##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE
    COMMISSION
 Washington, 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
    June 30, 2007oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934   
  0-51295
  NNN 2003 Value Fund,
    LLC
   Delaware(State or other
    jurisdiction of
    incorporation or organization)

20-0122092(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 June 30, 2007 (Unaudited)
    and December 31, 2006 (Unaudited)


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


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


4Condensed
    Consolidated Statements of Cash Flows for the Six Months Ended
    June 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


23Item 3.

Quantitative and
    Qualitative Disclosures About Market Risk


37Item 4.

Controls and
    Procedures


37Item 4T.

Controls and
    Procedures


38PART II 
    OTHER INFORMATIONItem 1.

Legal
    Proceedings


39Item 1A.

Risk
    Factors


39Item 2.

Unregistered Sales
    of Equity Securities and Use of Proceeds


40Item 3.

Defaults Upon
    Senior Securities


40Item 4.

Submission of
    Matters to a Vote of Security Holders


40Item 5.

Other
    Information


40Item 6.

Exhibits


40Signatures


41EXHIBIT 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 June 30, 2007 and December 31, 2006
 (Unaudited)
  June 30,


December 31,2007


2006ASSETSReal estate investments:Operating properties, net

$
69,363,000


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


-



6,984,000Investments in unconsolidated real
    estate


6,653,000



7,298,00076,016,000



63,052,000Cash and cash equivalents


5,659,000



644,000Investment in marketable securities


2,392,000



-Accounts receivable, net


535,000



750,000Accounts receivable from related
    parties


584,000



589,000Restricted cash


4,185,000



1,042,000Identified intangible assets, net


7,234,000



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


-



1,401,000Other assets, net


3,012,000



1,711,000Notes receivable


2,420,000



2,420,000Total assets

$
102,037,000


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

$
66,215,000


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


-



5,500,000Other debt


199,000



-Accounts payable and accrued
    liabilities


1,930,000



2,279,000Accounts payable due to related
    parties


211,000



920,000Identified intangible liabilities,
    net


135,000



-Other liabilities -
    properties held for sale, net


-



135,000Security deposits, prepaid rent
    and other liabilities


919,000



878,00069,609,000



41,398,000Minority interests


763,000



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


31,787,000



34,772,000Accumulated other comprehensive
    loss


(122,000
)


-Total unit holders equity


31,665,000



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

$
102,037,000


$
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 Six Months Ended June 30, 2007 and
    2006
 (Unaudited)
  Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006Revenue:Rental income

$
1,934,000


$
980,000


$
3,586,000


$
1,685,000Expense:Rental expense


1,171,000



586,000



2,271,000



1,022,000General and administrative


241,000



139,000



744,000



361,000Depreciation and amortization


1,110,000



691,000



1,947,000



1,082,000Total expense


2,522,000



1,416,000



4,962,000



2,465,000Loss before other (expense) income
    and discontinued operations


(588,000
)


(436,000
)


(1,376,000
)


(780,000
)Other (expense) income:Interest expense (including
    amortization of deferred financing costs)


(1,564,000
)


(612,000
)


(2,619,000
)


(1,086,000
)Interest and dividend income


181,000



105,000



278,000



279,000Gain on sale of marketable
    securities


296,000



59,000



296,000



134,000Equity in losses of unconsolidated
    real estate


(280,000
)


(195,000
)


(570,000
)


(404,000
)Other (expense) income


(3,000
)


(8,000
)


29,000



58,000Minority interests


8,000



7,000



88,000



2,000Loss from continuing operations


(1,950,000
)


(1,080,000
)


(3,874,000
)


(1,797,000
)Discontinued operations:Gain on sale of real estate
    including minority interests related to sale of real estate


-



582,000



3,134,000



6,238,000Income (loss) from discontinued
    operations


44,000



229,000



100,000



(1,288,000
)Total income from discontinued
    operations


44,000



811,000



3,234,000



4,950,000Net (loss) income

$
(1,906,000
)

$
(269,000
)

