##### Table of Contents



UNITED STATES
    SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
    20549
  FORM 10-Q
   þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    
    SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    September 30, 2007Oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    
    SECURITIES EXCHANGE ACT OF 1934For the transition period from
    to    0-51295
  NNN 2003 Value Fund,
    LLC
 (Exact name of registrant as
    specified in its charter)
  Delaware

20-0122092(State or other jurisdiction of
    incorporation or organization)

(I.R.S. Employer
    Identification No.)1551 N. Tustin Avenue, Suite 200
    Santa Ana, California(Address of principal executive
    offices)

92705(Zip Code)    (714) 667-8252
 (Registrants telephone
    number, including area code)
   N/A (Former
    name, former address and former fiscal year, if changed since
    last report)
    þ o
  non-accelerated Rule 12b-2
  o o þ
  Rule 12b-2
 o þ




---



##### 



NNN 2003
    VALUE FUND, LLC
    (A Delaware Corporation)
  TABLE OF
    CONTENTS
  
  PART I  FINANCIAL
    INFORMATIONItem 1.


Financial Statements


2Condensed Consolidated Balance Sheets as of
    September 30, 2007 (Unaudited) and December 31, 2006
    (Unaudited)


2Condensed Consolidated Statements of Operations
    and Comprehensive (Loss) Income for the Three and Nine Months
    Ended September 30, 2007 and 2006 (Unaudited)


3Condensed Consolidated Statement of Unit
    Holders Equity for the Nine Months Ended
    September 30, 2007 (Unaudited)


4Condensed Consolidated Statements of Cash Flows
    for the Nine Months Ended September 30, 2007 and 2006
    (Unaudited)


5Notes to Condensed Consolidated Financial
    Statements (Unaudited)


6Item 2.


Managements Discussion and Analysis of
    Financial Condition and Results of Operations


24Item 3.


Quantitative and Qualitative Disclosures About
    Market Risk


39Item 4.


Controls and Procedures


39Item 4T.


Controls and Procedures


40PART II  OTHER INFORMATIONItem 1.


Legal Proceedings


41Item 1A.


Risk Factors


41Item 2.


Unregistered Sales of Equity Securities and Use
    of Proceeds


42Item 3.


Defaults Upon Senior Securities


42Item 4.


Submission of Matters to a Vote of Security
    Holders


42Item 5.


Other Information


42Item 6.


Exhibits


42Signatures


43EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2   1




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##### Table of Contents



PART I 
    FINANCIAL INFORMATION
  Item 1.
    Financial Statements.
  NNN 2003
    VALUE FUND, LLC
  CONDENSED CONSOLIDATED BALANCE SHEETS
 As of
    September 30, 2007 and December 31, 2006
    (Unaudited)
  September 30, 2007


December 31, 2006ASSETSReal estate investments:Operating properties, net

$
69,388,000


$
48,770,000Properties held for sale, net






6,984,000Investments in unconsolidated real estate


6,085,000



7,298,00075,473,000



63,052,000Cash and cash equivalents


7,038,000



644,000Investment in marketable securities


1,230,000



Accounts receivable, net


382,000



750,000Accounts receivable from related parties


589,000



589,000Restricted cash


4,345,000



1,042,000Identified intangible assets, net


6,620,000



5,447,000Other assets - properties held for sale, net






1,401,000Other assets, net


5,247,000



1,711,000Notes receivable






2,420,000Total assets

$
100,924,000


$
77,056,000LIABILITIES, MINORITY INTERESTS AND UNIT HOLDERS
    EQUITYMortgage loan payables

$
66,733,000


$
31,686,000Mortgage loan payables secured by properties held for sale






5,500,000Accounts payable and accrued liabilities


4,162,000



2,279,000Accounts payable due to related parties


516,000



920,000Identified intangible liabilities, net


128,000



Other liabilities  properties held for sale, net






135,000Security deposits, prepaid rent and other liabilities


880,000



878,00072,419,000



41,398,000Minority interests


706,000



886,000Commitments and contingencies (Note 13)Unit holders equity


28,061,000



34,772,000Accumulated other comprehensive loss


(262,000
)


Total unit holders equity


27,799,000



34,772,000Total liabilities, minority interests and unit holders
    equity

$
100,924,000


$
77,056,000    2




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONDENSED CONSOLIDATED STATEMENTS OF
    OPERATIONS
 AND COMPREHENSIVE (LOSS) INCOME
 For the Three and Nine Months Ended September 30, 2007
    and 2006
 (Unaudited)
  Three Months Ended


