        54,244
 
12/01/10
300
Eagan
MN
906,287
1,680,604
 
                 2,500
 None
 
906,287
          1,683,104
          2,589,391
                        70,296
 
12/01/10
300
Eden Prairie
MN
947,702
1,758,519
 
                 1,500
 None
 
947,702
          1,760,019
          2,707,721
                        73,434
 
12/01/10
300
Eden Prairie
MN
485,526
899,690
 
                 2,000
 None
 
485,526
              901,690
          1,387,216
                        37,704
 
12/01/10
300
Edina
MN
568,893
1,054,516
 
                 2,000
 None
 
568,893
          1,056,516
          1,625,409
                        44,155
 
12/01/10
300
Elk River
MN
613,113
1,137,137
 
                 1,500
 None
 
613,113
          1,138,637
          1,751,750
                        47,543
 
12/01/10
300
Elk River
MN
456,850
846,435
 
                 2,000
 None
 
456,850
              848,435
          1,305,285
                        35,485
 
12/01/10
300
Excelsior
MN
262,500
485,500
 
                 2,000
 None
 
262,500
              487,500
              750,000
                        20,446
 
12/01/10
300
Falcon Heights
MN
494,415
916,199
 
                 2,000
 None
 
494,415
              918,199
          1,412,614
                        38,392
 
12/01/10
300
Farmington
MN
437,500
810,500
 
                 2,000
 None
 
437,500
              812,500
          1,250,000
                        33,988
 
12/01/10
300
Forest Lake
MN
398,985
739,473
 
                 1,500
 None
 
398,985
              740,973
          1,139,958
                        30,974
 
12/01/10
300
Fridley
MN
519,325
962,461
 
                 2,000
 None
 
519,325
              964,461
          1,483,786
                        40,319
 
12/01/10
300
Fridley
MN
706,295
1,309,691
 
                 2,000
 None
 
706,295
          1,311,691
          2,017,986
                        54,787
 
12/01/10
300
Fridley
MN
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Golden Valley
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Ham Lake
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Hastings
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Inver Grove Hghts
MN
134,705
248,666
 
                 1,500
 None
 
134,705
              250,166
              384,871
                        10,524
 
12/01/10
300
Inver Grove Hghts
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Lakeville
MN
631,855
1,171,446
 
                 2,000
 None
 
631,855
          1,173,446
          1,805,301
                        49,027
 
12/01/10
300
Lakeville
MN
654,912
1,214,266
 
                 2,000
 None
 
654,912
          1,216,266
          1,871,178
                        50,811
 
12/01/10
300
Litchfield
MN
388,788
720,536
 
                 1,500
 None
 
388,788
              722,036
          1,110,824
                        30,185
 
12/01/10
300
Little Falls
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
Long Lake
MN
808,543
1,499,579
 
                 2,000
 None
 
808,543
          1,501,579
          2,310,122
                        62,699
 
12/01/10
300
Maplewood
MN
931,427
1,728,293
 
                 1,500
 None
 
931,427
          1,729,793
          2,661,220
                        72,175
 
12/01/10
300
Maplewood
MN
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Mendota Heights
MN
827,026
1,533,906
 
                 2,000
 None
 
827,026
          1,535,906
          2,362,932
                        64,129
 
12/01/10
300
Mendota Heights
MN
717,808
1,331,072
 
                 2,000
 None
 
717,808
          1,333,072
          2,050,880
                        55,678
 
12/01/10
300
Minneapolis
MN
365,977
678,171
 
                 1,500
 None
 
365,977
              679,671
          1,045,648
                        28,420
 
12/01/10
300
Minneapolis
MN
738,535
1,370,064
 
                 1,500
 None
 
738,535
          1,371,564
          2,110,099
                        57,249
 
12/01/10
300
Minneapolis
MN
811,510
1,505,590
 
                 1,500
 None
 
811,510
          1,507,090
          2,318,600
                        62,895
 
12/01/10
300
Minneapolis
MN
350,000
648,500
 
                 1,500
 None
 
350,000
              650,000
          1,000,000
                        27,183
 
12/01/10
300
Minneapolis
MN
759,822
1,409,597
 
                 1,500
 None
 
759,822
          1,411,097
          2,170,919
                        58,896
 
12/01/10
300
Minneapolis
MN
967,640
1,795,045
 
                 2,000
 None
 
967,640
          1,797,045
          2,764,685
                        75,010
 
12/01/10
300
Minneapolis
MN
856,122
1,587,941
 
                 2,000
 None
 
856,122
          1,589,941
          2,446,063
                        66,381
 
12/01/10
300
Minneapolis
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Minneapolis
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Minneapolis
MN
938,237
1,740,440
 
                 2,000
 None
 
938,237
          1,742,440
          2,680,677
                        72,735
 
12/01/10
300
Minneapolis
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Minneapolis
MN
539,242
999,450
 
                 2,000
 None
 
539,242
          1,001,450
          1,540,692
                        41,860
 
12/01/10
300
Minneapolis
MN
577,070
1,069,702
 
                 2,000
 None
 
577,070
          1,071,702
          1,648,772
                        44,788
 
12/01/10
300
Minneapolis
MN
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Minneapolis
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Monticello
MN
589,643
1,093,051
 
                 2,000
 None
 
589,643
          1,095,051
          1,684,694
                        45,760
 
12/01/10
300
Mounds View
MN
743,926
1,379,578
 
                 2,000
 None
 
743,926
          1,381,578
          2,125,504
                        57,699
 
12/01/10
300
New Brighton
MN
585,039
1,085,002
 
                 1,500
 None
 
585,039
          1,086,502
          1,671,541
                        45,371
 
12/01/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
        Improvements
 
     
 Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
New Hope
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
Newport
MN
967,228
1,794,280
 
                 2,000
 None
 
967,228
          1,796,280
          2,763,508
                        74,978
 
12/01/10
300
Oak Park Heights
MN
635,158
1,177,579
 
                 2,000
 None
 
635,158
          1,179,579
          1,814,737
                        49,282
 
12/01/10
300
Pine City
MN
644,412
1,194,265
 
                 2,500
 None
 
644,412
          1,196,765
          1,841,177
                        50,032
 
12/01/10
300
Princeton
MN
546,257
1,012,476
 
                 2,000
 None
 
546,257
          1,014,476
          1,560,733
                        42,403
 
12/01/10
300
Ramsey
MN
650,205
1,205,523
 
                 2,000
 None
 
650,205
          1,207,523
          1,857,728
                        50,447
 
12/01/10
300
Richfield
MN
436,919
809,921
 
                 1,500
 None
 
436,919
              811,421
          1,248,340
                        33,909
 
12/01/10
300
Richfield
MN
630,540
1,169,003
 
                 2,000
 None
 
630,540
          1,171,003
          1,801,543
                        48,925
 
12/01/10
300
Richfield
MN
678,216
1,257,543
 
                 2,000
 None
 
678,216
          1,259,543
          1,937,759
                        52,614
 
12/01/10
300
Richfield
MN
839,497
1,557,065
 
                 2,000
 None
 
839,497
          1,559,065
          2,398,562
                        65,094
 
12/01/10
300
Rochester
MN
110,113
202,995
 
                 1,500
 None
 
110,113
              204,495
              314,608
                           8,621
 
12/01/10
300
Rochester
MN
585,831
1,085,971
 
                 2,000
 None
 
585,831
          1,087,971
          1,673,802
                        45,465
 
12/01/10
300
Rochester
MN
262,500
485,500
 
                 2,000
 None
 
262,500
              487,500
              750,000
                        20,446
 
12/01/10
300
Rochester
MN
66,848
122,146
 
                 2,000
 None
 
66,848
              124,146
              190,994
                           5,306
 
12/01/10
300
Rochester
MN
594,385
1,101,857
 
                 2,000
 None
 
594,385
          1,103,857
          1,698,242
                        46,127
 
12/01/10
300
Rogers
MN
781,303
1,448,991
 
                 2,000
 None
 
781,303
          1,450,991
          2,232,294
                        60,591
 
12/01/10
300
Roseville
MN
403,786
748,387
 
                 1,500
 None
 
403,786
              749,887
          1,153,673
                        31,345
 
12/01/10
300
Roseville
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Roseville
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Roseville
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Sauk Rapids
MN
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Savage
MN
605,220
1,122,481
 
                 1,500
 None
 
605,220
          1,123,981
          1,729,201
                        46,933
 
12/01/10
300
Savage
MN
569,195
1,055,575
 
                 1,500
 None
 
569,195
          1,057,075
          1,626,270
                        44,145
 
12/01/10
300
Savage
MN
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Shakopee
MN
783,764
1,454,062
 
                 1,500
 None
 
783,764
          1,455,562
          2,239,326
                        60,748
 
12/01/10
300
Shakopee
MN
688,324
1,276,317
 
                 2,000
 None
 
688,324
          1,278,317
          1,966,641
                        53,397
 
12/01/10
300
Shakopee
MN
477,517
883,817
 
                 3,000
 None
 
477,517
              886,817
          1,364,334
                        37,151
 
12/01/10
300
Shakopee
MN
522,391
966,156
 
                 4,000
 None
 
522,391
              970,156
          1,492,547
                        40,690
 
12/01/10
300
St. Cloud
MN
786,129
1,458,454
 
                 1,500
 None
 
786,129
          1,459,954
          2,246,083
                        60,931
 
12/01/10
300
St. Cloud
MN
677,052
1,255,383
 
                 2,000
 None
 
677,052
          1,257,383
          1,934,435
                        52,524
 
12/01/10
300
St. Cloud
MN
175,000
322,000
 
                 3,000
 None
 
175,000
              325,000
              500,000
                        13,742
 
12/01/10
300
St. Louis Park
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
St. Michael
MN
561,604
1,040,480
 
                 2,500
 None
 
561,604
          1,042,980
          1,604,584
                        43,624
 
12/01/10
300
St. Paul
MN
827,608
1,535,987
 
                 1,000
 None
 
827,608
          1,536,987
          2,364,595
                        64,108
 
12/01/10
300
St. Paul
MN
808,755
1,500,473
 
                 1,500
 None
 
808,755
          1,501,973
          2,310,728
                        62,682
 
12/01/10
300
St. Paul
MN
418,774
776,223
 
                 1,500
 None
 
418,774
              777,723
          1,196,497
                        32,505
 
12/01/10
300
St. Paul
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
St. Paul
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
St. Paul
MN
979,764
1,818,061
 
                 1,500
 None
 
979,764
          1,819,561
          2,799,325
                        75,915
 
12/01/10
300
St. Paul
MN
576,820
1,069,736
 
                 1,500
 None
 
576,820
          1,071,236
          1,648,056
                        44,735
 
12/01/10
300
St. Paul
MN
592,617
1,099,075
 
                 1,500
 None
 
592,617
          1,100,575
          1,693,192
                        45,957
 
12/01/10
300
St. Paul
MN
739,277
1,371,444
 
                 1,500
 None
 
739,277
          1,372,944
          2,112,221
                        57,306
 
12/01/10
300
St. Paul
MN
788,752
1,463,324
 
                 1,500
 None
 
788,752
          1,464,824
          2,253,576
                        61,134
 
12/01/10
300
St. Paul
MN
950,678
1,764,046
 
                 1,500
 None
 
950,678
          1,765,546
          2,716,224
                        73,664
 
12/01/10
300
St. Paul
MN
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
St. Paul
MN
262,500
486,000
 
                 1,500
 None
 
262,500
              487,500
              750,000
                        20,413
 
12/01/10
300
St. Paul
MN
541,547
1,004,231
 
                 1,500
 None
 
541,547
          1,005,731
          1,547,278
                        42,005
 
12/01/10
300
St. Paul
MN
832,144
1,543,409
 
                 2,000
 None
 
832,144
          1,545,409
          2,377,553
                        64,525
 
12/01/10
300
St. Paul
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
St. Paul
MN
531,091
984,311
 
                 2,000
 None
 
531,091
              986,311
          1,517,402
                        41,230
 
12/01/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)      
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
        Improvements
 
       Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
St. Paul
MN
789,790
1,464,752
 
                 2,000
 None
 
789,790
          1,466,752
          2,256,542
                        61,248
 
12/01/10
300
St. Paul Park
MN
1,925,000
3,575,000
 
 None
 None
 
1,925,000
          3,575,000
          5,500,000
                      148,958
 
12/01/10
300
St. Paul Park
MN
979,764
1,818,061
 
                 1,500
 None
 
979,764
          1,819,561
          2,799,325
                        75,915
 
12/01/10
300
Vadnais Heights
MN
931,400
1,727,742
 
                 2,000
 None
 
931,400
          1,729,742
          2,661,142
                        72,206
 
12/01/10
300
West St. Paul
MN
979,764
1,818,061
 
                 1,500
 None
 
979,764
          1,819,561
          2,799,325
                        75,915
 
12/01/10
300
White Bear Lake
MN
943,945
1,751,040
 
                 2,000
 None
 
943,945
          1,753,040
          2,696,985
                        73,177
 
12/01/10
300
White Bear Lake
MN
860,523
1,596,113
 
                 2,000
 None
 
860,523
          1,598,113
          2,458,636
                        66,721
 
12/01/10
300
Willmar
MN
919,366
1,705,395
 
                 2,000
 None
 
919,366
          1,707,395
          2,626,761
                        71,275
 
12/01/10
300
Woodbury
MN
962,500
1,786,000
 
                 1,500
 None
 
962,500
          1,787,500
          2,750,000
                        74,579
 
12/01/10
300
Zimmerman
MN
979,764
1,817,561
 
                 2,000
 None
 
979,764
          1,819,561
          2,799,325
                        75,948
 
12/01/10
300
Brandon
MS
671,486
1,247,588
 
 None
 None
 
671,486
          1,247,588
          1,919,074
                      326,453
 
06/30/05
300
Flowood
MS
437,926
813,832
 
 None
 None
 
437,926
              813,832
          1,251,758
                      212,953
 
06/30/05
300
Flowood
MS
399,972
743,347
 
 None
 None
 
399,972
              743,347
          1,143,319
                      194,510
 
06/30/05
300
Jackson
MS
329,904
613,221
 
 None
 None
 
329,904
              613,221
              943,125
                      160,460
 
06/30/05
300
Jackson
MS
540,108
1,003,600
 
 None
 None
 
540,108
          1,003,600
          1,543,708
                      262,609
 
06/30/05
300
Marion
MS
350,341
651,013
 
 None
 None
 
350,341
              651,013
          1,001,354
                      170,349
 
06/30/05
300
Meridian
MS
437,926
813,671
 
 None
 None
 
437,926
              813,671
          1,251,597
                      212,911
 
06/30/05
300
Meridian
MS
405,811
754,030
 
 None
 None
 
405,811
              754,030
          1,159,841
                      197,305
 
06/30/05
300
Meridian
MS
145,975
271,478
 
 None
 None
 
145,975
              271,478
              417,453
                        71,037
 
06/30/05
300
Meridian
MS
280,273
520,887
 
 None
 None
 
280,273
              520,887
              801,160
                      136,299
 
06/30/05
300
Meridian
MS
321,146
596,794
 
 None
 None
 
321,146
              596,794
              917,940
                      154,172
 
07/19/05
300
Newton
MS
467,121
867,891
 
 None
 None
 
467,121
              867,891
          1,335,012
                      227,099
 
06/30/05
300
Pearl
MS
544,488
1,011,733
 
 None
 None
 
544,488
          1,011,733
          1,556,221
                      264,737
 
06/30/05
300
Philadelphia
MS
472,960
878,735
 
 None
 None
 
472,960
              878,735
          1,351,695
                      229,936
 
06/30/05
300
Southaven
MS
310,000
641,637
 
 None
 None
 
310,000
              641,637
              951,637
                      199,974
 
03/18/04
300
Terry
MS
583,901
1,084,930
 
 None
 None
 
583,901
          1,084,930
          1,668,831
                      283,890
 
06/30/05
300
Waveland
MS
180,000
331,637
 
 None
 None
 
180,000
              331,637
              511,637
                      103,358
 
03/18/04
300
Aberdeen
NC
600,000
300,625
 
 None
 None
 
600,000
              300,625
              900,625
                      131,751
 
01/25/01
300
Archdale
NC
410,000
731,637
 
 None
 None
 
410,000
              731,637
          1,141,637
                      228,024
 
03/18/04
300
Banner Elk
NC
355,330
660,558
 
                 1,500
 None
 
355,330
              662,058
          1,017,388
                      100,746
 
03/27/08
300
Banner Elk
NC
386,993
718,861
 
                 2,000
 None
 
386,993
              720,861
          1,107,854
                      109,776
 
03/27/08
300
Blowing Rock
NC
369,403
685,693
 
                 2,500
 None
 
369,403
              688,193
          1,057,596
                      104,933
 
03/27/08
300
Burgaw
NC
198,774
369,653
 
                 1,000
 None
 
198,774
              370,653
              569,427
                        56,438
 
03/27/08
300
Burgaw
NC
457,356
849,377
 
                 1,500
 None
 
457,356
              850,877
          1,308,233
                      129,384
 
03/27/08
300
Carolina Beach
NC
457,356
848,929
 
                 2,000
 None
 
457,356
              850,929
          1,308,285
                      129,503
 
03/27/08
300
Cary
NC
255,064
473,349
 
                 2,500
 None
 
255,064
              475,849
              730,913
                        72,728
 
03/27/08
300
Charlotte
NC
300,000
291,637
 
 None
 None
 
300,000
              291,637
              591,637
                        90,891
 
03/18/04
300
Charlotte
NC
640,000
581,637
 
 None
 None
 
640,000
              581,637
          1,221,637
                      181,274
 
03/18/04
300
Durham
NC
720,000
851,637
 
 None
 None
 
720,000
              851,637
          1,571,637
                      265,424
 
03/18/04
300
Goldsboro
NC
460,000
740,625
 
 None
 None
 
460,000
              740,625
          1,200,625
                      324,618
 
01/25/01
300
Greensboro
NC
700,000
655,000
 
 None
 None
 
700,000
              655,000
          1,355,000
                      319,858
 
10/27/99
300
Greenville
NC
330,000
515,000
 
 None
 None
 
330,000
              515,000
              845,000
                      337,325
 
08/25/95
300
Hampstead
NC
562,900
1,045,971
 
                 1,000
 None
 
562,900
          1,046,971
          1,609,871
                      159,013
 
03/27/08
300
Holly Ridge
NC
721,215
1,339,486
 
                 1,500
 None
 
721,215
          1,340,986
          2,062,201
                      203,717
 
03/27/08
300
Hubert
NC
404,584
750,372
 
                 2,500
 None
 
404,584
              752,872
          1,157,456
                      114,743
 
03/27/08
300
Jacksonville
NC
150,000
530,000
 
 None
 None
 
150,000
              530,000
              680,000
                      347,150
 
08/25/95
300
Jacksonville
NC
180,000
371,637
 
 None
 None
 
180,000
              371,637
              551,637
                      115,824
 
03/18/04
300
Jacksonville
NC
140,000
260,727
 
 None
 None
 
140,000
              260,727
              400,727
                        80,388
 
04/14/04
300
Jacksonville
NC
351,812
653,367
 
                 1,500
 None
 
351,812
              654,867
          1,006,679
                        99,655
 
03/27/08
300
Kinston
NC
550,000
1,057,833
 
 None
                   153
 
550,000
          1,057,986
          1,607,986
                      601,155
 
10/24/97
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
     
 Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Raleigh
NC
740,000
791,637
 
 None
 None
 
740,000
              791,637
          1,531,637
                      246,724
 
03/18/04
300
Richlands
NC
492,537
914,735
 
                 1,500
 None
 
492,537
              916,235
          1,408,772
                      139,296
 
03/27/08
300
Richlands
NC
376,439
698,103
 
                 2,500
 None
 
376,439
              700,603
          1,077,042
                      106,815
 
03/27/08
300
Riegelwood
NC
0
452,416
 
                 1,500
 None
 
0
              453,916
              453,916
                        73,298
 
03/27/08
300
Rose Hill
NC
198,774
369,153
 
                 1,500
 None
 
198,774
              370,653
              569,427
                        56,550
 
03/27/08
300
Roxboro
NC
243,112
368,107
 
 None
 None
 
243,112
              368,107
              611,219
                      129,444
 
03/19/03
300
Salisbury
NC
474,946
882,203
 
                 2,000
 None
 
474,946
              884,203
          1,359,149
                      134,550
 
03/27/08
300
Shallotte
NC
492,537
914,766
 
                 1,500
 None
 
492,537
              916,266
          1,408,803
                      139,301
 
03/27/08
300
Wallace
NC
0
175,408
 
                 2,000
 None
 
0
              177,408
              177,408
                        37,179
 
03/27/08
300
Whitelake
NC
351,812
653,367
 
                 1,500
 None
 
351,812
              654,867
          1,006,679
                        99,655
 
03/27/08
300
Wilmington
NC
351,812
653,930
 
                 1,000
 None
 
351,812
              654,930
          1,006,742
                        99,553
 
03/27/08
300
Wilmington
NC
439,765
817,271
 
                 1,000
 None
 
439,765
              818,271
          1,258,036
                      124,327
 
03/27/08
300
Wilmington
NC
334,222
621,320
 
                 1,000
 None
 
334,222
              622,320
              956,542
                        94,607
 
03/27/08
300
Wilmington
NC
228,678
424,774
 
                 1,500
 None
 
228,678
              426,274
              654,952
                        64,985
 
03/27/08
300
Wilmington
NC
364,126
676,287
 
                 1,500
 None
 
364,126
              677,787
          1,041,913
                      103,132
 
03/27/08
300
Wilmington
NC
0
804,196
 
                 1,500
 None
 
0
              805,696
              805,696
                      122,531
 
03/27/08
300
Wilmington
NC
386,993
718,788
 
                 1,500
 None
 
386,993
              720,288
          1,107,281
                      109,578
 
03/27/08
300
Wilmington
NC
334,222
620,751
 
                 1,500
 None
 
334,222
              622,251
              956,473
                        94,709
 
03/27/08
300
Wilmington
NC
474,946
881,640
 
                 2,000
 None
 
474,946
              883,640
          1,358,586
                      134,464
 
03/27/08
300
Wilmington
NC
0
351,366
 
                 2,000
 None
 
0
              353,366
              353,366
                        94,763
 
03/27/08
300
Wilmington
NC
334,222
620,284
 
                 2,000
 None
 
334,222
              622,284
              956,506
                        94,825
 
03/27/08
300
Wilmington
NC
527,718
979,145
 
                 2,500
 None
 
527,718
              981,645
          1,509,363
                      149,440
 
03/27/08
300
Wilmington
NC
439,765
815,793
 
                 2,500
 None
 
439,765
              818,293
          1,258,058
                      124,665
 
03/27/08
300
Wilmington
NC
527,718
979,102
 
                 2,500
 None
 
527,718
              981,602
          1,509,320
                      149,434
 
03/27/08
300
Winston-Salem
NC
320,000
311,637
 
 None
 None
 
320,000
              311,637
              631,637
                        97,124
 
03/18/04
300
Zebulon
NC
306,077
568,087
 
                 2,500
 None
 
306,077
              570,587
              876,664
                        87,096
 
03/27/08
300
Farmingdale
NJ
1,459,957
2,712,264
 
 None
 None
 
1,459,957
          2,712,264
          4,172,221
                   1,017,059
 
08/06/02
300
Galloway
NJ
1,367,872
2,540,604
 
 None
 None
 
1,367,872
          2,540,604
          3,908,476
                      969,621
 
06/27/02
300
Hamilton
NJ
1,539,117
2,858,630
 
 None
 None
 
1,539,117
          2,858,630
          4,397,747
                   1,091,937
 
06/27/02
300
MillVille
NJ
953,891
1,771,782
 
 None
 None
 
953,891
          1,771,782
          2,725,673
                      676,220
 
06/27/02
300
Toms River
NJ
1,265,861
2,351,154
 
 None
 None
 
1,265,861
          2,351,154
          3,617,015
                      897,711
 
06/27/02
300
Toms River
NJ
982,526
1,824,961
 
 None
 None
 
982,526
          1,824,961
          2,807,487
                      696,175
 
06/27/02
300
Albuquerque
NM
200,000
271,637
 
 None
 None
 
200,000
              271,637
              471,637
                        84,658
 
03/18/04
300
Kingston
NY
257,763
456,042
 
 None
 None
 
257,763
              456,042
              713,805
                      304,788
 
04/06/95
300
Alliance
OH
454,440
841,460
 
                 2,500
 None
 
454,440
              843,960
          1,298,400
                        52,265
 
06/22/10
300
Atwater
OH
118,555
266,748
 
 None
                   209
 
118,555
              266,957
              385,512
                      179,269
 
03/03/95
300
Bellefontaine
OH
455,000
845,610
 
                 1,500
 None
 
455,000
              847,110
          1,302,110
                      131,634
 
02/29/08
300
Bellefontaine
OH
560,000
1,039,610
 
                 2,500
 None
 
560,000
          1,042,110
          1,602,110
                      162,087
 
02/29/08
300
Columbus
OH
273,085
471,693
 
 None
 None
 
273,085
              471,693
              744,778
                      302,669
 
12/21/95
300
Columbus
OH
147,296
304,411
 
 None
                   122
 
147,296
              304,533
              451,829
                      204,539
 
03/03/95
300
Cuyahoga Falls
OH
321,792
1,144,619
 
 None
 None
 
321,792
          1,144,619
          1,466,411
                      395,011
 
03/03/95
300
De Graff
OH
302,750
561,860
 
                 2,500
 None
 
302,750
              564,360
              867,110
                        88,036
 
02/29/08
300
Eaton
OH
164,588
306,934
 
 None
 None
 
164,588
              306,934
              471,522
                        56,779
 
05/25/07
300
Galion
OH
138,981
327,597
 
 None
                   209
 
138,981
              327,806
              466,787
                      220,139
 
03/06/95
300
Groveport
OH
277,198
445,497
 
               16,091
                   237
 
277,198
              461,825
              739,023
                      286,858
 
12/21/95
300
Jackson Center
OH
367,500
682,110
 
                 2,500
 None
 
367,500
              684,610
          1,052,110
                      106,675
 
02/29/08
300
Kenton
OH
140,000
261,462
 
                 1,000
 None
 
140,000
              262,462
              402,462
                        35,620
 
08/29/08
300
Marysville
OH
507,500
943,110
 
                 1,500
 None
 
507,500
              944,610
          1,452,110
                      146,746
 
02/29/08
300
Marysville
OH
700,000
1,300,610
 
                 1,500
 None
 
700,000
          1,302,110
          2,002,110
                      202,159
 
02/29/08
300
Marysville
OH
350,000
650,610
 
                 1,500
 None
 
350,000
              652,110
          1,002,110
                      101,409
 
02/29/08
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Perrysburg
OH
211,678
390,680
 
 None
                   134
 
211,678
              390,814
              602,492
                      235,451
01/10/96
09/01/95
300
Russells Point
OH
546,000
1,013,610
 
                 2,500
 None
 
546,000
          1,016,110
          1,562,110
                      158,057
 
02/29/08
300
Streetsboro
OH
402,988
533,349
 
 None
                   114
 
402,988
              533,463
              936,451
                      293,357
01/27/97
09/03/96
300
Tiffin
OH
117,017
273,040
 
 None
                   209
 
117,017
              273,249
              390,266
                      183,495
 
03/07/95
300
Tipp City
OH
355,009
588,111
 
 None
                     85
 
355,009
              588,196
              943,205
                      328,357
01/31/97
06/27/96
300
Wadsworth
OH
266,507
496,917
 
 None
                   116
 
266,507
              497,033
              763,540
                      284,269
11/26/96
07/01/96
300
Tulsa
OK
126,545
508,266
 
 None
                   173
 
126,545
              508,439
              634,984
                      295,712
 
06/27/97
300
Aliquippa
PA
226,195
452,631
 
 None
 None
 
226,195
              452,631
              678,826
                      144,085
 
01/29/04
300
Beaver
PA
95,626
223,368
 
 None
 None
 
95,626
              223,368
              318,994
                        71,103
 
01/29/04
300
Beaver Falls
PA
92,207
230,758
 
 None
 None
 
92,207
              230,758
              322,965
                        73,456
 
01/29/04
300
Cornwell Heights
PA
569,763
387,611
 
 None
 None
 
569,763
              387,611
              957,374
                      133,720
 
05/29/03
300
Doylestown
PA
800,134
1,226,452
 
 None
 None
 
800,134
          1,226,452
          2,026,586
                      423,121
 
05/29/03
300
East Caln
PA
1,722,222
576
 
 None
 None
 
1,722,222
                      576
          1,722,798
                              203
 
02/25/03
300
Lansdale
PA
1,356,324
385,761
 
 None
 None
 
1,356,324
              385,761
          1,742,085
                      133,081
 
05/29/03
300
Penndel
PA
739,487
1,003,809
 
 None
 None
 
739,487
          1,003,809
          1,743,296
                      346,309
 
05/29/03
300
Perryopolis
PA
148,953
134,299
 
 None
 None
 
148,953
              134,299
              283,252
                        42,750
 
01/29/04
300
Philadelphia
PA
808,681
256,843
 
 None
 None
 
808,681
              256,843
          1,065,524
                        88,605
 
05/29/03
300
Philadelphia
PA
425,928
167,147
 
 None
 None
 
425,928
              167,147
              593,075
                        57,660
 
05/29/03
300
Philadelphia
PA
390,342
226,919
 
 None
 None
 
390,342
              226,919
              617,261
                        78,281
 
05/29/03
300
Philadelphia
PA
541,792
236,049
 
 None
 None
 
541,792
              236,049
              777,841
                        81,431
 
05/29/03
300
Philadelphia
PA
530,018
214,977
 
 None
 None
 
530,018
              214,977
              744,995
                        74,162
 
05/29/03
300
Philadelphia
PA
614,101
277,277
 
 None
 None
 
614,101
              277,277
              891,378
                        95,655
 
05/29/03
300
Philadelphia
PA
1,011,389
491,302
 
 None
 None
 
1,011,389
              491,302
          1,502,691
                      169,494
 
