##### 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
    March 31, 2007oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period from
    
    toCommission File Number: 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
   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 March 31, 2007
    (Unaudited) and December 31, 2006 (Unaudited)


2Condensed
    Consolidated Statements of Operations and Comprehensive Income
    (Loss) for the Three Months Ended March 31, 2007 and 2006
    (Unaudited)


3Condensed
    Consolidated Statement of Unit Holders Equity for the
    Three Months Ended March 31, 2007 (Unaudited)


4Condensed
    Consolidated Statements of Cash Flows for the Three Months Ended
    March 31, 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


20Item 3.


Quantitative and
    Qualitative Disclosures About Market Risk


32Item 4.


Controls and
    Procedures


32Item 4T.


Controls and
    Procedures


32PART II 
    OTHER INFORMATIONItem 1.


Legal
    Proceedings


34Item 1A.


Risk
    Factors


34Item 2.


Unregistered Sales
    of Equity Securities and Use of Proceeds


34Item 3.


Defaults Upon
    Senior Securities


34Item 4.


Submission of
    Matters to a Vote of Security Holders


34Item 5.


Other
    Information


35Item 6.


Exhibits


35Signatures


36EXHIBIT 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 March 31, 2007 and December 31, 2006

(Unaudited)  March 31,


December 31,2007


2006ASSETSReal estate investments:Operating properties, net

$
69,502,000


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


-



6,984,000Investments in unconsolidated real
    estate


6,971,000



7,298,00076,473,000



63,052,000Cash and cash equivalents


8,240,000



644,000Investment in marketable securities


1,927,000



-Accounts receivable, net


577,000



750,000Accounts receivable from related
    parties


585,000



589,000Restricted cash


4,304,000



1,042,000Identified intangible assets, net


7,708,000



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


-



1,401,000Other assets, net


2,868,000



1,711,000Notes receivable


2,420,000



2,420,000Total assets

$
105,102,000


$
77,056,000LIABILITIES, MINORITY INTERESTS
    AND UNIT HOLDERS EQUITYMortgage loans payable

$
66,120,000


$
31,686,000Mortgage loans payable secured by
    properties held for sale


-



5,500,000Accounts payable and accrued
    liabilities


1,494,000



2,279,000Accounts payable due to related
    parties


402,000



920,000Identifed intangible liabilities,
    net


143,000



-Other liabilities - properties
    held for sale, net


-



135,000Security deposits, prepaid rent
    and other liabilities


1,038,000



878,00069,197,000



41,398,000Minority interests


782,000



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


35,166,000



34,772,000Accumulated other comprehensive
    loss


(43,000
)


-Total unit holders equity


35,123,000



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

$
105,102,000


$
77,056,000    2




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

For the Three Months Ended March 31, 2007 and 2006

(Unaudited)  Three Months EndedMarch 31,2007


2006Revenue:Rental income

$
1,652,000


$
705,000Expense:Rental expense


1,100,000



436,000General and administrative


503,000



222,000Depreciation and amortization


837,000



391,000Total expense


2,440,000



1,049,000Loss before other income (expense)
    and
    discontinued operations


(788,000
)


(344,000
)Other income (expense):Interest expense (including
    amortization 
    of deferred financing costs)


(1,055,000
)


(474,000
)Interest and dividend income


97,000



174,000Gain on sale of marketable
    securities


-



75,000Equity in losses of unconsolidated
    real estate


(290,000
)


(209,000
)Other income


32,000



66,000Minority interests


80,000



(5,000
)Loss from continuing operations


(1,924,000
)


(717,000
)Discontinued operations:Gain on sale of real estate
    including minority
    interests related to sale of real estate


3,134,000



5,656,000Income (loss) from discontinued
    operations


56,000



(1,517,000
)Total income from discontinued
    operations


3,190,000



4,139,000Net income

$
1,266,000


$
3,422,000Comprehensive income:Net income

$
1,266,000


$
3,422,000Unrealized (loss) income on
    marketable securities


(43,000
)