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006Revenue:Rental income

$
2,115,000


$
912,000


$
5,701,000


$
2,597,000Expense:Rental expense


1,131,000



787,000



3,402,000



1,809,000General and administrative


329,000



216,000



1,073,000



577,000Depreciation and amortization


1,341,000



886,000



3,288,000



1,968,000Total expense


2,801,000



1,889,000



7,763,000



4,354,000Loss before other (expense) income and discontinued operations


(686,000
)


(977,000
)


(2,062,000
)


(1,757,000
)Other (expense) income:Interest expense (including amortization of deferred financing
    costs)


(1,609,000
)


(842,000
)


(4,228,000
)


(1,928,000
)Interest and dividend income


170,000



65,000



448,000



344,000(Loss) gain on sale of marketable securities


(284,000
)






12,000



134,000Equity in losses of unconsolidated real estate


(532,000
)


(350,000
)


(1,102,000
)


(754,000
)Other income


36,000



17,000



65,000



75,000Minority interests


48,000



12,000



136,000



14,000Loss from continuing operations


(2,857,000
)


(2,075,000
)


(6,731,000
)


(3,872,000
)Discontinued operations:(Loss) gain on sale of real estate including minority interests
    related to sale of real estate






(41,000
)


3,134,000



6,197,000Income (loss) from discontinued operations


3,000



105,000



103,000



(1,183,000
)Total income from discontinued operations


3,000



64,000



3,237,000



5,014,000Net (loss) income

$
(2,854,000
)

$
(2,011,000
)

$
(3,494,000
)

$
1,142,000Comprehensive (loss) income:Net (loss) income

$
(2,854,000
)

$
(2,011,000
)

$
(3,494,000
)

$
1,142,000Unrealized (loss) income on marketable securities


(140,000
)






(262,000
)


1,000Comprehensive (loss) income

$
(2,994,000
)

$
(2,011,000
)

$
(3,756,000
)

$
1,143,000Net (loss) income per unit:Continuing operations  basic and diluted

$
(286.56
)

$
(208.14
)

$
(675.13
)

$
(388.10
)Discontinued operations  basic and diluted


0.30



6.43



324.67



502.56Total net (loss) income per unit  basic and diluted

$
(286.26
)

$
(201.71
)

$
(350.46
)

$
114.46Weighted average number of units outstanding - basic and diluted


9,970



9,970



9,970



9,977    3




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONDENSED
    CONSOLIDATED STATEMENT OF UNIT HOLDERS EQUITY
 For the Nine Months Ended September 30, 2007
 (Unaudited)
  Numberof Units


TotalBALANCE - December 31, 2006


9,970


$
34,772,000Distributions






(3,217,000
)Net loss






(3,494,000
)Unrealized loss on marketable securities






(262,000
)BALANCE - September 30, 2007


9,970


$
27,799,000    4




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONDENSED CONSOLIDATED STATEMENTS OF CASH
    FLOWS
 For the Nine Months Ended September 30, 2007 and 2006
 (Unaudited)
  Nine Months EndedSeptember 30,2007


2006CASH FLOWS FROM OPERATING ACTIVITIESNet (loss) income

$
(3,494,000
)

$
1,142,000Adjustments to reconcile net (loss) income to net cash used in
    operating activities:Gain on sale of real estate


(3,134,000
)


(6,197,000
)Gain on sale of marketable securities


(12,000
)


(134,000
)Depreciation and amortization (including deferred financing
    costs, deferred rent and above market leases)


2,728,000



2,221,000Equity in losses of unconsolidated real estate


1,102,000



869,000Minority interests


(136,000
)


1,404,000Allowance for doubtful accounts


97,000



114,000Change in operating assets and liabilities:Accounts receivable


285,000



(950,000
)Other assets


(11,000
)


(184,000
)Accounts payable and accrued liabilities


(1,048,000
)


954,000Security deposits, prepaid rent and other liabilities


(141,000
)


39,000Net cash used in operating activities


(3,764,000
)


(722,000
)CASH FLOWS FROM INVESTING ACTIVITIESAcquisition of real estate properties


(23,862,000
)