05/29/03
300
Philadelphia
PA
935,672
448,426
 
 None
 None
 
935,672
              448,426
          1,384,098
                      154,702
 
05/29/03
300
Philadelphia
PA
689,172
426,596
 
 None
 None
 
689,172
              426,596
          1,115,768
                      147,170
 
05/29/03
300
Philadelphia
PA
349,294
134,485
 
 None
 None
 
349,294
              134,485
              483,779
                        46,392
 
05/29/03
300
Philadelphia
PA
557,515
244,121
 
 None
 None
 
557,515
              244,121
              801,636
                        80,967
 
09/16/03
300
Pittsburgh
PA
497,668
320,170
 
 None
 None
 
497,668
              320,170
              817,838
                      101,919
 
01/29/04
300
Pittsburgh
PA
296,277
287,540
 
 None
 None
 
296,277
              287,540
              583,817
                        91,531
 
01/29/04
300
Pittsburgh
PA
395,417
474,741
 
 None
 None
 
395,417
              474,741
              870,158
                      151,124
 
01/29/04
300
Pittsburgh
PA
118,118
231,108
 
 None
 None
 
118,118
              231,108
              349,226
                        73,567
 
01/29/04
300
South Park
PA
252,247
436,182
 
 None
 None
 
252,247
              436,182
              688,429
                      138,810
 
01/29/04
300
Southampton
PA
783,279
163,721
 
 None
 None
 
783,279
              163,721
              947,000
                        56,478
 
05/29/03
300
Valencia
PA
440,565
278,492
 
 None
 None
 
440,565
              278,492
              719,057
                        88,651
 
01/29/04
300
Verona
PA
171,411
257,358
 
 None
 None
 
171,411
              257,358
              428,769
                        81,923
 
01/29/04
300
Willow Grove
PA
329,934
73,123
 
 None
 None
 
329,934
                73,123
              403,057
                        25,222
 
05/29/03
300
Aiken
SC
320,000
432,527
 
 None
 None
 
320,000
              432,527
              752,527
                      215,539
 
07/22/99
300
Aiken
SC
330,000
472,679
 
 None
 None
 
330,000
              472,679
              802,679
                      235,548
 
07/22/99
300
Aiken
SC
560,000
543,588
 
 None
 None
 
560,000
              543,588
          1,103,588
                      270,882
 
07/22/99
300
Aiken
SC
360,000
542,982
 
 None
 None
 
360,000
              542,982
              902,982
                      270,581
 
07/22/99
300
Aiken
SC
540,000
388,058
 
 None
 None
 
540,000
              388,058
              928,058
                      193,377
 
07/22/99
300
Aiken
SC
250,000
251,770
 
 None
 None
 
250,000
              251,770
              501,770
                      125,463
 
07/22/99
300
Beach Island
SC
330,000
481,637
 
 None
 None
 
330,000
              481,637
              811,637
                      150,108
 
03/18/04
300
Belvedere
SC
490,000
463,080
 
 None
 None
 
490,000
              463,080
              953,080
                      230,764
 
07/22/99
300
Bishopville
SC
191,738
356,130
 
                 1,500
 None
 
191,738
              357,630
              549,368
                        54,574
 
03/27/08
300
Bonneau
SC
128,411
239,191
 
                 1,500
 None
 
128,411
              240,691
              369,102
                        36,839
 
03/27/08
300
Camden
SC
269,136
499,897
 
                 1,500
 None
 
269,136
              501,397
              770,533
                        76,379
 
03/27/08
300
Charleston
SC
170,000
350,000
 
 None
 None
 
170,000
              350,000
              520,000
                      229,250
 
08/25/95
300
Columbia
SC
150,000
450,000
 
 None
 None
 
150,000
              450,000
              600,000
                      294,750
 
08/25/95
300
Columbia
SC
520,000
471,637
 
 None
 None
 
520,000
              471,637
              991,637
                      146,991
 
03/18/04
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
        Improvements
 
     
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Conway
SC
0
251,890
 
                 1,000
 None
 
0
              252,890
              252,890
                        59,737
 
03/27/08
300
Cordova
SC
137,207
255,025
 
                 2,000
 None
 
137,207
              257,025
              394,232
                        39,428
 
03/27/08
300
Eastover
SC
138,966
258,625
 
                 1,000
 None
 
138,966
              259,625
              398,591
                        39,599
 
03/27/08
300
Florence
SC
193,497
359,413
 
                 1,500
 None
 
193,497
              360,913
              554,410
                        55,072
 
03/27/08
300
Florence
SC
337,740
627,293
 
                 1,500
 None
 
337,740
              628,793
              966,533
                        95,701
 
03/27/08
300
Goose Creek
SC
150,000
241,637
 
 None
 None
 
150,000
              241,637
              391,637
                        75,308
 
03/18/04
300
Greenville
SC
390,000
462,847
 
 None
 None
 
390,000
              462,847
              852,847
                      230,648
 
07/22/99
300
Greenville
SC
300,000
402,392
 
 None
 None
 
300,000
              402,392
              702,392
                      200,522
 
07/22/99
300
Greenville
SC
370,000
432,695
 
 None
 None
 
370,000
              432,695
              802,695
                      215,622
 
07/22/99
300
Greenville
SC
620,000
483,604
 
 None
 None
 
620,000
              483,604
          1,103,604
                      240,990
 
07/22/99
300
Greenville
SC
680,000
423,604
 
 None
 None
 
680,000
              423,604
          1,103,604
                      211,090
 
07/22/99
300
Greer
SC
400,000
502,879
 
 None
 None
 
400,000
              502,879
              902,879
                      250,597
 
07/22/99
300
Hemingway
SC
246,269
458,069
 
                 1,500
 None
 
246,269
              459,569
              705,838
                        70,035
 
03/27/08
300
Hilton Head
SC
500,000
691,637
 
 None
 None
 
500,000
              691,637
          1,191,637
                      215,558
 
03/18/04
300
Hilton Head
SC
185,500
344,510
 
 None
 None
 
185,500
              344,510
              530,010
                      106,224
 
04/14/04
300
Irmo
SC
690,000
461,637
 
 None
 None
 
690,000
              461,637
          1,151,637
                      143,874
 
03/18/04
300
Jackson
SC
170,000
632,626
 
 None
 None
 
170,000
              632,626
              802,626
                      315,254
 
07/22/99
300
Kingstree
SC
209,328
389,965
 
                 1,000
 None
 
209,328
              390,965
              600,293
                        59,519
 
03/27/08
300
Kingstree
SC
0
301,766
 
                 2,000
 None
 
0
              303,766
              303,766
                        67,063
 
03/27/08
300
Lake City
SC
202,292
376,398
 
                 1,500
 None
 
202,292
              377,898
              580,190
                        57,648
 
03/27/08
300
Lexington
SC
255,000
545,000
 
 None
 None
 
255,000
              545,000
              800,000
                      356,975
 
08/25/95
300
Lexington
SC
640,000
563,891
 
 None
 None
 
640,000
              563,891
          1,203,891
                      281,000
 
07/22/99
300
Lexington
SC
540,000
563,588
 
 None
 None
 
540,000
              563,588
          1,103,588
                      280,849
 
07/22/99
300
Lexington
SC
360,000
843,891
 
 None
 None
 
360,000
              843,891
          1,203,891
                      420,533
 
07/22/99
300
Lugoff
SC
200,533
372,490
 
                 1,500
 None
 
200,533
              373,990
              574,523
                        57,056
 
03/27/08
300
Moncks Corner
SC
351,812
654,578
 
                 1,000
 None
 
351,812
              655,578
          1,007,390
                        99,652
 
03/27/08
300
Mt. Pleasant
SC
668,443
1,241,940
 
                 1,000
 None
 
668,443
          1,242,940
          1,911,383
                      188,735
 
03/27/08
300
Myrtle Beach
SC
140,725
261,942
 
                 1,000
 None
 
140,725
              262,942
              403,667
                        40,102
 
03/27/08
300
Myrtle Beach
SC
703,624
1,307,326
 
                 1,000
 None
 
703,624
          1,308,326
          2,011,950
                      198,652
 
03/27/08
300
Myrtle Beach
SC
0
327,278
 
                 1,000
 None
 
0
              328,278
              328,278
                        90,594
 
03/27/08
300
Myrtle Beach
SC
0
277,019
 
                 1,000
 None
 
0
              278,019
              278,019
                        67,042
 
03/27/08
300
Myrtle Beach
SC
527,718
980,766
 
                 1,500
 None
 
527,718
              982,266
          1,509,984
                      149,311
 
03/27/08
300
Myrtle Beach
SC
0
176,002
 
                 1,500
 None
 
0
              177,502
              177,502
                        27,255
 
03/27/08
300
Myrtle Beach
SC
0
753,979
 
                 1,500
 None
 
0
              755,479
              755,479
                      114,915
 
03/27/08
300
Myrtle Beach
SC
492,537
913,807
 
                 2,500
 None
 
492,537
              916,307
          1,408,844
                      139,530
 
03/27/08
300
North Augusta
SC
400,000
452,777
 
 None
 None
 
400,000
              452,777
              852,777
                      225,630
 
07/22/99
300
North Augusta
SC
490,000
1,221,637
 
 None
 None
 
490,000
          1,221,637
          1,711,637
                      380,741
 
03/18/04
300
North Charleston
SC
400,000
650,000
 
 None
 None
 
400,000
              650,000
          1,050,000
                      425,750
 
08/25/95
300
Orangeburg
SC
320,000
691,637
 
 None
 None
 
320,000
              691,637
          1,011,637
                      215,558
 
03/18/04
300
Pinewood
SC
325,426
605,076
 
                 1,500
 None
 
325,426
              606,576
              932,002
                        92,331
 
03/27/08
300
Simpsonville
SC
530,000
573,485
 
 None
 None
 
530,000
              573,485
          1,103,485
                      285,781
 
07/22/99
300
Spartanburg
SC
470,000
432,879
 
 None
 None
 
470,000
              432,879
              902,879
                      215,713
 
07/22/99
300
Summerton
SC
142,484
265,326
 
                 1,500
 None
 
142,484
              266,826
              409,310
                        40,802
 
03/27/08
300
Summerville
SC
115,000
515,000
 
 None
 None
 
115,000
              515,000
              630,000
                      337,325
 
08/25/95
300
Summerville
SC
297,500
553,227
 
 None
 None
 
297,500
              553,227
              850,727
                      170,576
 
04/14/04
300
Sumter
SC
184,701
344,620
 
 None
 None
 
184,701
              344,620
              529,321
                        52,266
 
03/27/08
300
Sumter
SC
149,520
278,284
 
                 1,000
 None
 
149,520
              279,284
              428,804
                        42,580
 
03/27/08
300
Sumter
SC
372,921
693,113
 
                 1,000
 None
 
372,921
              694,113
          1,067,034
                      105,496
 
03/27/08
300
Sumter
SC
211,087
392,065
 
                 1,500
 None
 
211,087
              393,565
              604,652
                        60,025
 
03/27/08
300
Sumter
SC
263,859
490,128
 
                 1,500
 None
 
263,859
              491,628
              755,487
                        74,897
 
03/27/08
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Sumter
SC
362,367
673,012
 
                 1,500
 None
 
362,367
              674,512
          1,036,879
                      102,635
 
03/27/08
300
Sumter
SC
181,183
336,587
 
                 1,500
 None
 
181,183
              338,087
              519,270
                        51,610
 
03/27/08
300
Sumter
SC
154,797
287,584
 
                 1,500
 None
 
154,797
              289,084
              443,881
                        44,178
 
03/27/08
300
Sumter
SC
351,812
653,469
 
                 1,500
 None
 
351,812
              654,969
          1,006,781
                        99,671
 
03/27/08
300
Sumter
SC
334,222
620,801
 
                 1,500
 None
 
334,222
              622,301
              956,523
                        94,716
 
03/27/08
300
Sumter
SC
281,450
522,796
 
                 1,500
 None
 
281,450
              524,296
              805,746
                        79,852
 
03/27/08
300
Sumter
SC
146,002
271,250
 
                 1,500
 None
 
146,002
              272,750
              418,752
                        41,701
 
03/27/08
300
Sumter
SC
149,520
277,726
 
                 1,500
 None
 
149,520
              279,226
              428,746
                        42,683
 
03/27/08
300
Sumter
SC
262,100
486,861
 
                 1,500
 None
 
262,100
              488,361
              750,461
                        74,402
 
03/27/08
300
West Aiken
SC
400,000
402,665
 
 None
 None
 
400,000
              402,665
              802,665
                      200,657
 
07/22/99
300
West Columbia
SC
410,000
693,574
 
 None
 None
 
410,000
              693,574
          1,103,574
                      345,625
 
07/22/99
300
West Columbia
SC
336,000
624,727
 
 None
 None
 
336,000
              624,727
              960,727
                      192,622
 
04/14/04
300
Arrington
TN
385,000
716,242
 
 None
 None
 
385,000
              716,242
          1,101,242
                      235,160
 
10/16/03
300
Athens
TN
175,000
326,242
 
 None
 None
 
175,000
              326,242
              501,242
                      107,110
 
10/16/03
300
Athens
TN
124,179
231,860
 
 None
 None
 
124,179
              231,860
              356,039
                        76,121
 
10/16/03
300
Benton
TN
192,500
358,742
 
 None
 None
 
192,500
              358,742
              551,242
                      117,781
 
10/16/03
300
Chattanooga
TN
175,000
326,242
 
             (79,571)
 None
 
162,879
              258,792
              421,671
                        84,964
 
10/16/03
300
Chattanooga
TN
300,373
559,077
 
             (39,679)
 None
 
260,694
              559,077
              819,771
                      183,557
 
10/16/03
300
Chattanooga
TN
175,000
326,242
 
             (24,664)
 None
 
150,336
              326,242
              476,578
                      107,110
 
10/16/03
300
Chattanooga
TN
181,731
338,741
 
 None
 None
 
181,731
              338,741
              520,472
                      111,214
 
10/16/03
300
Chattanooga
TN
168,000
313,242
 
 None
 None
 
168,000
              313,242
              481,242
                      102,841
 
10/16/03
300
Chattanooga
TN
159,979
298,346
 
 None
 None
 
159,979
              298,346
              458,325
                        97,951
 
10/16/03
300
Chattanooga
TN
105,000
196,242
 
 None
 None
 
105,000
              196,242
              301,242
                        64,426
 
10/16/03
300
Chattanooga
TN
245,000
456,242
 
 None
 None
 
245,000
              456,242
              701,242
                      149,793
 
10/16/03
300
Chattanooga
TN
297,500
553,742
 
 None
 None
 
297,500
              553,742
              851,242
                      181,806
 
10/16/03
300
Chattanooga
TN
323,750
822,529
 
 None
 None
 
323,750
              822,529
          1,146,279
                      250,144
 
10/16/03
300
Chattanooga
TN
280,000
521,242
 
 None
 None
 
280,000
              521,242
              801,242
                      171,135
 
10/16/03
300
Chattanooga
TN
257,250
478,992
 
 None
 None
 
257,250
              478,992
              736,242
                      157,263
 
10/16/03
300
Chattanooga
TN
283,209
527,201
 
 None
 None
 
283,209
              527,201
              810,410
                      173,091
 
10/16/03
300
Chattanooga
TN
542,500
1,008,742
 
 None
 None
 
542,500
          1,008,742
          1,551,242
                      331,197
 
10/16/03
300
Chattanooga
TN
332,500
618,742
 
 None
 None
 
332,500
              618,742
              951,242
                      203,147
 
10/16/03
300
Cleveland
TN
110,009
205,545
 
 None
 None
 
110,009
              205,545
              315,554
                        67,481
 
10/16/03
300
Cleveland
TN
227,500
423,742
 
 None
 None
 
227,500
              423,742
              651,242
                      139,122
 
10/16/03
300
Cleveland
TN
280,000
521,242
 
 None
 None
 
280,000
              521,242
              801,242
                      171,135
 
10/16/03
300
Cleveland
TN
245,000
456,242
 
 None
 None
 
245,000
              456,242
              701,242
                      149,793
 
10/16/03
300
Cleveland
TN
157,500
293,742
 
 None
 None
 
157,500
              293,742
              451,242
                        96,439
 
10/16/03
300
Cleveland
TN
122,500
228,742
 
 None
 None
 
122,500
              228,742
              351,242
                        75,097
 
10/16/03
300
Cleveland
TN
300,373
559,077
 
 None
 None
 
300,373
              559,077
              859,450
                      183,557
 
10/16/03
300
Dayton
TN
262,500
488,742
 
 None
 None
 
262,500
              488,742
              751,242
                      160,464
 
10/16/03
300
Decatur
TN
181,731
338,742
 
 None
 None
 
181,731
              338,742
              520,473
                      111,214
 
10/16/03
300
Dunlap
TN
315,000
586,242
 
 None
 None
 
315,000
              586,242
              901,242
                      192,476
 
10/16/03
300
Etowah
TN
192,500
358,742
 
 None
 None
 
192,500
              358,742
              551,242
                      117,781
 
10/16/03
300
Gallatin
TN
525,000
976,242
 
 None
 None
 
525,000
              976,242
          1,501,242
                      320,526
 
10/16/03
300
Gray
TN
191,151
355,563
 
 None
 None
 
191,151
              355,563
              546,714
                        58,666
 
11/29/07
300
Harrison
TN
484,313
900,680
 
 None
 None
 
484,313
              900,680
          1,384,993
                      295,717
 
10/16/03
300
Hixson
TN
271,250
504,992
 
 None
 None
 
271,250
              504,992
              776,242
                      165,799
 
10/16/03
300
Hixson
TN
513,215
954,355
 
 None
 None
 
513,215
              954,355
          1,467,570
                      313,340
 
10/16/03
300
Hixson
TN
94,500
176,742
 
 None
 None
 
94,500
              176,742
              271,242
                        58,024
 
10/16/03
300
Hixson
TN
300,373
559,077
 
 None
 None
 
300,373
              559,077
              859,450
                      183,557
 
10/16/03
300
Kimball
TN
332,500
618,742
 
 None
 None
 
332,500
              618,742
              951,242
                      203,147
 
10/16/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Kingsport
TN
155,603
289,545
 
 None
 None
 
155,603
              289,545
              445,148
                        47,773
 
11/29/07
300
Kingsport
TN
310,303
576,845
 
 None
 None
 
310,303
              576,845
              887,148
                        95,178
 
11/29/07
300
La Vergne
TN
577,500
1,073,742
 
             (15,745)
 None
 
561,755
          1,073,742
          1,635,497
                      352,539
 
10/16/03
300
La Vergne
TN
340,000
650,000
 
 None
 None
 
340,000
              650,000
              990,000
                      425,750
 
08/25/95
300
Manchester
TN
266,119
495,463
 
 None
 None
 
266,119
              495,463
              761,582
                      162,671
 
10/16/03
300
Manchester
TN
281,675
524,352
 
 None
 None
 
281,675
              524,352
              806,027
                      172,156
 
10/16/03
300
Manchester
TN
319,846
595,242
 
 None
 None
 
319,846
              595,242
              915,088
                      195,432
 
10/16/03
300
Monteagle
TN
271,173
504,849
 
 None
 None
 
271,173
              504,849
              776,022
                      165,752
 
10/16/03
300
Mt. Juliet
TN
397,128
738,764
 
 None
 None
 
397,128
              738,764
          1,135,892
                      242,555
 
10/16/03
300
Murfreesboro
TN
549,500
1,021,742
 
 None
 None
 
549,500
          1,021,742
          1,571,242
                      335,466
 
10/16/03
300
Murfreesboro
TN
467,810
870,032
 
 None
 None
 
467,810
              870,032
          1,337,842
                      285,654
 
10/16/03
300
Murfreesboro
TN
300,373
559,077
 
 None
 None
 
300,373
              559,077
              859,450
                      183,557
 
10/16/03
300
Nashville
TN
498,628
927,264
 
 None
 None
 
498,628
              927,264
          1,425,892
                      304,446
 
10/16/03
300
Ocoee
TN
119,792
223,713
 
             (11,239)
 None
 
108,553
              223,713
              332,266
                        73,446
 
10/16/03
300
Ooltewah
TN
700,000
1,301,242
 
           (190,623)
 None
 
635,909
          1,174,710
          1,810,619
                      390,110
 
10/16/03
300
Ooltewah
TN
234,231
436,241
 
 None
 None
 
234,231
              436,241
              670,472
                      143,226
 
10/16/03
300
Ooltewah
TN
105,000
196,242
 
 None
 None
 
105,000
              196,242
              301,242
                        64,426
 
10/16/03
300
Red Bank
TN
350,000
651,242
 
 None
 None
 
350,000
              651,242
          1,001,242
                      213,818
 
10/16/03
300
Roan Mountain
TN
286,303
532,274
 
 None
 None
 
286,303
              532,274
              818,577
                        87,824
 
11/29/07
300
Shelbyville
TN
320,229
595,953
 
 None
 None
 
320,229
              595,953
              916,182
                      195,665
 
10/16/03
300
Smyrna
TN
426,466
793,251
 
 None
 None
 
426,466
              793,251
          1,219,717
                      260,444
 
10/16/03
300
Smyrna
TN
630,000
1,170,036
 
 None
 None
 
630,000
          1,170,036
          1,800,036
                      247,657
 
09/27/06
300
Soddy Daisy
TN
297,500
553,732
 
 None
 None
 
297,500
              553,732
              851,232
                      181,803
 
10/16/03
300
Soddy Daisy
TN
350,000
651,242
 
 None
 None
 
350,000
              651,242
          1,001,242
                      213,818
 
10/16/03
300
Soddy Daisy
TN
245,000
456,242
 
 None
 None
 
245,000
              456,242
              701,242
                      149,793
 
10/16/03
300
Sweetwater
TN
122,500
228,742
 
 None
 None
 
122,500
              228,742
              351,242
                        75,097
 
10/16/03
300
Sweetwater
TN
339,231
1,131,287
 
 None
 None
 
339,231
          1,131,287
          1,470,518
                      293,926
 
10/16/03
300
Sweetwater
TN
133,000
248,242
 
 None
 None
 
133,000
              248,242
              381,242
                        81,500
 
10/16/03
300
Abingdon
VA
57,847
107,997
 
 None
 None
 
57,847
              107,997
              165,844
                        17,818
 
11/29/07
300
Big Stone Gap
VA
527,303
979,860
 
 None
 None
 
527,303
              979,860
          1,507,163
                      161,675
 
11/29/07
300
Bristol
VA
213,369
396,824
 
 None
 None
 
213,369
              396,824
              610,193
                        65,474
 
11/29/07
300
Bristol
VA
268,303
498,845
 
 None
 None
 
268,303
              498,845
              767,148
                        82,308
 
11/29/07
300
Bristol
VA
171,156
318,428
 
 None
 None
 
171,156
              318,428
              489,584
                        52,539
 
11/29/07
300
Castlewood
VA
387,303
720,307
 
 None
 None
 
387,303
              720,307
          1,107,610
                      118,849
 
11/29/07
300
Cedar Bluff
VA
492,303
915,307
 
 None
 None
 
492,303
              915,307
          1,407,610
                      151,024
 
11/29/07
300
Chatham
VA
347,728
525,031
 
 None
 None
 
347,728
              525,031
              872,759
                      184,629
 
03/19/03
300
Chesapeake
VA
225,000
400,366
 
 None
 None
 
225,000
              400,366
              625,366
                      102,093
 
08/18/05
300
Clintwood
VA
378,553
703,610
 
 None
 None
 
378,553
              703,610
          1,082,163
                      116,094
 
11/29/07
300
Coeburn
VA
168,934
314,764
 
 None
 None
 
168,934
              314,764
              483,698
                        51,935
 
11/29/07
300
Coeburn
VA
312,303
581,021
 
 None
 None
 
312,303
              581,021
              893,324
                        95,867
 
11/29/07
300
Coeburn
VA
282,303
525,307
 
 None
 None
 
282,303
              525,307
              807,610
                        86,674
 
11/29/07
300
Collinsville
VA
84,465
130,137
 
 None
 None
 
84,465
              130,137
              214,602
                        45,757
 
03/19/03
300
Danville
VA
149,276
227,333
 
 None
 None
 
149,276
              227,333
              376,609
                        79,938
 
03/19/03
300
Danville
VA
83,644
128,884
 
 None
 None
 
83,644
              128,884
              212,528
                        45,317
 
03/19/03
300
Danville
VA
266,722
403,501
 
 None
 None
 
266,722
              403,501
              670,223
                      141,891
 
03/19/03
300
Franklin
VA
536,667
863,699
 
 None
 None
 
536,667
              863,699
          1,400,366
                      220,243
 
08/18/05
300
Gate City
VA
422,303
784,845
 
 None
 None
 
422,303
              784,845
          1,207,148
                      129,498
 
11/29/07
300
Glen Allen
VA
700,000
440,965
 
 None
                     17
 
700,000
              440,982
          1,140,982
                      241,792
 
04/17/98
300
Hampton
VA
433,985
459,108
 
 None
                   300
 
433,985
              459,408
              893,393
                      251,960
 
04/17/98
300
Highland Springs
VA
396,720
598,547
 
 None
 None
 
396,720
              598,547
              995,267
                      210,482
 
03/19/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Honaker
VA
492,303
915,307
 
 None
 None
 
492,303
              915,307
          1,407,610
                      151,024
 
11/29/07
300
Martinsville
VA
246,820
373,653
 
 None
 None
 
246,820
              373,653
              620,473
                      131,394
 
03/19/03
300
Martinsville
VA
83,521
128,706
 
 None
 None
 
83,521
              128,706
              212,227
                        45,254
 
03/19/03
300
Midlothian
VA
325,000
302,872
 
 None
                   153
 
325,000
              303,025
              628,025
                      174,131
 
08/21/97
300
Newport News
VA
490,616
605,304
 
 None
                   300
 
490,616
              605,604
          1,096,220
                      302,792
01/20/00
04/17/98
300
Norton
VA
157,826
293,688
 
 None
 None
 
157,826
              293,688
              451,514
                        48,457
 
11/29/07
300
Norton
VA
457,303
849,860
 
 None
 None
 
457,303
              849,860
          1,307,163
                      140,225
 
11/29/07
300
Norton
VA
222,256
413,344
 
 None
 None
 
222,256
              413,344
              635,600
                        68,200
 
11/29/07
300
Pound
VA
256,170
476,327
 
 None
 None
 
256,170
              476,327
              732,497
                        78,592
 
11/29/07
300
Pound
VA
276,303
513,717
 
 None
 None
 
276,303
              513,717
              790,020
                        84,762
 
11/29/07
300
Richlands
VA
140,051
261,125
 
 None
 None
 
140,051
              261,125
              401,176
                        43,084
 
11/29/07
300
Richmond
VA
1,144,841
3,371,146
 
 None
 None
 
1,144,841
          3,371,146
          4,515,987
                   1,262,339
 
08/22/02
300
Richmond
VA
298,227
451,014
 
 None
 None
 
298,227
              451,014
              749,241
                      158,599
 
03/19/03
300
Richmond
VA
329,698
498,015
 
 None
 None
 
329,698
              498,015
              827,713
                      175,128
 
03/19/03
300
Richmond
VA
213,982
324,659
 
 None
 None
 
213,982
              324,659
              538,641
                      114,164
 
03/19/03
300
Richmond
VA
482,735
727,776
 
 None
 None
 
482,735
              727,776
          1,210,511
                      255,927
 
03/19/03
300
Richmond
VA
350,453
529,365
 
 None
 None
 
350,453
              529,365
              879,818
                      186,153
 
03/19/03
300
Richmond
VA
323,496
488,918
 
 None
 None
 
323,496
              488,918
              812,414
                      171,929
 
03/19/03
300
Richmond
VA
278,443
421,584
 
 None
 None
 
278,443
              421,584
              700,027
                      148,250
 
03/19/03
300
Richmond
VA
700,000
400,740
 
 None
                   300
 
700,000
              401,040
          1,101,040
                      219,958
 
04/17/98
300
Richmond
VA
400,000
250,875
 
 None
                   300
 
400,000
              251,175
              651,175
                      137,780
 
04/17/98
300
Richmond
VA
1,000,000
740
 
 None
                   300
 
1,000,000
                  1,040
          1,001,040
                              624
 
04/17/98
300
Richmond
VA
700,000
100,695
 
 None
                   300
 
700,000
              100,995
              800,995
                        55,434
 
04/17/98
300
Roanoke
VA
325,000
575,366
 
 None
 None
 
325,000
              575,366
              900,366
                      146,718
 
08/18/05
300
Rosedale
VA
211,147
393,160
 
 None
 None
 
211,147
              393,160
              604,307
                        64,870
 
11/29/07
300
Sandston
VA
152,535
232,528
 
 None
 None
 
152,535
              232,528
              385,063
                        81,765
 
03/19/03
300
South Boston
VA
160,893
244,778
 
 None
 None
 
160,893
              244,778
              405,671
                        86,073
 
03/19/03
300
St. Paul
VA
334,803
622,807
 
 None
 None
 
334,803
              622,807
              957,610
                      102,762
 
11/29/07
300
St. Paul
VA
422,303
785,307
 
 None
 None
 
422,303
              785,307
          1,207,610
                      129,574
 
11/29/07
300
Stafford
VA
271,865
601,997
 
 None
                   167
 
271,865
              602,164
              874,029
                      362,244
 
12/20/96
300
Staunton
VA
675,000
1,000,366
 
 None
 None
 
675,000
          1,000,366
          1,675,366
                      255,093
 
08/18/05
300
Suffolk
VA
700,000
1,000,366
 
 None
 None
 
700,000
          1,000,366
          1,700,366
                      255,093
 
08/18/05
300
Tazewell
VA
153,382
285,882
 
 None
 None
 
153,382
              285,882
              439,264
                        47,169
 
11/29/07
300
Troutville
VA
575,000
975,366
 
 None
 None
 
575,000
              975,366
          1,550,366
                      248,718
 
08/18/05
300
Virginia Beach
VA
1,194,560
2,218,773
 
 None
 None
 
1,194,560
          2,218,773
          3,413,333
                      846,817
 
06/27/02
300
Warrenton
VA
515,971
649,125
 
 None
                   161
 
515,971
              649,286
          1,165,257
                      390,597
 
12/20/96
300
Weber City
VA
369,803
687,345
 
 None
 None
 
369,803
              687,345
          1,057,148
                      113,410
 
11/29/07
300
Williamsburg
VA
838,172
1,556,910
 
 None
 None
 
838,172
          1,556,910
          2,395,082
                      594,145
 
06/27/02
300
Wise
VA
334,803
622,360
 
 None
 None
 
334,803
              622,360
              957,163
                      102,688
 
