ORLANDO-Although National Retail Properties Inc.’s acquisitionsactivity during the first half of the year was slower thanoriginally anticipated, it is expected to pick up significantlyduring the second half of the year, according to CEO Craig Macnab.He made the announcement during the company’s second quarterearnings conference call.

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“So far this year, we are making acquisitions one property at atime, which means our acquisition volume has been lower,” Macnabsaid. “The good news is that visibility on pending acquisitions hasimproved, and our activity in the second half looks like it mayallow us to reach our targeted acquisition goal of $170 million forthis year.”

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During the second quarter, National Retail Properties acquiredsix properties for a total of $26.2 million with an initial caprate of 9.43%. So far this year, the REIT has invested $38.6million in 10 properties.

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Based on letters of intent and deals the REIT is currentlyunderwriting, Macnab says the “pipeline right now… looks a wholelot better than it has at different points of this year.”

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He added: “We’ve had a more productive month in July than we’vehad thus far, and we expect that to continue into August. We’reworking on a number of transactions – they’re relatively modest insize.”

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Any acquisitions that close during the second half of 2010 willhave a modest impact on this year’s operating results, Macnab says,but will position the REIT “well for 2011 FFO per sharegrowth."

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Macnab points out that National Retail Properties has $50million of cash on its balance sheet and zero outstanding on its$400 million line of credit – a substantial amount of capitalavailable to deploy, he contends. As of June 30, 2010, the REITowned 1,014 properties totaling 11.4 million square feet in 43states.

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