(14,810,000
)Acquisition of investments in unconsolidated real estate






(2,657,000
)Proceeds from sale of real estate operating properties


11,491,000



22,354,000Distributions received from unconsolidated real estate


111,000



Capital expenditures


(777,000
)


(1,261,000
)Purchase of marketable securities


(6,489,000
)


(2,441,000
)Proceeds from sale of marketable securities


5,009,000



4,436,000Restricted cash


(3,303,000
)


877,000Proceeds from collection of principal payment of note receivable


2,420,000



Real estate deposits and other pre-acquisition costs






(18,000
)Net cash (used in) provided by investing activities


(15,400,000
)


6,480,000CASH FLOWS FROM FINANCING ACTIVITIESBorrowings on mortgage loan payables and other debt


36,046,000



10,741,000Borrowings from related parties


1,250,000



Principal repayments on mortgage loan payables and other debt


(6,499,000
)


(20,077,000
)Principal repayments on related party borrowings


(1,250,000
)


(2,245,000
)Minority interests contributions






4,778,000Minority interests distributions


(44,000
)


(3,011,000
)Payment of deferred financing costs


(728,000
)


Distributions


(3,217,000
)


(5,120,000
)Repurchase of member units, net of costs






(134,000
)Net cash provided by (used in) financing activities


25,558,000



(15,068,000
)NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS


6,394,000



(9,310,000
)CASH AND CASH EQUIVALENTS - beginning of period


644,000



10,760,000CASH AND CASH EQUIVALENTS - end of period

$
7,038,000


$
1,450,000SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the period for:Interest

$
3,656,000


$
4,444,000Income taxes

$
18,000


$
NONCASH INVESTING AND FINANCING ACTIVITIES:Accrual for tenant improvements and capital expenditures

$
694,000


$
47,000The following represents certain assets acquired and liabilities
    assumed in connection with our acquisitions and dispositions of
    operating properties:Restricted cash

$



$
97,000Increase in intangible assets less intangible liabilities of
    acquisitions and dispositions

$



$
1,496,000Security deposits and prepaid rent

$
8,000


$
Other assets

$
403,000


$
18,000Accrued expenses

$
39,000


$
Minority interests contributions

$



$
163,000    5




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)
  The use of the words, we, us, or
    our refers to NNN 2003 Value Fund, LLC and its
    subsidiaries, except where the context otherwise requires.
  1.
    Organization
    and Description of Business          2.
    Summary
    of Significant Accounting Policies    Interim
    Financial Data
   6




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  Form 10-K,
  Principles
    of Consolidation
  Consolidation of Variable Interest Entities, an
    Interpretation of Accounting Research Bulletin No. 51,
  Segments
  Disclosures about Segments of an Enterprise and
    Related Information
  Recently
    Issued Accounting Pronouncements
  Accounting for Uncertainty in Income Taxes
  Fair
    Value Measurement
 7




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  3.
    Investments
    in Real Estate  Operating
    Properties
    September 30,


December 31,2007


2006Land

$
11,974,000


$
10,305,000Buildings and tenant improvements


60,776,000



40,151,00072,750,000



50,456,000Less: accumulated depreciation


(3,362,000
)


(1,686,000
)$
69,388,000


$
48,770,000     2007
    Acquisition
    Consolidated
    Property
  Four
    Resource Square  Charlotte, North Carolina
   8




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  2007
    Dispositions
    Consolidated
    Properties
  Interwood 
    Houston, Texas
    Daniels
    Road land parcel  Heber City, Utah
    Investments
    in Unconsolidated Real Estate
    Ownership


September 30,


December 31,Description

Location

Percentage


2007


2006Enterprise Technology Center

Scotts Valley, CA


8.5
%

$
2,272,000


$
2,528,000Chase Tower

Austin, TX


14.8
%


1,538,000



2,108,000Executive Center II & III

Dallas, TX


41.1
%


2,275,000



2,662,000$
6,085,000


$
7,298,000     September 30,


December 31,2007


2006Balance Sheet Data:Assets (primarily real estate)

$
165,482,000


$
170,089,000Mortgage loan payables and other debt


113,488,000



107,621,000Other liabilities


15,855,000



19,434,000Equity


36,139,000



43,034,000Total liabilities and equity

$
165,482,000


$
170,089,000Our share of equity

$
6,085,000


$
7,298,000   9




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  Three Months Ended September 30,