11/29/07
300
Wise
VA
66,733
124,517
 
 None
 None
 
66,733
              124,517
              191,250
                        20,544
 
11/29/07
300
Wise
VA
527,303
979,860
 
 None
 None
 
527,303
              979,860
          1,507,163
                      161,675
 
11/29/07
300
Wytheville
VA
1,222,535
1,577,830
 
 None
 None
 
1,222,535
          1,577,830
          2,800,365
                      402,347
 
08/18/05
300
Yorktown
VA
309,435
447,144
 
 None
                   300
 
309,435
              447,444
              756,879
                      245,395
 
04/17/98
300
Spokane
WA
66,150
146,921
 
               55,528
               7,650
 
66,150
              210,099
              276,249
                      152,095
 
11/18/87
300
East Troy
WI
578,813
1,072,938
 
                 2,000
 None
 
578,813
          1,074,938
          1,653,751
                        88,023
 
12/28/09
300
Ellsworth
WI
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
Menomonie
WI
441,256
817,975
 
                 1,500
 None
 
441,256
              819,475
          1,260,731
                        34,245
 
12/01/10
300
Menomonie
WI
770,442
1,428,821
 
                 2,000
 None
 
770,442
          1,430,821
          2,201,263
                        59,751
 
12/01/10
300
Menomonie
WI
175,000
323,000
 
                 2,000
 None
 
175,000
              325,000
              500,000
                        13,675
 
12/01/10
300
Mondovi
WI
175,000
323,500
 
                 1,500
 None
 
175,000
              325,000
              500,000
                        13,642
 
12/01/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Osseo
WI
613,373
1,136,622
 
                 2,500
 None
 
613,373
          1,139,122
          1,752,495
                        47,630
 
12/01/10
300
                             
Crafts and Novelties
                           
Cutler Ridge
FL
743,498
657,485
 
             200,746
                   154
 
743,498
              858,385
          1,601,883
                      436,203
 
12/31/98
300
Rockford
IL
159,587
618,398
 
 None
 None
 
159,587
              618,398
              777,985
                      374,131
 
11/26/96
300
Stony Brook
NY
980,000
1,801,586
 
                 5,641
                   232
 
980,000
          1,807,459
          2,787,459
                      935,772
 
01/11/99
300
Pleasant Hills
PA
631,084
1,172,563
 
 None
 None
 
631,084
          1,172,563
          1,803,647
                      427,983
 
11/01/02
300
                             
Drug Stores
                           
Montgomery
AL
1,150,000
1,479,627
 
 None
 None
 
1,150,000
          1,479,627
          2,629,627
                      406,905
 
02/09/05
300
Bakersfield
CA
0
3,501,678
 
 None
 None
 
0
          3,501,678
          3,501,678
                      542,759
 
02/26/08
300
Encinitas
CA
0
3,751,713
 
 None
 None
 
0
          3,751,713
          3,751,713
                      581,515
 
02/26/08
300
Indio
CA
2,205,539
4,096,524
 
 None
 None
 
2,205,539
          4,096,524
          6,302,063
                      634,960
 
02/21/08
300
Sacramento
CA
1,490,000
3,473,583
 
 None
 None
 
1,490,000
          3,473,583
          4,963,583
                      167,890
 
10/22/10
300
Tracy
CA
2,467,993
4,584,246
 
 None
 None
 
2,467,993
          4,584,246
          7,052,239
                      741,120
 
12/20/07
300
Colorado Springs
CO
1,025,000
1,645,371
 
 None
 None
 
1,025,000
          1,645,371
          2,670,371
                      452,468
 
02/09/05
300
Fort Collins
CO
1,100,000
1,385,014
 
 None
 None
 
1,100,000
          1,385,014
          2,485,014
                      380,870
 
02/09/05
300
Casselberry
FL
1,075,020
1,664,284
 
 None
 None
 
1,075,020
          1,664,284
          2,739,304
                      884,872
 
09/30/98
300
Milton
FL
500,000
1,774,311
 
 None
 None
 
500,000
          1,774,311
          2,274,311
                        85,758
 
10/22/10
300
Adel
GA
500,000
1,056,116
 
 None
 None
 
500,000
          1,056,116
          1,556,116
                      283,385
 
04/29/05
300
Blackshear
GA
430,000
1,005,393
 
 None
 None
 
430,000
          1,005,393
          1,435,393
                      269,774
 
04/29/05
300
Bowdon
GA
410,000
1,010,615
 
 None
 None
 
410,000
          1,010,615
          1,420,615
                      271,176
 
04/29/05
300
Cairo
GA
330,000
1,152,243
 
 None
 None
 
330,000
          1,152,243
          1,482,243
                      309,179
 
04/29/05
300
Quitman
GA
730,000
856,586
 
 None
 None
 
730,000
              856,586
          1,586,586
                      235,553
 
02/09/05
300
Blackfoot
ID
560,000
1,932,186
 
 None
 None
 
560,000
          1,932,186
          2,492,186
                      531,343
 
02/09/05
300
Burley
ID
700,000
2,011,543
 
 None
 None
 
700,000
          2,011,543
          2,711,543
                      553,166
 
02/09/05
300
Chubbuck
ID
890,000
1,267,183
 
 None
 None
 
890,000
          1,267,183
          2,157,183
                      348,467
 
02/09/05
300
Maryville
IL
780,685
2,344,436
 
 None
 None
 
780,685
          2,344,436
          3,125,121
                        74,240
 
03/16/11
300
Troy
IL
768,515
1,991,358
 
 None
 None
 
768,515
          1,991,358
          2,759,873
                        63,060
 
03/16/11
300
Salem
IN
0
2,351,296
 
 None
 None
 
0
          2,351,296
          2,351,296
                      505,529
 
08/16/06
300
Elkton
MD
1,751,013
3,252,546
 
 None
 None
 
1,751,013
          3,252,546
          5,003,559
                      504,143
 
02/21/08
300
Laurel
MD
0
2,400,696
 
 None
 None
 
0
          2,400,696
          2,400,696
                      516,150
 
08/16/06
300
Portland
ME
2,100,849
3,902,402
 
 None
 None
 
2,100,849
          3,902,402
          6,003,251
                      630,887
 
12/20/07
300
Gladwin
MI
1,365,747
2,536,910
 
 None
 None
 
1,365,747
          2,536,910
          3,902,657
                      393,220
 
02/21/08
300
Metamora
MI
859,139
2,291,557
 
 None
 None
 
859,139
          2,291,557
          3,150,696
                      492,685
 
08/16/06
300
Dellwood
MO
766,461
2,438,272
 
 None
 None
 
766,461
          2,438,272
          3,204,733
                        77,212
 
03/16/11
300
St. Louis
MO
744,817
2,300,087
 
 None
 None
 
744,817
          2,300,087
          3,044,904
                        72,836
 
03/16/11
300
Wildwood
MO
681,200
2,649,759
 
 None
 None
 
681,200
          2,649,759
          3,330,959
                        83,909
 
03/16/11
300
Carson City
NV
800,000
2,770,950
 
 None
 None
 
800,000
          2,770,950
          3,570,950
                      762,003
 
02/09/05
300
Reno
NV
1,100,000
2,602,911
 
 None
 None
 
1,100,000
          2,602,911
          3,702,911
                      715,792
 
02/09/05
300
Reno
NV
850,000
2,306,647
 
 None
 None
 
850,000
          2,306,647
          3,156,647
                      634,319
 
02/09/05
300
Sparks
NV
1,000,000
2,271,513
 
 None
 None
 
1,000,000
          2,271,513
          3,271,513
                      624,657
 
02/09/05
300
Sun Valley
NV
550,000
2,678,380
 
 None
 None
 
550,000
          2,678,380
          3,228,380
                      736,546
 
02/09/05
300
Cortland
OH
1,440,000
1,364,725
 
                 1,250
 None
 
1,440,000
          1,365,975
          2,805,975
                      375,702
 
02/09/05
300
Madison
OH
580,000
1,272,742
 
 None
 None
 
580,000
          1,272,742
          1,852,742
                      341,513
 
04/29/05
300
Mayfield Heights
OH
0
2,703,730
 
 None
 None
 
0
          2,703,730
          2,703,730
                      419,077
 
02/21/08
300
Warren
OH
960,000
1,326,083
 
 None
 None
 
960,000
          1,326,083
          2,286,083
                      364,664
 
02/09/05
300
Warren
OH
800,000
1,241,503
 
 None
 None
 
800,000
          1,241,503
          2,041,503
                      341,404
 
02/09/05
300
Willowick
OH
530,000
1,241,308
 
 None
 None
 
530,000
          1,241,308
          1,771,308
                      333,079
 
04/29/05
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
     
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Beaver
PA
1,933,000
3,003,160
 
 None
 None
 
1,933,000
          3,003,160
          4,936,160
                      485,511
 
12/20/07
300
Delmont
PA
720,000
1,246,023
 
               10,475
 None
 
720,000
          1,256,498
          1,976,498
                      346,577
 
02/09/05
300
Gettysburg
PA
0
2,500,750
 
 None
 None
 
0
          2,500,750
          2,500,750
                      537,661
 
08/16/06
300
Girard
PA
0
1,352,590
 
             540,618
 None
 
0
          1,893,208
          1,893,208
                      739,087
 
02/09/05
300
Johnstown
PA
250,000
2,593,436
 
 None
 None
 
250,000
          2,593,436
          2,843,436
                      713,186
 
02/09/05
300
Johnstown
PA
600,000
2,010,255
 
 None
 None
 
600,000
          2,010,255
          2,610,255
                      552,811
 
02/09/05
300
Murrysville
PA
710,000
1,666,912
 
 None
 None
 
710,000
          1,666,912
          2,376,912
                      458,389
 
02/09/05
300
Oakdale
PA
1,255,750
2,995,001
 
 None
 None
 
1,255,750
          2,995,001
          4,250,751
                      643,925
 
08/16/06
300
Philadelphia
PA
0
3,803,732
 
 None
 None
 
0
          3,803,732
          3,803,732
                      589,577
 
02/26/08
300
Reading
PA
1,400,000
3,304,996
 
 None
 None
 
1,400,000
          3,304,996
          4,704,996
                      512,273
 
02/21/08
300
Saint Marys
PA
1,663,632
3,090,403
 
 None
 None
 
1,663,632
          3,090,403
          4,754,035
                      499,615
 
12/20/07
300
Slippery Rock
PA
0
1,295,495
 
             606,566
 None
 
0
          1,902,061
          1,902,061
                      734,901
 
02/09/05
300
West Norriton
PA
0
3,603,611
 
 None
 None
 
0
          3,603,611
          3,603,611
                      558,558
 
02/21/08
300
Wexford
PA
2,300,000
2,606,080
 
 None
 None
 
2,300,000
          2,606,080
          4,906,080
                      403,942
 
02/21/08
300
Yeadon
PA
0
3,253,285
 
 None
 None
 
0
          3,253,285
          3,253,285
                      525,948
 
12/20/07
300
Fredericksburg
VA
0
2,901,815
 
 None
 None
 
0
          2,901,815
          2,901,815
                      449,780
 
02/21/08
300
Buckhannon
WV
1,716,898
3,189,190
 
 None
 None
 
1,716,898
          3,189,190
          4,906,088
                      494,323
 
02/21/08
300
                             
Education
                           
Peoria
AZ
281,750
625,779
 
               69,854
             32,404
 
281,750
              728,037
          1,009,787
                      638,053
 
03/30/88
300
Corona
CA
144,856
671,584
 
 None
             26,846
 
144,856
              698,430
              843,286
                      672,662
 
12/19/84
300
Coconut Creek
FL
310,111
1,243,682
 
 None
 None
 
310,111
          1,243,682
          1,553,793
                      615,909
08/02/99
12/01/98
300
Las Vegas
NV
1,080,444
3,346,772
 
 None
                     73
 
1,080,444
          3,346,845
          4,427,289
                   1,846,215
 
03/04/98
300
Beaverton
OR
135,148
626,647
 
 None
             13,521
 
135,148
              640,168
              775,316
                      626,902
 
12/17/86
300
Arlington
TX
195,650
387,355
 
                     851
               2,816
 
195,650
              391,022
              586,672
                      322,145
 
02/07/91
300
Austin
TX
238,000
528,604
 
               90,133
             24,911
 
238,000
              643,648
              881,648
                      507,163
 
04/06/89
300
Coppell
TX
208,641
463,398
 
               28,600
               8,317
 
208,641
              500,315
              708,956
                      457,069
 
12/11/87
300
Mesquite
TX
1,049,287
1,949,085
 
             164,665
             64,012
 
1,049,287
          2,177,762
          3,227,049
                      863,663
 
03/28/02
300
Missouri City
TX
221,025
437,593
 
                 2,202
                   128
 
221,025
              439,923
              660,948
                      367,180
 
12/13/90
300
Southlake
TX
228,279
511,750
 
 None
             25,453
 
228,279
              537,203
              765,482
                      413,220
 
03/10/93
300
Sugar Land
TX
1,600,000
6,300,995
 
 None
 None
 
1,600,000
          6,300,995
          7,900,995
                   1,396,717
 
06/28/06
300
Chantilly
VA
688,917
3,208,607
 
 None
 None
 
688,917
          3,208,607
          3,897,524
                   1,551,980
05/07/99
09/30/98
300
Kingstowne
VA
300,000
1,191,396
 
 None
 None
 
300,000
          1,191,396
          1,491,396
                      550,329
08/22/00
11/08/99
300
                             
Entertainment
                           
Riverside
CA
7,800,000
130
 
           (416,985)
 None
 
7,383,015
                      130
          7,383,145
                                47
 
07/05/02
300
Vista
CA
2,300,000
22
 
 None
 None
 
2,300,000
                        22
          2,300,022
                                11
 
03/31/99
300
Dania
FL
8,272,080
1,713
 
 None
                     36
 
8,272,080
                  1,749
          8,273,829
                              874
 
03/31/99
300
Marietta
GA
1,500,000
768
 
 None
 None
 
1,500,000
                      768
          1,500,768
                              309
 
06/29/01
300
Norcross
GA
1,600,000
768
 
 None
 None
 
1,600,000
                      768
          1,600,768
                              309
 
06/29/01
300
Greensboro
NC
4,000,000
463
 
 None
 None
 
4,000,000
                      463
          4,000,463
                              167
 
07/05/02
300
Brookhaven
NY
1,500,000
745
 
 None
 None
 
1,500,000
                      745
          1,500,745
                              371
 
07/23/99
300
Riverhead
NY
6,200,000
744
 
 None
 None
 
6,200,000
                      744
          6,200,744
                              371
 
07/23/99
300
                             
Equipment Services
                           
Lake Worth
FL
679,079
1,262,568
 
 None
 None
 
679,079
          1,262,568
          1,941,647
                      427,169
 
07/03/03
300
Elko
NV
1,401,115
10,342,501
 
 None
 None
 
1,401,115
        10,342,501
        11,743,616
                      327,513
 
03/15/11
300
Lewisville
TX
1,010,134
1,877,384
 
 None
 None
 
1,010,134
          1,877,384
          2,887,518
                      635,182
 
07/03/03
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Financial Services
                           
Phoenix
AZ
245,137
456,324
 
 None
 None
 
245,137
              456,324
              701,461
                        70,730
 
02/01/08
300
Canon City
CO
66,500
147,699
 
 None
 None
 
66,500
              147,699
              214,199
                      142,359
 
11/12/87
300
Colorado Springs
CO
313,250
695,730
 
               40,500
 None
 
313,250
              736,230
          1,049,480
                      731,146
 
03/10/87
300
Clearwater
FL
476,179
725,023
 
               10,154
                   224
 
476,179
              735,401
          1,211,580
                      381,513
 
12/31/98
300
Orlando
FL
532,556
940,177
 
 None
 None
 
532,556
              940,177
          1,472,733
                      205,239
06/09/06
12/15/05
300
Hinesville
GA
172,611
383,376
 
               23,850
             17,822
 
172,611
              425,048
              597,659
                      381,437
 
12/22/87
300
Couer D'Alene
ID
165,900
368,468
 
 None
 None
 
165,900
              368,468
              534,368
                      357,782
 
09/21/87
300
Blue Springs
MO
222,569
494,333
 
 None
 None
 
222,569
              494,333
              716,902
                      441,939
 
07/31/89
300
Albuquerque
NM
80,500
178,794
 
                 8,003
                   299
 
80,500
              187,096
              267,596
                      176,343
 
10/29/87
300
Santa Fe
NM
70,000
155,473
 
 None
                   295
 
70,000
              155,768
              225,768
                      150,677
 
10/29/87
300
Dublin
OH
2,399,969
17,044,099
 
 None
 None
 
2,399,969
        17,044,099
        19,444,068
                      539,730
 
03/31/11
300
Pasadena
TX
385,199
716,468
 
 None
 None
 
385,199
              716,468
          1,101,667
                      111,053
 
02/01/08
300
Madison
WI
154,375
287,794
 
 None
 None
 
154,375
              287,794
              442,169
                        44,608
 
02/01/08
300
Milwaukee
WI
265,985
495,071
 
 None
 None
 
265,985
              495,071
              761,056
                        76,736
 
02/01/08
300
                             
Food Processing
                           
St. Louis
MO
3,112,401
32,725,202
 
 None
                   147
 
3,112,401
        32,725,349
        35,837,750
                      599,974
 
07/13/11
300
Weldon Springs
MO
3,675,034
13,827,581
 
 None
 None
 
3,675,034
        13,827,581
        17,502,615
                      391,781
 
04/01/11
300
                             
General Merchandise
                           
Canon City
CO
339,045
630,531
 
 None
 None
 
339,045
              630,531
              969,576
                      129,259
 
11/02/06
300
Monte Vista
CO
47,652
582,159
 
 None
 None
 
47,652
              582,159
              629,811
                      303,707
 
12/23/98
300
Groveland
FL
101,782
189,258
 
 None
                   189
 
101,782
              189,447
              291,229
                        96,966
 
03/31/99
300
Clarinda
IA
439,267
816,010
 
 None
 None
 
439,267
              816,010
          1,255,277
                      183,602
 
05/25/06
300
Garnett
KS
59,690
518,121
 
 None
 None
 
59,690
              518,121
              577,811
                      270,300
 
12/23/98
300
Hillsboro
KS
335,292
622,914
 
 None
 None
 
335,292
              622,914
              958,206
                      140,156
 
05/25/06
300
Phillipsburg
KS
423,725
787,146
 
 None
 None
 
423,725
              787,146
          1,210,871
                      177,108
 
05/25/06
300
Caledonia
MN
89,723
559,300
 
 None
 None
 
89,723
              559,300
              649,023
                      291,785
 
12/23/98
300
Long Prarie
MN
88,892
553,997
 
 None
 None
 
88,892
              553,997
              642,889
                      289,017
 
12/23/98
300
Paynesvile
MN
49,483
525,406
 
 None
 None
 
49,483
              525,406
              574,889
                      274,102
 
12/23/98
300
Spring Valley
MN
69,785
579,238
 
 None
 None
 
69,785
              579,238
              649,023
                      302,186
 
12/23/98
300
Warroad
MN
70,000
580,000
 
 None
 None
 
70,000
              580,000
              650,000
                      302,567
 
12/23/98
300
Independence
MO
210,643
467,844
 
 None
 None
 
210,643
              467,844
              678,487
                      418,258
 
07/31/89
300
Kansas City
MO
210,070
466,571
 
 None
                   146
 
210,070
              466,717
              676,787
                      439,899
 
05/13/88
300
Kansas City
MO
168,350
373,910
 
 None
                   146
 
168,350
              374,056
              542,406
                      352,560
 
05/26/88
300
Willow Springs
MO
416,494
773,718
 
 None
 None
 
416,494
              773,718
          1,190,212
                      174,087
 
05/25/06
300
Mayville
ND
59,333
565,562
 
 None
 None
 
59,333
              565,562
              624,895
                      295,066
 
12/23/98
300
Ainsworth
NE
362,675
673,768
 
 None
 None
 
362,675
              673,768
          1,036,443
                      151,598
 
05/25/06
300
Imperial
NE
388,599
721,914
 
 None
 None
 
388,599
              721,914
          1,110,513
                      160,024
 
06/28/06
300
Bloomfield
NM
59,559
616,252
 
 None
 None
 
59,559
              616,252
              675,811
                      321,492
 
12/23/98
300
Milwaukie
OR
180,250
400,336
 
               49,088
             23,867
 
180,250
              473,291
              653,541
                      423,927
 
08/06/87
300
Memphis
TN
197,708
507,647
 
               17,670
             23,118
 
197,708
              548,435
              746,143
                      284,647
 
09/30/98
300
Amarillo
TX
140,000
419,734
 
 None
                   173
 
140,000
              419,907
              559,907
                      389,822
 
09/12/88
300
Coleman
TX
243,060
451,661
 
 None
 None
 
243,060
              451,661
              694,721
                      101,624
 
05/25/06
300
Colorado City
TX
92,535
505,276
 
 None
 None
 
92,535
              505,276
              597,811
                      263,599
 
12/23/98
300
Devine
TX
212,408
394,735
 
 None
 None
 
212,408
              394,735
              607,143
                        88,815
 
05/25/06
300
Midland
TX
544,075
1,322,431
 
 None
 None
 
544,075
          1,322,431
          1,866,506
                      733,836
 
02/03/98
300
Presidio
TX
407,657
757,362
 
 None
 None
 
407,657
              757,362
          1,165,019
                      170,406
 
05/25/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Winnsboro
TX
79,280
1,299,056
 
 None
 None
 
79,280
          1,299,056
          1,378,336
                      266,496
10/19/06
09/07/06
300
Yoakum
TX
390,147
724,821
 
 None
 None
 
390,147
              724,821
          1,114,968
                      163,085
 
05/25/06
300
Puyallup
WA
173,250
384,795
 
 None
             22,814
 
173,250
              407,609
              580,859
                      383,332
 
09/15/87
300
Redmond
WA
196,000
435,317
 
               42,356
             29,173
 
196,000
              506,846
              702,846
                      439,617
 
09/17/87
300
Tacoma
WA
189,000
419,777
 
 None
             19,146
 
189,000
              438,923
              627,923
                      417,407
 
08/25/87
300
                             
Grocery Stores
                           
Mesa
AZ
807,252
1,499,183
 
 None
 None
 
807,252
          1,499,183
          2,306,435
                           2,499
 
12/21/11
300
Phoenix
AZ
664,796
1,234,621
 
 None
 None
 
664,796
          1,234,621
          1,899,417
                           2,058
 
12/21/11
300
Phoenix
AZ
546,083
1,014,153
 
 None
 None
 
546,083
          1,014,153
          1,560,236
                           1,690
 
12/21/11
300
Yuma
AZ
783,510
1,455,089
 
 None
 None
 
783,510
          1,455,089
          2,238,599
                           2,425
 
12/21/11
300
Buena Park
CA
2,136,844
3,968,425
 
 None
 None
 
2,136,844
          3,968,425
          6,105,269
                           6,614
 
12/21/11
300
Burbank
CA
2,193,827
4,074,250
 
 None
 None
 
2,193,827
          4,074,250
          6,268,077
                           6,790
 
12/21/11
300
Carson
CA
949,709
1,763,744
 
 None
 None
 
949,709
          1,763,744
          2,713,453
                           2,940
 
12/21/11
300
Chula Vista
CA
1,044,679
1,940,119
 
 None
 None
 
1,044,679
          1,940,119
          2,984,798
                           3,234
 
12/21/11
300
Cloverdale
CA
1,505,000
2,795,321
 
 None
 None
 
1,505,000
          2,795,321
          4,300,321
                      927,115
 
09/30/03
300
El Centro
CA
394,903
733,392
 
 None
 None
 
394,903
              733,392
          1,128,295
                           1,222
 
12/21/11
300
Fortuna
CA
1,190,000
2,210,308
 
 None
 None
 
1,190,000
          2,210,308
          3,400,308
                      733,085
 
09/30/03
300
Glendale
CA
3,270,797
6,074,336
 
 None
 None
 
3,270,797
          6,074,336
          9,345,133
                        10,124
 
12/21/11
300
Hanford
CA
1,234,621
2,292,868
 
 None
 None
 
1,234,621
          2,292,868
          3,527,489
                           3,821
 
12/21/11
300
Inglewood
CA
1,661,990
3,086,553
 
 None
 None
 
1,661,990
          3,086,553
          4,748,543
                           5,144
 
12/21/11
300
Los Angeles
CA
712,282
1,322,809
 
 None
 None
 
712,282
          1,322,809
          2,035,091
                           2,205
 
12/21/11
300
Los Angeles
CA
1,424,563
2,645,617
 
 None
 None
 
1,424,563
          2,645,617
          4,070,180
                           4,409
 
12/21/11
300
Los Angeles
CA
1,576,516
2,927,816
 
 None
 None
 
1,576,516
          2,927,816
          4,504,332
                           4,880
 
12/21/11
300
Los Angeles
CA
1,638,247
3,042,460
 
 None
 None
 
1,638,247
          3,042,460
          4,680,707
                           5,071
 
12/21/11
300
Los Angeles
CA
1,994,388
3,703,864
 
 None
 None
 
1,994,388
          3,703,864
          5,698,252
                           6,173
 
12/21/11
300
Los Angeles
CA
3,111,111
5,777,778
 
 None
 None
 
3,111,111
          5,777,778
          8,888,889
                           9,630
 
12/21/11
300
Monrovia
CA
1,139,650
2,116,494
 
 None
 None
 
1,139,650
          2,116,494
          3,256,144
                           3,527
 
12/21/11
300
N. Hollywood
CA
4,036,263
7,495,917
 
 None
 None
 
4,036,263
          7,495,917
        11,532,180
                        12,493
 
12/21/11
300
Oakland
CA
2,374,272
4,409,361
 
 None
 None
 
2,374,272
          4,409,361
          6,783,633
                           7,349
 
12/21/11
300
Pacoima
CA
949,709
1,763,744
 
 None
 None
 
949,709
          1,763,744
          2,713,453
                           2,940
 
12/21/11
300
Pasadena
CA
2,113,102
3,924,331
 
 None
 None
 
2,113,102
          3,924,331
          6,037,433
                           6,541
 
12/21/11
300
Redlands
CA
1,187,136
2,204,680
 
 None
 None
 
1,187,136
          2,204,680
          3,391,816
                           3,674
 
12/21/11
300
Redondo Beach
CA
1,306,667
2,426,666
 
 None
 None
 
1,306,667
          2,426,666
          3,733,333
                           4,044
 
12/21/11
300
Redwood City
CA
1,638,247
3,042,460
 
 None
 None
 
1,638,247
          3,042,460
          4,680,707
                           5,071
 
12/21/11
300
Riverside
CA
1,068,422
1,984,213
 
 None
 None
 
1,068,422
          1,984,213
          3,052,635
                           3,307
 
12/21/11
300
Sacramento
CA
759,767
1,410,995
 
 None
 None
 
759,767
          1,410,995
          2,170,762
                           2,352
 
12/21/11
300
Sacramento
CA
1,139,650
2,116,494
 
 None
 None
 
1,139,650
          2,116,494
          3,256,144
                           3,527
 
12/21/11
300
Salinas
CA
1,044,679
1,940,119
 
 None
 None
 
1,044,679
          1,940,119
          2,984,798
                           3,234
 
12/21/11
300
San Diego
CA
1,633,333
3,033,334
 
 None
 None
 
1,633,333
          3,033,334
          4,666,667
                           5,056
 
12/21/11
300
Stockton
CA
1,424,563
2,645,617
 
 None
 None
 
1,424,563
          2,645,617
          4,070,180
                           4,409
 
12/21/11
300
Thousand Oaks
CA
2,018,131
3,747,957
 
 None
 None
 
2,018,131
          3,747,957
          5,766,088
                           6,247
 
12/21/11
300
Boulder
CO
426,675
1,199,508
 
 None
             91,455
 
426,675
          1,290,963
          1,717,638
                   1,102,557
 
01/05/84
180
Brandon
FL
2,570,000
676,996
 
 None
                   154
 
2,570,000
              677,150
          3,247,150
                        32,738
 
10/22/10
300
Tampa
FL
2,610,000
5,769,576
 
                 1,200
 None
 
2,610,000
          5,770,776
          8,380,776
                      279,100
 
10/22/10
300
Council Bluffs
IA
255,217
117,792
 
               47,188
             16,661
 
255,217
              181,641
              436,858
                      113,578
 
11/26/96
300
Warsaw
IN
2,140,000
4,689,646
 
 None
 None
 
2,140,000
          4,689,646
          6,829,646
                      914,469
 
02/09/07
300
Reno
NV
456,000
562,344
 
               19,733
             30,571
 
456,000
              612,648
          1,068,648
                      555,933
 
05/26/88
300
Reno
NV
721,365
1,339,679
 
 None
 None
 
721,365
          1,339,679
          2,061,044
                           2,233
 
12/21/11
300
Bartlesville
OK
1,650,000
1,573,823
 
                 1,000
 None
 
1,650,000
          1,574,823
          3,224,823
                        76,149
 
10/22/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements        
 Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Norman
OK
1,580,000
1,900,618
 
                 1,000
 None
 
1,580,000
          1,901,618
          3,481,618
                        91,944
 
10/22/10
300
Norman
OK
3,000,000
2,474,669
 
                 1,000
 None
 
3,000,000
          2,475,669
          5,475,669
                      119,646
 
10/22/10
300
Stillwater
OK
2,590,000
2,472,123
 
                 1,000
 None
 
2,590,000
          2,473,123
          5,063,123
                      119,567
 
10/22/10
300
Tulsa
OK
1,550,000
203,990
 
 None
 None
 
1,550,000
              203,990
          1,753,990
                           9,860
 
10/22/10
300
Tulsa
OK
2,000,000
753,609
 
 None
 None
 
2,000,000
              753,609
          2,753,609
                        36,424
 
10/22/10
300
Tulsa
OK
1,850,000
1,785,277
 
 None
 None
 
1,850,000
          1,785,277
          3,635,277
                        86,288
 
10/22/10
300
Tulsa
OK
1,700,000
978,092
 
 None
 None
 
1,700,000
              978,092
          2,678,092
                        47,274
 
