**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**FORM      10-K/A**

**AMENDMENT      NO. 1**

*          (Mark      One)*

**            [x]      ANNUAL REPORT      PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934**

**            [      ] TRANSITION REPORT      PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF**
**1934**

**TRUSTREET      PROPERTIES, INC.**

*(Exact      name of registrant as specified in its charter)*

| Maryland                                         |   | 75-2687420                                            |
|--------------------------------------------------|--------|-------------------------------------------------------|
| *(State                or other jurisdiction of* |   | *(I.R.S.                Employer Identification No.)* |
| *incorporation                or organization)*  |   |                                                  |

**450      South Orange Avenue**

**Orlando,      Florida 32801**

*(Address      of principal executive offices, including zip code)*

**Registrant's      telephone number, including area code: (407) 540-2000**

**Securities      registered pursuant to Section 12 (b) of the Act:**

| *Title                of each class:*                                                                                                                                                          | *Name                of exchange on which registered:*                                                             |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
| Common                stock, $0.001 par value per share$1.93                Series A Cumulative Convertible Preferred Stock7.5%                Series C Redeemable Convertible Preferred Stock | New                York Stock ExchangeNew                York Stock ExchangeNew                York Stock Exchange |

**Securities      registered pursuant to section 12(g) of the Act:**

**None**

*(Title      of class)*

| Large                accelerated filer x | Accelerated                filer  ̈ | Non-accelerated                Filer  ̈ |
|------------------------------------------|-----------------------------------------|---------------------------------------------|

----

**PART      II**

**            Report      of Independent Registered Certified Public Accounting Firm**

** **

** **
** **

*Internal      Control - Integrated Framework*
*Internal      Control - Integrated Framework*

----

**Item      8. Financial Statements and Supplementary Data.**

|                                                                                                                             |   | December                31, |      |
|----------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                             |   | 2005                        |      |  2004 |   |
| ASSETS                                                                                                                           |   |                        |      |    |   |
|                                                                                                                             |   |                        |      |    |   |
| Real                estate investment properties                                                                                 |   | $                           | 1,737,144 |   | $ | 520,207 |   |
| Net                investment in capital leases                                                                                  |   |                        | 150,636   |   |   | 96,463 |   |
| Real                estate held for sale                                                                                         |   |                        | 229,132   |   |   | 165,122 |   |
| Mortgage,                equipment and other notes receivable, net of allowanceof                $5,706 and $7,261, respectively |   |                        | 88,239    |   |   | 290,140 |   |
| Cash                and cash equivalents                                                                                         |   |                        | 20,459    |   |   | 22,744 |   |
| Restricted                cash                                                                                                   |   |                        | 32,465    |   |   | 7,402 |   |
| Receivables,                less allowance for doubtful accountsof                $2,394 and $2,136, respectively                |   |                        | 7,665     |   |   | 7,391 |   |
| Accrued                rental income                                                                                             |   |                        | 35,357    |   |   | 27,489 |   |
| Intangible                lease costs, net of accumulated amortization of $9,666in                2005                           |   |                        | 77,663    |   |   | — |   |
| Goodwill                                                                                                                         |   |                        | 235,895   |   |   | 56,260 |   |
| Other                assets                                                                                                      |   |                        | 69,481    |   |   | 50,431 |   |
|                                                                                                                             |   | $                           | 2,684,136 |   | $ | 1,243,649 |   |
|                                                                                                                             |   |                        |      |   |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                        |   |                        |      |   |   |   |   |
|                                                                                                                             |   |                        |      |   |   |   |   |
| Revolver                                                                                                                         |   | $                           | 55,000    |   | $ | 21,000 |   |
| Notes                payable                                                                                                     |   |                        | 579,002   |   |   | 162,810 |   |
| Mortgage                warehouse facilities                                                                                     |   |                        | 122,722   |   |   | 101,394 |   |
| Subordinated                note payable                                                                                         |   |                        | —   |   |   | 21,875 |   |
| Bonds                payable                                                                                                     |   |                        | 742,201   |   |   | 405,421 |   |
| Below                market lease liability, net of accumulated amortization of $3,772                in 2005                    |   |                        | 32,305    |   |   | — |   |
| Due                to related parties                                                                                            |   |                        | 232       |   |   | 37,172 |   |
| Other                payables                                                                                                    |   |                        | 56,097    |   |   | 33,736 |   |
| Total                liabilities                                                                                                 |   | $                           | 1,587,559 |   | $ | 783,408 |   |