$
(640,000
)

$
3,153,000Comprehensive (loss) income:Net (loss) income

$
(1,906,000
)

$
(269,000
)

$
(640,000
)

$
3,153,000Unrealized (loss) income on
    marketable securities


(79,000
)


2,000



(122,000
)


1,000Comprehensive (loss) income

$
(1,985,000
)

$
(267,000
)

$
(762,000
)

$
3,154,000Net (loss) income per unit:Continuing operations - basic
    and diluted

$
(195.59
)

$
(108.32
)

$
(388.57
)

$
(180.04
)Discontinued operations -
    basic and diluted


4.41



81.34



324.37



495.94Total net (loss) income per
    unit - basic and diluted

$
(191.18
)

$
(26.98
)

$
(64.20
)

$
315.90Weighted average number of units
    outstanding - basic and diluted


9,970



9,970



9,970



9,981    3




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  CONDENSED CONSOLIDATED STATEMENT OF UNIT HOLDERS EQUITY
 For the Six Months Ended June 30, 2007
    (Unaudited)
  Number of Units


TotalBALANCE -
    December 31, 2006


9,970


$
34,772,000Distributions


-



(2,345,000
)Net loss


-



(640,000
)Unrealized loss on marketable
    securities


-



(122,000
)BALANCE - June 30,
    2007


9,970


$
31,665,000    4




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##### Table of Contents



NNN 2003
    VALUE FUND, LLCCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Six Months Ended June 30, 2007 and 2006
    (Unaudited)
  Six Months EndedJune 30,2007


2006CASH FLOWS FROM OPERATING
    ACTIVITIESNet (loss) income

$
(640,000
)

$
3,153,000Adjustments to reconcile net income
    to net cash used in operating activities:Gain on sale of real estate


(3,134,000
)


(6,238,000
)Gain on sale of marketable
    securities


(296,000
)


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


1,683,000



989,000Equity in losses of unconsolidated
    real estate


570,000



482,000Minority interests


(88,000
)


1,317,000Allowance for doubtful accounts


41,000



22,000Change in operating assets and
    liabilities:Accounts receivable


192,000



(962,000
)Other assets


31,000



(353,000
)Accounts payable and accrued
    liabilities


(1,454,000
)


482,000Security deposits, prepaid rent and
    other liabilities


(102,000
)


289,000Net cash used in operating
    activities


(3,197,000
)


(953,000
)CASH FLOWS FROM INVESTING
    ACTIVITIESAcquisition of real estate
    properties


(23,862,000
)


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


-



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


11,491,000



22,345,000Distributions received from
    unconsolidated real estate


75,000



-Capital expenditures


(265,000
)


(1,756,000
)Purchase of marketable securities


(5,761,000
)


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


3,543,000



4,436,000Restricted cash


(3,143,000
)


651,000Net cash (used in) provided by
    investing activities


(17,922,000
)


8,268,000CASH FLOWS FROM FINANCING
    ACTIVITIESBorrowings on mortgage loans
    payable and other debt


34,728,000



10,578,000Borrowings from related parties


1,250,000



-Principal repayments on mortgage
    loans payable and other debt


(5,500,000
)


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


(1,250,000
)


(2,245,000
)Minority interests contributions


-



4,778,000Minority interests distributions


(34,000
)


(2,851,000
)Payment of deferred financing costs


(715,000
)


-Distributions


(2,345,000
)


(4,248,000
)Repurchase of member units, net of
    costs


-



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


26,134,000



(14,199,000
)NET INCREASE (DECREASE) IN CASH
    AND CASH EQUIVALENTS


5,015,000



(6,884,000
)CASH AND CASH EQUIVALENTS -
    beginning of period


644,000



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

$
5,659,000


$
3,876,000SUPPLEMENTAL DISCLOSURE OF CASH
    FLOW INFORMATION:Cash paid during the period for:Interest

$
2,243,000


$
2,928,000Income taxes

$
10,000


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

$
490,000


$
1,555,000The following represents certain
    assets acquired and liabilities assumed in connection with our
    acquisitions and dispositions of operating properties:Security 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   6