21,000Comprehensive income

$
1,223,000


$
3,443,000Net (loss) income per unit:Continuing operations - basic and
    diluted

$
(192.98
)

$
(71.75
)Discontinued operations - basic
    and diluted


319.96



414.19Total net income per unit - basic
    and diluted

$
126.98


$
342.44Weighted average number of units
    outstanding- basic and diluted


9,970



9,993    3




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
 CONDENSED
    CONSOLIDATED STATEMENT OF UNIT HOLDERS EQUITY
    For the Three Months Ended March 31, 2007
    (Unaudited)  Number of Units


TotalBALANCE - December 31,
    2006


9,970


$
34,772,000Distributions


-



(872,000
)Net income


-



1,266,000Unrealized loss on marketable
    securities


-



(43,000
)BALANCE - March 31,
    2007


9,970


$
35,123,000    4




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONDENSED CONSOLIDATED STATEMENTS OF CASH
    FLOWS
 For the Three Months Ended March 31, 2007 and 2006
 (Unaudited)
 Three Months EndedMarch 31,2007


2006CASH FLOWS FROM OPERATING
    ACTIVITIESNet income

$
1,266,000


$
3,422,000Adjustments to reconcile net income
    to net cash (used in) provided by operating activities:Gain on sale of real estate


(3,134,000
)


(5,656,000
)Gain on sale of marketable
    securities


-



(75,000
)Depreciation and amortization
    (including deferred financing costs, deferred rent 
    and above market leases)


618,000



275,000Equity in losses of unconsolidated
    real estate


290,000



245,000Minority interests


(80,000
)


1,214,000Allowance for doubtful accounts


(1,000
)


-Change in operating assets and
    liabilities:Accounts receivable


192,000



(106,000
)Other assets


142,000



127,000Accounts payable and accrued
    liabilities


(1,360,000
)


787,000Security deposits, prepaid rent and
    other liabilities


17,000



7,000Net cash (used in) provided by
    operating activities


(2,050,000
)


240,000CASH FLOWS FROM INVESTING
    ACTIVITIESAcquisition of real estate
    properties


(23,862,000
)


-Acquisition of investments in
    unconsolidated real estate


-



(157,000
)Proceeds from sale of real estate
    operating properties


11,491,000



20,299,000Proceeds from sale of
    unconsolidated real estate


-



-Distributions received from
    unconsolidated real estate


37,000



Capital expenditures


(129,000
)


(1,356,000
)Purchase of marketable securities


(1,970,000
)


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


-



1,847,000Restricted cash


(3,262,000
)


(167,000
)Net cash (used in) provided by
    investing activities


(17,695,000
)


18,025,000CASH FLOWS FROM FINANCING
    ACTIVITIESBorrowings on mortgages payable and
    other debt


34,434,000



540,000Borrowings from related parties


1,250,000



-Principal repayments on mortgages
    payable and other debt


(5,500,000
)


(8,757,000
)Principal repayments on related
    party borrowings


(1,250,000
)


(2,245,000
)Minority interests contributions


-



1,952,000Minority interests distributions


(23,000
)


(2,739,000
)Payment of deferred financing costs


(698,000
)


-Distributions


(872,000
)


(3,375,000
)Repurchase of member units, net of
    costs


-



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


27,341,000



(14,758,000
)NET INCREASE IN CASH AND CASH
    EQUIVALENTS


7,596,000



3,507,000CASH AND CASH EQUIVALENTS -
    beginning of period


644,000



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

$
8,240,000


$
14,267,000SUPPLEMENTAL DISCLOSURE OF CASH
    FLOW INFORMATION:Cash paid during the period for:Interest

$
990,000


$
1,352,000Income taxes

$
2,000


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

$
150,000


$
1,195,000Accrual for deferred financing costs

$
5,000



The following represents certain
    assets acquired and liabilities assumed in connection with our
    acquisitions and dispositions of operating propertiesIncrease in investment operating
    properties:Security deposits and prepaid rent