Nine Months Ended September 30,2007


2006


2007


2006Revenue

$
6,285,000


$
5,795,000


$
18,518,000


$
12,895,000Rental and other expense


9,142,000



7,476,000



24,556,000



15,508,000Net loss

$
(2,857,000
)

$
(1,681,000
)

$
(6,038,000
)

$
(2,613,000
)Equity in losses of unconsolidated real estate

$
(532,000
)

$
(350,000
)

$
(1,102,000
)

$
(759,000
)Gain on sale of unconsolidated real estate










-



5,000Equity in losses and gain on sale of unconsolidated real estate

$
(532,000
)

$
(350,000
)

$
(1,102,000
)

$
(754,000
)   4.
    Marketable
    Securities    Historical


Gross Unrealized


EstimatedCost


Gains


Losses


Fair ValueSeptember 30, 2007Equity securities

$
1,492,000


$



$
(262,000
)

$
1,230,000     5.
    Identified
    Intangible Assets    September 30,

December 31,2007

2006In-place leases, above market leases and tenant relationships,
    net of accumulated amortization of $2,649,000 and $1,417,000 as
    of September 30, 2007 and December 31, 2006,
    respectively (with a weighted average life of 46 months,
    60 months, and 94 months for in-place leases, above
    market leases, and tenant relationships, respectively, as of
    September 30, 2007 and a weighted-average life of
    55 months, 68 months, and 106 months for in-place
    leases, above market leases, and tenant relationships,
    respectively, as of December 31, 2006)

$
6,620,000


$
5,447,000    10




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Year

Amount2007

$
425,0002008

$
1,463,0002009

$
1,078,0002010

$
913,0002011

$
856,000Thereafter

$
1,885,000   6.
    Other
    Assets    September 30,


December 31,2007


2006Deferred rent receivable

$
1,224,000


$
317,000Deferred financing costs, net of accumulated amortization of
    $685,000 and $227,000 as of September 30, 2007 and
    December 31, 2006, respectively


610,000



340,000Lease commissions, net of accumulated amortization of $190,000
    and $52,000 as of September 30, 2007 and December 31,
    2006, respectively


1,688,000



932,000Lease inducements, net of accumulated amortization of $247,000
    and $0 as of September 30, 2007 and December 31, 2006,
    respectively


1,680,000



Prepaid expenses, deposits and other assets


45,000



122,000$
5,247,000


$
1,711,000   7.
    Notes
    Receivable    8.
    Mortgage
    Loan Payables and Other Debt   11




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  30-day
  30-day
             12




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Other
    Debt
    9.
    Derivative
    Financial Instruments  Derivative Instruments and Hedging Activities,
    Notional Amount

Index

Rate

Fair Value

Instrument

Maturity$10,550,000

LIBOR

5.40%

$(30,000)

Swap

05/12/2008     10.
    Minority
    Interests  tenant-in-common,
  Date


MinorityEntity

Acquired


InterestsNNN Enterprise Way, LLC


05/07/04



26.7%901 Civic Center


04/24/06



3.1%  13




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Date

MinorityEntity

Acquired

InterestsNNN 801K Street, LLC


03/31/04



15.0
%NNN Oakey Building 2003, LLC


04/02/04



24.5
%NNN Enterprise Way, LLC


05/07/04



26.7
%901 Civic Center


04/24/06



3.1
%   11.
    Unit
    Holders Equity        per-unit
  12.
    Related
    Party Transactions  The
    Operating Agreement and Management Agreements
   14




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Property
    Management Fees
    Real
    Estate Acquisition Fee
    Real
    Estate Disposition Fee
    Lease
    Commissions
    Accounting
    Fees
    Loan
    Fees
    Related
    Party Accounts Receivable/Payable
   15




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  Related
    Party Financing
  365-day 365-day 365-day
  Unconsolidated
    Debt Due to Related Parties
  and/or
    NNN 2003 ValueOwnership


Amount of


Fund, LLCsProperty/Issue Date

Percentage


Loan


Portion of DebtExecutive Center II & III:06/08/05


41.1
%

$
1,000,000


$
411,00009/12/05


41.1
%


200,000



82,00010/18/05


41.1
%


240,000



99,00011/14/05


41.1
%


5,000



2,000$
1,445,000


$
594,000   13.
    Commitments
    and Contingencies  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
   16




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  Accounting
    for Contingencies.
  Litigation
    Environmental
    Matters
    Unconsolidated
    Debt
      As of September 30, 2007