10/22/10
300
Tulsa
OK
2,900,000
1,197,386
 
 None
 None
 
2,900,000
          1,197,386
          4,097,386
                        57,874
 
10/22/10
300
Tulsa
OK
3,000,000
3,485,618
 
                 1,000
 None
 
3,000,000
          3,486,618
          6,486,618
                      168,553
 
10/22/10
300
Central Point
OR
840,000
1,560,308
 
 None
 None
 
840,000
          1,560,308
          2,400,308
                      517,502
 
09/30/03
300
Pendleton
OR
546,083
1,014,153
 
 None
 None
 
546,083
          1,014,153
          1,560,236
                           1,690
 
12/21/11
300
Phoenix
OR
840,000
1,560,308
 
 None
 None
 
840,000
          1,560,308
          2,400,308
                      517,502
 
09/30/03
300
Rapid City
SD
2,140,000
1,465,451
 
 None
 None
 
2,140,000
          1,465,451
          3,605,451
                        70,830
 
10/22/10
300
Richland
WA
1,756,961
3,262,927
 
 None
 None
 
1,756,961
          3,262,927
          5,019,888
                           5,438
 
12/21/11
300
Sheboygan
WI
1,513,216
4,427,968
 
               15,220
                   180
 
1,513,216
          4,443,368
          5,956,584
                   2,199,793
06/03/99
08/24/98
300
                             
Health and Fitness
                           
Wynne
AR
70,000
547,576
 
               30,029
                   824
 
70,000
              578,429
              648,429
                      308,736
11/10/98
02/24/99
300
Paradise Valley
AZ
2,608,389
3,418,783
 
 None
 None
 
2,608,389
          3,418,783
          6,027,172
                   1,350,385
06/06/02
06/26/01
300
Phoenix
AZ
2,100,000
3,623,590
 
 None
 None
 
2,100,000
          3,623,590
          5,723,590
                              177
In-progress
06/29/11
300
Antioch
CA
5,375,000
9,982,143
 
 None
 None
 
5,375,000
          9,982,143
        15,357,143
                      116,458
 
09/21/11
300
Bakersfield
CA
2,259,649
4,698,845
 
 None
 None
 
2,259,649
          4,698,845
          6,958,494
                        54,820
 
09/21/11
300
Bakersfield
CA
3,260,933
6,056,019
 
 None
 None
 
3,260,933
          6,056,019
          9,316,952
                        70,654
 
09/21/11
300
Ceres
CA
2,145,750
3,984,963
 
 None
 None
 
2,145,750
          3,984,963
          6,130,713
                        46,491
 
09/21/11
300
Chula Vista
CA
4,226,250
7,848,750
 
 None
 None
 
4,226,250
          7,848,750
        12,075,000
                      562,494
 
03/30/10
300
Diamond Bar
CA
3,038,879
5,383,274
 
 None
                   882
 
3,038,879
          5,384,156
          8,423,035
                   2,125,251
03/21/00
09/29/98
300
Los Banos
CA
1,378,343
2,559,779
 
 None
 None
 
1,378,343
          2,559,779
          3,938,122
                        29,864
 
09/21/11
300
Norco
CA
1,247,243
4,814,516
 
 None
                   130
 
1,247,243
          4,814,646
          6,061,889
                   1,800,426
12/13/00
06/29/99
300
Stockton
CA
2,320,442
4,309,392
 
 None
 None
 
2,320,442
          4,309,392
          6,629,834
                        50,276
 
09/21/11
300
Stockton
CA
1,602,459
2,975,994
 
 None
 None
 
1,602,459
          2,975,994
          4,578,453
                        34,720
 
09/21/11
300
Tracy
CA
556,906
1,034,254
 
 None
 None
 
556,906
          1,034,254
          1,591,160
                        12,066
 
09/21/11
300
Tracy
CA
3,228,902
5,996,532
 
 None
 None
 
3,228,902
          5,996,532
          9,225,434
                        69,960
 
09/21/11
300
Danbury
CT
643,736
3,621,163
 
               68,366
                   161
 
643,736
          3,689,690
          4,333,426
                   2,108,925
 
09/30/97
300
Casselberry
FL
1,979,598
8,256,394
 
               14,554
           167,804
 
1,979,598
          8,438,752
        10,418,350
                   3,691,229
12/30/03
05/31/95
300
Hialeah
FL
2,104,393
3,910,500
 
 None
 None
 
2,104,393
          3,910,500
          6,014,893
                      749,496
 
03/26/07
300
Miami
FL
3,115,101
5,665,079
 
 None
                   106
 
3,115,101
          5,665,185
          8,780,286
                   2,056,094
05/19/00
06/07/99
300
Oakland Park
FL
2,800,000
2,196,480
 
 None
 None
 
2,800,000
          2,196,480
          4,996,480
                      827,532
07/06/01
03/27/01
300
Orlando
FL
2,144,778
3,755,905
 
 None
 None
 
2,144,778
          3,755,905
          5,900,683
                   1,223,904
08/07/03
11/26/02
300
Pembroke Pines
FL
1,714,388
4,387,824
 
 None
 None
 
1,714,388
          4,387,824
          6,102,212
                   1,946,539
12/11/00
10/01/99
300
Sunrise
FL
2,850,000
3,601,884
 
 None
 None
 
2,850,000
          3,601,884
          6,451,884
                      174,091
 
10/22/10
300
Alsip
IL
2,944,221
5,467,839
 
 None
 None
 
2,944,221
          5,467,839
          8,412,060
                      446,540
 
12/30/09
300
Bolinbrook
IL
3,010,512
8,161,186
 
 None
 None
 
3,010,512
          8,161,186
        11,171,698
                   1,328,070
10/26/07
01/24/07
300
Glendale Heights
IL
1,213,770
2,255,063
 
 None
 None
 
1,213,770
          2,255,063
          3,468,833
                      432,218
 
03/26/07
300
Waukegan
IL
2,961,951
5,500,766
 
 None
 None
 
2,961,951
          5,500,766
          8,462,717
                      449,229
 
12/30/09
300
Carmel
IN
3,675,000
6,825,000
 
 None
 None
 
3,675,000
          6,825,000
        10,500,000
                      489,125
 
03/29/10
300
Indianapolis
IN
3,008,186
6,999,881
 
 None
 None
 
3,008,186
          6,999,881
        10,008,067
                   1,297,593
03/20/07
08/03/06
300
Southport
IN
2,121,873
7,522,735
 
 None
 None
 
2,121,873
          7,522,735
          9,644,608
                   1,176,015
12/20/07
06/08/07
300
Nottingham
MD
3,055,453
5,675,230
 
 None
 None
 
3,055,453
          5,675,230
          8,730,683
                   1,087,752
 
03/26/07
300
Roseville
MN
3,611,925
8,804,654
 
 None
 None
 
3,611,925
          8,804,654
        12,416,579
                   1,380,337
06/05/08
04/18/07
300
East Brunswick
NJ
1,654,529
3,073,912
 
 None
 None
 
1,654,529
          3,073,912
          4,728,441
                      599,412
 
02/16/07
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Yonkers
NY
1,488,894
2,765,894
 
 None
 None
 
1,488,894
          2,765,894
          4,254,788
                      530,129
 
03/26/07
300
Beachwood
OH
1,504,354
2,794,305
 
 None
                   114
 
1,504,354
          2,794,419
          4,298,773
                      544,898
 
02/16/07
300
Philadelphia
PA
2,254,830
4,188,725
 
 None
 None
 
2,254,830
          4,188,725
          6,443,555
                      816,801
 
02/16/07
300
PIttsburgh
PA
4,420,799
5,542,644
 
 None
 None
 
4,420,799
          5,542,644
          9,963,443
                           4,188
09/01/11
01/12/11
300
Cypress
TX
1,417,377
5,696,789
 
 None
 None
 
1,417,377
          5,696,789
          7,114,166
                   1,262,707
05/15/06
09/14/05
300
Dallas
TX
5,293,733
6,555,637
 
 None
 None
 
5,293,733
          6,555,637
        11,849,370
                   1,391,036
08/04/06
11/09/05
300
Fort Worth
TX
1,445,901
5,277,886
 
 None
 None
 
1,445,901
          5,277,886
          6,723,787
                   2,442,517
06/02/00
06/30/99
300
Keller
TX
1,478,222
5,679,604
 
 None
 None
 
1,478,222
          5,679,604
          7,157,826
                   1,406,079
09/08/05
12/16/04
300
McKinney
TX
1,805,460
5,972,111
 
 None
 None
 
1,805,460
          5,972,111
          7,777,571
                   1,424,322
12/07/05
04/20/05
300
Plano
TX
3,178,115
5,832,224
 
 None
 None
 
3,178,115
          5,832,224
          9,010,339
                   1,391,157
12/06/05
04/22/05
300
San Antonio
TX
1,120,000
2,075,196
 
 None
 None
 
1,120,000
          2,075,196
          3,195,196
                      204,061
 
07/29/09
300
San Antonio
TX
1,200,000
2,489,568
 
 None
 None
 
1,200,000
          2,489,568
          3,689,568
                      244,808
 
07/29/09
300
Kent
WA
4,086,250
7,588,750
 
 None
 None
 
4,086,250
          7,588,750
        11,675,000
                      619,748
 
12/21/09
300
Walla Walla
WA
170,100
377,793
 
                 6,831
               6,711
 
170,100
              391,335
              561,435
                      374,738
 
08/06/87
300
                             
Home Furnishings
                           
Little Rock
AR
1,079,232
2,594,956
 
             102,839
               8,059
 
1,079,232
          2,705,854
          3,785,086
                   1,428,914
 
07/21/98
300
Osceola
AR
88,759
520,047
 
                 4,083
 None
 
88,759
              524,130
              612,889
                      283,774
 
06/30/98
300
Jackson
CA
300,000
390,849
 
                 6,775
               8,819
 
300,000
              406,443
              706,443
                      373,799
 
05/17/88
300
Brandon
FL
430,000
1,020,608
 
 None
                   218
 
430,000
          1,020,826
          1,450,826
                      552,928
 
06/26/98
300
Ocala
FL
339,690
543,504
 
 None
             25,254
 
339,690
              568,758
              908,448
                      341,853
 
11/26/96
300
Tampa
FL
685,000
885,624
 
 None
                   218
 
685,000
              885,842
          1,570,842
                      479,812
 
06/26/98
300
Tampa
FL
494,763
767,737
 
               71,880
                   233
 
494,763
              839,850
          1,334,613
                      472,417
 
12/31/98
300
West Palm Beach
FL
347,651
706,081
 
               69,111
                   233
 
347,651
              775,425
          1,123,076
                      397,976
 
12/31/98
300
Rome
GA
254,902
486,812
 
 None
                   499
 
254,902
              487,311
              742,213
                      294,783
 
11/26/96
300
Davenport
IA
270,000
930,689
 
 None
                   146
 
270,000
              930,835
          1,200,835
                      504,245
 
06/26/98
300
Boise
ID
158,400
351,812
 
 None
                     28
 
158,400
              351,840
              510,240
                      331,615
 
05/06/88
300
Nampa
ID
183,743
408,101
 
 None
                     24
 
183,743
              408,125
              591,868
                      384,668
 
05/06/88
300
Joliet
IL
440,000
910,689
 
 None
                   244
 
440,000
              910,933
          1,350,933
                      493,402
 
06/26/98
300
Anderson
IN
180,628
653,162
 
             100,170
             15,258
 
180,628
              768,590
              949,218
                      444,939
 
11/26/96
300
Kansas City
KS
185,955
413,014
 
               31,870
               8,629
 
185,955
              453,513
              639,468
                      399,537
 
05/13/88
300
Wichita
KS
430,000
740,725
 
 None
                   146
 
430,000
              740,871
          1,170,871
                      401,348
 
06/26/98
300
Alexandria
LA
400,000
810,608
 
 None
                   168
 
400,000
              810,776
          1,210,776
                      439,100
 
06/26/98
300
Monroe
LA
450,000
835,608
 
 None
 None
 
450,000
              835,608
          1,285,608
                      452,619
 
06/26/98
300
Shreveport
LA
525,000
725,642
 
 None
                     73
 
525,000
              725,715
          1,250,715
                      393,056
 
06/26/98
300
Battle Creek
MI
485,000
895,689
 
 None
                   209
 
485,000
              895,898
          1,380,898
                      485,266
 
06/26/98
300
Eden Prairie
MN
500,502
1,055,244
 
 None
 None
 
500,502
          1,055,244
          1,555,746
                      543,414
 
03/01/99
300
Gulfport
MS
299,464
502,326
 
               49,988
             16,923
 
299,464
              569,237
              868,701
                      328,501
 
11/26/96
300
Hattiesburg
MS
300,000
660,608
 
 None
                   168
 
300,000
              660,776
              960,776
                      357,850
 
06/26/98
300
Ridgeland
MS
281,867
769,890
 
 None
                   211
 
281,867
              770,101
          1,051,968
                      447,937
 
06/27/97
300
Matthews
NC
768,222
843,401
 
               46,414
             38,052
 
768,222
              927,867
          1,696,089
                      465,197
 
12/31/98
300
Omaha
NE
1,956,296
3,949,402
 
               27,005
                     81
 
1,956,296
          3,976,488
          5,932,784
                   2,325,142
 
04/04/97
300
Dayton
OH
401,723
698,872
 
               13,435
             11,195
 
401,723
              723,502
          1,125,225
                      385,395
 
06/29/98
300
Lancaster
OH
250,000
830,689
 
 None
                   319
 
250,000
              831,008
          1,081,008
                      450,164
 
06/26/98
300
Altoona
PA
455,000
745,694
 
 None
 None
 
455,000
              745,694
          1,200,694
                      403,915
 
06/26/98
300
Erie
PA
510,000
900,689
 
 None
 None
 
510,000
              900,689
          1,410,689
                      487,871
 
06/26/98
300
Pennsdale
PA
315,000
835,648
 
 None
 None
 
315,000
              835,648
          1,150,648
                      452,640
 
06/26/98
300
Whitehall
PA
515,525
1,146,868
 
 None
                   457
 
515,525
          1,147,325
          1,662,850
                      621,642
 
06/30/98
300
Columbia
SC
600,000
900,725
 
 None
                   428
 
600,000
              901,153
          1,501,153
                      488,242
 
06/26/98
300
Jackson
TN
381,076
857,261
 
               35,685
             16,534
 
381,076
              909,480
          1,290,556
                      504,608
 
09/26/97
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Jackson
TN
380,000
750,608
 
 None
                     82
 
380,000
              750,690
          1,130,690
                      406,617
 
06/26/98
300
Memphis
TN
804,262
1,432,520
 
               35,328
                   223
 
804,262
          1,468,071
          2,272,333
                      840,310
 
06/30/97
300
Abilene
TX
400,000
680,616
 
 None
 None
 
400,000
              680,616
          1,080,616
                      368,665
 
06/26/98
300
Cedar Park
TX
253,591
827,237
 
 None
               3,010
 
253,591
              830,247
          1,083,838
                      491,754
 
03/26/97
300
Plainview
TX
125,000
734,558
 
               40,000
 None
 
125,000
              774,558
              899,558
                      485,670
 
01/24/84
180
San Antonio
TX
323,451
637,991
 
               47,914
                   115
 
323,451
              686,020
          1,009,471
                      380,788
 
12/31/98
300
Webster
TX
283,604
538,002
 
                 2,470
                   354
 
283,604
              540,826
              824,430
                      314,836
 
06/13/97
300
Pasco
WA
161,700
359,142
 
               56,707
             14,444
 
161,700
              430,293
              591,993
                      373,375
 
08/18/87
300
Eau Claire
WI
260,000
820,689
 
 None
                   146
 
260,000
              820,835
          1,080,835
                      444,662
 
06/26/98
300
La Crosse
WI
372,883
877,812
 
 None
                   146
 
372,883
              877,958
          1,250,841
                      475,603
 
06/26/98
300
                             
Home Improvement
                           
Lawndale
CA
667,007
1,238,841
 
 None
 None
 
667,007
          1,238,841
          1,905,848
                      646,260
 
12/31/98
300
Los Angeles
CA
902,494
1,676,204
 
 None
                     31
 
902,494
          1,676,235
          2,578,729
                      874,418
 
12/31/98
300
Los Angeles
CA
163,668
304,097
 
 None
                     78
 
163,668
              304,175
              467,843
                      158,707
 
12/31/98
300
Van Nuys
CA
750,293
1,393,545
 
 None
 None
 
750,293
          1,393,545
          2,143,838
                      726,964
 
12/31/98
300
West Covina
CA
311,040
577,733
 
 None
 None
 
311,040
              577,733
              888,773
                      301,383
 
12/31/98
300
Pensacola
FL
419,842
1,899,287
 
               91,217
                   261
 
419,842
          1,990,765
          2,410,607
                   1,193,107
 
11/26/96
300
Broadview
IL
345,166
641,739
 
 None
 None
 
345,166
              641,739
              986,905
                      334,785
 
12/31/98
300
Lenexa
KS
1,051,077
1,952,233
 
 None
 None
 
1,051,077
          1,952,233
          3,003,310
                      465,282
 
01/06/06
300
Lenexa
KS
3,688,591
6,850,770
 
 None
 None
 
3,688,591
          6,850,770
        10,539,361
                   1,632,767
 
01/06/06
300
Baltimore
MD
171,320
318,882
 
 None
                     86
 
171,320
              318,968
              490,288
                      166,403
 
12/31/98
300
Blue Springs
MO
870,071
1,616,080
 
 None
 None
 
870,071
          1,616,080
          2,486,151
                      385,166
 
01/06/06
300
Chillicothe
MO
804,948
1,495,138
 
 None
 None
 
804,948
          1,495,138
          2,300,086
                      356,341
 
01/06/06
300
Columbia
MO
2,039,436
3,787,757
 
 None
                     30
 
2,039,436
          3,787,787
          5,827,223
                      902,766
 
01/06/06
300
Columbia
MO
1,080,521
2,006,915
 
 None
 None
 
1,080,521
          2,006,915
          3,087,436
                      478,315
 
01/06/06
300
Fulton
MO
791,603
1,470,353
 
 None
 None
 
791,603
          1,470,353
          2,261,956
                      350,434
 
01/06/06
300
Jefferson City
MO
1,481,299
2,751,217
 
 None
 None
 
1,481,299
          2,751,217
          4,232,516
                      655,707
 
01/06/06
300
Kirksville
MO
1,421,788
2,640,696
 
 None
 None
 
1,421,788
          2,640,696
          4,062,484
                      629,366
 
01/06/06
300
Macon
MO
493,394
916,537
 
 None
 None
 
493,394
              916,537
          1,409,931
                      218,441
 
01/06/06
300
Moberly
MO
1,293,387
2,402,283
 
 None
 None
 
1,293,387
          2,402,283
          3,695,670
                      572,543
 
01/06/06
300
Omaha
NE
1,515,773
2,816,678
 
 None
 None
 
1,515,773
          2,816,678
          4,332,451
                      671,309
 
01/06/06
300
Rochester
NY
158,168
294,456
 
 None
 None
 
158,168
              294,456
              452,624
                      153,619
 
12/31/98
300
Carrollton
TX
201,569
374,342
 
 None
 None
 
201,569
              374,342
              575,911
                      120,413
 
12/05/03
300
Midland
TX
1,590,052
2,953,473
 
 None
 None
 
1,590,052
          2,953,473
          4,543,525
                      703,911
 
01/06/06
300
Odessa
TX
1,346,834
2,501,783
 
 None
 None
 
1,346,834
          2,501,783
          3,848,617
                      596,258
 
01/06/06
300
Pasadena
TX
147,535
274,521
 
 None
                   128
 
147,535
              274,649
              422,184
                      143,224
 
12/31/98
300
Plano
TX
363,851
676,249
 
 None
 None
 
363,851
              676,249
          1,040,100
                      352,779
 
12/31/98
300
San Antonio
TX
367,890
683,750
 
 None
 None
 
367,890
              683,750
          1,051,640
                      356,692
 
12/31/98
300
Chesapeake
VA
144,014
649,869
 
 None
             11,754
 
144,014
              661,623
              805,637
                      658,372
 
12/22/86
300
Des Moines
IA
225,771
682,604
 
 None
 None
 
225,771
              682,604
              908,375
                      353,809
 
01/29/99
300
                             
Motor Vehicle Dealerships
                       
Robertsdale
AL
3,026,015
6,117,490
 
 None
 None
 
3,026,015
          6,117,490
          9,143,505
                   1,226,360
01/29/07
04/07/06
300
Longmont
CO
2,502,092
6,906,609
 
 None
                   115
 
2,502,092
          6,906,724
          9,408,816
                   2,037,483
 
08/25/04
300
Gulf Breeze
FL
3,518,413
905,480
 
 None
 None
 
3,518,413
              905,480
          4,423,893
                      206,751
 
04/07/06
300
Woodstock
GA
2,509,102
2,509,993
 
 None
 None
 
2,509,102
          2,509,993
          5,019,095
                      623,315
 
10/25/05
300
Island Lake
IL
2,107,134
6,383,412
 
 None
 None
 
2,107,134
          6,383,412
          8,490,546
                   1,679,197
 
12/31/04
300
Colfax
NC
1,125,979
2,196,033
 
 None
 None
 
1,125,979
          2,196,033
          3,322,012
                      616,135
 
12/31/04
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Statesville
NC
2,353,825
4,159,653
 
 None
 None
 
2,353,825
          4,159,653
          6,513,478
                   1,143,385
 
05/13/04
300
Chichester
NH
578,314
4,546,307
 
 None
 None
 
578,314
          4,546,307
          5,124,621
                   1,263,578
 
10/01/04
300
Churchville
NY
1,000,000
5,755,166
 
 None
 None
 
1,000,000
          5,755,166
          6,755,166
                   1,281,503
06/06/06
03/23/06
300
Green
OH
715,953
554,589
 
 None
 None
 
715,953
              554,589
          1,270,542
                      140,004
02/13/06
01/19/05
300
Hillsboro
OR
1,611,084
1,936,755
 
 None
 None
 
1,611,084
          1,936,755
          3,547,839
                      409,946
 
09/01/06
300
Woods Village
OR
3,822,277
5,687,110
 
 None
 None
 
3,822,277
          5,687,110
          9,509,387
                   1,139,216
 
09/01/06
300
Myrtle Beach
SC
4,099,824
2,081,997
 
        (1,800,804)
 None
 
2,299,020
          2,081,997
          4,381,017
                      565,494
07/28/00
03/03/05
300
Austin
TX
2,100,000
3,900,895
 
 None
 None
 
2,100,000
          3,900,895
          6,000,895
                      617,640
 
01/31/08
300
Katy
TX
1,347,454
8,564,135
 
 None
 None
 
1,347,454
          8,564,135
          9,911,589
                   2,105,254
10/28/05
01/25/05
300
                             
Office Supplies
                           
Lakewood
CA
1,398,387
3,098,607
 
 None
                   192
 
1,398,387
          3,098,799
          4,497,186
                   1,853,945
 
01/29/97
300
Riverside
CA
1,410,177
1,659,850
 
 None
 None
 
1,410,177
          1,659,850
          3,070,027
                      948,815
 
09/17/97
300
Casselberry
FL
0
1,277,112
 
 None
 None
 
0
          1,277,112
          1,277,112
                      312,885
07/14/05
01/25/05
300
Hutchinson
KS
269,964
1,704,013
 
               52,136
 None
 
269,964
          1,756,149
          2,026,113
                   1,010,873
 
06/25/97
300
Salina
KS
240,423
1,829,837
 
               51,939
 None
 
240,423
          1,881,776
          2,122,199
                   1,091,555
 
06/25/97
300
Sikeston
MO
409,114
2,005,416
 
 None
 None
 
409,114
          2,005,416
          2,414,530
                      798,811
 
01/24/02
300
Helena
MT
564,241
1,503,118
 
               14,233
 None
 
564,241
          1,517,351
          2,081,592
                      888,412
 
06/09/97
300
Asheboro
NC
465,557
2,176,416
 
               21,418
                   340
 
465,557
          2,198,174
          2,663,731
                   1,222,035
 
03/27/98
300
Westbury
NY
3,808,076
2,377,932
 
                 7,206
           338,968
 
3,808,076
          2,724,106
          6,532,182
                   1,377,366
 
09/29/97
300
New Philadelphia
OH
726,636
1,650,672
 
                 7,960
                   114
 
726,636
          1,658,746
          2,385,382
                      969,486
 
05/30/97
300
Edmond
OK
1,390,000
3,009,650
 
                 8,201
 None
 
1,390,000
          3,017,851
          4,407,851
                      145,552
 
10/22/10
300
                             
Packaging
                           
Raphine
VA
2,679,884
21,236,904
 
 None
 None
 
2,679,884
        21,236,904
        23,916,788
                      460,133
 
06/03/11
300
                             
Paper
                           
Marianna
FL
1,473,182
6,930,359
 
 None
 None
 
1,473,182
          6,930,359
          8,403,541
                      173,259
 
05/02/11
300
                             
Pet Supplies and Services
                       
Duluth
GA
361,058
1,591,629
 
 None
 None
 
361,058
          1,591,629
          1,952,687
                      765,752
01/27/99
09/29/98
300
Marietta
GA
495,412
1,526,370
 
 None
 None
 
495,412
          1,526,370
          2,021,782
                      717,701
05/28/99
09/29/98
300
Indianapolis
IN
427,000
1,296,901
 
 None
 None
 
427,000
          1,296,901
          1,723,901
                      603,866
03/10/00
01/19/99
300
Sudbury
MA
543,038
2,477,213
 
 None
 None
 
543,038
          2,477,213
          3,020,251
                   1,134,457
11/12/99
09/30/98
300
Tyngsborough
MA
312,204
1,222,522
 
 None
 None
 
312,204
          1,222,522
          1,534,726
                      662,193
 
06/12/98
300
Warren
MI
356,348
903,351
 
             155,408
             31,687
 
356,348
          1,090,446
          1,446,794
                      541,346
 
01/09/98
300
Matthews
NC
610,177
1,394,743
 
               66,945
 None
 
610,177
          1,461,688
          2,071,865
                      751,401
 
07/17/98
300
North Plainfield
NJ
985,430
1,590,447
 
 None
 None
 
985,430
          1,590,447
          2,575,877
                      777,579
 
09/24/98
300
Albuquerque
NM
684,036
874,914
 
             305,425
             21,585
 
684,036
          1,201,924
          1,885,960
                      619,056
 
12/31/98
300
Franklin
OH
337,572
777,943
 
               41,328
             22,715
 
337,572
              841,986
          1,179,558
                      445,873
 
12/30/97
300
Maineville
OH
173,105
384,468
 
               24,215
             12,804
 
173,105
              421,487
              594,592
                      390,041
 
03/06/87
300
Dickson City
PA
659,790
1,880,722
 
                 5,396
                   161
 
659,790
          1,886,279
          2,546,069
                   1,097,608
 
06/20/97
300
Mt Pleasant
SC
40,700
180,400
 
               17,385
             19,091
 
40,700
              216,876
              257,576
                      198,302
 
12/22/81
180
Clarksville
TN
290,775
395,870
 
 None
                   340
 
290,775
              396,210
              686,985
                      239,573
 
11/26/96
300
                             
Restaurants - casual dining
                       
Boaz
AL
829,001
1,541,245
 
 None
 None
 
829,001
          1,541,245
          2,370,246
                      315,954
 
11/01/06
300
Enterprise
AL
840,946
1,563,474
 
 None
 None
 
840,946
          1,563,474
          2,404,420
                      320,511
 
11/01/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)      
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements        
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Fort Payne
AL
814,113
1,513,596
 
 None
 None
 
814,113
          1,513,596
          2,327,709
                      310,286
 
11/01/06
300
Gadsden
AL
851,124
1,582,332
 
                 5,209
                   108
 
851,124
          1,587,649
          2,438,773
                      324,413
 
11/01/06
300
Huntsville
AL
811,599
1,508,927
 
 None
 None
 
811,599
          1,508,927
          2,320,526
                      309,329
 
11/01/06
300
Huntsville
AL
826,840
1,537,233
 
                 2,855
                     24
 
826,840
          1,540,112
          2,366,952
                      315,146
 
11/01/06
300
Sylacauga
AL
801,413
1,490,012
 
               19,613
                   108
 
801,413
          1,509,733
          2,311,146
                      311,626
 
11/01/06
300
Conway
AR
941,465
1,750,100
 
 None
 None
 
941,465
          1,750,100
          2,691,565
                      358,769
 
11/01/06
300
El Dorado
AR
907,534
1,687,608
 
 None
                   149
 
907,534
          1,687,757
          2,595,291
                      345,973
 
11/01/06
300
Russellville
AR
864,497
1,607,158
 
 None
 None
 
864,497
          1,607,158
          2,471,655
                      329,466
 
11/01/06
300
Glendale
AZ
1,511,430
3,264,231
 
 None
 None
 
1,511,430
          3,264,231
          4,775,661
                      661,159
11/06/06
05/16/06
300
Glendale
AZ
624,761
895,976
 
 None
             50,952
 
624,761
              946,928
          1,571,689
                      580,686
 
03/06/96
300
Goodyear
AZ
794,360
1,274,445
 
 None
 None
 
794,360
          1,274,445
          2,068,805
                      268,822
02/23/06
04/08/05
300
Surprise
AZ
681,288
1,008,310
 
 None
 None
 
681,288
          1,008,310
          1,689,598
                      276,052
09/29/04
04/16/04
300
San Dimas
CA
240,562
445,521
 
               46,026
               2,639
 
240,562
              494,186
              734,748
                      468,722
 
03/12/81
180
Denver
CO
540,250
1,132,450
 
 None
 None
 
540,250
          1,132,450
          1,672,700
                      316,521
07/29/04
03/29/04
300
Lakewood
CO
1,606,511
5,865
 
 None
 None
 
1,606,511
                  5,865
          1,612,376
                           1,731
07/26/06
12/31/02
300
Parker
CO
778,054
1,148,443
 
 None
             13,550
 
778,054
          1,161,993
          1,940,047
                      301,431
06/10/05
02/23/05
300
Cromwell
CT
531,861
989,638
 