$
8,000


$
-Other assets

$
403,000


$
-Accrued expenses

$
39,000


$
-    5




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)
  1.
    Organization
    and Description of Business  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.
        2.
    Summary
    of Significant Accounting Policies  Interim
    Financial Data
  Form 10-K,
 6




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
   Principles
    of Consolidation
  Consolidation of
    Variable Interest Entities,
  Segments
    Recently
    Issued Accounting Pronouncements
  Accounting for
    Uncertainty in Income Taxes
  Fair Value
    Measurement
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
 7




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
   3.
    Investments
    in Real Estate  Operating
    Properties
    March 31,


December 31,2007


2006Land

$
11,974,000


$
40,151,000Buildings and tenant improvements


59,668,000



10,305,00071,642,000



50,456,000Less: accumulated depreciation


(2,140,000
)


(1,686,000
)$
69,502,000


$
48,770,000     2007
    Acquisition
    Consolidated
    Property
  Four
    Resource Square  Charlotte, North Carolina
  30-day
  2007
    Dispositions
    Consolidated
    Properties
  Interwood 
    Houston, Texas
    Daniels
    Road land parcel  Heber City, Utah
   8




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    Investments
    in Unconsolidated Real Estate
    Ownership


March 31,


December 31,Description

Location

Percentage


2007


2006Enterprise Technology Center

Scotts Valley, CA


8.5
%

$
2,462,000


$
2,528,000Chase Tower

Austin, TX


14.8



1,927,000



2,108,000Executive Center II
    & III

Dallas, TX


41.1



2,582,000



2,662,000$
6,971,000


$
7,298,000     March 31,


December 31,2007


2006Balance Sheet Data:Assets (primarily real estate)

$
169,389,000


$
170,089,000Mortgage loans and other debt
    payable

$
109,419,000


$
107,621,000Other liabilities


19,076,000



19,434,000Equity


40,894,000



43,034,000Total liabilities and equity

$
169,389,000


$
170,089,000Our share of equity

$
6,971,000


$
7,298,000   Three Months EndedMarch 31,2007


2006Revenue

$
6,109,000


$
3,400,000Rental and other expense


7,772,000



3,797,000Net loss

$
(1,663,000
)

$
(397,000
)Equity in losses of unconsolidated
    real estate

$
(290,000
)

$
(209,000
)   4.
    Marketable
    Equity Securities  available-for-sale
  Historical


Gross Unrealized


EstimatedCost


Gains


Losses


Fair ValueMarch 31, 2007 
    Equity securities

$
1,970,000


$



$
(43,000
)

$
1,927,000  9




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    5.
    Identified
    Intangible Assets    March 31,


December 31,2007


2006In-place leases, above market
    leases and tenant relationships, net of accumulated amortization
    of $1,781,000 and $1,417,000 as of March 31, 2007 and
    December 31, 2006, respectively (with a weighted average
    life of 49 months, 65 months, and 99 months for
    in-place leases, above market leases, and tenant relationships,
    respectively, as of March 31, 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)

$
7,708,000


$
5,447,000     6.
    Other
    Assets    March 31,


December 31,2007


2006Deferred rent receivable

$
610,000


$
317,000Deferred financing costs, net of
    accumulated amortization of $326,000 and $227,000 as of
    March 31, 2007 and December 31, 2006, respectively


945,000



340,000Lease commissions, net of
    accumulated amortization of $90,000 and $52,000 as of
    March 31, 2007 and December 31, 2006, respectively


1,035,000



932,000Prepaid expenses, deposits and
    other


278,000



122,000$
2,868,000


$
1,711,000   7.
    Notes Receivable   10




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
   8.
    Mortgage
    Loans Payable and Other Debt  weighted-average
  30-day
  30-day
      Other
    Debt
   11




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##### Table of Contents



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

Index

Rate

Fair Value

Instrument

Maturity$10,550,000

LIBOR

5.40%

$(39,000)