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  Interim
    Financial Data
  Form 10-K,
  Principles
    of Consolidation
  Consolidation of Variable Interest Entities, an
    Interpretation of Accounting Research Bulletin No. 51,
  Segments
    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
  07-01, Clarification of the Scope of the Audit and Accounting Guide
    Investment Companies and Accounting for Parent Companies and
    Equity Method Investors for Investments in Investment
    Companies SOP 07-01. SOP 07-01 SOP 07-01 SOP 07-01
  3.
    Investments
    in Real Estate  Operating
    Properties
    June 30,


December 31,2007


2006Land

$
11,974,000


$
10,305,000Buildings and tenant improvements


60,144,000



40,151,00072,118,000



50,456,000Less: accumulated depreciation


(2,755,000
)


(1,686,000
)$
69,363,000


$
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


June 30,


December 31,Description

Location

Percentage


2007


2006Enterprise Technology Center

Scotts Valley, CA


8.5
%

$
2,431,000


$
2,528,000Chase Tower

Austin, TX


14.8



1,725,000



2,108,000Executive Center II & III

Dallas, TX


41.1



2,497,000



2,662,000$
6,653,000


$
7,298,000  9




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##### Table of Contents



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


December 31,2007


2006Balance Sheet Data:Assets (primarily real estate)

$
169,414,000


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


112,601,000



107,621,000Other liabilities


17,446,000



19,434,000Equity


39,367,000



43,034,000Total liabilities and equity

$
169,414,000


$
170,089,000Our share of equity

$
6,653,000


$
7,298,000   Three Months Ended June 30,


Six Months Ended June 30,2007


2006


2007


2006Revenue

$
6,124,000


$
3,700,000


$
12,233,000


$
7,100,000Rental and other expense


7,642,000



4,235,000



15,414,000



8,032,000Net loss

$
(1,518,000
)

$
(535,000
)

$
(3,181,000
)

$
(932,000
)Equity in losses of unconsolidated
    real estate

$
(280,000
)

$
(200,000
)

$
(570,000
)

$
(409,000
)Gain on sale of unconsolidated
    real estate


-



5,000



-



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

$
(280,000
)

$
(195,000
)

$
(570,000
)

$
(404,000
)   4.
    Marketable
    Securities    Historical


Gross Unrealized


EstimatedCost


Gains


Losses


Fair ValueJune 30, 2007
    Equity securities

$
2,514,000


$
-


$
(122,000
)

$
2,392,000    10




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  5.
    Identified
    Intangible Assets    June 30,


December 31,2007


2006In-place leases, above market
    leases and tenant relationships, net of accumulated of
    $2,232,000 and $1,417,000 as of June 30, 2007 and
    December 31, 2006, respectively (with a weighted average
    life of 48 months, 62 months, and 97 months for
    in-place leases, above market leases, and tenant relationships,
    respectively, as of June 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)

$
7,234,000


$
5,447,000       Year

Amount2007

$
856,0002008

$
1,501,0002009

$
1,115,0002010

$
947,0002011

$
870,000Thereafter

$
1,945,000   6.
    Other
    Assets    June 30,


December 31,2007


2006Deferred rent receivable

$
840,000


$
317,000Deferred financing costs, net of
    accumulated amortization of $540,000 and $227,000 as of
    June 30, 2007 and December 31, 2006, respectively


743,000



340,000Lease commissions, net of
    accumulated amortization of $132,000 and $52,000 as of
    June 30, 2007 and December 31, 2006, respectively


1,319,000



932,000Prepaid expenses, deposits and
    other liabilities


110,000



122,000$
3,012,000


$
1,711,000   7.
    Notes
    Receivable   11




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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    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
%

$
(11,000
)


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
%     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
%  13




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  11.
    Unit
    Holders Equity        per-unit
  12.
    Related
    Party Transactions  The
    Operating Agreement and Management Agreement
      Property
    Management Fees
   14