As of December 31, 2006Mortgage Loan


NNN 2003 Value


Mortgage Loan


NNN 2003 ValueOwnership


Payables and Other


Fund, LLCs


Payables and Other


Fund, LLCsProperty

Percentage


Debt Balance


Portion of Debt


Debt Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,439,000


$
2,927,000


$
34,943,000


$
2,970,000Chase Tower


14.8
%


62,718,000



9,282,000



56,764,000



8,401,000Executive Center II & III


41.1
%


16,331,000



6,712,000



15,914,000



6,541,000$
113,488,000


$
18,921,000


$
107,621,000


$
17,912,000    17




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  Other
    14.
    Concentration
    of Credit Risk        Percentage of







Lease2007 Annual


2007 Annual




Square


ExpirationTenant

Base Rent*


Base Rent


Property

Footage


DateMcKesson Information Solutions, Inc.

$
1,101,000



15.1%


Four Resource Square


59,000



06/30/12GSA - Federal Bureau of Investigation

$
1,067,000



14.6%


901 Civic Center


49,000



03/14/08PRC, LLC

$
915,000



12.5%


Tiffany Square


96,000



05/31/13Westwood College of Technology

$
763,000



10.4%


Executive Center I


44,000



01/31/13    *
    
    Annualized rental revenue based on contractual base rent from
    leases in effect as of September 30, 2007.    Percentage of





Lease2006 Annual

2006 Annual



Square

ExpirationTenant

Base Rent*

Base Rent

Property

Footage

DateHeritage Capital Corporation

$
1,444,000



13.8
%

3500 Maple


69,000



06/30/15    *
    
    Annualized rental revenue based on contractual base rent from
    leases in effect as of September 30, 2006.  15.
    Discontinued
    Operations  Properties Held for Sale  Accounting for the
    Impairment or Disposal of Long-Lived Assets,
 18




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Property

Date Purchased

Date Designated for Sale

Date SoldDaniels Road

October 14, 2005

December 12, 2006

March 30, 2007Interwood

January 26, 2005

December 22, 2006

March 14, 20073500 Maple Building

December 27, 2005

December 27, 2005

14.0% sold on February 10, 200621.5% sold on June 13, 200653.7% sold on October 16, 20069.8% sold on October 31, 2006Oakey Building

April 2, 2004

June 8, 2005

January 24, 2006Southwood Tower

October 27, 2004

June 1, 2005

December 19, 2005Financial Plaza

October 29, 2004

January 15, 2005

April 13, 2005Satellite Place

November 29, 2004

December 17, 2004

February 24, 2005     Three Months Ended


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006Rental income

$



$
2,772,000


$
382,000


$
8,105,000Rental expense


3,000



(1,547,000
)


(177,000
)


(4,613,000
)Depreciation and amortization






(209,000
)


(10,000
)


(417,000
)Income before other expense


3,000



1,016,000



195,000



3,075,000Interest expense (including amortization of deferred financing
    costs)






(812,000
)


(92,000
)


(2,840,000
)Minority interests






(99,000
)






(1,418,000
)Income (loss) from discontinued operations


3,000



105,000



103,000



(1,183,000
)(Loss) gain on sale of real estate including minority interest
    on sale of real estate






(41,000
)


3,134,000



6,197,000Total income from discontinued operations

$
3,000


$
64,000


$
3,237,000


$
5,014,000  19




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    September 30,


December 31,2007(1)


2006Operating properties, net of accumulated depreciation of $0 and
    $320,000 as of September 30, 2007 and December 31,
    2006, respectively

$



$
6,984,000Identified intangible assets, net of accumulated amortization of
    $0 and $512,000 as of September 30, 2007 and
    December 31, 2006, respectively






1,185,000Lease commissions, net of accumulated amortization of $0 and $0
    as of September 30, 2007 and December 31, 2006,
    respectively






131,000Loan fees, net of accumulated amortization of $0 and $177,000 as
    of September 30, 2007 and December 31, 2006,
    respectively






8,000Other assets






77,000Total other assets






1,401,000Total assets

$



$
8,385,000Mortgage loan payables

$



$
5,500,000Security deposits, prepaid rent and other liabilities






135,000Total liabilities

$



$
5,635,000   (1)
    
    Assets and liabilities of discontinued operations were sold in
    the first quarter of 2007  16.
    Per Unit
    Data  Earnings Per Share.
    Three Months Ended