SWAP

05/12/2008     10.
    Minority
    Interests    Date


MinorityEntity

Acquired


InterestsNNN Enterprise Way, LLC


05/07/04



26.7
%901 Civic Center


04/24/06



3.1
%     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     12




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
     per-unit
  12.
    Related
    Party Transactions  The
    Operating Agreement and Management Agreement
      Property
    Management Fees
    Real
    Estate Acquisition Fee
    Real
    Estate Disposition Fee
    Lease
    Commissions
   13




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
   Accounting
    Fees
    Related
    Party Accounts Receivable/Payable
    Related
    Party Financing
  365-day 365-day interest-only 365-day
  Unconsolidated
    Debt Due to Related Parties
  and/or
    NNN 2003 ValueAmount of


Fund, LLCsProperty/Issue Date

Loan


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

$
1,000,000


$
411,00009/12/05


200,000



82,00010/18/05


240,000



99,00011/14/05


5,000



2,000$
1,445,000


$
594,000  14




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  13.
    Commitments
    and Contingencies  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
  Accounting
    for Contingencies.
  Litigation
    Environmental
    Matters
    Unconsolidated
    Debt
    15




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  As of December 31,As of March 31, 2007


2006Mortgage and


NNN 2003 Value


Mortgage and


NNN 2003 ValueOwnership


Other Debt


Fund, LLCs


Other Debt


Fund, LLCsProperty

Percentage


Balance


Portion of Debt


Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,770,000


$
2,955,000


$
34,943,000


$
2,970,000Chase Tower


14.8



58,810,000



8,704,000



56,764,000


$
8,401,000Executive Center II
    & III


41.1



15,839,000



6,510,000



15,914,000


$
6,541,000$
109,419,000


$
18,169,000


$
107,621,000


$
17,912,000     14.
    Concentration
    of Credit Risk        Percentage of







Lease2007 Annual


2007 Annual




Square


ExpirationTenant

Base Rent*


Base Rent


Property

Footage


DateGSA - FBI

$
1,043,000



16.3%


901 Civic Center


49,000



03/14/08Westwood College of Technology

$
763,000



11.9%


Executive Center I


44,000



01/31/13McKesson Information Solutions,
    Inc.

$
757,000



11.9%


Four Resource Square


41,000



10/31/08     *
    
    Annualized rental revenue based on contractual base rent from
    leases in effect as of March 31, 2007. 16




---



##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
     Percentage of








Lease2006 Annual


2006 Annual





Square


ExpirationTenant

Base Rent*


Base Rent


Property


Footage


DateHeritage Capital Corporation

$
1,575,000



14.7%



3500 Maple



75,000



06/30/15     *
    
    Annualized rental revenue based on contractual base rent from
    leases in effect as of March 31, 2006.  15.
    Discontinued
    Operations  Properties Held for Sale    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 EndedMarch 31,2007


2006Rental income

$
327,000


$
2,379,000Rental expense


(169,000
)


(1,494,000
)Depreciation and amortization


(10,000
)


(104,000
)Income before other expense


148,000



781,000Interest expense (including
    amortization of deferred financing costs)


(92,000
)


(1,088,000
)Minority interests


-



(1,210,000
)Income (loss) from discontinued
    operations


56,000



(1,517,000
)Gain on sale of real estate
    including minority interest on sale of real estate


3,134,000



5,656,000Total income from discontinued
    operations

$
3,190,000


$
4,139,000  17




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
    March 31,


December 31,2007 (1)


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

$
-


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


-



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


-



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


-



8,000Other assets


-



77,000Total other assets


-



1,401,000Total assets

$
-


$
8,385,000Mortgage loans payable

$
-


$
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 EndedMarch 31,2007


2006Loss from continuing operations

$
(1,924,000
)

$
(717,000
)Income from discontinued operations


3,190,000



4,139,000Net income

$
1,266,000


$
3,422,000Net (loss) income per unit:Continuing operations - basic
    and diluted

$
(192.98
)

$
(71.75
)Discontinued operations -
    basic and diluted


319.96



414.19Total net income per unit -
    basic and diluted

$
126.98


$
342.44Weighted average number of units
    outstanding - basic and diluted


9,970



9,993   17.
    Business
    Combinations   18




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited)  (Continued)
  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
)         18.
    Subsequent
    Events   19