 None
 None
 
531,861
              989,638
          1,521,499
                      159,986
 
12/19/07
300
Danbury
CT
548,459
284,639
 
 None
 None
 
548,459
              284,639
              833,098
                      114,329
 
12/19/01
300
East Windsor
CT
0
1,235,134
 
 None
 None
 
0
          1,235,134
          1,235,134
                      216,126
 
08/30/07
300
Manchester
CT
0
1,353,727
 
 None
 None
 
0
          1,353,727
          1,353,727
                      236,880
 
08/30/07
300
New Milford
CT
0
705,127
 
 None
 None
 
0
              705,127
              705,127
                      123,375
 
08/30/07
300
Norwich
CT
644,000
1,198,741
 
 None
 None
 
644,000
          1,198,741
          1,842,741
                      209,763
 
08/30/07
300
Plainville
CT
0
1,452,933
 
 None
 None
 
0
          1,452,933
          1,452,933
                      254,241
 
08/30/07
300
Torrington
CT
504,167
939,051
 
                     957
                   317
 
504,167
              940,325
          1,444,492
                      164,330
 
08/30/07
300
Unionville
CT
167,740
316,672
 
 None
 None
 
167,740
              316,672
              484,412
                      127,195
 
12/19/01
300
Waterbury
CT
521,021
705,163
 
 None
 None
 
521,021
              705,163
          1,226,184
                      283,239
 
12/19/01
300
West Haven
CT
540,663
1,006,829
 
 None
 None
 
540,663
          1,006,829
          1,547,492
                      176,178
 
08/30/07
300
Windsor Locks
CT
844,967
1,571,965
 
 None
 None
 
844,967
          1,571,965
          2,416,932
                      275,077
 
08/30/07
300
Casselberry
FL
403,900
897,075
 
                 2,816
                   223
 
403,900
              900,114
          1,304,014
                      786,699
 
12/29/89
300
Jacksonville
FL
1,451,180
658,461
 
               25,752
             23,207
 
1,451,180
              707,420
          2,158,600
                      159,651
08/04/06
05/09/06
300
Land O' Lakes
FL
770,136
1,190,937
 
 None
 None
 
770,136
          1,190,937
          1,961,073
                      280,559
10/21/05
03/24/05
300
Melbourne
FL
0
790,083
 
                     669
                   306
 
0
              791,058
              791,058
                      160,931
 
08/30/07
300
New Port Richey
FL
929,402
1,459,392
 
               56,969
             32,400
 
929,402
          1,548,761
          2,478,163
                      318,167
11/13/06
08/01/06
300
Orlando
FL
230,000
1,066,339
 
 None
 None
 
230,000
          1,066,339
          1,296,339
                   1,066,339
 
11/18/85
300
Orlando
FL
209,800
972,679
 
 None
 None
 
209,800
              972,679
          1,182,479
                      972,679
 
08/15/86
300
Orlando
FL
735,000
1,367,891
 
 None
 None
 
735,000
          1,367,891
          2,102,891
                      239,364
 
08/30/07
300
Orlando
FL
0
790,583
 
 None
                   278
 
0
              790,861
              790,861
                      138,337
 
08/30/07
300
Orlando
FL
1,135,310
1,306,940
 
 None
             18,336
 
1,135,310
          1,325,276
          2,460,586
                      253,098
01/10/07
06/30/06
300
Americus
GA
709,624
1,319,578
 
 None
                     24
 
709,624
          1,319,602
          2,029,226
                      270,515
 
11/01/06
300
Augusta
GA
827,895
1,539,237
 
 None
 None
 
827,895
          1,539,237
          2,367,132
                      315,542
 
11/01/06
300
Gainesville
GA
952,660
1,770,931
 
 None
 None
 
952,660
          1,770,931
          2,723,591
                      363,040
 
11/01/06
300
Lagrange
GA
853,599
1,586,959
 
 None
 None
 
853,599
          1,586,959
          2,440,558
                      325,325
 
11/01/06
300
Lithonia
GA
89,220
413,647
 
 None
 None
 
89,220
              413,647
              502,867
                      413,647
 
01/04/85
300
Norcross
GA
827,707
1,538,875
 
 None
 None
 
827,707
          1,538,875
          2,366,582
                      315,468
 
11/01/06
300
Savannah
GA
719,188
1,337,352
 
 None
 None
 
719,188
          1,337,352
          2,056,540
                      274,156
 
11/01/06
300
Snellville
GA
710,600
1,321,389
 
               64,999
                   882
 
710,600
          1,387,270
          2,097,870
                      284,723
 
11/01/06
300
Statesboro
GA
926,462
1,722,290
 
 None
 None
 
926,462
          1,722,290
          2,648,752
                      353,068
 
11/01/06
300
Stone Mountain
GA
215,940
1,001,188
 
               51,876
 None
 
215,940
          1,053,064
          1,269,004
                   1,053,064
 
10/30/86
300
Thomasville
GA
894,504
1,662,939
 
 None
 None
 
894,504
          1,662,939
          2,557,443
                      340,901
 
11/01/06
300
Valdosta
GA
901,658
1,676,225
 
 None
 None
 
901,658
          1,676,225
          2,577,883
                      343,625
 
11/01/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Warner Robins
GA
896,841
1,667,267
 
 None
 None
 
896,841
          1,667,267
          2,564,108
                      341,788
 
11/01/06
300
Waycross
GA
956,765
1,778,566
 
 None
 None
 
956,765
          1,778,566
          2,735,331
                      364,605
 
11/01/06
300
Altoona
IA
654,179
1,285,639
 
 None
 None
 
654,179
          1,285,639
          1,939,818
                      329,495
06/11/05
12/30/04
300
Ankeny
IA
100,000
349,218
 
               25,075
 None
 
100,000
              374,293
              474,293
                      370,532
 
07/28/83
180
Burlington
IA
653,057
1,214,571
 
 None
                   284
 
653,057
          1,214,855
          1,867,912
                      249,194
 
11/01/06
300
Cedar Rapids
IA
822,331
1,528,939
 
 None
 None
 
822,331
          1,528,939
          2,351,270
                      313,431
 
11/01/06
300
Clive
IA
840,697
1,563,046
 
 None
 None
 
840,697
          1,563,046
          2,403,743
                      320,423
 
11/01/06
300
Nampa
ID
74,156
343,820
 
 None
                   127
 
74,156
              343,947
              418,103
                      343,945
 
12/31/86
300
Alton
IL
225,785
419,315
 
 None
 None
 
225,785
              419,315
              645,100
                      387,892
 
10/18/88
300
Champaign
IL
805,888
1,498,402
 
 None
                   400
 
805,888
          1,498,802
          2,304,690
                      307,412
 
11/01/06
300
Effingham
IL
783,528
1,456,874
 
 None
 None
 
783,528
          1,456,874
          2,240,402
                      298,658
 
11/01/06
300
Marion
IL
831,323
1,545,566
 
 None
 None
 
831,323
          1,545,566
          2,376,889
                      316,840
 
11/01/06
300
Moline
IL
781,044
1,452,262
 
 None
 None
 
781,044
          1,452,262
          2,233,306
                      297,713
 
11/01/06
300
Mt Vernon
IL
883,110
1,641,741
 
 None
 None
 
883,110
          1,641,741
          2,524,851
                      336,556
 
11/01/06
300
Oswego
IL
953,394
1,208,677
 
                 1,988
             32,452
 
953,394
          1,243,117
          2,196,511
                      300,900
06/15/05
06/24/05
300
Peoria
IL
662,460
1,060,577
 
               14,651
             24,139
 
662,460
          1,099,367
          1,761,827
                      303,288
10/13/04
06/15/04
300
Springfield
IL
846,830
1,574,436
 
 None
 None
 
846,830
          1,574,436
          2,421,266
                      322,758
 
11/01/06
300
Swansea
IL
890,625
1,655,743
 
               94,462
             11,230
 
890,625
          1,761,435
          2,652,060
                      357,346
 
11/01/06
300
Waukegan
IL
1,330,000
2,470,909
 
 None
 None
 
1,330,000
          2,470,909
          3,800,909
                      399,463
 
12/21/07
300
Anderson
IN
831,077
1,545,131
 
 None
 None
 
831,077
          1,545,131
          2,376,208
                      316,751
 
11/01/06
300
Elkhart
IN
835,890
1,554,487
 
 None
 None
 
835,890
          1,554,487
          2,390,377
                      318,654
 
11/01/06
300
Marion
IN
685,194
1,274,206
 
               11,792
               9,608
 
685,194
          1,295,606
          1,980,800
                      261,587
 
11/01/06
300
Michigan City
IN
840,998
1,563,545
 
 None
 None
 
840,998
          1,563,545
          2,404,543
                      320,526
 
11/01/06
300
Terre Haute
IN
767,189
1,426,532
 
 None
 None
 
767,189
          1,426,532
          2,193,721
                      292,438
 
11/01/06
300
Derby
KS
96,060
445,359
 
 None
                   196
 
96,060
              445,555
              541,615
                      445,416
 
10/29/85
300
El Dorado
KS
87,400
405,206
 
 None
 None
 
87,400
              405,206
              492,606
                      405,206
 
04/10/86
300
Shawnee
KS
953,916
1,773,245
 
 None
 None
 
953,916
          1,773,245
          2,727,161
                      363,514
 
11/01/06
300
Wichita
KS
787,377
1,463,936
 
 None
 None
 
787,377
          1,463,936
          2,251,313
                      300,106
 
11/01/06
300
Hopkinsville
KY
801,532
1,490,241
 
 None
 None
 
801,532
          1,490,241
          2,291,773
                      305,498
 
11/01/06
300
Louisville
KY
821,990
1,528,282
 
 None
 None
 
821,990
          1,528,282
          2,350,272
                      313,297
 
11/01/06
300
Middlesboro
KY
859,709
1,598,332
 
 None
 None
 
859,709
          1,598,332
          2,458,041
                      327,657
 
11/01/06
300
Murray
KY
831,246
1,545,422
 
 None
                   187
 
831,246
          1,545,609
          2,376,855
                      316,877
 
11/01/06
300
Richmond
KY
913,770
1,698,726
 
 None
 None
 
913,770
          1,698,726
          2,612,496
                      348,238
 
11/01/06
300
Alexandria
LA
1,270,223
2,361,174
 
 None
 None
 
1,270,223
          2,361,174
          3,631,397
                      484,040
 
11/01/06
300
Hammond
LA
1,011,084
1,879,972
 
 None
 None
 
1,011,084
          1,879,972
          2,891,056
                      385,393
 
11/01/06
300
Houma
LA
1,061,671
1,973,864
 
 None
 None
 
1,061,671
          1,973,864
          3,035,535
                      404,641
 
11/01/06
300
Jennings
LA
107,120
496,636
 
 None
                   168
 
107,120
              496,804
              603,924
                      496,659
 
10/17/85
300
Morgan City
LA
832,895
1,548,993
 
 None
 None
 
832,895
          1,548,993
          2,381,888
                      317,542
 
11/01/06
300
New Iberia
LA
917,582
1,706,269
 
               80,944
             30,339
 
917,582
          1,817,552
          2,735,134
                      352,292
 
11/01/06
300
Opelousas
LA
949,157
1,764,908
 
               36,600
             20,658
 
949,157
          1,822,166
          2,771,323
                      382,130
 
11/01/06
300
Pineville
LA
1,136,612
2,113,040
 
 None
 None
 
1,136,612
          2,113,040
          3,249,652
                      433,172
 
11/01/06
300
Ruston
LA
982,427
1,826,696
 
 None
 None
 
982,427
          1,826,696
          2,809,123
                      374,471
 
11/01/06
300
Zachary
LA
898,306
1,670,527
 
 None
 None
 
898,306
          1,670,527
          2,568,833
                      342,457
 
11/01/06
300
Amesbury
MA
0
790,494
 
 None
 None
 
0
              790,494
              790,494
                      230,379
 
08/30/07
300
Attleboro
MA
369,815
693,655
 
 None
 None
 
369,815
              693,655
          1,063,470
                      278,617
 
12/19/01
300
Auburn
MA
418,250
779,623
 
                     500
 None
 
418,250
              780,123
          1,198,373
                      136,633
 
08/30/07
300
Billerica
MA
398,292
740,107
 
 None
                   317
 
398,292
              740,424
          1,138,716
                      122,124
 
11/14/07
300
Chicopee
MA
761,606
1,417,624
 
 None
 None
 
761,606
          1,417,624
          2,179,230
                      248,067
 
08/30/07
300
Chicopee Falls
MA
302,982
565,894
 
 None
                   317
 
302,982
              566,211
              869,193
                        99,023
 
08/30/07
300
East Longmeadow
MA
614,319
1,144,128
 
 None
 None
 
614,319
          1,144,128
          1,758,447
                      200,205
 
08/30/07
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
     
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Gardner
MA
0
828,564
 
 None
 None
 
0
              828,564
              828,564
                      220,663
 
08/30/07
300
Great Barrington
MA
422,625
788,089
 
 None
 None
 
422,625
              788,089
          1,210,714
                      137,898
 
08/30/07
300
Greenfield
MA
761,417
1,417,273
 
 None
 None
 
761,417
          1,417,273
          2,178,690
                      248,006
 
08/30/07
300
Greenfield
MA
389,436
726,452
 
 None
                   145
 
389,436
              726,597
          1,116,033
                      127,114
 
08/30/07
300
Hanover
MA
397,203
281,202
 
 None
 None
 
397,203
              281,202
              678,405
                      112,948
 
12/19/01
300
Haverhill
MA
568,635
1,058,815
 
 None
 None
 
568,635
          1,058,815
          1,627,450
                      185,275
 
08/30/07
300
Holyoke
MA
577,667
1,076,023
 
 None
 None
 
577,667
          1,076,023
          1,653,690
                      188,287
 
08/30/07
300
Hyannis
MA
687,917
1,280,767
 
 None
 None
 
687,917
          1,280,767
          1,968,684
                      224,117
 
08/30/07
300
Lee
MA
540,506
1,007,010
 
 None
 None
 
540,506
          1,007,010
          1,547,516
                      176,210
 
08/30/07
300
North Adams
MA
377,300
703,914
 
 None
 None
 
377,300
              703,914
          1,081,214
                      123,168
 
08/30/07
300
Norwood
MA
840,616
1,563,923
 
 None
 None
 
840,616
          1,563,923
          2,404,539
                      273,669
 
08/30/07
300
Palmer
MA
141,524
598,480
 
 None
 None
 
141,524
              598,480
              740,004
                      240,388
 
12/19/01
300
Peabody
MA
529,555
222,590
 
 None
 None
 
529,555
              222,590
              752,145
                        89,405
 
12/19/01
300
Pittsfield
MA
286,241
950,022
 
 None
 None
 
286,241
              950,022
          1,236,263
                      381,590
 
12/19/01
300
Quincy
MA
289,121
539,719
 
 None
                   317
 
289,121
              540,036
              829,157
                        94,443
 
08/30/07
300
Raynham
MA
761,417
1,417,287
 
 None
 None
 
761,417
          1,417,287
          2,178,704
                      248,007
 
08/30/07
300
Sagamore Beach
MA
620,188
1,155,007
 
 None
 None
 
620,188
          1,155,007
          1,775,195
                      202,109
 
08/30/07
300
Saugus
MA
0
737,971
 
 None
 None
 
0
              737,971
              737,971
                      180,926
 
08/30/07
300
Seekonk
MA
614,417
1,144,267
 
 None
 None
 
614,417
          1,144,267
          1,758,684
                      200,230
 
08/30/07
300
South Dartmouth
MA
379,217
707,492
 
 None
 None
 
379,217
              707,492
          1,086,709
                      123,794
 
08/30/07
300
Springfield
MA
230,030
865,572
 
 None
 None
 
230,030
              865,572
          1,095,602
                      347,670
 
12/19/01
300
Springfield
MA
227,207
958,444
 
 None
 None
 
227,207
              958,444
          1,185,651
                      384,973
 
12/19/01
300
Stoneham
MA
397,544
191,717
 
 None
 None
 
397,544
              191,717
              589,261
                        77,005
 
12/19/01
300
Sudbury
MA
0
633,843
 
 None
 None
 
0
              633,843
              633,843
                      148,456
 
08/30/07
300
Swansea
MA
173,853
488,699
 
 None
 None
 
173,853
              488,699
              662,552
                      196,293
 
12/19/01
300
Tewksbury
MA
392,079
730,927
 
 None
 None
 
392,079
              730,927
          1,123,006
                      127,895
 
08/30/07
300
Ware
MA
220,457
412,133
 
                     500
                   317
 
220,457
              412,950
              633,407
                        72,332
 
08/30/07
300
West Springfield
MA
761,417
1,417,273
 
 None
 None
 
761,417
          1,417,273
          2,178,690
                      248,006
 
08/30/07
300
West Springfield
MA
243,556
455,532
 
 None
                   317
 
243,556
              455,849
              699,405
                        79,710
 
08/30/07
300
Wilbraham
MA
9,626,112
17,877,779
 
                 2,500
 None
 
9,626,112
        17,880,279
        27,506,391
                   3,129,678
 
08/30/07
300
Wollaston
MA
411,366
766,745
 
 None
 None
 
411,366
              766,745
          1,178,111
                      134,163
 
08/30/07
300
Worcester
MA
578,336
1,077,426
 
 None
 None
 
578,336
          1,077,426
          1,655,762
                      188,532
 
08/30/07
300
Waterville
ME
0
717,653
 
 None
 None
 
0
              717,653
              717,653
                      125,567
 
08/30/07
300
Windham
ME
0
831,301
 
                 1,000
 None
 
0
              832,301
              832,301
                      145,889
 
08/30/07
300
Comstock Park
MI
810,477
1,506,864
 
 None
 None
 
810,477
          1,506,864
          2,317,341
                      308,906
 
11/01/06
300
Flint
MI
827,853
0
 
 None
 None
 
827,853
                         -
              827,853
                                  -
 
04/13/95
300
Flint
MI
885,144
1,645,531
 
 None
                   134
 
885,144
          1,645,665
          2,530,809
                      337,373
 
11/01/06
300
Lansing
MI
873,536
1,623,973
 
 None
 None
 
873,536
          1,623,973
          2,497,509
                      332,913
 
11/01/06
300
Saginaw
MI
766,531
1,425,263
 
                 2,030
 None
 
766,531
          1,427,293
          2,193,824
                      292,203
 
11/01/06
300
Taylor
MI
847,070
1,574,821
 
                 2,030
                     24
 
847,070
          1,576,875
          2,423,945
                      322,865
 
11/01/06
300
Westland
MI
869,530
1,616,568
 
 None
                   134
 
869,530
          1,616,702
          2,486,232
                      331,436
 
11/01/06
300
Roseville
MN
281,600
1,305,560
 
 None
 None
 
281,600
          1,305,560
          1,587,160
                   1,305,560
 
12/18/84
300
Belton
MO
89,328
418,187
 
               22,270
                     30
 
89,328
              440,487
              529,815
                      440,460
 
12/18/84
300
Bridgeton
MO
743,559
1,585,207
 
             109,755
             21,922
 
743,559
          1,716,884
          2,460,443
                      324,790
 
11/01/06
300
Cape Girardeau
MO
745,915
1,386,950
 
 None
 None
 
745,915
          1,386,950
          2,132,865
                      284,324
 
11/01/06
300
Farmington
MO
780,812
1,451,767
 
 None
 None
 
780,812
          1,451,767
          2,232,579
                      297,611
 
11/01/06
300
Festus
MO
808,595
1,503,364
 
 None
 None
 
808,595
          1,503,364
          2,311,959
                      308,188
 
11/01/06
300
Fulton
MO
210,199
466,861
 
               13,395
                   475
 
210,199
              480,731
              690,930
                      460,919
 
07/30/87
300
Hazelwood
MO
157,117
725,327
 
           (104,329)
 None
 
157,117
              620,998
              778,115
                      620,998
 
08/28/85
300
Jefferson City
MO
713,088
1,325,993
 
 None
 None
 
713,088
          1,325,993
          2,039,081
                      271,827
 
11/01/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Ozark
MO
140,000
292,482
 
 None
 None
 
140,000
              292,482
              432,482
                      165,242
 
11/20/97
300
Poplar Bluff
MO
774,256
1,439,603
 
 None
 None
 
774,256
          1,439,603
          2,213,859
                      295,117
 
11/01/06
300
Raymore
MO
726,583
1,351,055
 
 None
 None
 
726,583
          1,351,055
          2,077,638
                      276,965
 
11/01/06
300
Sedalia
MO
269,798
599,231
 
               11,556
 None
 
269,798
              610,787
              880,585
                      544,259
 
07/31/89
300
Sedalia
MO
696,604
1,295,380
 
 None
                   721
 
696,604
          1,296,101
          1,992,705
                      265,945
 
11/01/06
300
St. Charles
MO
175,413
809,791
 
 None
                     47
 
175,413
              809,838
              985,251
                      809,831
 
08/28/85
300
St. Charles
MO
695,121
1,001,878
 
 None
               1,022
 
695,121
          1,002,900
          1,698,021
                      642,941
12/22/95
03/16/95
300
St. Joseph
MO
775,660
1,785,308
 
 None
 None
 
775,660
          1,785,308
          2,560,968
                      365,987
 
11/01/06
300
St. Robert
MO
744,158
1,383,694
 
 None
 None
 
744,158
          1,383,694
          2,127,852
                      283,656
 
11/01/06
300
Sullivan
MO
85,500
396,400
 
             (40,743)
             13,500
 
85,500
              369,157
              454,657
                      359,466
 
12/27/84
300
Columbus
MS
720,310
1,339,963
 
 None
 None
 
720,310
          1,339,963
          2,060,273
                      274,691
 
11/01/06
300
Corinth
MS
867,086
1,612,029
 
 None
 None
 
867,086
          1,612,029
          2,479,115
                      330,465
 
11/01/06
300
Hattiesburg
MS
856,070
1,592,088
 
 None
 None
 
856,070
          1,592,088
          2,448,158
                      326,377
 
11/01/06
300
Laurel
MS
778,938
1,448,844
 
 None
 None
 
778,938
          1,448,844
          2,227,782
                      297,012
 
11/01/06
300
Meridian
MS
0
2,481,172
 
 None
 None
 
0
          2,481,172
          2,481,172
                      501,408
 
11/01/06
300
Vicksburg
MS
698,189
1,298,881
 
               68,650
             17,663
 
698,189
          1,385,194
          2,083,383
                      287,529
 
11/01/06
300
Albemarle
NC
721,392
1,341,825
 
 None
                   223
 
721,392
          1,342,048
          2,063,440
                      275,240
 
11/01/06
300
Asheville
NC
838,421
1,558,792
 
 None
 None
 
838,421
          1,558,792
          2,397,213
                      319,551
 
11/01/06
300
Forest City
NC
872,424
1,621,940
 
 None
 None
 
872,424
          1,621,940
          2,494,364
                      332,496
 
11/01/06
300
Goldsboro
NC
811,502
1,509,029
 
               71,629
             16,442
 
811,502
          1,597,100
          2,408,602
                      322,183
 
11/01/06
300
Kernersville
NC
836,896
1,556,334
 
 None
               6,380
 
836,896
          1,562,714
          2,399,610
                      319,434
 
11/01/06
300
Roanoke Rapids
NC
834,223
1,551,226
 
 None
                   187
 
834,223
          1,551,413
          2,385,636
                      318,066
 
11/01/06
300
Salisbury
NC
777,412
1,445,863
 
 None
 None
 
777,412
          1,445,863
          2,223,275
                      296,401
 
11/01/06
300
Sylva
NC
919,724
1,709,783
 
 None
 None
 
919,724
          1,709,783
          2,629,507
                      350,504
 
11/01/06
300
Bellevue
NE
656,061
1,004,384
 
 None
 None
 
656,061
          1,004,384
          1,660,445
                      247,301
09/20/05
02/24/05
300
Omaha
NE
592,716
1,009,253
 
 None
 None
 
592,716
          1,009,253
          1,601,969
                      260,048
05/05/05
12/21/04
300
Papillion
NE
654,788
908,685
 
 None
 None
 
654,788
              908,685
          1,563,473
                      238,477
03/09/05
01/12/05
300
Concord
NH
577,667
1,075,628
 
 None
 None
 
577,667
          1,075,628
          1,653,295
                      188,218
 
08/30/07
300
Concord
NH
849,884
1,581,175
 
 None
 None
 
849,884
          1,581,175
          2,431,059
                      276,688
 
08/30/07
300
Dover
NH
687,917
1,280,378
 
 None
 None
 
687,917
          1,280,378
          1,968,295
                      224,049
 
08/30/07
300
Keene
NH
253,769
310,470
 
 None
 None
 
253,769
              310,470
              564,239
                      124,704
 
12/19/01
300
Laconia
NH
330,520
467,594
 
 None
 None
 
330,520
              467,594
              798,114
                      187,815
 
12/19/01
300
Manchester
NH
266,337
486,676
 
 None
 None
 
266,337
              486,676
              753,013
                      195,480
 
12/19/01
300
North Conway
NH
473,031
607,020
 
 None
 None
 
473,031
              607,020
          1,080,051
                      243,818
 
12/19/01
300
Portsmouth
NH
391,650
730,167
 
 None
                   334
 
391,650
              730,501
          1,122,151
                      127,771
 
08/30/07
300
Rochester
NH
262,059
695,771
 
 None
 None
 
262,059
              695,771
              957,830
                      279,466
 
12/19/01
300
Bloomfield
NJ
556,520
260,498
 
 None
 None
 
556,520
              260,498
              817,018
                      104,632
 
12/19/01
300
Clark
NJ
541,792
1,009,085
 
 None
 None
 
541,792
          1,009,085
          1,550,877
                      176,573
 
08/30/07
300
Hackettstown
NJ
307,186
525,142
 
 None
 None
 
307,186
              525,142
              832,328
                      210,930
 
12/19/01
300
Hazlet
NJ
614,417
1,143,885
 
 None
 None
 
614,417
          1,143,885
          1,758,302
                      200,163
 
08/30/07
300
Hillsdale
NJ
398,221
204,106
 
 None
 None
 
398,221
              204,106
              602,327
                        81,981
 
12/19/01
300
Middletown
NJ
0
640,403
 
 None
 None
 
0
              640,403
              640,403
                      181,563
 
08/30/07
300
Moorestown
NJ
294,708
550,139
 
 None
                       4
 
294,708
              550,143
              844,851
                        96,257
 
08/30/07
300
Morris Plains
NJ
366,982
188,123
 
 None
 None
 
366,982
              188,123
              555,105
                        75,561
 
12/19/01
300
Mt. Holly
NJ
0
1,092,178
 
 None
 None
 
0
          1,092,178
          1,092,178
                      176,566
 
12/17/07
300
Passaic
NJ
328,284
612,517
 
                 2,300
 None
 
328,284
              614,817
              943,101
                      107,183
 
08/30/07
300
Pompton Plains
NJ
455,700
849,125
 
 None
 None
 
455,700
              849,125
          1,304,825
                      148,580
 
08/30/07
300
Toms River
NJ
826,449
1,537,659
 
 None
 None
 
826,449
          1,537,659
          2,364,108
                      269,073
 
08/30/07
300
Albuquerque
NM
732,059
1,036,922
 
 None
 None
 
732,059
          1,036,922
          1,768,981
                      224,500
06/21/05
01/19/05
300
Albany
NY
457,538
852,510
 
 None
                   145
 
457,538
              852,655
          1,310,193
                      149,175
 
08/30/07
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Carmel
NY
266,619
707,819
 
 None
 None
 
266,619
              707,819
              974,438
                      284,306
 
12/19/01
300
Clifton Park
NY
1,040,997
1,936,100
 
 None
 None
 
1,040,997
          1,936,100
          2,977,097
                      338,800
 
08/30/07
300
Delmar
NY
316,382
590,387
 
 None
                   145
 
316,382
              590,532
              906,914
                      103,303
 
08/30/07
300
East Greenbush
NY
623,313
1,160,389
 
 None
 None
 
623,313
          1,160,389
          1,783,702
                      203,051
 
08/30/07
300
Kingston
NY
430,667
802,583
 
 None
 None
 
430,667
              802,583
          1,233,250
                      140,435
 
08/30/07
300
Latham
NY
651,167
1,212,133
 
 None
 None
 
651,167
          1,212,133
          1,863,300
                      212,106
 
08/30/07
300
Middletown
NY
242,459
796,905
 
 None
                   151
 
242,459
              797,056
          1,039,515
                      320,187
 
12/19/01
300
New Hartford
NY
226,041
422,563
 
 None
 None
 
226,041
              422,563
              648,604
                        73,931
 
08/30/07
300
Plattsburgh
NY
977,012
1,817,269
 
 None
 None
 
977,012
          1,817,269
          2,794,281
                      318,005
 
08/30/07
300
Akron
OH
318,182
593,654
 
 None
 None
 
318,182
              593,654
              911,836
                      103,872
 
08/30/07
300
Akron
OH
318,182
593,654
 
 None
 None
 
318,182
              593,654
              911,836
                      103,872
 
08/30/07
300
Akron
OH
723,347
17
 
               10,940
             44,667
 
723,347
                55,624
              778,971
                        36,847
 
12/22/94
300
Beavercreek
OH
229,445
428,857
 
 None
 None
 
229,445
              428,857
              658,302
                        75,033
 
08/30/07
300
Defiance
OH
71,273
135,109
 
 None
                   358
 
71,273
              135,467
              206,740
                        23,810
 
08/30/07
300
Elyria
OH
79,545
150,491
 
 None
 None
 
79,545
              150,491
              230,036
                        26,318
 
08/30/07
300
Marion
OH
739,651
1,375,358
 
 None
 None
 
739,651
          1,375,358
          2,115,009
                      281,947
 
11/01/06
300
Maumee
OH
296,970
555,134
 
 None
 None
 
296,970
              555,134
              852,104
                        97,128
 
08/30/07
300
Mt. Vernon
OH
147,212
276,407
 
 None
 None
 
147,212
              276,407
              423,619
                        48,353
 