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  Real
    Estate Acquisition Fee
    Real
    Estate Disposition Fee
    Lease
    Commissions
    Accounting
    Fees
    Loan
    Fees
    Related
    Party Accounts Receivable/Payable
    Related
    Party Financing
  365-day 365-day 365-day
 15




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
    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   13.
    Commitments
    and Contingencies  SEC
    Investigation
  In the matter of Triple Net Properties, LLC.
  Accounting
    for Contingencies.
 16




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  Litigation
    Environmental
    Matters
    Unconsolidated
    Debt
      As of June 30, 2007


As of December 31, 2006Mortgage Loans


NNN 2003 Value


Mortgage Loans


NNN 2003 ValueOwnership


Payable and Other


Fund, LLCs


Payable and Other


Fund, LLCsProperty

Percentage


Debt Balance


Portion of Debt


Debt Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,606,000


$
2,942,000


$
34,943,000


$
2,970,000Chase Tower


14.8



61,915,000



9,157,000



56,764,000


$
8,401,000Executive Center
    II & III


41.1



16,080,000



6,609,000



15,914,000


$
6,541,000$
112,601,000


$
18,708,000


$
107,621,000


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




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##### Table of Contents



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







Lease2007 Annual


2007 Annual




Square


ExpirationTenant

Base Rent*


Base Rent


Property

Footage


DateGSA - FBI

$
1,067,000



16.5
%

901 Civic Center


49,000



03/14/08Westwood College of Technology

$
763,000



11.8
%

Executive Center I


44,000



01/31/13McKesson Information Solutions,
    Inc.

$
757,000



11.7
%

Four Resource Square


41,000



10/31/08         Percentage of





Lease2006 Annual

2006 Annual



Square

ExpirationTenant

Base Rent*

Base Rent

Property

Footage

DateHeritage Capital Corporation

$
1,575,000



13.4
%


3500 Maple



73,000



06/30/15     *
    
    Annualized rental revenue based on contractual base rent from
    leases in effect as of June 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     Six Months EndedThree Months Ended June 30,


June 30,2007


2006


2007


2006Rental income

$
55,000


$
2,954,000


$
382,000


$
5,333,000Rental expense


(11,000
)


(1,572,000
)


(180,000
)


(3,066,000
)Depreciation and amortization


-



(104,000
)


(10,000
)


(208,000
)Income before other expense


44,000



1,278,000



192,000



2,059,000Interest expense (including
    amortization of deferred financing costs)


-



(940,000
)


(92,000
)


(2,028,000
)Minority interests


-



(109,000
)


-



(1,319,000
)Income (loss) from discontinued
    operations


44,000



229,000



100,000



(1,288,000
)Gain on sale of real estate
    including minority interest on sale of real estate


-



582,000



3,134,000



6,238,000Total income from discontinued
    operations

$
44,000


$
811,000


$
3,234,000


$
4,950,000  19




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##### Table of Contents



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


December 31,2007(1)


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

$
-


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


-



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


-



131,000Loan fees, net of accumulated
    amortization of $0 and $177,000 as of June 30, 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 Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006Loss from continuing operations

$
(1,950,000
)

$
(1,080,000
)

$
(3,874,000
)

$
(1,797,000
)Income from discontinued operations


44,000



811,000



3,234,000



4,950,000Net (loss) income

$
(1,906,000
)

$
(269,000
)

$
(640,000
)

$
3,153,000Net (loss) income per unit:Continuing operations - basic
    and diluted

$
(195.59
)

$
(108.33
)

$
(388.57
)

$
(180.04
)Discontinued operations -
    basic and diluted


4.41



81.35



324.37



495.94Total net (loss) income per
    unit - basic and diluted

$
(191.18
)

$
(26.98
)

$
(64.20
)

$
315.90Weighted average number of
    units
    outstanding - basic and diluted


9,970



9,970



9,970



9,981  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




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##### Table of Contents



NNN 2003
    VALUE FUND, LLC
  NOTES TO
    CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    (Unaudited) - (Continued)
  18.
    Subsequent
    Events  Mortgage
    Loan Payable
     22