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##### 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
     20




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##### Table of Contents



Business
    Strategy
    2007
    Acquisition
    Consolidated
    Property
  Four
    Resource Square  Charlotte, North Carolina
  30-day
  2007
    Dispositions
    Consolidated
    Properties
  Interwood 
    Houston, Texas
   21




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##### Table of Contents



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
  Fair Value
    Measurement
 22




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##### Table of Contents



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
      Results
    of Operations
   23




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##### Table of Contents



Comparison
    of the Three Months Ended March 31, 2007 and
    2006
  Three Months EndedMarch 31,


Change2007


2006


$


%Revenue:Rental income

$
1,652,000


$
705,000


$
947,000



134.3
%Expense:Rental expenses


1,100,000



436,000



664,000



152.3General and administrative


503,000



222,000



281,000



126.6Depreciation and amortization


837,000



391,000



446,000



114.12,440,000



1,049,000



1,391,000



132.6Loss before other income (expense)
    and discontinued operations


(788,000
)


(344,000
)


(444,000
)


(129.1
)Other (expense) income:Interest expense (including
    amortization of deferred financing costs)


(1,055,000
)


(474,000
)


(581,000
)


(122.6
)Interest and dividend income


97,000



174,000



(77,000
)


(44.3
)Gain on sale of marketable
    securities


-



75,000



(75,000
)


(100.0
)Equity in losses of unconsolidated
    real estate


(290,000
)


(209,000
)


(81,000
)


(38.8
)Other income


32,000



66,000



(34,000
)


(51.5
)Minority interests


80,000



(5,000
)


85,000



1,700.0Loss from continuing operations

$
(1,924,000
)

$
(717,000
)

$
(1,207,000
)


(168.3
)Discontinued operations:Gain on sale of real estate
    including minority interest related to sale of real estate

$
3,134,000


$
5,656,000


$
(2,522,000
)


(44.6
)%Income (loss) from discontinued
    operations


56,000



(1,517,000
)


1,573,000



103.7Total income from discontinued
    operations


3,190,000



4,139,000



(949,000
)


(22.9
)Net income

$
1,266,000


$
3,422,000


$
(2,156,000
)


(63.0
)%   Rental
    Income
    Rental
    Expense
   24




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##### Table of Contents



General
    and Administrative Expense
    Depreciation
    and Amortization Expense
    Interest
    Expense
    Interest
    and Dividend Income
    Gain on
    Sale of Marketable Securities
    Equity in
    Losses of Unconsolidated Real Estate
   25




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##### 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
    Income
    Liquidity
    and Capital Resources
  Cash
    Flows
  Comparison
    of the Three Months Ended March 31, 2007 and 2006
         26




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##### 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.
  Accounting for
    Contingencies.
  Debt
    Financing
     27




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##### Table of Contents



Weighted -AverageTotal Debt


Interest RateMarch 31,


December 31,


March 31,


December 31,2007


2006


2007


2006Mortgage and other debt:Mortgage

$
66,120,000


$
37,186,000



8.33
%


8.72
%Fixed rate and variable rate:Fixed rate

$
5,000,000


$
5,000,000



10.00
%


10.00
%Variable rate

$
61,120,000


$
32,186,000



8.19
%


8.52
%   30-day
    Notional Amount


Index


Rate


Fair Value


Instrument


Maturity$
10,550,000



LIBOR



5.40
%

$
(39,000
)


SWAP



05/12/2008   and/or
    Other
    Liquidity Needs
     28




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##### Table of Contents



Capital
    Resources
  General
        and/or and/or
      Unconsolidated
    Debt
   29




---



##### Table of Contents



As of March 31, 2007


As of December 31, 2006Mortgage and


NNN 2003 Value


Mortgage and


NNN 2003 ValueOwnership


Other Debt


Fund, LLCs


Other Debt


Fund, LLCsProperty

Percentage


Balance


Portion of Debt


Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,770,000


$
2,955,000


$
34,943,000


$
2,970,000Chase Tower


14.8



58,810,000



8,704,000



56,764,000



8,401,000Executive Center II
    & III


41.1



15,839,000



6,510,000



15,914,000



6,541,000$
109,419,000


$
18,169,000


$
107,621,000


$
17,912,000   non-compliance.
  Unconsolidated
    Debt Due to Related Parties
    NNN 2003Value Fund,Amount of


