O 10-K Annual Report Dec. 31, 2011 | Alphaminr
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O 10-K Fiscal year ended Dec. 31, 2011

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REALTY INCOME CORP
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10-K 1 ri10k_2011yt.htm REALTY INCOME 2011 FORM 10-K Unassociated Document



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.

Index to Form 10-K

PART I
Page
Item 1:
2
3
6
7
13
19
Item 1A:
19
Item 1B:
29
Item 2:
29
Item 3:
29
Item 4:
29
PART II
Item 5:
29
Item 6:
30
Item 7:
31
31
38
44
45
46
46
Item 7A:
46
Item 8:
48
Item 9:
75
Item 9A:
76
Item 9B:
77
PART III
Item 10:
77
Item 11:
77
Item 12:
77
Item 13:
77
Item 14:
77
PART IV
Item 15:
78
83



PART I

Item 1: Business

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.

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 57 th consecutive quarterly increase and the 64 th 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.


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.

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.

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%.


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.


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.


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.


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.

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.”


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.


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%



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.


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.


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.

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:

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

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Our continued qualification as a real estate investment trust;
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General business and economic conditions;
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Competition;
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Fluctuating interest rates;
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Access to debt and equity capital markets;
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Continued volatility and uncertainty in the credit markets and broader financial markets;
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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;
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Impairments in the value of our real estate assets;
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Changes in the tax laws of the United States of America;
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The outcome of any legal proceedings to which we are a party or which may occur in the future; and
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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.


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.


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:
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Businesses;
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Individuals;
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Fiduciary accounts and plans; and
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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:
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Lack of demand in areas where our properties are located;
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Inability to retain existing tenants and attract new tenants;
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Oversupply of space and changes in market rental rates;
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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;
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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;
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Economic or physical decline of the areas where the properties are located; and
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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:

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Our knowledge of the contamination;
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The timing of the contamination;
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The cause of the contamination; or
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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.


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:

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We would be required to pay federal income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates;
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We would not be allowed a deduction in computing our taxable income for amounts distributed to our stockholders;
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We could be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost;
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We would no longer be required to make distributions to stockholders; and
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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.


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:
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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
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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.


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

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Increasing our vulnerability to general adverse economic and industry conditions;
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Limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements;
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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;
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Limiting our flexibility in planning for, or reacting to, changes in our business and our industry; and
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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:

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

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


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.


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.


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.


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




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.

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.


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.


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 57 th consecutive quarterly increase and the 64 th 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 %


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.


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.


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%.


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.

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.


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.


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.


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).”

(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.

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.

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

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.


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.


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.

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

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.

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.

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.


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


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).


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.


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.


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;

-
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.


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
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.


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.

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.



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.


None.


PART III


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.


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.


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.


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.


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


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).

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.

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
TABLE OF CONTENTS
Part IItem 1: BusinessItem 1A: Risk FactorsItem 1B: Unresolved Staff CommentsItem 2: PropertiesItem 3: Legal ProceedingsItem 4: (removed and Reserved)Part IIItem 5: Market For Registrant S Common Equity, Related Stockholder Matters and Issuer Purchases Of Equity SecuritiesItem 6: Selected Financial DataItem 7: Management S Discussion and Analysis Of Financial Condition and Results Of OperationsItem 7A: Quantitative and Qualitative Disclosures About Market RiskItem 8: Financial Statements and Supplementary DataItem 9: Changes in and Disagreements with Accountants on Accounting and Financial DisclosureItem 9: Changes in and Disagreements with Accountants on Accounting and FinancialItem 9A: Controls and ProceduresItem 9B: Other InformationPart IIIItem 10: Directors, Executive Officers and Corporate GovernanceItem 11: Executive CompensationItem 12: S Ecurity Ownership Of Certain Beneficial Owners and Management and Related Stockholder MattersItem 12: S Ecurity Ownership Of Certain Beneficial Owners and Management andItem 13: Certain Relationships, Related Transactions and Director IndependenceItem 14: Principal Accounting Fees and ServicesPart IVItem 15: Exhibits and Financial Statement SchedulesNote 3. The Following Is A Reconciliation Of Total Real Estate Carrying Value For The Years Ended December 31: 2011 2010 2009Note 4. The Following Is A Reconciliation Of Accumulated Depreciation For The Years Ended:Note 5. in 2011, Provisions For Impairment Were Recorded on Five Realty Income Properties