----

|                                                                                                                                                                                                                                                                                                                 |   | December                31, |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                 |   | 2005                        |      |  2004 |   |
|                                                                                                                                                                                                                                                                                                                 |   |                        |      |    |   |
| Minority                interests, including redeemable partnership interest in                2004                                                                                                                                                                                                                  |   | $                           | 4,077     |   | $ | 6,819 |   |
|                                                                                                                                                                                                                                                                                                                 |   |                        |      |   |   |   |   |
| Commitments                and contingencies (Note 18)                                                                                                                                                                                                                                                               |   |                        |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                 |   |                        |      |   |   |   |   |
| Stockholders’                equity:                                                                                                                                                                                                                                                                           |   |                        |      |   |   |   |   |
| Preferred                stock, $0.001 par value per share. 84,500 shares authorized and                unissued                                                                                                                                                                                                     |   |                        | —   |   |   | — |   |
| Preferred                stock, $0.001 par value per share: Series A Cumulative Convertible                Preferred Stock - 8,000 shares authorized, 7,834 shares issued and                outstanding at December 31, 2005 (aggregate liquidation value of                $195,855)                               |   |                        | 8         |   |   | — |   |
| Preferred                stock, $0.001 par value per share: Series C Redeemable                Convertible Preferred Stock - 7,500 shares authorized, 7,244 shares                issued                and outstanding at December 31, 2005 (aggregate liquidation value                of                $181,101) |   |                        | 7         |   |   | — |   |
| Excess                shares, $0.001 par value per share. 400,000 shares authorized and                unissued                                                                                                                                                                                                      |   |                        | —   |   |   | — |   |
| Common                stock, $0.001 par value per share; 300,000 shares authorized,                67,375 and 35,061 shares issued at December 31, 2005 and 2004,                respectively, and 67,357 and 35,032 shares outstanding at December                31,                2005 and 2004, respectively    |   |                        | 67        |   |   | 452 |   |
| Capital                in excess of par value                                                                                                                                                                                                                                                                        |   |                        | 1,489,405 |   |   | 825,134 |   |
| Accumulated                other comprehensive income (loss)                                                                                                                                                                                                                                                         |   |                        | 3,547     |   |   | (12,434 | ) |
| Accumulated                distributions in excess of net income                                                                                                                                                                                                                                                     |   |                        | (400,534  | ) |   | (359,730 | ) |
| Total                stockholders’ equity                                                                                                                                                                                                                                                                      |   |                        | 1,092,500 |   |   | 453,422 |   |
|                                                                                                                                                                                                                                                                                                                 |   |                        |      |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                 |   | $                           | 2,684,136 |   | $ | 1,243,649 |   |

----

|                                                                                                                                                                  |   | Year                Ended December 31, |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                                                                                                                                  |   | 2005                                   |    |  2004 |   | 2003 |   |
|                                                                                                                                                                  |   |                                   |    |    |   |   |   |
| Revenues:                                                                                                                                                             |   |                                   |    |    |   |   |   |
|                                                                                                                                                                  |   |                                   |    |    |   |   |   |
| Rental                income from operating leases                                                                                                                    |   | $                                      | 148,955 |   | $ | 56,042 |   | $ | 58,513 |   |
| Earned                income from capital leases                                                                                                                      |   |                                   | 12,002  |   |   | 9,971 |   |   | 10,408 |   |
| Interest                income from mortgage, equipment andother                notes receivables                                                                     |   |                                   | 18,070  |   |   | 26,394 |   |   | 29,807 |   |
| Investment                and interest income                                                                                                                         |   |                                   | 2,259   |   |   | 3,770 |   |   | 4,586 |   |
| Net                decrease in value of mortgage loans held for sale, net of                related hedge                                                             |   |                                   | — |   |   | — |   |   | (1,853 | ) |
| Other                income                                                                                                                                           |   |                                   | 8,793   |   |   | 7,107 |   |   | 9,609 |   |
|                                                                                                                                                                  |   |                                   | 190,079 |   |   | 103,284 |   |   | 111,070 |   |
| Expenses:                                                                                                                                                             |   |                                   |    |   |   |   |   |   |   |   |
| General                operating and administrative                                                                                                                   |   |                                   | 37,970  |   |   | 28,408 |   |   | 27,622 |   |
| Interest                expense                                                                                                                                       |   |                                   | 90,074  |   |   | 47,999 |   |   | 50,576 |   |
| Property                expenses, state and other taxes                                                                                                               |   |                                   | 7,234   |   |   | 575 |   |   | 929 |   |
| Depreciation                and amortization                                                                                                                          |   |                                   | 30,937  |   |   | 11,527 |   |   | 12,043 |   |
| Loss                on termination of cash flow hedge                                                                                                                 |   |                                   | 8,558   |   |   | 940 |   |   | 502 |   |
| Impairment                provisions on assets                                                                                                                        |   |                                   | 1,964   |   |   | 3,238 |   |   | 10,692 |   |
|                                                                                                                                                                  |   |                                   | 176,737 |   |   | 92,687 |   |   | 102,364 |   |
|  Income                from continuing operations before minority interest and equity in                earnings                of unconsolidated joint ventures |   |                                   | 13,342  |   |   | 10,597 |   |   | 8,706 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Minority                interest                                                                                                                                      |   |                                   | (1,756  | ) |   | (3,718 | ) |   | (1,913 | ) |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Equity                in earnings of unconsolidated joint ventures                                                                                                    |   |                                   | 118     |   |   | 105 |   |   | 108 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                                      |   |                                   | 11,704  |   |   | 6,984 |   |   | 6,901 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Income                from discontinued operations, after income taxes                                                                                                |   |                                   | 42,840  |   |   | 34,899 |   |   | 35,548 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Gain/(loss)                on sale of assets                                                                                                                          |   |                                   | 9,643   |   |   | 135 |   |   | (9 | ) |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Net                income                                                                                                                                             |   |                                   | 64,187  |   |   | 42,018 |   |   | 42,440 |   |
| Dividends                to preferred stockholders                                                                                                                    |   |                                   | (24,448 | ) |   | — |   |   | — |   |
| Net                income allocable to common stockholders                                                                                                            |   | $                                      | 39,739  |   | $ | 42,018 |   | $ | 42,440 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Basic                and diluted net income per share:                                                                                                                |   |                                   |    |   |   |   |   |   |   |   |
| Income/(loss)                from continuing operations allocable to common                stockholders                                                               |   | $                                      | (0.06   | ) | $ | 0.20 |   | $ | 0.20 |   |
| Income                from discontinued operations                                                                                                                    |   |                                   | 0.78    |   |   | 1.00 |   |   | 1.01 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Basic                and diluted net income per share                                                                                                                 |   | $                                      | 0.72    |   | $ | 1.20 |   | $ | 1.21 |   |
|                                                                                                                                                                  |   |                                   |    |   |   |   |   |   |   |   |
| Weighted                average number of shares of common stockoutstanding                (Notes 1 and 15):                                                          |   |                                   |    |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                 |   |                                   | 55,053  |   |   | 35,032 |   |   | 35,032 |   |
| Diluted                                                                                                                                                               |   |                                   | 55,053  |   |   | 35,032 |   |   | 35,032 |   |