LLCs PortionProperty/Issue Date

Loan


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

$
1,000,000


$
411,00009/12/05


200,000



82,00010/18/05


240,000



99,00011/14/05


5,000



2,000$
1,445,000


$
594,000   Debt
    Service Requirements
    Contractual
    Obligations
   30




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##### Table of Contents



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

$
-


$
39,970,000


$
21,150,000


$
-


$
61,120,000Principal payments 
    fixed rate debt


5,000,000



-



-



-



5,000,000Interest payments 
    variable rate debt (based on rate in effect at March 31,
    2007)


3,755,000



5,855,000



295,000



-



9,905,000Interest payments  fixed
    rate debt


375,000



-



-



-



375,000Tenant improvement and lease
    commission obligations


1,308,000



-



-



-



1,308,000$
10,438,000


$
45,825,000


$
21,445,000


$
-


$
77,708,000   Off-Balance
    Sheet Arrangements
    Inflation
    Subsequent
    Events
  Special
    Distributions
   31




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##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk.          2007


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


-



26,745,000



13,225,000



21,150,000



-



-



61,120,000Average interest rate on maturing
    debt (based on rates in effect as of March 31, 2007)


-



8.53%



8.42%



7.62%



-



-



8.19%     Item 4.
    Controls
    and Procedures.   Item 4T. Controls
    and Procedures.  Evaluation of disclosure controls and
    procedures.
  Form 10-Q Rules 13a-14(a) 15d-14(a) Form 10-Q
 32




---



##### Table of Contents



Rules 13a-15(e) 15d-15(e)
    Changes in internal control over financial
    reporting. Rules 13a-15(f) 15d-15(f)
 33




---



##### 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.  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.   34




---



##### Table of Contents



Item 5.
    Other
    Information.    Item 6.
    Exhibits.   35




---



##### Table of Contents



SIGNATURES    NNN 2003 Value Fund, LLC(Registrant)May 15, 2007

By:

/s/  Richard
    T. Hutton, Jr.Date



Richard T. Hutton, Jr.Chief Executive Officer 
    (principal executive officer)May 15, 2007

By:

/s/  Francene
    LaPointDate



Francene LaPointChief Financial Officer,
    Triple Net Properties, LLC
    the Manager of NNN 2003 Value Fund, LLC 
    (principal financial
    officer)  36




---



##### 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

Operating Agreement of NNN 2003
    Value Fund, LLC, by and between Triple Net Properties, LLC, as
    the Manager, and Anthony W. Thompson, as the Initial Member.
    (included as Exhibit 10.1 to our Form 10 filed on
    May 2, 2005 and incorporated herein by reference).10
.2

Management Agreement between NNN
    2003 Value Fund, LLC and Triple Net Properties Realty, Inc.
    (included as Exhibit 10.2 to our Form 10 filed on
    May 2, 2005 and incorporated herein by reference).10
.3

First Amendment to Operating
    Agreement of NNN 2003 Value Fund, LLC, by and between Triple Net
    Properties, LLC, as the Manager, dated January 20, 2005,
    (included as Exhibit 10.3 to our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10
.4

First Amendment to Management
    Agreement between NNN 2003 Value Fund, LLC and Triple Net
    Properties Realty, Inc., dated May 1, 2005, (included as
    Exhibit 10.4 to our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10
.5

Second Amendment to Operating
    Agreement of NNN 2003 Value Fund, LLC, by and between Triple Net
    Properties, LLC, as the Manager, dated February 2, 2007,
    (included as Exhibit 10.7 to our
    Form 10-K
    filed on April 2, 2007 and incorporated herein by
    reference).10
.6