08/30/07
300
Mt. Vernon
OH
726,626
1,351,151
 
 None
                   399
 
726,626
          1,351,550
          2,078,176
                      277,226
 
11/01/06
300
North Canton
OH
487,879
908,806
 
 None
 None
 
487,879
              908,806
          1,396,685
                      159,024
 
08/30/07
300
Parma Heights
OH
275,758
514,866
 
 None
 None
 
275,758
              514,866
              790,624
                        90,084
 
08/30/07
300
Sandusky
OH
824,270
1,532,494
 
 None
 None
 
824,270
          1,532,494
          2,356,764
                      314,160
 
11/01/06
300
Sandusky
OH
128,158
240,761
 
 None
 None
 
128,158
              240,761
              368,919
                        42,116
 
08/30/07
300
Stow
OH
317,546
712,455
 
 None
                   114
 
317,546
              712,569
          1,030,115
                      684,116
 
12/31/87
300
Troy
OH
255,353
476,973
 
 None
 None
 
255,353
              476,973
              732,326
                        83,453
 
08/30/07
300
Vandalia
OH
145,833
273,579
 
 None
 None
 
145,833
              273,579
              419,412
                        47,859
 
08/30/07
300
Westlake
OH
169,697
317,897
 
 None
 None
 
169,697
              317,897
              487,594
                        55,615
 
08/30/07
300
Wooster
OH
763,642
1,419,901
 
 None
                   399
 
763,642
          1,420,300
          2,183,942
                      291,319
 
11/01/06
300
Norman
OK
734,335
335,097
 
 None
             78,164
 
734,335
              413,261
          1,147,596
                      105,222
09/29/95
06/05/95
300
Oklahoma City
OK
759,826
0
 
 None
 None
 
759,826
                         -
              759,826
                                  -
 
07/06/95
300
Oklahoma City
OK
1,165,405
2,165,989
 
 None
                   173
 
1,165,405
          2,166,162
          3,331,567
                      444,139
 
11/01/06
300
Tulsa
OK
490,000
910,004
 
 None
                   173
 
490,000
              910,177
          1,400,177
                      216,997
 
01/24/06
300
Tulsa
OK
360,500
669,605
 
 None
                   173
 
360,500
              669,778
          1,030,278
                      150,774
 
05/10/06
300
Tulsa
OK
1,021,904
1,899,486
 
 None
                   173
 
1,021,904
          1,899,659
          2,921,563
                      389,506
 
11/01/06
300
Hermiston
OR
85,560
396,675
 
               18,088
                   266
 
85,560
              415,029
              500,589
                      406,003
 
12/18/84
300
Lake Oswego
OR
175,899
815,508
 
 None
                       5
 
175,899
              815,513
              991,412
                      815,510
 
05/16/84
300
Feasterville
PA
236,303
441,673
 
 None
 None
 
236,303
              441,673
              677,976
                        77,276
 
08/30/07
300
Gap
PA
0
1,012,812
 
                 1,000
 None
 
0
          1,013,812
          1,013,812
                      177,653
 
08/30/07
300
Gettysburg
PA
289,040
809,676
 
 None
 None
 
289,040
              809,676
          1,098,716
                      325,218
 
12/19/01
300
Harrisburg
PA
577,667
1,075,635
 
 None
 None
 
577,667
          1,075,635
          1,653,302
                      188,219
 
08/30/07
300
Horsham
PA
554,361
1,032,352
 
 None
 None
 
554,361
          1,032,352
          1,586,713
                      180,644
 
08/30/07
300
Indiana
PA
828,653
1,540,630
 
 None
                   439
 
828,653
          1,541,069
          2,369,722
                      316,106
 
11/01/06
300
Lancaster
PA
170,304
413,960
 
 None
 None
 
170,304
              413,960
              584,264
                      166,272
 
12/19/01
300
Lancaster
PA
276,251
460,784
 
 None
 None
 
276,251
              460,784
              737,035
                      185,080
 
12/19/01
300
Lebanon
PA
0
1,292,172
 
 None
 None
 
0
          1,292,172
          1,292,172
                      262,881
 
08/30/07
300
Philadelphia
PA
503,556
937,999
 
 None
 None
 
503,556
              937,999
          1,441,555
                      164,133
 
08/30/07
300
Cranston
RI
0
790,899
 
 None
 None
 
0
              790,899
              790,899
                      216,105
 
08/30/07
300
North Providence
RI
0
790,921
 
 None
 None
 
0
              790,921
              790,921
                      199,504
 
08/30/07
300
Pawtucket
RI
0
457,462
 
 None
 None
 
0
              457,462
              457,462
                      104,326
 
08/30/07
300
Gaffney
SC
727,738
1,353,238
 
               19,998
             29,532
 
727,738
          1,402,768
          2,130,506
                      300,575
 
11/01/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
  
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Lancaster
SC
778,616
1,448,099
 
                 3,546
                     24
 
778,616
          1,451,669
          2,230,285
                      296,876
 
11/01/06
300
Rock Hill
SC
826,216
1,536,499
 
 None
                   462
 
826,216
          1,536,961
          2,363,177
                      315,236
 
11/01/06
300
Chattanooga
TN
827,594
1,538,633
 
 None
 None
 
827,594
          1,538,633
          2,366,227
                      315,419
 
11/01/06
300
Chattanooga
TN
933,003
1,734,392
 
             158,902
             19,980
 
933,003
          1,913,274
          2,846,277
                      373,170
 
11/01/06
300
Dyersburg
TN
695,135
1,292,644
 
               90,256
             25,739
 
695,135
          1,408,639
          2,103,774
                      301,754
 
11/01/06
300
Greeneville
TN
936,669
1,741,253
 
 None
 None
 
936,669
          1,741,253
          2,677,922
                      356,956
 
11/01/06
300
Johnson City
TN
881,225
1,638,285
 
 None
 None
 
881,225
          1,638,285
          2,519,510
                      335,847
 
11/01/06
300
Kingsport
TN
786,332
1,462,055
 
             107,280
             10,878
 
786,332
          1,580,213
          2,366,545
                      321,397
 
11/01/06
300
McMinnville
TN
703,355
1,307,903
 
                 8,476
               6,045
 
703,355
          1,322,424
          2,025,779
                      274,505
 
11/01/06
300
Memphis
TN
405,274
1,060,680
 
 None
 None
 
405,274
          1,060,680
          1,465,954
                      698,281
06/30/95
03/17/95
300
Memphis
TN
871,951
1,621,017
 
               66,136
             22,161
 
871,951
          1,709,314
          2,581,265
                      352,777
 
11/01/06
300
Newport
TN
640,841
1,191,858
 
               15,271
             20,171
 
640,841
          1,227,300
          1,868,141
                      256,042
 
11/01/06
300
Amarillo
TX
763,283
1,995,460
 
 None
 None
 
763,283
          1,995,460
          2,758,743
                      247,706
09/12/08
03/03/08
300
Austin
TX
1,049,946
1,952,028
 
 None
 None
 
1,049,946
          1,952,028
          3,001,974
                      400,164
 
11/01/06
300
Austin
TX
976,803
1,361,281
 
               36,880
             30,504
 
976,803
          1,428,665
          2,405,468
                      293,410
10/23/06
06/19/06
300
Austin
TX
699,395
1,167,223
 
 None
             33,872
 
699,395
          1,201,095
          1,900,490
                      283,312
02/15/06
09/15/05
300
Bedford
TX
919,303
98,231
 
               23,966
                     95
 
919,303
              122,292
          1,041,595
                        98,407
 
12/27/94
300
Cedar Park
TX
634,489
1,472,504
 
 None
             28,762
 
634,489
          1,501,266
          2,135,755
                      333,018
06/19/06
01/13/06
300
Crockett
TX
90,780
420,880
 
               22,638
               1,971
 
90,780
              445,489
              536,269
                      429,188
 
12/17/85
300
Dallas
TX
742,507
0
 
               13,316
                   447
 
742,507
                13,763
              756,270
                           2,996
 
04/13/95
300
El Campo
TX
98,060
454,631
 
 None
 None
 
98,060
              454,631
              552,691
                      454,631
 
11/25/85
300
Georgetown
TX
870,981
1,177,824
 
             168,185
             34,110
 
870,981
          1,380,119
          2,251,100
                      300,689
06/02/06
01/13/06
300
Greenville
TX
909,311
1,690,848
 
               34,606
             28,728
 
909,311
          1,754,182
          2,663,493
                      366,072
 
11/01/06
300
Harker Heights
TX
943,812
1,897,644
 
 None
 None
 
943,812
          1,897,644
          2,841,456
                      241,938
08/28/08
03/20/08
300
Hillsboro
TX
75,992
352,316
 
               78,212
             14,563
 
75,992
              445,091
              521,083
                      382,478
 
08/01/84
300
Houston
TX
989,152
1,838,713
 
 None
                   469
 
989,152
          1,839,182
          2,828,334
                      377,079
 
11/01/06
300
Houston
TX
1,096,376
2,300,690
 
             235,500
           102,443
 
1,096,376
          2,638,633
          3,735,009
                   1,463,602
 
09/05/97
300
Irving
TX
1,500,411
2,156
 
 None
 None
 
1,500,411
                  2,156
          1,502,567
                              765
 
02/05/03
300
Killeen
TX
1,327,348
2,467,204
 
 None
 None
 
1,327,348
          2,467,204
          3,794,552
                      505,776
 
11/01/06
300
Live Oak
TX
727,956
1,214,835
 
             181,920
             33,148
 
727,956
          1,429,903
          2,157,859
                      344,855
09/27/05
06/01/05
300
Longview
TX
1,231,857
2,289,864
 
 None
 None
 
1,231,857
          2,289,864
          3,521,721
                      469,421
 
11/01/06
300
Lufkin
TX
105,904
490,998
 
 None
 None
 
105,904
              490,998
              596,902
                      490,998
 
10/08/85
300
Mesquite
TX
134,940
625,612
 
 None
 None
 
134,940
              625,612
              760,552
                      625,612
 
03/20/86
300
Mesquite
TX
729,596
120,820
 
 None
 None
 
729,596
              120,820
              850,416
                      120,820
 
12/23/94
300
Mesquite
TX
984,909
1,831,268
 
 None
             20,312
 
984,909
          1,851,580
          2,836,489
                      375,774
 
11/01/06
300
Mexia
TX
93,620
434,046
 
               50,273
             11,861
 
93,620
              496,180
              589,800
                      437,776
 
12/18/85
300
New Braunfels
TX
860,262
1,169,016
 
             250,000
             56,862
 
860,262
          1,475,878
          2,336,140
                      345,975
02/14/06
10/12/05
300
Palestine
TX
825,066
1,534,394
 
 None
 None
 
825,066
          1,534,394
          2,359,460
                      314,550
 
11/01/06
300
Plano
TX
2,420,222
769
 
 None
 None
 
2,420,222
                      769
          2,420,991
                              292
03/12/03
06/27/02
300
San Antonio
TX
690,443
1,109,136
 
 None
             40,933
 
690,443
          1,150,069
          1,840,512
                      279,829
10/24/05
06/27/05
300
San Antonio
TX
835,586
1,227,220
 
 None
             45,378
 
835,586
          1,272,598
          2,108,184
                      270,361
09/14/06
05/09/06
300
San Antonio
TX
835,431
1,185,257
 
 None
             49,931
 
835,431
          1,235,188
          2,070,619
                      298,223
12/02/05
06/24/05
300
Temple
TX
797,574
1,193,813
 
                 1,350
             19,714
 
797,574
          1,214,877
          2,012,451
                      264,336
09/14/06
04/07/06
300
Waxahachie
TX
1,035,794
1,925,746
 
 None
                     83
 
1,035,794
          1,925,829
          2,961,623
                      394,779
 
11/01/06
300
Waxahachie
TX
326,935
726,137
 
 None
               8,433
 
326,935
              734,570
          1,061,505
                      705,242
 
12/29/87
300
Sandy
UT
635,945
884,792
 
 None
                   286
 
635,945
              885,078
          1,521,023
                      567,939
 
12/22/95
300
Bluefield
VA
845,277
1,571,754
 
 None
 None
 
845,277
          1,571,754
          2,417,031
                      322,208
 
11/01/06
300
Chester
VA
541,628
1,008,771
 
 None
 None
 
541,628
          1,008,771
          1,550,399
                      176,518
 
08/30/07
300
Danville
VA
751,055
1,396,772
 
               66,062
             18,690
 
751,055
          1,481,524
          2,232,579
                      294,215
 
11/01/06
300
Martinsville
VA
833,114
1,549,167
 
 None
 None
 
833,114
          1,549,167
          2,382,281
                      317,578
 
11/01/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Midlothian
VA
421,479
785,639
 
 None
                   145
 
421,479
              785,784
          1,207,263
                      137,472
 
08/30/07
300
Richmond
VA
326,265
608,812
 
 None
                   145
 
326,265
              608,957
              935,222
                      106,527
 
08/30/07
300
Richmond
VA
385,000
717,891
 
 None
                   145
 
385,000
              718,036
          1,103,036
                      125,616
 
08/30/07
300
Staunton
VA
867,684
1,613,368
 
               17,107
             39,801
 
867,684
          1,670,276
          2,537,960
                      360,389
 
11/01/06
300
Suffolk
VA
816,986
1,519,214
 
 None
                   153
 
816,986
          1,519,367
          2,336,353
                      311,464
 
11/01/06
300
Williamsburg
VA
651,167
1,212,201
 
 None
 None
 
651,167
          1,212,201
          1,863,368
                      212,118
 
08/30/07
300
Bennington
VT
118,823
673,551
 
 None
 None
 
118,823
              673,551
              792,374
                      270,541
 
12/19/01
300
Brattleboro
VT
0
738,115
 
 None
 None
 
0
              738,115
              738,115
                      191,699
 
08/30/07
300
Rutland
VT
812,197
1,511,184
 
 None
 None
 
812,197
          1,511,184
          2,323,381
                      264,440
 
08/30/07
300
Williston
VT
0
1,197,659
 
 None
 None
 
0
          1,197,659
          1,197,659
                      260,820
 
08/30/07
300
Tacoma
WA
198,857
921,947
 
               51,224
                   122
 
198,857
              973,293
          1,172,150
                      941,806
 
05/29/84
300
Sturgeon Bay
WI
214,865
477,221
 
               34,385
                   243
 
214,865
              511,849
              726,714
                      470,949
 
12/01/87
300
Parkersburg
WV
722,732
1,343,920
 
                 2,107
             16,667
 
722,732
          1,362,694
          2,085,426
                      275,784
 
11/01/06
300
Laramie
WY
210,000
466,417
 
                 3,195
                     72
 
210,000
              469,684
              679,684
                      404,215
 
03/12/90
300
                             
Restaurants - quick service
                       
Alabaster
AL
335,197
622,697
 
 None
 None
 
335,197
              622,697
              957,894
                      131,804
 
09/14/06
300
Andalusia
AL
252,403
468,949
 
 None
 None
 
252,403
              468,949
              721,352
                        99,261
 
09/14/06
300
Atmore
AL
272,044
505,636
 
 None
 None
 
272,044
              505,636
              777,680
                      209,833
 
08/31/01
300
Attalla
AL
148,993
276,890
 
 None
 None
 
148,993
              276,890
              425,883
                        58,608
 
09/14/06
300
Bessemer
AL
172,438
320,429
 
 None
 None
 
172,438
              320,429
              492,867
                        67,824
 
09/14/06
300
Brent
AL
134,432
249,846
 
 None
 None
 
134,432
              249,846
              384,278
                        52,884
 
09/14/06
300
Clanton
AL
230,036
427,391
 
 None
 None
 
230,036
              427,391
              657,427
                      177,365
 
08/31/01
300
Demopolis
AL
251,349
466,972
 
 None
 None
 
251,349
              466,972
              718,321
                      193,791
 
08/31/01
300
Evergreen
AL
148,982
276,881
 
 None
 None
 
148,982
              276,881
              425,863
                        58,606
 
09/14/06
300
Fort Payne
AL
303,056
563,001
 
 None
 None
 
303,056
              563,001
              866,057
                      233,643
 
08/31/01
300
Gadsden
AL
242,194
449,977
 
 None
 None
 
242,194
              449,977
              692,171
                        95,245
 
09/14/06
300
Gardendale
AL
398,669
740,568
 
 None
 None
 
398,669
              740,568
          1,139,237
                      307,333
 
08/31/01
300
Greenville
AL
226,108
420,117
 
 None
 None
 
226,108
              420,117
              646,225
                        88,925
 
09/14/06
300
Haleyville
AL
262,500
488,357
 
 None
 None
 
262,500
              488,357
              750,857
                        78,950
 
12/21/07
300
Hamilton
AL
214,198
397,991
 
 None
 None
 
214,198
              397,991
              612,189
                        84,241
 
09/14/06
300
Hoover
AL
251,434
467,185
 
 None
 None
 
251,434
              467,185
              718,619
                      193,879
 
08/31/01
300
Hueytown
AL
281,422
522,828
 
 None
 None
 
281,422
              522,828
              804,250
                      110,665
 
09/14/06
300
Leeds
AL
171,145
318,028
 
 None
 None
 
171,145
              318,028
              489,173
                        67,316
 
09/14/06
300
Mobile
AL
286,333
531,950
 
 None
 None
 
286,333
              531,950
              818,283
                      112,596
 
09/14/06
300
Montgomery
AL
143,693
267,060
 
 None
 None
 
143,693
              267,060
              410,753
                        56,528
 
09/14/06
300
Montgomery
AL
145,206
269,870
 
 None
 None
 
145,206
              269,870
              415,076
                        57,122
 
09/14/06
300
Montgomery
AL
380,468
706,777
 
 None
 None
 
380,468
              706,777
          1,087,245
                      147,245
 
10/12/06
300
Opp
AL
160,778
298,782
 
 None
 None
 
160,778
              298,782
              459,560
                        62,246
 
10/12/06
300
Prattville
AL
254,278
472,432
 
 None
 None
 
254,278
              472,432
              726,710
                        99,998
 
09/14/06
300
Trussville
AL
256,485
476,510
 
 None
 None
 
256,485
              476,510
              732,995
                        99,273
 
10/12/06
300
Warrior
AL
159,109
295,676
 
 None
 None
 
159,109
              295,676
              454,785
                        62,585
 
09/14/06
300
Arkadelphia
AR
248,868
462,744
 
 None
 None
 
248,868
              462,744
              711,612
                        96,405
 
10/12/06
300
Bentonville
AR
377,086
700,582
 
 None
 None
 
377,086
              700,582
          1,077,668
                      290,738
 
08/31/01
300
Hope
AR
288,643
536,715
 
 None
 None
 
288,643
              536,715
              825,358
                      222,728
 
08/31/01
300
Jacksonville
AR
267,376
497,124
 
 None
 None
 
267,376
              497,124
              764,500
                      105,225
 
09/14/06
300
Jonesboro
AR
173,984
323,371
 
 None
 None
 
173,984
              323,371
              497,355
                        53,356
 
11/16/07
300
Little Rock
AR
317,000
589,377
 
 None
 None
 
317,000
              589,377
              906,377
                      244,583
 
08/31/01
300
Little Rock
AR
216,570
402,459
 
 None
 None
 
216,570
              402,459
              619,029
                        66,406
 
11/16/07
300
Malvern
AR
219,703
408,588
 
 None
 None
 
219,703
              408,588
              628,291
                        86,484
 
09/14/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements        
 Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
North Little Rock
AR
376,320
699,138
 
 None
 None
 
376,320
              699,138
          1,075,458
                      115,358
 
11/16/07
300
Pocahontas
AR
241,128
447,988
 
 None
 None
 
241,128
              447,988
              689,116
                        93,331
 
10/12/06
300
Siloam Springs
AR
190,000
352,808
 
 None
 None
 
190,000
              352,808
              542,808
                      199,326
 
11/20/97
300
Glendale
AZ
740,707
1,376,143
 
 None
 None
 
740,707
          1,376,143
          2,116,850
                      240,823
 
08/28/07
300
Phoenix
AZ
704,014
1,307,998
 
           (145,542)
 None
 
558,472
          1,307,998
          1,866,470
                      228,898
 
08/28/07
300
Phoenix
AZ
766,680
1,424,378
 
 None
 None
 
766,680
          1,424,378
          2,191,058
                      249,264
 
08/28/07
300
Phoenix
AZ
813,750
1,511,928
 
 None
 None
 
813,750
          1,511,928
          2,325,678
                      264,585
 
08/28/07
300
Tempe
AZ
525,463
976,404
 
 None
 None
 
525,463
              976,404
          1,501,867
                      170,869
 
08/28/07
300
Tucson
AZ
463,231
860,982
 
 None
 None
 
463,231
              860,982
          1,324,213
                      150,670
 
08/28/07
300
Tucson
AZ
496,194
922,053
 
 None
 None
 
496,194
              922,053
          1,418,247
                      161,357
 
08/28/07
300
Tucson
AZ
107,393
500,154
 
 None
                     61
 
107,393
              500,215
              607,608
                      498,366
 
01/17/86
300
Yuma
AZ
236,121
541,651
 
 None
 None
 
236,121
              541,651
              777,772
                      295,196
 
05/28/98
300
Barstow
CA
689,842
690,204
 
 None
 None
 
689,842
              690,204
          1,380,046
                      366,961
 
09/24/98
300
Fresno
CA
561,502
1,043,688
 
 None
 None
 
561,502
          1,043,688
          1,605,190
                      182,641
 
08/28/07
300
Livermore
CA
662,161
823,242
 
 None
 None
 
662,161
              823,242
          1,485,403
                      437,694
 
09/23/98
300
Rancho Cucamonga
CA
95,192
441,334
 
 None
                       5
 
95,192
              441,339
              536,531
                      441,335
 
12/20/85
300
Riverside
CA
90,000
170,394
 
             135,301
 None
 
90,000
              305,695
              395,695
                      224,742
 
12/09/76
300
Sacramento
CA
386,793
417,290
 
 None
                   127
 
386,793
              417,417
              804,210
                      224,766
 
07/31/98
300
San Ramon
CA
406,000
1,126,930
 
 None
 None
 
406,000
          1,126,930
          1,532,930
                   1,126,930
 
12/08/83
180
Aurora
CO
288,558
537,322
 
 None
 None
 
288,558
              537,322
              825,880
                        94,027
 
08/28/07
300
Aurora
CO
210,000
540,346
 
 None
 None
 
210,000
              540,346
              750,346
                           8,105
 
08/29/11
300
Broomfield
CO
444,277
0
 
 None
 None
 
444,277
                         -
              444,277
                                  -
 
08/29/11
300
Brush
CO
90,000
220,976
 
 None
 None
 
90,000
              220,976
              310,976
                           3,315
 
08/29/11
300
Colorado Springs
CO
152,000
704,736
 
 None
 None
 
152,000
              704,736
              856,736
                      704,736
 
09/30/86
300
Fort Morgan
CO
80,000
350,452
 
 None
 None
 
80,000
              350,452
              430,452
                           5,257
 
08/29/11
300
Lafayette
CO
450,000
59,281
 
 None
 None
 
450,000
                59,281
              509,281
                              889
 
08/29/11
300
Lakewood
CO
510,000
124,971
 
 None
 None
 
510,000
              124,971
              634,971
                           1,875
 
08/29/11
300
Littleton
CO
700,000
1,301,370
 
 None
 None
 
700,000
          1,301,370
          2,001,370
                      227,738
 
08/28/07
300
Littleton
CO
260,000
508,347
 
 None
 None
 
260,000
              508,347
              768,347
                           7,625
 
08/29/11
300
Littleton
CO
470,000
207,744
 
 None
 None
 
470,000
              207,744
              677,744
                           3,116
 
08/29/11
300
Westminster
CO
261,466
487,102
 
 None
 None
 
261,466
              487,102
              748,568
                        85,240
 
08/28/07
300
Meriden
CT
369,482
687,116
 
 None
 None
 
369,482
              687,116
          1,056,598
                      120,243
 
08/28/07
300
Newark
DE
647,500
1,203,300
 
 None
 None
 
647,500
          1,203,300
          1,850,800
                      210,576
 
08/28/07
300
Chipley
FL
270,439
502,655
 
 None
 None
 
270,439
              502,655
              773,094
                      208,596
 
08/31/01
300
Clearwater
FL
484,090
899,658
 
 None
 None
 
484,090
              899,658
          1,383,748
                      157,438
 
08/28/07
300
Clearwater
FL
370,000
512,393
 
 None
 None
 
370,000
              512,393
              882,393
                           7,686
 
08/29/11
300
Cutler Bay
FL
962,500
1,788,329
 
 None
 None
 
962,500
          1,788,329
          2,750,829
                      312,955
 
08/28/07
300
Dade City
FL
140,000
387,991
 
 None
 None
 
140,000
              387,991
              527,991
                           5,820
 
08/29/11
300
DeFuniak
FL
269,554
501,010
 
 None
 None
 
269,554
              501,010
              770,564
                      207,914
 
08/31/01
300
Dunedin
FL
440,000
100,727
 
 None
 None
 
440,000
              100,727
              540,727
                           1,511
 
08/29/11
300
Jacksonville
FL
150,210
693,445
 
 None
                   253
 
150,210
              693,698
              843,908
                      693,562
 
09/13/85
300
Lake Mary
FL
774,043
1,438,165
 
 None
 None
 
774,043
          1,438,165
          2,212,208
                      251,676
 
08/28/07
300
Lake Placid
FL
220,000
206,076
 
 None
 None
 
220,000
              206,076
              426,076
                           3,091
 
08/29/11
300
Lakeland
FL
310,000
519,387
 
 None
 None
 
310,000
              519,387
              829,387
                           7,791
 
08/29/11
300
Lakeland
FL
530,000
556,704
 
 None
 None
 
530,000
              556,704
          1,086,704
                           8,351
 
08/29/11
300
Lakeland
FL
170,000
288,777
 
 None
 None
 
170,000
              288,777
              458,777
                           4,332
 
08/29/11
300
Margate
FL
688,583
1,279,430
 
 None
 None
 
688,583
          1,279,430
          1,968,013
                      223,899
 
08/28/07
300
Miami
FL
962,500
1,788,139
 
 None
 None
 
962,500
          1,788,139
          2,750,639
                      312,922
 
08/28/07
300
Miami Beach
FL
786,510
1,461,294
 
 None
 None
 
786,510
          1,461,294
          2,247,804
                      255,725
 
08/28/07
300
New Port Richey
FL
260,000
579,385
 
 None
 None
 
260,000
              579,385
              839,385
                           8,691
 
08/29/11
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
       Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
North Miami Bch.
FL
505,870
940,302
 
 None
 None
 
505,870
              940,302
          1,446,172
                      164,550
 
08/28/07
300
Orlando
FL
600,000
949,489
 
 None
 None
 
600,000
              949,489
          1,549,489
                      479,713
05/27/99
12/18/98
300
Oviedo
FL
204,200
911,338
 
 None
 None
 
204,200
              911,338
          1,115,538
                      430,002
03/27/00
08/24/99
300
Oviedo
FL
465,993
866,048
 
 None
 None
 
465,993
              866,048
          1,332,041
                      151,557
 
08/28/07
300
Oviedo
FL
456,108
847,515
 
 None
                     18
 
456,108
              847,533
          1,303,641
                      207,652
 
11/21/05
300
Palm Bay
FL
330,000
556,668
 
 None
 None
 
330,000
              556,668
              886,668
                      284,950
02/17/99
12/29/98
300
Panama City
FL
202,047
375,424
 
 None
 None
 
202,047
              375,424
              577,471
                        78,213
 
10/12/06
300
Pembroke Pines
FL
741,074
1,376,913
 
 None
 None
 
741,074
          1,376,913
          2,117,987
                      240,958
 
08/28/07
300
Seffner
FL
200,000
209,679
 
 None
 None
 
200,000
              209,679
              409,679
                           3,145
 
08/29/11
300
St. Petersburg
FL
379,455
705,487
 
 None
 None
 
379,455
              705,487
          1,084,942
                      123,458
 
08/28/07
300
St. Petersburg
FL
370,000
675,403
 
 None
 None
 
370,000
              675,403
          1,045,403
                        10,131
 
08/29/11
300
Tallahassee
FL
385,000
715,857
 
 None
 None
 
385,000
              715,857
          1,100,857
                      115,729
 
12/25/07
300
Tallahassee
FL
175,000
325,857
 
 None
 None
 
175,000
              325,857
              500,857
                        52,679
 
12/25/07
300
Tampa
FL
962,500
1,788,133
 
 None
 None
 
962,500
          1,788,133
          2,750,633
                      312,922
 
08/28/07
300
Tampa
FL
700,000
1,300,785
 
 None
 None
 
700,000
          1,300,785
          2,000,785
                      227,635
 
08/28/07
300
Tampa
FL
545,211
1,013,321
 
 None
 None
 
545,211
          1,013,321
          1,558,532
                      177,329
 
08/28/07
300
Tampa
FL
470,000
208,666
 
 None
 None
 
470,000
              208,666
              678,666
                           3,130
 
08/29/11
300
Tampa
FL
430,000
589,949
 
 None
 None
 
430,000
              589,949
          1,019,949
                           8,849
 
08/29/11
300
Venice
FL
340,000
28,239
 
 None
 None
 
340,000
                28,239
              368,239
                              424
 
08/29/11
300
Wauchula
FL
260,000
324,525
 
 None
 None
 
260,000
              324,525
              584,525
                           4,868
 
08/29/11
300
Zephyrhills
FL
220,000
662,046
 
 None
 None
 
220,000
              662,046
              882,046
                           9,931
 
08/29/11
300
Albany
GA
326,690
607,247
 
 None
 None
 
326,690
              607,247
              933,937
                      146,751
 
12/22/05
300
Buford
GA
400,000
361,957
 
 None
 None
 
400,000
              361,957
              761,957
                           5,429
 
08/29/11
300
Cairo
GA
210,000
390,566
 
 None
 None
 
210,000
              390,566
              600,566
                        63,141
 
12/25/07
300
Cumming
GA
520,000
248,510
 
 None
 None
 
520,000
              248,510
              768,510
                           3,728
 
08/29/11
300
Duluth
GA
536,205
996,521
 
 None
 None
 
536,205
              996,521
          1,532,726
                      174,389
 
08/28/07
300
Garden City
GA
197,225
438,043
 
               32,125
                   433
 
197,225
              470,601
              667,826
                      409,299
 