---



##### 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
     23




---



##### Table of Contents



Business
    Strategy
    2007
    Acquisition
    Consolidated
    Property
  Four
    Resource Square  Charlotte, North Carolina
   24




---



##### 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
 25




---



##### Table of Contents



Fair Value
    Measurement
  The
    Fair Value Option for Financial Assets and Financial
    Liabilities
  07-01, Clarification of the Scope of the Audit and Accounting Guide
    Investment Companies and Accounting for Parent Companies and
    Equity Method Investors for Investments in Investment
    Companies SOP 07-01. SOP 07-01 SOP 07-01 SOP 07-01
  Factors
    Which May Influence Results of Operations
  Rental
    Income
    Scheduled
    Lease Expirations
   26




---



##### Table of Contents



Sarbanes-Oxley
    Act
      Results
    of Operations
    Comparison
    of the Three and Six Months Ended June 30, 2007 and
    2006
  Three Months Ended








Six Months EndedJune 30,


Change


June 30,


Change2007


2006


$


%


2007


2006


$


%Revenues :Rental income

$
1,934,000


$
980,000


$
954,000



97.3
%

$
3,586,000


$
1,685,000


$
1,901,000



112.8
%Expenses:Rental expenses


1,171,000



586,000



585,000



99.8



2,271,000



1,022,000



1,249,000



122.2General and administrative


241,000



139,000



102,000



73.4



744,000



361,000



383,000



106.1Depreciation and amortization


1,110,000



691,000



419,000



60.6



1,947,000



1,082,000



865,000



79.92,522,000



1,416,000



1,106,000



78.1



4,962,000



2,465,000



2,497,000



101.3Loss before other (expense) income
    and discontinued operations


(588,000
)


(436,000
)


(152,000
)


(34.9
)


(1,376,000
)


(780,000
)


(596,000
)


(76.4
)Other (expense) income:Interest expense (including
    amortization of deferred financing costs)


(1,564,000
)


(612,000
)


(952,000
)


(155.6
)


(2,619,000
)


(1,086,000
)


(1,533,000
)


(141.2
)Interest and dividend income


181,000



105,000



76,000



72.4



278,000



279,000



(1,000
)


(0.4
)Gain on sale of marketable
    securities


296,000



59,000



237,000



401.7



296,000



134,000



162,000



120.9Equity in losses and gain on sale
    of unconsolidated real estate


(280,000
)


(195,000
)


(85,000
)


(43.6
)


(570,000
)


(404,000
)


(166,000
)


(41.1
)Other (expense) income


(3,000
)


(8,000
)


5,000



62.5



29,000



58,000



(29,000
)


(50.0
)Minority interests


8,000



7,000



1,000



14.3



88,000



2,000



86,000



4,300.0Loss from continuing operation
    before discontinued operations


(1,950,000
)


(1,080,000
)


(870,000
)


(80.6
)


(3,874,000
)


(1,797,000
)


(2,077,000
)


(115.6
)Discontinued operations:Gain on sale of real estate


-



582,000



(582,000
)


(100.0
)


3,134,000



6,238,000



(3,104,000
)


(49.8
)Income (loss) from discontinued
    operations


44,000



229,000



(185,000
)


(80.8
)


100,000



(1,288,000
)


1,388,000



107.844,000



811,000



(767,000
)


(94.6
)


3,234,000



4,950,000



(1,716,000
)


(34.7
)Net (loss) income

$
(1,906,000
)

$
(269,000
)

$
(1,637,000
)


(608.6
)%

$
(640,000
)

$
3,153,000


$
(3,793,000
)


(120.3
)%  27




---



##### Table of Contents



Rental
    Income
      Rental
    Expense
      General
    and Administrative Expense
      Depreciation
    and Amortization Expense
     28