Contract of Sale by and bewteen
    G&I III Resource Square, LLC, and Triple Net
    Properties, LLC, dated January 9, 2007, (included as
    Exhibit 10.1 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10
.7

Assignment of Contract by and
    between Triple Net Properties, LLC, and NNN VF Four Resource
    Square, LLC, dated February 15, 2007, (included as
    Exhibit 10.2 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10
.8

First Amendment to Contract of
    Sale by and between G&I III Resource Square, LLC, and
    Triple Net Properties, LLC, dated February 20, 2007,
    (included as Exhibit 10.3 to our
    Form 8-K
    filed on February 22, 2007 and incorporated herein by
    reference).10
.9

Deed of Trust by and between NNN
    VF Tiffany Square, LLC and RAIT Partnership, L.P., dated
    February 15, 2007, (included as Exhibit 10.1 to our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.10

Loan and Security Agreement by and
    between NNN VF Tiffany Square, LLC and RAIT Partnership, L.P.,
    dated February 15, 2007, (included as Exhibit 10.2 to
    our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.11

Promissory Note by and between NNN
    VF Tiffany Square, LLC and RAIT Partnership, L.P., dated
    February 15, 2007, (included as Exhibit 10.3 to our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.12

Pledge and Security Agreement by
    and between NNN 2003 Value Fund, LLC and RAIT Partnership, L.P.,
    dated February 15, 2007, (included as Exhibit 10.4 to
    our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.13

Guaranty of Non-Recourse Carveouts
    by and between NNN 2003 Value Fund, LLC and RAIT Partnership,
    L.P., dated February 15, 2007, (included as
    Exhibit 10.5 to our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.14

Environmental Indemnity Agreement
    by and between NNN VF Tiffany Square, LLC, NNN 2003 Value Fund,
    LLC and RAIT Partnership, L.P., dated February 15, 2007,
    (included as Exhibit 10.6 to our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference). 37




---



##### Table of Contents



10
.15

Assignment of Rents and Leases by
    and between NNN VF Tiffany Square, LLC and RAIT Partnership,
    L.P., dated February 15, 2007, (included as
    Exhibit 10.7 to our
    Form 8-K
    filed on February 28, 2007 and incorporated herein by
    reference).10
.16

Deed of Trust, Security Agreement
    and Fixture Filing by and between NNN VF Four Resource Square,
    LLC and RAIT Partnership, L.P., dated March 7, 2007,
    (included as Exhibit 10.4  to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.17

Loan and Security Agreement by and
    between NNN VF Four Resource Square, LLC and RAIT Partnership,
    L.P., dated March 7, 2007, (included as Exhibit 10.5
    to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.18

Promissory Note by and between NNN
    VF Four Resource Square, LLC and RAIT Partnership, L.P., dated
    March 7, 2007,  (included as Exhibit 10.6  to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.19

Pledge and Security Agreement by
    and between NNN 2003 Value Fund, LLC and RAIT Partnership, L.P.,
    dated March 7, 2007, (included as Exhibit 10.7 to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.20

Guaranty of Non-Recourse Carveouts
    by and between NNN 2003 Value Fund, LLC and RAIT Partnership,
    L.P., dated March 7, 2007, (included as Exhibit 10.8
    to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.21

Environmental Indemnity Agreement
    by and between NNN VF Four Resource Square, LLC, NNN 2003 Value
    Fund, LLC and RAIT Partnership, L.P., dated March 7, 2007,
    (included as Exhibit 10.9  to our
    Form 8-K
    filed on March 7, 2007 and incorporated herein by
    reference).10
.22

Assignment of Licenses, Permits,
    Approvals and Miscellaneous Contracts by and between NNN VF Four
    Resource Square, LLC and RAIT Partnership, L.P., dated
    March 7, 2007, (included as Exhibit 10.10 to our
    Form 8-K
    filed on March 7, 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 Chief 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 Chief Financial
    Officer, pursuant to 18 U.S.C. Section 1350, as
    created by Section 906 of the Sarbanes-Oxley Act of 2002.     *
    
    Filed herewith 38