04/20/89
300
Lawrenceville
GA
220,000
384,908
 
 None
 None
 
220,000
              384,908
              604,908
                           5,774
 
08/29/11
300
Lilburn
GA
237,822
442,409
 
 None
 None
 
237,822
              442,409
              680,231
                        77,419
 
08/28/07
300
Lilburn
GA
380,000
338,634
 
 None
 None
 
380,000
              338,634
              718,634
                           5,080
 
08/29/11
300
Loganville
GA
340,000
422,840
 
 None
 None
 
340,000
              422,840
              762,840
                           6,343
 
08/29/11
300
Marietta
GA
423,132
786,530
 
 None
 None
 
423,132
              786,530
          1,209,662
                      137,641
 
08/28/07
300
Norcross
GA
310,000
286,762
 
 None
 None
 
310,000
              286,762
              596,762
                           4,301
 
08/29/11
300
Oakwood
GA
440,000
100,481
 
 None
 None
 
440,000
              100,481
              540,481
                           1,507
 
08/29/11
300
Roswell
GA
310,767
578,088
 
 None
 None
 
310,767
              578,088
              888,855
                      101,162
 
08/28/07
300
Thomasville
GA
300,211
558,074
 
 None
 None
 
300,211
              558,074
              858,285
                      134,867
 
12/22/05
300
Washington
GA
292,628
543,862
 
 None
 None
 
292,628
              543,862
              836,490
                      225,697
 
08/31/01
300
Waycross
GA
223,475
415,563
 
 None
 None
 
223,475
              415,563
              639,038
                      100,427
 
12/22/05
300
Winder
GA
230,000
429,116
 
 None
 None
 
230,000
              429,116
              659,116
                           6,437
 
08/29/11
300
Cedar Falls
IA
208,411
387,971
 
 None
 None
 
208,411
              387,971
              596,382
                        93,759
 
12/22/05
300
Cedar Falls
IA
187,250
349,057
 
 None
 None
 
187,250
              349,057
              536,307
                        56,427
 
12/21/07
300
Cedar Rapids
IA
125,076
233,206
 
 None
 None
 
125,076
              233,206
              358,282
                        56,357
 
12/22/05
300
Fort Dodge
IA
388,815
722,573
 
 None
 None
 
388,815
              722,573
          1,111,388
                      152,945
 
09/14/06
300
Oelwein
IA
84,244
157,375
 
 None
 None
 
84,244
              157,375
              241,619
                        38,031
 
12/22/05
300
Urbandale
IA
395,896
735,724
 
 None
 None
 
395,896
              735,724
          1,131,620
                      155,728
 
09/14/06
300
Waterloo
IA
263,555
490,374
 
 None
 None
 
263,555
              490,374
              753,929
                      115,238
 
02/28/06
300
Boise
ID
190,894
824,305
 
 None
                   283
 
190,894
              824,588
          1,015,482
                      407,744
 
05/17/88
300
Boise
ID
161,352
735,104
 
 None
                   283
 
161,352
              735,387
              896,739
                      317,104
 
10/07/88
300
Rexburg
ID
90,760
420,787
 
               14,890
 None
 
90,760
              435,677
              526,437
                      420,828
 
11/25/85
300
Bethalto
IL
180,000
166,596
 
 None
 None
 
180,000
              166,596
              346,596
                           2,499
 
08/29/11
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Buffalo Grove
IL
306,250
569,693
 
 None
 None
 
306,250
              569,693
              875,943
                        99,694
 
08/28/07
300
Cahokia
IL
70,000
613,995
 
 None
 None
 
70,000
              613,995
              683,995
                           9,210
 
08/29/11
300
Carlyle
IL
80,000
428,860
 
 None
 None
 
80,000
              428,860
              508,860
                           6,433
 
08/29/11
300
Centralia
IL
225,966
420,573
 
 None
 None
 
225,966
              420,573
              646,539
                      101,637
 
12/22/05
300
Countryside
IL
301,000
559,824
 
 None
 None
 
301,000
              559,824
              860,824
                        97,965
 
08/28/07
300
Edwardsville
IL
360,000
328,978
 
 None
 None
 
360,000
              328,978
              688,978
                           4,935
 
08/29/11
300
Elgin
IL
700,000
1,300,943
 
 None
 None
 
700,000
          1,300,943
          2,000,943
                      227,663
 
08/28/07
300
Fairview Heights
IL
660,652
1,227,321
 
 None
 None
 
660,652
          1,227,321
          1,887,973
                      300,694
 
11/21/05
300
Godfrey
IL
200,000
282,701
 
 None
 None
 
200,000
              282,701
              482,701
                           4,241
 
08/29/11
300
Gurnee
IL
735,000
1,365,747
 
 None
 None
 
735,000
          1,365,747
          2,100,747
                      239,004
 
08/28/07
300
Highland
IL
130,000
454,866
 
 None
 None
 
130,000
              454,866
              584,866
                           6,823
 
08/29/11
300
Jerseyville
IL
150,000
420,481
 
 None
 None
 
150,000
              420,481
              570,481
                           6,307
 
08/29/11
300
Joliet
IL
280,903
522,424
 
 None
 None
 
280,903
              522,424
              803,327
                        91,422
 
08/28/07
300
Lincoln
IL
206,532
383,970
 
 None
 None
 
206,532
              383,970
              590,502
                      159,342
 
08/31/01
300
Litchfield
IL
130,000
363,760
 
 None
 None
 
130,000
              363,760
              493,760
                           5,456
 
08/29/11
300
Mascoutah
IL
80,000
435,792
 
 None
 None
 
80,000
              435,792
              515,792
                           6,537
 
08/29/11
300
Red Bud
IL
180,000
251,200
 
 None
 None
 
180,000
              251,200
              431,200
                           3,768
 
08/29/11
300
Rock Island
IL
138,463
258,066
 
 None
 None
 
138,463
              258,066
              396,529
                        62,365
 
12/22/05
300
Sparta
IL
240,000
236,571
 
 None
 None
 
240,000
              236,571
              476,571
                           3,549
 
08/29/11
300
Troy
IL
230,000
281,230
 
 None
 None
 
230,000
              281,230
              511,230
                           4,218
 
08/29/11
300
Waukegan
IL
496,908
923,576
 
 None
 None
 
496,908
              923,576
          1,420,484
                      161,624
 
08/28/07
300
Westmont
IL
475,300
883,468
 
 None
 None
 
475,300
              883,468
          1,358,768
                      154,605
 
08/28/07
300
Wood River
IL
180,000
369,377
 
 None
 None
 
180,000
              369,377
              549,377
                           5,541
 
08/29/11
300
Elkhart
IN
496,306
922,168
 
 None
 None
 
496,306
              922,168
          1,418,474
                      225,931
 
11/21/05
300
Evansville
IN
136,738
254,864
 
 None
 None
 
136,738
              254,864
              391,602
                        61,591
 
12/22/05
300
Indianapolis
IN
437,500
813,225
 
 None
 None
 
437,500
              813,225
          1,250,725
                      142,313
 
08/28/07
300
Jasper
IN
129,919
242,199
 
 None
 None
 
129,919
              242,199
              372,118
                        58,530
 
12/22/05
300
Kokomo
IN
417,330
775,555
 
 None
 None
 
417,330
              775,555
          1,192,885
                      179,670
 
03/28/06
300
Marion
IN
426,384
792,314
 
 None
 None
 
426,384
              792,314
          1,218,698
                      191,476
 
12/13/05
300
Muncie
IN
644,177
1,196,786
 
 None
 None
 
644,177
          1,196,786
          1,840,963
                      293,213
 
11/21/05
300
Muncie
IN
136,400
632,380
 
                 8,000
 None
 
136,400
              640,380
              776,780
                      632,380
 
03/18/86
300
Muncie
IN
67,156
149,157
 
               13,837
                     85
 
67,156
              163,079
              230,235
                      145,479
 
03/30/88
300
Munster
IN
560,000
1,040,943
 
 None
 None
 
560,000
          1,040,943
          1,600,943
                      182,163
 
08/28/07
300
Newburgh
IN
161,193
300,280
 
 None
 None
 
161,193
              300,280
              461,473
                        72,567
 
12/22/05
300
South Bend
IN
133,200
617,545
 
 None
                   134
 
133,200
              617,679
              750,879
                      617,585
 
04/28/86
300
Valparaiso
IN
365,612
679,507
 
 None
 None
 
365,612
              679,507
          1,045,119
                      161,949
 
01/11/06
300
Washington
IN
155,856
290,368
 
 None
 None
 
155,856
              290,368
              446,224
                        70,171
 
12/22/05
300
Westfield
IN
213,341
477,300
 
 None
                   211
 
213,341
              477,511
              690,852
                      418,331
 
12/21/89
300
Chanute
KS
330,852
615,008
 
 None
 None
 
330,852
              615,008
              945,860
                      130,177
 
09/14/06
300
Fort Scott
KS
269,301
500,698
 
 None
 None
 
269,301
              500,698
              769,999
                      105,981
 
09/14/06
300
Kansas City
KS
190,000
700,039
 
 None
 None
 
190,000
              700,039
              890,039
                        10,501
 
08/29/11
300
Kansas City
KS
170,000
214,040
 
 None
 None
 
170,000
              214,040
              384,040
                           3,211
 
08/29/11
300
Kansas City
KS
210,000
624,304
 
 None
 None
 
210,000
              624,304
              834,304
                           9,365
 
08/29/11
300
Kansas City
KS
140,000
767,812
 
 None
 None
 
140,000
              767,812
              907,812
                        11,517
 
08/29/11
300
Lawrence
KS
410,000
338,788
 
 None
 None
 
410,000
              338,788
              748,788
                           5,082
 
08/29/11
300
Overland Park
KS
408,578
759,513
 
 None
 None
 
408,578
              759,513
          1,168,091
                      132,913
 
08/28/07
300
Overland Park
KS
754,020
1,401,069
 
 None
 None
 
754,020
          1,401,069
          2,155,089
                      245,185
 
08/28/07
300
Parsons
KS
318,516
592,099
 
 None
 None
 
318,516
              592,099
              910,615
                      125,328
 
09/14/06
300
Topeka
KS
232,146
431,853
 
 None
 None
 
232,146
              431,853
              663,999
                        75,572
 
08/28/07
300
Bowling Green
KY
685,246
1,273,002
 
 None
 None
 
685,246
          1,273,002
          1,958,248
                      311,885
 
11/21/05
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Hazard
KY
243,836
453,025
 
 None
                       8
 
243,836
              453,033
              696,869
                        95,891
 
09/14/06
300
Lexington
KY
655,085
1,216,983
 
 None
 None
 
655,085
          1,216,983
          1,872,068
                      298,161
 
11/21/05
300
Lexington
KY
122,200
1,400
 
 None
             31,682
 
122,200
                33,082
              155,282
                           8,094
 
12/03/86
300
Madisonville
KY
422,501
784,831
 
 None
 None
 
422,501
              784,831
          1,207,332
                      166,123
 
09/14/06
300
Paducah
KY
673,551
1,251,276
 
 None
 None
 
673,551
          1,251,276
          1,924,827
                      306,563
 
11/21/05
300
Bossier City
LA
172,269
320,497
 
 None
 None
 
172,269
              320,497
              492,766
                        67,839
 
09/14/06
300
Deridder
LA
371,127
690,819
 
 None
 None
 
371,127
              690,819
          1,061,946
                      125,486
 
06/22/07
300
Jonesboro
LA
163,651
304,492
 
 None
 None
 
163,651
              304,492
              468,143
                        64,451
 
09/14/06
300
Natchitoches
LA
291,675
541,890
 
 None
 None
 
291,675
              541,890
              833,565
                      224,882
 
08/31/01
300
Ruston
LA
170,274
316,792
 
 None
 None
 
170,274
              316,792
              487,066
                        67,054
 
09/14/06
300
Shreveport
LA
359,268
667,417
 
 None
 None
 
359,268
              667,417
          1,026,685
                      276,976
 
08/31/01
300
Shreveport
LA
154,671
287,815
 
 None
 None
 
154,671
              287,815
              442,486
                        60,921
 
09/14/06
300
Shreveport
LA
200,033
372,059
 
 None
 None
 
200,033
              372,059
              572,092
                        78,752
 
09/14/06
300
Shreveport
LA
259,987
483,401
 
 None
 None
 
259,987
              483,401
              743,388
                      102,320
 
09/14/06
300
Shreveport
LA
269,130
500,382
 
 None
 None
 
269,130
              500,382
              769,512
                      105,914
 
09/14/06
300
Vivian
LA
135,568
252,338
 
 None
 None
 
135,568
              252,338
              387,906
                        53,412
 
09/14/06
300
Winnfield
LA
145,973
271,661
 
 None
 None
 
145,973
              271,661
              417,634
                        57,502
 
09/14/06
300
Fall River
MA
962,500
1,787,831
 
 None
 None
 
962,500
          1,787,831
          2,750,331
                      312,870
 
08/28/07
300
Lawrence
MA
910,000
1,690,877
 
 None
 None
 
910,000
          1,690,877
          2,600,877
                      295,900
 
08/28/07
300
Hagerstown
MD
499,396
928,250
 
 None
 None
 
499,396
              928,250
          1,427,646
                      162,442
 
08/28/07
300
Canton
MI
279,923
521,223
 
 None
 None
 
279,923
              521,223
              801,146
                        91,212
 
08/28/07
300
Livonia
MI
350,000
651,446
 
 None
 None
 
350,000
              651,446
          1,001,446
                      114,001
 
08/28/07
300
Affton
MO
120,000
171,955
 
 None
 None
 
120,000
              171,955
              291,955
                           2,579
 
08/29/11
300
Bolivar
MO
237,094
440,596
 
 None
 None
 
237,094
              440,596
              677,690
                      182,844
 
08/31/01
300
Bridgeton
MO
570,000
228,347
 
 None
 None
 
570,000
              228,347
              798,347
                           3,425
 
08/29/11
300
Buffalo
MO
159,346
296,519
 
 None
                     24
 
159,346
              296,543
              455,889
                        62,781
 
09/14/06
300
Cape Girardeau
MO
450,078
836,372
 
 None
 None
 
450,078
              836,372
          1,286,450
                      199,335
 
01/11/06
300
Florissant
MO
290,000
86,396
 
 None
 None
 
290,000
                86,396
              376,396
                           1,296
 
08/29/11
300
Florissant
MO
250,000
239,221
 
 None
 None
 
250,000
              239,221
              489,221
                           3,588
 
08/29/11
300
Grandview
MO
280,000
235,370
 
 None
 None
 
280,000
              235,370
              515,370
                           3,531
 
08/29/11
300
Joplin
MO
301,207
0
 
 None
 None
 
301,207
                         -
              301,207
                                  -
 
09/14/06
300
Joplin
MO
281,001
522,428
 
 None
 None
 
281,001
              522,428
              803,429
                      110,581
 
09/14/06
300
Kansas City
MO
315,334
586,423
 
 None
 None
 
315,334
              586,423
              901,757
                      102,620
 
08/28/07
300
Kansas City
MO
230,000
484,010
 
 None
 None
 
230,000
              484,010
              714,010
                           7,260
 
08/29/11
300
Kansas City
MO
200,000
339,994
 
 None
 None
 
200,000
              339,994
              539,994
                           5,100
 
08/29/11
300
Lees Summit
MO
500,000
450,156
 
 None
 None
 
500,000
              450,156
              950,156
                           6,752
 
08/29/11
300
Mountain Grove
MO
219,704
408,591
 
 None
 None
 
219,704
              408,591
              628,295
                        86,485
 
09/14/06
300
Mt. Vernon
MO
160,000
282,586
 
 None
 None
 
160,000
              282,586
              442,586
                      159,651
 
11/20/97
300
Nevada
MO
290,795
540,616
 
 None
 None
 
290,795
              540,616
              831,411
                      114,430
 
09/14/06
300
Nixa
MO
251,387
467,430
 
 None
 None
 
251,387
              467,430
              718,817
                        98,939
 
09/14/06
300
Raymore
MO
460,000
663,580
 
 None
 None
 
460,000
              663,580
          1,123,580
                           9,954
 
08/29/11
300
Springfield
MO
251,381
467,418
 
 None
 None
 
251,381
              467,418
              718,799
                        98,937
 
09/14/06
300
Springfield
MO
225,939
420,162
 
 None
 None
 
225,939
              420,162
              646,101
                        87,534
 
10/12/06
300
St. Louis
MO
340,000
88,519
 
 None
 None
 
340,000
                88,519
              428,519
                           1,328
 
08/29/11
300
St. Louis
MO
500,000
184,049
 
 None
 None
 
500,000
              184,049
              684,049
                           2,761
 
08/29/11
300
St. Robert
MO
329,242
611,728
 
 None
 None
 
329,242
              611,728
              940,970
                      253,864
 
08/31/01
300
Webb City
MO
337,647
627,628
 
 None
 None
 
337,647
              627,628
              965,275
                      132,848
 
09/14/06
300
Biloxi
MS
414,902
770,725
 
 None
 None
 
414,902
              770,725
          1,185,627
                      163,137
 
09/14/06
300
Canton
MS
163,193
303,268
 
 None
 None
 
163,193
              303,268
              466,461
                        64,192
 
09/14/06
300
Carthage
MS
157,803
293,257
 
 None
 None
 
157,803
              293,257
              451,060
                        62,073
 
09/14/06
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Columbus
MS
128,409
238,775
 
 None
 None
 
128,409
              238,775
              367,184
                        57,704
 
12/22/05
300
Columbus
MS
117,411
218,350
 
 None
 None
 
117,411
              218,350
              335,761
                        52,767
 
12/22/05
300
Corinth
MS
285,607
530,598
 
 None
 None
 
285,607
              530,598
              816,205
                      112,310
 
09/14/06
300
Flowood
MS
154,733
287,549
 
 None
                   168
 
154,733
              287,717
              442,450
                        60,870
 
09/14/06
300
Forest
MS
106,457
198,007
 
 None
 None
 
106,457
              198,007
              304,464
                        47,851
 
12/22/05
300
Fulton
MS
239,686
445,337
 
 None
 None
 
239,686
              445,337
              685,023
                      184,812
 
08/31/01
300
Gautier
MS
241,995
449,607
 
 None
 None
 
241,995
              449,607
              691,602
                        95,167
 
09/14/06
300
Greenville
MS
311,324
578,378
 
 None
 None
 
311,324
              578,378
              889,702
                      240,024
 
08/31/01
300
Greenwood
MS
177,329
329,520
 
 None
 None
 
177,329
              329,520
              506,849
                        69,749
 
09/14/06
300
Hernando
MS
137,898
256,282
 
 None
 None
 
137,898
              256,282
              394,180
                        54,246
 
09/14/06
300
Houston
MS
226,962
421,695
 
 None
 None
 
226,962
              421,695
              648,657
                        89,259
 
09/14/06
300
Indianola
MS
270,639
502,822
 
 None
 None
 
270,639
              502,822
              773,461
                      208,668
 
08/31/01
300
Iuka
MS
139,243
258,779
 
 None
 None
 
139,243
              258,779
              398,022
                        54,775
 
09/14/06
300
Jackson
MS
237,982
442,154
 
 None
 None
 
237,982
              442,154
              680,136
                        93,589
 
09/14/06
300
Jackson
MS
352,003
653,900
 
 None
 None
 
352,003
              653,900
          1,005,903
                      136,229
 
10/12/06
300
Kosciusko
MS
311,422
578,550
 
 None
 None
 
311,422
              578,550
              889,972
                      122,460
 
09/14/06
300
Magee
MS
264,395
491,206
 
 None
 None
 
264,395
              491,206
              755,601
                      103,972
 
09/14/06
300
Moss Point
MS
287,821
534,713
 
 None
 None
 
287,821
              534,713
              822,534
                      113,181
 
09/14/06
300
Natchez
MS
402,589
747,934
 
 None
 None
 
402,589
              747,934
          1,150,523
                      150,833
 
12/21/06
300
Newton
MS
284,350
528,311
 
 None
 None
 
284,350
              528,311
              812,661
                      219,246
 
08/31/01
300
Olive Branch
MS
332,234
617,192
 
 None
 None
 
332,234
              617,192
              949,426
                      130,639
 
09/14/06
300
Olive Branch
MS
362,276
673,055
 
 None
 None
 
362,276
              673,055
          1,035,331
                      111,054
 
11/16/07
300
Oxford
MS
164,058
304,873
 
 None
 None
 
164,058
              304,873
              468,931
                        64,532
 
09/14/06
300
Oxford
MS
297,182
552,097
 
 None
 None
 
297,182
              552,097
              849,279
                      115,020
 
10/12/06
300
Pearl
MS
334,822
621,994
 
 None
 None
 
334,822
              621,994
              956,816
                      227,025
 
08/31/01
300
Philadelphia
MS
292,868
543,912
 
 None
 None
 
292,868
              543,912
              836,780
                      115,128
 
09/14/06
300
Pontotoc
MS
285,006
529,492
 
 None
 None
 
285,006
              529,492
              814,498
                      112,076
 
09/14/06
300
Southaven
MS
498,426
925,905
 
 None
 None
 
498,426
              925,905
          1,424,331
                      152,774
 
11/16/07
300
Starkville
MS
175,436
326,005
 
 None
 None
 
175,436
              326,005
              501,441
                        69,004
 
09/14/06
300
Tupelo
MS
166,869
310,095
 
 None
 None
 
166,869
              310,095
              476,964
                        65,637
 
09/14/06
300
Tupelo
MS
225,934
419,857
 
 None
 None
 
225,934
              419,857
              645,791
                        88,870
 
09/28/06
300
Vicksburg
MS
275,895
512,632
 
 None
 None
 
275,895
              512,632
              788,527
                      108,507
 
09/28/06
300
West Point
MS
87,859
163,468
 
 None
 None
 
87,859
              163,468
              251,327
                        39,504
 
12/22/05
300
Wiggins
MS
268,104
498,095
 
 None
 None
 
268,104
              498,095
              766,199
                      105,430
 
09/14/06
300
Asheville
NC
264,226
491,419
 
 None
 None
 
264,226
              491,419
              755,645
                        85,997
 
08/28/07
300
Wilkesboro
NC
183,050
406,562
 
 None
                   139
 
183,050
              406,701
              589,751
                      397,831
 
07/24/87
300
Winston Salem
NC
126,423
235,323
 
 None
 None
 
126,423
              235,323
              361,746
                        56,869
 
12/22/05
300
Winston-Salem
NC
353,239
656,427
 
 None
 None
 
353,239
              656,427
          1,009,666
                      272,412
 
08/31/01
300
Devils Lake
ND
150,390
279,798
 
 None
 None
 
150,390
              279,798
              430,188
                        67,618
 
12/22/05
300
Fargo
ND
217,057
403,609
 
 None
 None
 
217,057
              403,609
              620,666
                        97,539
 
12/22/05
300
Jamestown
ND
136,523
254,045
 
 None
 None
 
136,523
              254,045
              390,568
                        61,394
 
12/22/05
300
Minot
ND
153,870
286,260
 
 None
 None
 
153,870
              286,260
              440,130
                        69,180
 
12/22/05
300
Omaha
NE
444,460
825,938
 
 None
 None
 
444,460
              825,938
          1,270,398
                      196,849
 
01/11/06
300
Omaha
NE
350,000
650,877
 
 None
 None
 
350,000
              650,877
          1,000,877
                      113,901
 
08/28/07
300
Albuquerque
NM
471,899
876,928
 
 None
 None
 
471,899
              876,928
          1,348,827
                      153,461
 
08/28/07
300
Amherst
NY
412,349
767,082
 
 None
 None
 
412,349
              767,082
          1,179,431
                      134,237
 
08/28/07
300
Buffalo
NY
317,454
591,060
 
 None
 None
 
317,454
              591,060
              908,514
                      103,431
 
08/28/07
300
Watertown
NY
139,199
645,355
 
                 8,649
                   280
 
139,199
              654,284
              793,483
                      647,344
 
08/18/86
300
Cincinnati
OH
299,187
556,978
 
 None
 None
 
299,187
              556,978
              856,165
                        97,448
 
08/28/07
300
Mentor
OH
394,450
734,205
 
 None
 None
 
394,450
              734,205
          1,128,655
                      128,472
 
08/28/07
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Parma
OH
473,710
881,038
 
 None
 None
 
473,710
              881,038
          1,354,748
                      154,180
 
08/28/07
300
Toledo
OH
633,461
1,177,718
 
 None
 None
 
633,461
          1,177,718
          1,811,179
                      206,099
 
08/28/07
300
Bixby
OK
145,791
271,272
 
 None
 None
 
145,791
              271,272
              417,063
                        65,557
 
12/22/05
300
Broken Arrow
OK
245,000
369,002
 
 None
 None
 
245,000
              369,002
              614,002
                      207,254
 
12/12/97
300
Checotah
OK
153,232
285,092
 
 None
 None
 
153,232
              285,092
              438,324
                        68,897
 
12/22/05
300
Idabel
OK
214,244
398,545
 
 None
 None
 
214,244
              398,545
              612,789
                      165,387
 
08/31/01
300
Owasso
OK
327,043
607,645
 
 None
 None
 
327,043
              607,645
              934,688
                      252,169
 
08/31/01
300
Tahlequah
OK
224,982
418,341
 
 None
 None
 
224,982
              418,341
              643,323
                      101,099
 
12/22/05
300
Tulsa
OK
295,993
549,981
 
 None
 None
 
295,993
              549,981
              845,974
                      228,239
 
08/31/01
300
Salem
OR
198,540
689,507
 
 None
 None
 
198,540
              689,507
              888,047
                      413,389
 
05/23/89
300
Abington
PA
778,103
1,445,849
 
 None
 None
 
778,103
          1,445,849
          2,223,952
                      253,022
 
08/28/07
300
Greensburg
PA
315,000
586,368
 
 None
 None
 
315,000
              586,368
              901,368
                      102,611
 
08/28/07
300
Philadelphia
PA
423,333
787,125
 
 None
 None
 
423,333
              787,125
          1,210,458
                      137,745
 
08/28/07
300
Aiken
SC
240,937
447,656
 
 None
 None
 
240,937
              447,656
              688,593
                        94,754
 
09/14/06
300
Chamberlain
SD
139,587
259,627
 
 None
 None
 
139,587
              259,627
              399,214
                        62,743
 
12/22/05
300
Madison
SD
112,143
208,660
 
 None
 None
 
112,143
              208,660
              320,803
                        50,426
 
12/22/05
300
Rapid City
SD
197,967
368,047
 
 None
 None
 
197,967
              368,047
              566,014
                        88,944
 
12/22/05
300
Sioux Falls
SD
340,718
633,332
 
 None
 None
 
340,718
              633,332
              974,050
                      125,611
 
01/19/07
300
Spearfish
SD
142,114
264,320
 
 None
 None
 
142,114
              264,320
              406,434
                        63,877
 
12/22/05
300
Watertown
SD
197,559
367,289
 
 None
 None
 
197,559
              367,289
              564,848
                        88,761
 
12/22/05
300
Winner
SD
115,591
215,063
 
 None
 None
 
115,591
              215,063
              330,654
                        51,973
 
12/22/05
300
Antioch
TN
244,470
454,016
 
 None
 None
 
244,470
              454,016
              698,486
                        94,587
 
10/02/06
300
Bartlett
TN
152,469
283,343
 
 None
 None
 
152,469
              283,343
              435,812
                        59,974
 
09/14/06
300
Brownsville
TN
289,379
538,081
 
 None
 None
 
289,379
              538,081
              827,460
                      223,295
 
08/31/01
300
Collierville
TN
433,503
805,339
 
 None
 None
 
433,503
              805,339
          1,238,842
                      132,881
 
11/16/07
300
Columbia
TN
410,242
761,878
 
 None
 None
 
410,242
              761,878
          1,172,120
                      158,725
 
10/02/06
300
Germantown
TN
356,774
662,837
 
 None
 None
 
356,774
              662,837
          1,019,611
                      109,368
 
11/16/07
300
Henderson
TN
155,954
289,815
 
 None
 None
 
155,954
              289,815
              445,769
                        61,344
 
09/14/06
300
Hermitage
TN
341,251
633,753
 
 None
 None
 
341,251
              633,753
              975,004
                      132,032
 
10/02/06
300
Jackson
TN
126,158
234,594
 
 None
 None
 
126,158
              234,594
              360,752
                        56,693
 
12/22/05
300
Jackson
TN
312,734
581,049
 
 None
 None
 
312,734
              581,049
              893,783
                        95,873
 
11/16/07
300
Manchester
TN
411,504
764,222
 
 None
 None
 
411,504
              764,222
          1,175,726
                      159,213
 
10/02/06
300
Martin
TN
173,616
322,616
 
 None
 None
 
173,616
              322,616
              496,232
                        68,287
 
09/14/06
300
McMinnville
TN
442,735
635,260
 
 None
 None
 
442,735
              635,260
          1,077,995
                      128,092
 
12/21/06
300
Memphis
TN
148,386
275,760
 
 None
 None
 
148,386
              275,760
              424,146
                        58,369
 
09/14/06
300
Memphis
TN
254,423
472,680
 
 None
 None
 
254,423
              472,680
              727,103
                        98,475
 
10/12/06
300
Memphis
TN
309,358
574,779
 
 None
 None
 
309,358
              574,779
              884,137
                        94,839
 
11/16/07
300
Memphis
TN
374,048
694,918
 
 None
 None
 
374,048
              694,918
          1,068,966
                      114,661
 
11/16/07
300
Milan
TN
138,159
256,766
 
 None
 None
 
138,159
              256,766
              394,925
                        54,349
 
09/14/06
300
Millington
TN
285,613
530,630
 
 None
 None
 
285,613
              530,630
              816,243
                      220,209
 
08/31/01
300
Morristown
TN
182,935
340,274
 
 None
 None
 
182,935
              340,274
              523,209
                        82,232
 
12/22/05
300
Murfreesboro
TN
376,568
699,340
 
 None
 None
 
376,568
              699,340
          1,075,908
                      145,696
 
10/02/06
300
Murfreesboro
TN
383,266
712,027
 
 None
 None
 
383,266
              712,027
          1,095,293
                      143,592
 
12/21/06
300
Nashville
TN
147,915
274,700
 
 None
 None
 
147,915
              274,700
              422,615
                        57,229
 