---



##### Table of Contents



Interest
    Expense
      Interest
    and Dividend Income
      Gain on
    Sale of Marketable Securities
      Equity in
    Losses of Unconsolidated Real Estate
     29




---



##### 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 Six Months Ended June 30, 2007 and 2006
   30




---



##### 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.
 31




---



##### Table of Contents



Debt
    Financing
        Weighted -AverageTotal Debt


Interest RateJune 30,


December 31,


June 30,


December 31,2007


2006


2007


2006Mortgage loans payable and other
    debt:Mortgage loans payable

$
66,215,000


$
37,186,000



8.33
%


8.72
%Other debt

$
199,000


$
-



9.63
%


-Fixed rate and variable rate:Fixed rate

$
5,000,000


$
5,000,000



10.00
%


10.00
%Variable rate

$
61,414,000


$
32,186,000



8.20
%


8.52
%   30-day
    Notional Amount

Index

Rate

Fair Value

Instrument

Maturity$10,550,000

LIBOR

5.40%

$(11,000)

SWAP

05/12/2008   and/or
   32




---



##### Table of Contents



and/or
  Other
    Liquidity Needs
     33




---



##### Table of Contents



Capital
    Resources
  General
        and/or and/or
     34




---



##### Table of Contents



Unconsolidated
    Debt
    As of June 30, 2007


As of December 31, 2006Mortgage Loans


NNN 2003 Value


Mortgage Loans


NNN 2003 ValueOwnership


Payable and


Fund, LLCs


Payable and


Fund, LLCsProperty

Percentage


Other Debt Balance


Portion of Debt


Other Debt Balance


Portion of DebtEnterprise Technology Center


8.5
%

$
34,606,000


$
2,942,000


$
34,943,000


$
2,970,000Chase Tower


14.8



61,915,000



9,157,000



56,764,000



8,401,000Executive Center II & III


41.1



16,080,000



6,609,000



15,914,000



6,541,000$
112,601,000


$
18,708,000


$
107,621,000


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


LLCs PortionProperty/Issue Date

Loan


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

$
1,000,000


$
411,0009/12/2005


200,000



82,00010/18/2005


240,000



99,00011/14/2005


5,000



2,000$
1,445,000


$
594,000   Debt
    Service Requirements
   35




---



##### Table of Contents



Contractual
    Obligations
    Payments Due by PeriodLess Than








More Than1 Year


1-3 Years


3-5 Years


5 Years(2007)


(2008-2009)


(2010-2011)


(After 2011)


TotalPrincipal payments 
    variable rate debt

$
16,290,000


$
23,775,000


$
21,150,000


$
-



61,215,000Principal payments 
    fixed rate debt


5,000,000



-



-



-



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


2,273,000



4,802,000



295,000



-



7,370,000Interest payments  fixed
    rate debt


250,000



-



-



-



250,000Tenant improvement and lease
    commission obligations


2,151,000



-



-



-



2,151,000Total

$
25,964,000


$
28,577,000


$
21,445,000


$
-


$
75,986,000   Off-Balance
    Sheet Arrangements
    Inflation
    Subsequent
    Events
  Mortgage
    Loan Payable
     36




---



##### Table of Contents



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

$
16,290,000


$
10,550,000


$
13,225,000


$
21,150,000


$
-


$
-


$
61,215,000Average interest rate on maturing
    debt (based on rates in effect as of June 30, 2007)


8.67%



8.32%



8.42%



7.62%



-



-



8.19%     Item 4.
    Controls
    and Procedures.   37




---



##### 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)
 38




---



##### 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 our 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 October 31, 2007, which could result
    in a foreclosure on the Woodside property
    and/or a
    material adverse impact on our operating activities and cash
    flow .
   39




---



##### 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.   40




---



##### Table of Contents



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

By:

/s/ Richard T. Hutton, JR.Date



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

By:

/s/ Francene LaPointDate



Francene LaPoint Chief Financial Officer, 
    Triple Net Properties, LLC
    the Manager of NNN 2003 Value Fund, LLC (principal financial
    officer)  41




---



##### 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).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 42