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006Loss from continuing operations

$
(2,857,000
)

$
(2,075,000
)

$
(6,731,000
)

$
(3,872,000
)Income from discontinued operations


3,000



64,000



3,237,000



5,014,000Net (loss) income

$
(2,854,000
)

$
(2,011,000
)

$
(3,494,000
)

$
1,142,000Net (loss) income per unit:Continuing operations - basic and diluted

$
(286.56
)

$
(208.14
)

$
(675.13
)

$
(388.10
)Discontinued operations - basic and diluted


0.30



6.43



324.67



502.56Total net (loss) income per unit - basic and diluted

$
(282.26
)

$
(201.71
)

$
(350.46
)

$
114.46Weighted average number of units outstanding - basic and diluted


9,970



9,970



9,970



9,977  20




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  17.
    Business
    Combinations  Business Combinations,
  Four Resource SquareLand

$
1,668,000Building and improvements


19,357,000In place leases


1,034,000Tenant relationships


1,592,000Net assets acquired

$
23,651,000Below market leases


(145,000
)Net liabilities incurred

$
(145,000
)     Business Combinations,
   21




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  18.
    Subsequent
    Events  Proposed
    Disposition
  Woodside
    Corporate Park  Beaverton, Oregon
      Property
    Acquisition
  The
    Sevens Building  St Louis, Missouri
    Related
    Party Financing
    Mortgage
    Loan Payables
  The
    Sevens Building
  12-month
 22




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Woodside
    Corporate Park
   23




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis Financial Condition and Results of
    Operations.  The use of the words we, us, or
    our refers to NNN 2003 Value Fund, LLC and its
    subsidiaries, except where the context otherwise requires.
  Form 10-Q.
  Forward-Looking
    Statements
    Overview
    and Background
     24




---



##### Table of Contents



Business
    Strategy
    2007
    Acquisition
    Consolidated
    Property
  Four
    Resource Square  Charlotte, North Carolina
   25




---



##### Table of Contents



2007
    Dispositions
    Consolidated
    Properties
  Interwood 
    Houston, Texas
    Daniels
    Road land parcel  Heber City, Utah
    Critical
    Accounting Policies
  Form 10-K,
  Interim
    Financial Data
  Form 10-K,
  Recently
    Issued Accounting Pronouncements
  Accounting for
    Uncertainty in Income Taxes
 26




---



##### Table of Contents



Fair Value
    Measurement
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  Factors
    Which May Influence Results of Operations
  Rental
    Income
    Scheduled
    Lease Expirations
    Sarbanes-Oxley
    Act
   27




---



##### Table of Contents



Results
    of Operations
    Comparison
    of the Three and Nine Months Ended September 30, 2007 and
    2006
  Three Months Ended





Nine Months EndedSeptember 30,


Change


September 30,


Change2007


2006


$


%


2007


2006


$


%Revenues :Rental income

$
2,115,000


$
912,000


$
1,203,000



131.9
%

$
5,701,000


$
2,597,000


$
3,104,000



119.5
%Expenses:Rental expenses


1,131,000



787,000



344,000



43.7



3,402,000



1,809,000



1,593,000



88.1General and administrative


329,000



216,000



113,000



52.3



1,073,000



577,000



496,000



86.0Depreciation and amortization


1,341,000



886,000



455,000



51.4



3,288,000



1,968,000



1,320,000



67.12,801,000



1,889,000



912,000



48.3



7,763,000



4,354,000



3,409,000



78.3Loss before other (expense) income and discontinued operations


(686,000
)


(977,000
)


291,000



29.8



(2,062,000
)


(1,757,000
)


(305,000
)


(17.4
)Other (expense) income:Interest expense (including amortization of deferred financing
    costs)


(1,609,000
)


(842,000
)


(767,000
)


(91.1
)


(4,228,000
)


(1,928,000
)


(2,300,000
)


(119.3
)Interest and dividend income


170,000



65,000



105,000



161.5



448,000



344,000



104,000



30.2(Loss) gain on sale of marketable securities


(284,000
)






(284,000
)






12,000



134,000



(122,000
)


(91.0
)Equity in losses and gain on sale of unconsolidated real estate


(532,000
)


(350,000
)


(182,000
)


(52.0
)


(1,102,000
)


(754,000
)


(348,000
)


(46.1
)Other income


36,000



17,000



19,000



111.8



65,000



75,000



(10,000
)