10/02/06
300
Nashville
TN
432,494
803,203
 
 None
 None
 
432,494
              803,203
          1,235,697
                      167,334
 
10/02/06
300
Nashville
TN
350,983
651,825
 
 None
 None
 
350,983
              651,825
          1,002,808
                      135,797
 
10/02/06
300
Ripley
TN
231,552
430,232
 
 None
 None
 
231,552
              430,232
              661,784
                      178,543
 
08/31/01
300
Sevierville
TN
423,790
787,301
 
 None
 None
 
423,790
              787,301
          1,211,091
                      166,645
 
09/28/06
300
Shelbyville
TN
245,370
455,687
 
 None
 None
 
245,370
              455,687
              701,057
                        94,935
 
10/02/06
300
Trenton
TN
174,379
324,032
 
 None
 None
 
174,379
              324,032
              498,411
                        68,587
 
09/14/06
300
 
 
REALTY INCOME CORPORATION AND SUBSIDIARIES
                 
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION
               
                             
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements         Improvements        
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Allen
TX
165,000
306,771
 
 None
 None
 
165,000
              306,771
              471,771
                      152,874
07/09/99
05/28/99
300
Arlington
TX
560,000
1,040,667
 
 None
 None
 
560,000
          1,040,667
          1,600,667
                      182,115
 
08/28/07
300
Arlington
TX
536,130
996,532
 
 None
 None
 
536,130
              996,532
          1,532,662
                      174,391
 
08/28/07
300
Arlington
TX
269,284
500,766
 
 None
 None
 
269,284
              500,766
              770,050
                        87,632
 
08/28/07
300
Coppell
TX
212,875
396,007
 
 None
 None
 
212,875
              396,007
              608,882
                        69,299
 
08/28/07
300
Dallas
TX
242,025
479,170
 
 None
 None
 
242,025
              479,170
              721,195
                      391,463
 
06/25/91
300
Dallas
TX
386,451
718,361
 
 None
 None
 
386,451
              718,361
          1,104,812
                      125,711
 
08/28/07
300
Ennis
TX
173,250
384,793
 
 None
                   150
 
173,250
              384,943
              558,193
                      369,646
 
12/28/87
300
Fort Worth
TX
423,281
382,059
 
 None
 None
 
423,281
              382,059
              805,340
                      257,890
 
02/10/95
300
Fort Worth
TX
223,195
492,067
 
 None
                     54
 
223,195
              492,121
              715,316
                      413,127
 
06/26/91
300
Grand Prairie
TX
280,000
520,197
 
 None
 None
 
280,000
              520,197
              800,197
                        91,034
 
08/28/07
300
Houston
TX
113,693
0
 
 None
 None
 
113,693
                         -
              113,693
                                  -
 
03/07/97
300
Houston
TX
962,500
1,788,491
 
 None
 None
 
962,500
          1,788,491
          2,750,991
                      312,984
 
08/28/07
300
Houston
TX
441,943
821,760
 
 None
 None
 
441,943
              821,760
          1,263,703
                      143,806
 
08/28/07
300
Houston
TX
335,664
624,233
 
 None
 None
 
335,664
              624,233
              959,897
                      109,239
 
08/28/07
300
Houston
TX
194,994
386,056
 
 None
                   128
 
194,994
              386,184
              581,178
                      315,406
 
06/25/91
300
Houston
TX
184,175
364,636
 
 None
                   128
 
184,175
              364,764
              548,939
                      297,907
 
06/25/91
300
Hurst
TX
215,623
401,245
 
 None
 None
 
215,623
              401,245
              616,868
                        70,216
 
08/28/07
300
Irving
TX
291,971
543,094
 
 None
 None
 
291,971
              543,094
              835,065
                        95,039
 
08/28/07
300
Killeen
TX
262,500
583,014
 
 None
             14,398
 
262,500
              597,412
              859,912
                      586,779
 
05/29/87
300
Lewisville
TX
448,000
832,667
 
 None
 None
 
448,000
              832,667
          1,280,667
                      145,715
 
08/28/07
300
Lufkin
TX
128,842
239,585
 
 None
 None
 
128,842
              239,585
              368,427
                        57,900
 
12/22/05
300
Lumberton
TX
111,146
206,720
 
 None
 None
 
111,146
              206,720
              317,866
                        49,957
 
12/22/05
300
Plano
TX
840,000
1,560,819
 
 None
 None
 
840,000
          1,560,819
          2,400,819
                      273,141
 
08/28/07
300
Plano
TX
581,637
1,081,045
 
 None
 None
 
581,637
          1,081,045
          1,662,682
                      189,181
 
08/28/07
300
Porter
TX
227,067
333,031
 
 None
 None
 
227,067
              333,031
              560,098
                      224,796
 
02/09/95
300
Santa Fe
TX
304,414
623,331
 
 None
 None
 
304,414
              623,331
              927,745
                      343,813
 
03/23/98
300
Sealy
TX
197,871
391,753
 
 None
                   128
 
197,871
              391,881
              589,752
                      320,060
 
06/25/91
300
Spring
TX
378,654
704,206
 
 None
 None
 
378,654
              704,206
          1,082,860
                      123,234
 
08/28/07
300
Stafford
TX
214,024
423,733
 
 None
                   128
 
214,024
              423,861
              637,885
                      346,186
 
06/26/91
300
Temple
TX
302,505
291,414
 
 None
 None
 
302,505
              291,414
              593,919
                      196,704
 
02/09/95
300
Texarkana
TX
311,263
578,266
 
 None
 None
 
311,263
              578,266
              889,529
                      239,978
 
08/31/01
300
Vidor
TX
146,291
271,990
 
 None
 None
 
146,291
              271,990
              418,281
                        65,731
 
12/22/05
300
Hampton
VA
805,000
1,495,800
 
 None
 None
 
805,000
          1,495,800
          2,300,800
                      261,763
 
08/28/07
300
Lynchburg
VA
308,824
573,529
 
 None
 None
 
308,824
              573,529
              882,353
                        29,632
 
09/14/10
300
Virginia Beach
VA
551,588
797,260
 
                 8,975
                   258
 
551,588
              806,493
          1,358,081
                      444,733
 
02/23/98
300
Woodbridge
VA
962,500
1,788,300
 
 None
 None
 
962,500
          1,788,300
          2,750,800
                      312,951
 
08/28/07
300
Spokane
WA
479,531
646,719
 
 None
 None
 
479,531
              646,719
          1,126,250
                      356,721
 
03/27/98
300
Grafton
WI
149,778
332,664
 
 None
                   172
 
149,778
              332,836
              482,614
                      321,935
 
10/29/87
300
Green Bay
WI
308,131
572,756
 
 None
 None
 
308,131
              572,756
              880,887
                      136,507
 
01/11/06
300
                             
Shoe Stores
                           
Staten Island
NY
3,190,883
3,413,933
 
                 9,932
           207,462
 
3,190,883
          3,631,327
          6,822,210
                   1,484,873
 
03/26/98
300
                             
Sporting Goods
                           
Anchorage
AK
1,486,000
5,045,244
 
 None
 None
 
1,486,000
          5,045,244
          6,531,244
                   2,060,133
 
10/17/01
300
Mesa
AZ
984,890
1,536,269
 
 None
 None
 
984,890
          1,536,269
          2,521,159
                      299,554
 
02/12/07
300
Phoenix
AZ
2,730,000
4,509,356
 
 None
 None
 
2,730,000
          4,509,356
          7,239,356
                      217,952
 
10/22/10
300
Phoenix
AZ
3,250,000
5,735,722
 
 None
 None
 
3,250,000
          5,735,722
          8,985,722
                      277,227
 
10/22/10
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
      Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Fresno
CA
1,650,000
3,321,244
 
 None
 None
 
1,650,000
          3,321,244
          4,971,244
                   1,356,166
 
10/17/01
300
Daytona Beach
FL
608,790
2,557,564
 
 None
 None
 
608,790
          2,557,564
          3,166,354
                      828,477
09/10/03
04/18/03
300
Fort Meyers
FL
1,695,000
2,025,554
 
 None
 None
 
1,695,000
          2,025,554
          3,720,554
                      827,097
 
10/17/01
300
Gainesville
FL
1,296,000
2,234,554
 
 None
 None
 
1,296,000
          2,234,554
          3,530,554
                      912,439
 
10/17/01
300
Jupiter
FL
1,698,316
4,352,255
 
 None
           247,488
 
1,698,316
          4,599,743
          6,298,059
                   1,579,323
 
05/03/00
300
Melbourne
FL
994,000
4,076,554
 
 None
 None
 
994,000
          4,076,554
          5,070,554
                   1,664,589
 
10/17/01
300
Orlando
FL
1,197,000
2,573,554
 
 None
 None
 
1,197,000
          2,573,554
          3,770,554
                   1,050,864
 
10/17/01
300
Pooler
GA
1,339,957
1,831,350
 
 None
 None
 
1,339,957
          1,831,350
          3,171,307
                      417,822
 
03/01/06
300
Geneva
IL
2,082,000
1,838,888
 
 None
 None
 
2,082,000
          1,838,888
          3,920,888
                      750,873
 
10/17/01
300
Bowie
MD
2,084,000
3,046,888
 
 None
 None
 
2,084,000
          3,046,888
          5,130,888
                   1,244,140
 
10/17/01
300
Kearney
NE
173,950
344,393
 
 None
                   203
 
173,950
              344,596
              518,546
                      296,350
 
05/01/90
300
Glendale
NY
5,559,686
4,447,566
 
 None
 None
 
5,559,686
          4,447,566
        10,007,252
                   1,252,731
 
12/29/04
300
Mechanicsburg
PA
2,101,415
3,902,912
 
 None
 None
 
2,101,415
          3,902,912
          6,004,327
                   1,580,678
 
11/08/01
300
Columbia
SC
1,145,120
2,770,957
 
 None
                   432
 
1,145,120
          2,771,389
          3,916,509
                      465,378
 
03/03/05
300
Spartanburg
SC
1,234,815
3,111,921
 
           (428,405)
 None
 
806,410
          3,111,921
          3,918,331
                      844,174
 
03/03/05
300
El Paso
TX
700,000
2,501,244
 
 None
 None
 
700,000
          2,501,244
          3,201,244
                   1,021,333
 
10/17/01
300
Fredericksburg
VA
1,941,000
2,979,888
 
 None
 None
 
1,941,000
          2,979,888
          4,920,888
                   1,216,782
 
10/17/01
300
                             
Telecommunications
                           
Augusta
GA
2,720,359
11,128,077
 
 None
                   147
 
2,720,359
        11,128,224
        13,848,583
                      315,308
 
04/01/11
300
Salem
OR
1,721,686
9,387,216
 
                 2,750
 None
 
1,721,686
          9,389,966
        11,111,652
                      203,424
 
06/22/11
300
Brownsville
TX
1,740,479
11,570,294
 
 None
                   147
 
1,740,479
        11,570,441
        13,310,920
                      327,837
 
04/01/11
300
                             
Theaters
                           
Fairbanks
AK
2,586,879
9,575
 
 None
 None
 
2,586,879
                  9,575
          2,596,454
                           4,229
 
09/27/00
300
Huntsville
AL
2,810,868
14,308
 
 None
 None
 
2,810,868
                14,308
          2,825,176
                           6,319
 
09/27/00
300
Chula Vista
CA
2,060,287
8,914,162
 
 None
 None
 
2,060,287
          8,914,162
        10,974,449
                      133,712
 
08/08/11
300
Norwalk
CA
2,466,208
13,463,098
 
 None
 None
 
2,466,208
        13,463,098
        15,929,306
                      201,946
 
08/08/11
300
Naples
FL
2,618,441
8,979,199
 
 None
 None
 
2,618,441
          8,979,199
        11,597,640
                   4,055,585
 
09/27/00
300
Austell
GA
2,497,504
10,148,237
 
 None
 None
 
2,497,504
        10,148,237
        12,645,741
                      152,224
 
08/08/11
300
Chamblee
GA
4,329,404
14,942
 
 None
 None
 
4,329,404
                14,942
          4,344,346
                           6,411
 
09/27/00
300
Morrow
GA
2,962,468
13,170,143
 
                 2,540
 None
 
2,962,468
        13,172,683
        16,135,151
                      197,573
 
08/08/11
300
Council Bluffs
IA
4,924,553
11,652,293
 
 None
 None
 
4,924,553
        11,652,293
        16,576,846
                   1,811,535
 
01/31/08
300
Dubuque
IA
3,185,053
5,915,983
 
 None
 None
 
3,185,053
          5,915,983
          9,101,036
                      936,697
 
01/31/08
300
Edwardsville
IL
4,270,500
9,070,885
 
 None
 None
 
4,270,500
          9,070,885
        13,341,385
                   2,282,830
 
09/28/05
300
Lake in the Hills
IL
3,297,566
9,364,286
 
 None
 None
 
3,297,566
          9,364,286
        12,661,852
                   2,356,669
 
09/28/05
300
Marion
IL
832,500
3,499,885
 
 None
 None
 
832,500
          3,499,885
          4,332,385
                      880,795
 
09/28/05
300
Mattoon
IL
543,183
5,110,193
 
 None
 None
 
543,183
          5,110,193
          5,653,376
                   1,286,056
 
09/28/05
300
Pekin
IL
1,575,231
9,183,100
 
 None
 None
 
1,575,231
          9,183,100
        10,758,331
                   2,311,071
 
09/28/05
300
Rockford
IL
4,270,500
16,675,954
 
                (1,779)
 None
 
4,268,721
        16,675,954
        20,944,675
                   4,196,772
 
09/28/05
300
Springfield
IL
3,151,838
10,404,452
 
 None
 None
 
3,151,838
        10,404,452
        13,556,290
                   2,618,444
 
09/28/05
300
Bloomington
IN
2,498,642
7,934,745
 
 None
 None
 
2,498,642
          7,934,745
        10,433,387
                   1,996,901
 
09/28/05
300
Columbus
IN
1,999,812
7,234,361
 
 None
 None
 
1,999,812
          7,234,361
          9,234,173
                   1,820,638
 
09/28/05
300
Indianapolis
IN
2,700,395
17,672,980
 
 None
 None
 
2,700,395
        17,672,980
        20,373,375
                   4,245,903
 
09/28/05
300
Terre Haute
IN
1,249,321
9,835,885
 
 None
 None
 
1,249,321
          9,835,885
        11,085,206
                   2,475,355
 
09/28/05
300
Coon Rapids
MN
2,460,040
14,964,514
 
 None
 None
 
2,460,040
        14,964,514
        17,424,554
                   3,766,060
 
09/28/05
300
Inver Grove
MN
2,863,272
15,274,237
 
 None
 None
 
2,863,272
        15,274,237
        18,137,509
                   3,844,006
 
09/28/05
300
Poplar Bluff
MO
1,106,618
4,872,502
 
 None
 None
 
1,106,618
          4,872,502
          5,979,120
                   1,226,237
 
09/28/05
300
Rockaway
NJ
8,634,576
14,679,823
 
 None
 None
 
8,634,576
        14,679,823
        23,314,399
                   2,964,455
12/06/06
04/13/05
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)      
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements
 
     
 Improvements
       
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Binghamton
NY
2,700,000
5,570,505
 
               14,812
 None
 
2,700,000
          5,585,317
          8,285,317
                   1,407,057
 
09/29/05
300
Henrietta
NY
2,152,546
8,953,645
 
 None
 None
 
2,152,546
          8,953,645
        11,106,191
                      134,305
 
08/08/11
300
Akron
OH
1,511,018
1,386
 
 None
 None
 
1,511,018
                  1,386
          1,512,404
                              612
 
09/27/00
300
Beavercreek
OH
2,062,545
8,467,551
 
 None
 None
 
2,062,545
          8,467,551
        10,530,096
                      127,013
 
08/08/11
300
Columbus
OH
2,103,351
5,161,550
 
 None
 None
 
2,103,351
          5,161,550
          7,264,901
                   1,883,953
 
11/01/02
300
Hillsboro
OR
4,915,032
16,377
 
 None
 None
 
4,915,032
                16,377
          4,931,409
                           7,233
 
09/27/00
300
Portland
OR
2,793,001
9,942
 
 None
 None
 
2,793,001
                  9,942
          2,802,943
                           4,391
 
09/27/00
300
Fort Worth
TX
2,280,000
2,802,189
 
 None
 None
 
2,280,000
          2,802,189
          5,082,189
                      611,811
 
07/26/06
300
Laredo
TX
2,161,477
5,561,558
 
 None
 None
 
2,161,477
          5,561,558
          7,723,035
                   1,141,676
10/11/06
08/09/05
300
Live Oak
TX
2,910,035
12,674,850
 
 None
 None
 
2,910,035
        12,674,850
        15,584,885
                      190,123
 
08/08/11
300
Longview
TX
2,887,500
5,363,826
 
 None
 None
 
2,887,500
          5,363,826
          8,251,326
                   1,296,258
 
12/21/05
300
Lubbock
TX
1,642,533
6,984,372
 
 None
 None
 
1,642,533
          6,984,372
          8,626,905
                      104,766
 
08/08/11
300
Waco
TX
1,013,706
5,880,539
 
 None
 None
 
1,013,706
          5,880,539
          6,894,245
                   1,225,112
 
10/06/06
300
Glen Allen
VA
1,314,065
9,748,457
 
 None
 None
 
1,314,065
          9,748,457
        11,062,522
                   4,403,017
 
09/27/00
300
Roanoke
VA
2,212,494
9,324,958
 
 None
 None
 
2,212,494
          9,324,958
        11,537,452
                      139,874
 
08/08/11
300
Sterling
VA
4,546,305
33,325
 
 None
 None
 
4,546,305
                33,325
          4,579,630
                        14,158
 
09/27/00
300
Marysville
WA
1,988,142
0
 
 None
 None
 
1,988,142
                         -
          1,988,142
                                  -
 
07/27/00
300
Fitchburg
WI
5,540,553
10,290,483
 
 None
 None
 
5,540,553
        10,290,483
        15,831,036
                   1,629,326
 
01/31/08
300
                             
Transportation Services
                         
Palmetto
FL
1,853,907
9,635,997
 
                 4,500
 None
 
1,853,907
          9,640,497
        11,494,404
                      305,234
 
03/17/11
300
Conley
GA
420,000
780,000
 
 None
 None
 
420,000
              780,000
          1,200,000
                        29,900
 
01/10/11
300
Chicago
IL
612,500
1,137,500
 
 None
 None
 
612,500
          1,137,500
          1,750,000
                        43,604
 
01/10/11
300
Grayslake
IL
5,044,195
17,092,759
 
                     500
 None
 
5,044,195
        17,093,259
        22,137,454
                      484,328
 
04/21/11
300
Evansville
IN
959,651
4,053,122
 
 None
 None
 
959,651
          4,053,122
          5,012,773
                        47,286
 
09/13/11
300
Wichita
KS
2,840,499
7,375,302
 
                 1,000
 None
 
2,840,499
          7,376,302
        10,216,801
                      233,626
 
03/16/11
300
Louisville
KY
472,500
877,500
 
 None
 None
 
472,500
              877,500
          1,350,000
                        33,638
 
01/10/11
300
St. Rose
LA
3,147,428
8,283,048
 
 None
 None
 
3,147,428
          8,283,048
        11,430,476
                        13,805
 
12/20/11
300
Baltimore
MD
1,740,080
4,580,068
 
 None
 None
 
1,740,080
          4,580,068
          6,320,148
                   1,542,657
12/24/03
04/01/03
300
Detroit
MI
280,000
520,000
 
 None
 None
 
280,000
              520,000
              800,000
                        19,933
 
01/10/11
300
Gibraltar
MI
245,000
455,000
 
 None
 None
 
245,000
              455,000
              700,000
                        17,442
 
01/10/11
300
Shakopee
MN
2,451,948
7,961,282
 
 None
 None
 
2,451,948
          7,961,282
        10,413,230
                      252,107
 
03/17/11
300
Charlotte
NC
735,000
1,365,000
 
 None
 None
 
735,000
          1,365,000
          2,100,000
                        52,325
 
01/10/11
300
Columbus
OH
245,000
455,000
 
 None
 None
 
245,000
              455,000
              700,000
                        17,442
 
01/10/11
300
Walbridge
OH
210,000
390,000
 
 None
 None
 
210,000
              390,000
              600,000
                        14,950
 
01/10/11
300
Coraopolis
PA
350,000
650,000
 
 None
 None
 
350,000
              650,000
          1,000,000
                        24,917
 
01/10/11
300
Franklin
PA
405,243
1,831,240
 
               22,294
 None
 
405,243
          1,853,534
          2,258,777
                        58,530
 
03/15/11
300
Parker
PA
210,000
390,000
 
 None
 None
 
210,000
              390,000
              600,000
                        14,950
 
01/10/11
300
Chattanooga
TN
2,024,239
8,974,591
 
                     500
 None
 
2,024,239
          8,975,091
        10,999,330
                      284,233
 
03/17/11
300
Freeport
TX
245,000
455,000
 
 None
 None
 
245,000
              455,000
              700,000
                        17,442
 
01/10/11
300
LaPorte
TX
875,000
1,625,000
 
 None
 None
 
875,000
          1,625,000
          2,500,000
                        62,292
 
01/10/11
300
Vineyard
UT
1,732,107
5,356,844
 
 None
 None
 
1,732,107
          5,356,844
          7,088,951
                      169,633
 
03/17/11
300
                             
Video Rental
                           
Birmingham
AL
392,795
865,115
 
               39,818
                   441
 
392,795
              905,374
          1,298,169
                      498,532
 
09/30/97
300
Port St. Lucie
FL
612,695
702,209
 
                 4,825
                   424
 
612,695
              707,458
          1,320,153
                      366,177
12/09/98
09/08/98
300
Wichita
KS
289,714
797,856
 
                 6,400
                   168
 
289,714
              804,424
          1,094,138
                      420,156
 
11/23/98
300
Centerville
OH
601,408
758,192
 
                 9,017
                   116
 
601,408
              767,325
          1,368,733
                      412,839
 
06/30/98
300
Forest Park
OH
328,187
921,232
 
             118,422
                   275
 
328,187
          1,039,929
          1,368,116
                      528,645
 
11/14/97
300
 
 
         
 Cost  Capitalized
             
Life on
         
 Subsequent
 
 Gross Amount at Which Carried
     
which
   
 Initial Cost to Company
 
 to Acquisition
   at Close of Period (Notes 2, 3, 5, 6 and 7)
 
   
depreciation
     
 Buildings,
         
 Buildings,
       
in latest
       Improvements          Improvements
 
     
Income
     
 and
         
 and
 
Accumulated
   
Statement
Description
   
 Acquisition
   
 Carrying
   
 Acquisition
 
Depreciation
Date of
Date
is computed
(Note 1)
 
 Land
 Fees
 
Improvements
 Costs
 
Land
 Fees
 Total
(Note 4)
Construction 
 Acquired
(in Months)
                             
Murfreesboro
TN
406,056
886,293
 
               39,176
                   792
 
406,056
              926,261
          1,332,317
                      508,379
 
09/26/97
300
                             
Wholesale Clubs
                           
Columbia
MD
10,208,201
18,958,088
 
 None
 None
 
10,208,201
        18,958,088
        29,166,289
                      221,178
 
09/30/11
300
Nashua
NH
7,204,581
13,379,935
 
 None
 None
 
7,204,581
        13,379,935
        20,584,516
                      156,099
 
09/30/11
300
Freeport
NY
13,122,718
24,369,763
 
                 1,000
 None
 
13,122,718
        24,370,763
        37,493,481
                      284,339
 
09/30/11
300
Yorktown Heights
NY
11,225,391
20,847,154
 
 None
 None
 
11,225,391
        20,847,154
        32,072,545
                      243,217
 
09/30/11
300
Conshohocken
PA
7,231,557
13,430,034
 
 None
 None
 
7,231,557
        13,430,034
        20,661,591
                      156,684
 
09/30/11
300
Woodbridge
VA
5,659,285
10,509,101
 
                 1,000
 None
 
5,659,285
        10,510,101
        16,169,386
                      122,631
 
09/30/11
300
                             
Other
                           
El Centro
CA
520,000
2,185,899
 
 None
 None
 
520,000
          2,185,899
          2,705,899
                      200,374
 
09/17/09
300
Escondido
CA
1,949,375
12,966,248
 
             415,002
 None
 
1,949,375
        13,381,250
        15,330,625
                   2,276,395
08/13/07
01/18/06
300
San Diego
CA
3,745,000
8,885,351
 
             113,731
             35,308
 
3,745,000
          9,034,390
        12,779,390
                   7,065,643
03/08/86
03/25/86
300
San Diego
CA
5,797,411
15,473,497
 
             208,470
             75,947
 
5,797,411
        15,757,914
        21,555,325
                10,373,675
01/20/89
08/05/87
300
San Diego
CA
2,485,160
8,697,822
 
         1,769,961
           124,505
 
2,485,160
        10,592,288
        13,077,448
                16,487,614
01/23/89
09/19/86
300
Orange Park
FL
478,314
618,348
 
             141,523
             27,981
 
478,314
              787,852
          1,266,166
                      338,964
 
12/31/98
300
Venice
FL
259,686
362,562
 
                 4,535
                   154
 
259,686
              367,251
              626,937
                      222,440
 
11/26/96
300
Brunswick
GA
290,369
788,880
 
               22,865
             15,789
 
290,369
              827,534
          1,117,903
                      445,356
 
12/31/97
300
Jackson
MS
405,360
656,296
 
           (124,313)
             21,751
 
405,360
              553,734
              959,094
                      420,706
 
11/26/96
300
Meridian
MS
181,156
515,598
 
               75,460
 None
 
181,156
              591,058
              772,214
                      346,811
 
11/26/96
300
Lakewood
NY
144,859
526,301
 
               77,838
                   171
 
144,859
              604,310
              749,169
                      319,919
 
11/26/96
300
Humble
TX
106,000
545,518
 
               47,680
               6,493
 
106,000
              599,691
              705,691
                      580,880
 
03/25/86
300
Lubbock
TX
49,000
108,831
 
               10,282
 None
 
49,000
              119,113
              168,113
                      111,176
 
10/29/87
300
Hampton
VA
373,499
836,071
 
                 7,601
             16,686
 
373,499
              860,358
          1,233,857
                      473,059
 
12/19/97
300
Crest Net Lease
 
2,556,276
4,759,982
 
        (4,364,592)
8,525
 
2,556,276
              403,915
          2,960,191
109,925
     
Misc Investments
 
0
398,245
 
None
None
 
0
              398,245
              398,245
397,364
     
                             
   
1,754,028,090
3,210,726,573
 
6,586,061
4,755,408
 
1,750,783,723
  3,225,312,409
  4,976,096,132
816,087,890
     
 
Note 1.
Realty Income owns 2,619 single-tenant properties and 15 multi-tenant properties, three are located in San Diego, CA and one is located in each of the following cities:
 
Sheboygan, WI, Jackson, TN, Humble, TX, Escondido, CA, Cedar Park, TX, Brandon, FL, Cutler Ridge, FL, Deerfield Beach, FL, Edmond, OK, Dallas, TX, The Colony, TX and
 
Virginia Beach, VA.
                   
   
 
All properties were acquired on an all cash basis except five; $67.2 million in aggregate of encumbrances were outstanding at December 31, 2011 on four properties located in
 
Raphine, VA, Salem, OR, St. Louis, MO and Dallas Fort Worth Airport, TX.
       
                 
 
Crest Net Lease, Inc. owns three properties.
             
                           
Note 2.
The aggregate cost for federal income tax purposes for Realty Income Corporation is $4,924,224,479 and for Crest Net Lease, Inc. is $7,521,073.
 
 
Note 3.
The following is a reconciliation of total real estate carrying value for the years ended December 31:
 
2011
   
2010
   
2009
 
                     
 
Balance at Beginning of Period
    4,119,901,302       3,449,776,818       3,416,323,971  
                           
 
      Additions During Period:
                       
 
            Acquisitions
    1,016,170,863       713,534,296       57,937,191  
 
            Less amounts allocated to intangible assets that are included in Other Assets on our Consolidated Balance Sheets
    (133,491,909 )     (15,384,932 )     (860,287 )
 
            Equipment
    14,238       33,268       25,500  
 
            Improvements, Etc.
    2,435,950       2,044,036       1,853,609  
 
            Other (Leasing Costs)
    1,721,668       1,500,953       1,185,163  
 
Total Additions
    886,850,810       701,727,621       60,141,176  
                           
 
     Deductions During Period:
                       
 
           Cost of Real Estate sold  or disposed of
    31,383,561       30,254,678       25,420,455  
 
           Cost of Equipment sold
    0       0       2,750  
 
           Releasing costs
    584,192       410,234       801,363  
 
           Other (including Provisions for Impairment)
    (1,311,773 )     938,225       463,761  
 
Total Deductions
    30,655,980       31,603,137       26,688,329  
 
Balance at Close of Period
    4,976,096,132       4,119,901,302       3,449,776,818  
                           
Note 4.
The following is a reconciliation of accumulated depreciation for the years ended:
                 
                           
 
Balance at Beginning of Period
    715,023,381       632,894,759       554,171,306  
                           
 
      Additions During Period - Provision for Depreciation
    113,671,104       94,489,028       90,524,336  
                           
 
      Deductions During Period:
                       
 
           Accumulated depreciation of real estate and equipment sold or disposed of
    12,606,595       12,360,406       11,800,883  
 
Balance at Close of Period
    816,087,890       715,023,381       632,894,759  
                           
Note 5.
In 2011, provisions for impairment were recorded on five Realty Income properties.
                 
 
In 2010, provisions for impairment were recorded on four Realty Income properties and three Crest properties.
 
 
In 2009, provisions for impairment were recorded on one Realty Income property and five Crest properties.
         
                           
Note 6.
In accordance with FASB 143 and FASB interpretation No. 47, we recorded in aggregate $152,277 in 2011 , $81,593 in 2010 and negative $62,571 in 2009 to two buildings
 
 
for the fair value of legal obligations to peform asset-retirement activities that are conditional on future events. These two properties are reported in the drug store industry and
 
 
are located in Girard, PA and Slippery Rock, PA.
                       
                           
 
See report of independent registered public accounting firm.
                       
 
 
 
 F-56