(13.3
)Minority interests


48,000



12,000



36,000



300.0



136,000



14,000



122,000



871.4Loss from continuing operationBefore discontinued operations


(2,857,000
)


(2,075,000
)


(782,000
)


(37.7
)


(6,731,000
)


(3,872,000
)


(2,859,000
)


(73.8
)Discontinued operations:(Loss) gain on sale of real estate






(41,000
)


41,000



100.0



3,134,000



6,197,000



(3,063,000
)


(49.4
)Income (loss) from discontinued Operations


3,000



105,000



(102,000
)


(97.1
)


103,000



(1,183,000
)


1,286,000



108.73,000



64,000



(61,000
)


(95.3
)


3,237,000



5,014,000



(1,777,000
)


(35.4
)Net (loss) income

$
(2,854,000
)

$
(2,011,000
)

$
(843,000
)


(41.9
)%

$
(3,494,000
)

$
1,142,000


$
(4,636,000
)


(406.0
)%   Rental
    Income
   28




---



##### Table of Contents



Rental
    Expense
      General
    and Administrative Expense
      Depreciation
    and Amortization Expense
     29




---



##### Table of Contents



Interest
    Expense
      Interest
    and Dividend Income
      (Loss) gain
    on Sale of Marketable Securities
      Equity in
    Losses of Unconsolidated Real Estate
     30




---



##### Table of Contents



Minority
    Interests
    Income
    (Loss) from Discontinued Operations
      Gain on
    Sale of Real Estate including Minority Interests Related to Sale
    of Real Estate
      Net
    (Loss) Income
    Liquidity
  Cash
    Flows
  Comparison
    of the Nine Months Ended September 30, 2007 and
    2006
   31




---



##### Table of Contents



Current
    Sources of Capital and Liquidity
    Factors
    Which May Influence Future Sources of Capital and
    Liquidity
  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
   32




---



##### Table of Contents



Accounting for
    Contingencies.
  Debt
    Financing
        Weighted-AverageTotal Debt


Interest RateSeptember 30,


December 31,


September 30,


December 31,2007


2006


2007


2006Mortgage loan payables:Mortgage loan payables

$
66,733,000


$
37,186,000



8.37
%


8.72
%Fixed rate and variable rate:Fixed rate

$
5,000,000


$
5,000,000



10.00
%


10.00
%Variable rate

$
61,733,000


$
32,186,000



8.24
%


8.52
%   30-day
    Notional Amount

Index

Rate

Fair Value

Instrument

Maturity$10,550,000

LIBOR

5.40%

$(30,000)

Swap

05/12/2008   and/or
   33




---



##### Table of Contents



and/or
    Other
    Liquidity Needs
   34




---



##### Table of Contents



Capital
    Resources
  General
        and/or and/or
     35




---



##### Table of Contents



Unconsolidated
    Debt
      As of September 30, 2007


As of December 31, 2006Mortgage Loan


NNN 2003 Value


Mortgage Loan


NNN 2003 ValueOwnership


Payables and Other


Fund, LLCs


Payables and Other


Fund, LLCsProperty

Percentage


Debt Balance


Portion of Debt


Debt Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,439,000


$
2,927,000


$
34,943,000


$
2,970,000Chase Tower


14.8
%


62,718,000



9,282,000



56,764,000



8,401,000Executive Center II & III


41.1
%


16,331,000



6,712,000



15,914,000



6,541,000$
113,488,000


$
18,921,000


$
107,621,000


$
17,912,000     Unconsolidated
    Debt Due to Related Parties
    NNN 2003Value Fund,Ownership


Amount of


LLCs PortionProperty/Issue Date

Percentage


Loan


of DebtExecutive Center II & III:6/8/2005


41.1
%

$
1,000,000


$
411,0009/12/2005


41.1
%


200,000



82,00010/18/2005


41.1
%


240,000



99,00011/14/2005


41.1
%


5,000



2,000$
1,445,000


$
594,000   Debt
    Service Requirements
   36




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodLess Than








More Than1 Year


1-3 Years


4-5 Years


5 Years(2007)


(2008-2009)


(2010-2011)


(After 2011)


TotalPrincipal payments  variable rate debt

$



$
40,487,000


$
21,246,000


$



$
61,733,000Principal payments  fixed rate debt






5,000,000











5,000,000Interest payments  variable rate debt (based on rate
    in effect as of September 30, 2007)


1,666,000



4,848,000



289,000







6,803,000Interest payments  fixed rate debt


125,000



125,000











250,000Tenant improvement and lease commission obligations


694,000















694,000Total

$
2,485,000


$
50,460,000


$
21,535,000


$



$
74,480,000   Off-Balance
    Sheet Arrangements
    Inflation
    Subsequent
    Events
  Proposed
    Disposition
  Woodside
    Corporate Park  Beaverton, Oregon
     37




---



##### Table of Contents



Property
    Acquisition
  The
    Sevens Building  St Louis, Missouri
    Related
    Party Financing
    Mortgage
    Loan Payables
  The
    Sevens Building
  12-month
 38




---



##### Table of Contents



Woodside
    Corporate Park
    Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk.          Expected Maturity Date2007


2008


2009


2010


2011


Thereafter


TotalFixed rate debt - principal payments

$



$
5,000,000


$



$



$



$



$
5,000,000Average interest rate on maturing debt






10.00%



















10.00%Variable rate debt - principal payments

$



$
27,262,000


$
13,225,000


$
21,246,000


$



$



$
61,733,000Average interest rate on maturing debt (based on rates in effect
    as of September 30, 2007)






8.88%



8.22%



7.42%











8.24%     Item 4.
    Controls
    and Procedures.   39




---



##### Table of Contents



Item 4T.
    Controls
    and Procedures.  Evaluation of disclosure controls and
    procedures.
  Form 10-Q Rules 13a-14(a) 15d-14(a) Form 10-Q
  Rules 13a-15(e) 15d-15(e)
    Changes in internal control over financial
    reporting. Rules 13a-15(f) 15d-15(f)
 40




---



##### Table of Contents



PART II 
    OTHER INFORMATION
  The use of the words, we, us, or
    our refers to NNN 2003 Value Fund, LLC and its
    subsidiaries, except where the context otherwise requires.
  Item 1.
    Legal
    Proceedings.  SEC
    Investigation
  In the matter of Triple
    Net Properties, LLC.
  Accounting for
    Contingencies.
  Litigation
    Item 1A.
    Risk
    Factors.  As a result of not generating the net operating income
    required under the secured loan agreement for the Woodside
    property, the lender has accelerated the maturity date for the
    payment of the unpaid principal balance of $16,290,000 and all
    accrued interest, to January 31, 2008, which could result
    in a foreclosure on the Woodside property
    and/or a
    material adverse impact on our operating activities and cash
    flow .
   41




---



##### Table of Contents



Form 10-K,
  Item 2.
    Unregistered
    Sales of Equity Securities and Use of Proceeds.    Item 3.
    Defaults
    Upon Senior Securities.    Item 4.
    Submission
    of Matters to a Vote of Security Holders.    Item 5.
    Other
    Information.    Item 6.
    Exhibits.   42




---



##### Table of Contents



SIGNATURES
    NNN 2003 Value Fund, LLC(Registrant)November 14, 2007

By:

/s/  RICHARD
    T. HUTTON, JR.Date



Richard T. Hutton, Jr.Chief Executive Officer
    (principal executive officer)November 14, 2007

By:

/s/  FRANCENE
    LAPOINTDate



Francene LaPointChief Financial Officer,
    Triple Net Properties, LLC
    the Manager of NNN 2003 Value Fund, LLC
    (principal financial officer)  43




---



##### Table of Contents



EXHIBIT INDEX
  Regulation S-K,
  Form 10-Q Regulation S-K).
  ExhibitNumber

Description3
.1

Articles of Organization of NNN 2003 Value Fund, LLC, dated
    March 19, 2003, (included as Exhibit 3.1 to our
    Form 10 filed on May 2, 2005 and incorporated herein
    by reference).10
.1

First Modification of Loan Documents by and between WCRT Seller
    LLC and NNN VF Woodside Corporate Park, LLC, executed on
    September 7, 2007 (included as Exhibit 10.1 to our
    Form 8-K
    filed September 13, 2007 and incorporated herein by
    reference).31
.1*

Certification of Chief Executive Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.31
.2*

Certification of Principal Financial Officer, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.32
.1*

Certification of Chief Executive Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002.32
.2*

Certification of Principal Financial Officer, pursuant to
    18 U.S.C. Section 1350, as created by Section 906
    of the Sarbanes-Oxley Act of 2002.     *
    
    Filed herewith