----

|                                                                                                                                                                     |   | Preferred                StockSeries                A |    | Preferred                StockSeries                C |   | Common                Stock    |   |          |    |                           |   | Accumulated                distributions |   | Accumulated                othercompre-                                     |    |                                |   |  Compre-                                        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|-------------------------------------------------------|--------|--------------------------------|--------|----------|---------|--------------------------------|--------|------------------------------------------|--------|-----------------------------------------------------------------------------|---------|-------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                                                                                                     |   | Number                ofshares                        |    | Parvalue                                              |   | Number                ofshares |   | Parvalue |    | Number                ofShares |   | Parvalue                                 |   | Capital                  inexcess                ofpar                value |    | Loans                toStockholders |   | in                excess of                netincome |   | hensiveincome/(loss) |   |  Total |   | hensiveincome/(loss) |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |
| Balance                at December 31, 2002                                                                                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | 45,249  |                                | $      | 452                                                  |   | $ | 816,745 |   | $ | — |   | $ | (306,184 | ) | $ | (16,862 | ) | $ | 494,151 |   |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition                of minority interest                                                                                                                          |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | 11,375 |   |   | — |   |   | — |   |   | — |   |   | 11,375 |   |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issuance costs                                                                                                                                      |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | (1,493 | ) |   | — |   |   | — |   |   | — |   |   | (1,493 | ) |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | 42,440 |   |   | — |   |   | 42,440 |   | $ | 42,440 |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                of marketrevaluation                on available for salesecurities                to statement of income                                |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | (78 | ) |   | (78 | ) |   | (78 | ) |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                of cash flow hedge losses                to statement of income                                                                          |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | 502 |   |   | 502 |   |   | 502 |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                period adjustment torecognize                change in fair value of                cash flow hedges, net of $1,750                in tax benefit |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | 1,991 |   |   | 1,991 |   |   | 1,991 |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                comprehensive income                                                                                                                                |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   | $ | 44,855 |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                declared and paid ($1.52                per share)                                                                                          |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | (69,002 | ) |   | — |   |   | (69,002 | ) |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2003                                                                                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | 45,249  |                                |   | 452                                                  |   |   | 826,627 |   |   | — |   |   | (332,746 | ) |   | (14,447 | ) |   | 479,886 |   |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issuance costs                                                                                                                                      |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | (1,493 | ) |   | — |   |   | — |   |   | — |   |   | (1,493 | ) |   |   |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | 42,018 |   |   | — |   |   | 42,018 |   | $ | 42,018 |   |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive loss, market revaluation                on available for sale securities                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | (340 | ) |   | (340 | ) |   | (340 | ) |
|                                                                                                                                                                     |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                                   |   | Preferred                StockSeries                A |    | Preferred                StockSeries                C |   | Common                Stock    |   |     |    |                           |   | Accumulated                distributions |   | Accumulated                othercompre-                     |    |                                |   | Compre-                                             |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|-------------------------------------------------------|--------|--------------------------------|--------|----------|---------|--------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------|---------|-------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                                                                                                                   |   | Number                ofshares                        |    | Parvalue                                              |   | Number                ofshares |   | Parvalue |    | Number                ofShares |   | Parvalue                                 |   | Capital                in excess ofpar                value |    | Loans                toStockholders |   | in                excessof                netincome |   | hensiveincome/(loss) |   |  Total |   | hensiveincome/(loss) |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |
| Reclassification                of cash flow hedge losses                to statement of income                                                                        |   |                                                  | — |                                                  | $      | —                        |   |     | — |                           | $      | —                                  |   |                                                        | — |                                | $      | —                                             |   |   | — |   | $ | — |   | $ | — |   | $ | 940 |   | $ | 940 |   | $ | 940 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                period adjustment torecognize                change in fair value of                cash flow hedges, net of $100 in                tax benefit |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | — |   |   | 1,413 |   |   | 1,413 |   |   | 1,413 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                comprehensive income                                                                                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   | $ | 44,031 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                declared and paid ($1.52                per share)                                                                                        |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | (69,002 | ) |   | — |   |   | (69,002 | ) |   |   |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2004                                                                                                                            |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | 45,249  |                                |   | 452                                                 |   |   | 825,134 |   |   | — |   |   | (359,730 | ) |   | (12,434 | ) |   | 453,422 |   |   |   |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Effect                of USRP Merger:                                                                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assumption                of USRP equity                                                                                                                               |   |                                                  | 4,084   |                                                  |   | 4                              |   |     | — |                           |   | —                                  |   |                                                        | 22,599  |                                |   | 23                                                  |   |   | 440,483 |   |   | (224 | ) |   | — |   |   | — |   |   | 440,286 |   |   |   |   |
| Conversion                of CNLRP common shares                                                                                                                       |   |                                                  | — |                                                  |   | —                        |   |     | 7,244   |                           |   | 7                                        |   |                                                        | (10,223 | )                                   |   | (417                                                | )      |   | 410 |   |   | — |   |   | — |   |   | — |   |   | — |   |   |   |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition                of Income Funds                                                                                                                             |   |                                                  | 3,750   |                                                  |   | 4                              |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | 88,231 |   |   | — |   |   | — |   |   | — |   |   | 88,235 |   |   |   |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | 64,187 |   |   | — |   |   | 64,187 |   | $ | 64,187 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification                of cash flow hedge losses to statement of income                                                                                       |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | — |   |   | 10,582 |   |   | 10,582 |   |   | 10,582 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                period adjustment to recognize change in fair value of cash flow                hedges                                                          |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | — |   |   | 6,227 |   |   | 6,227 |   |   | 6,227 |   |
|                                                                                                                                                                   |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                comprehensive income                                                                                                                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                             |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   | $ | 80,996 |   |

----

|                                                                                  |   | Preferred                StockSeries                A |    | Preferred                StockSeries                C |   | Common                Stock    |   |     |    |                           |   | Accumulated                distributions |   | Accumulated                othercompre-                     |    |                                |   | Compre-                                              |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------|---------|-------------------------------------------------------|--------|--------------------------------|--------|----------|---------|--------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------|---------|-------------------------------------|--------|------------------------------------------------------|--------|
|                                                                                  |   | Number                ofshares                        |    | Parvalue                                              |   | Number                ofshares |   | Parvalue |    | Number                ofShares |   | Parvalue                                 |   | Capital                in excess ofpar                value |    | Loans                toStockholders |   | in                excess of                netincome |   | hensiveincome/(loss) |   |  Total |   | hensive                income/(loss) |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |
| Repayment                by stockholder of loan                                       |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | — |   |   | 224 |   |   | — |   |   | — |   |   | 224 |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                declared on common stock                                 |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | (80,354 | ) |   | — |   |   | (80,354 | ) |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions                declared on preferred stock                              |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | — |   |   | — |   |   | (24,448 | ) |   | — |   |   | (24,448 | ) |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock to directors and employees                    |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | 119     |                                |   | —                                              |   |   | 2,052 |   |   | — |   |   | — |   |   | — |   |   | 2,052 |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of restricted stock to directors                and employees |   |                                                  | — |                                                  |   | —                        |   |     |    |                           |   | —                                  |   |                                                        | 138     |                                |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forfeiture                of restricted stock                                         |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | (18     | )                                   |   | —                                              |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization                of restricted stock                                       |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | 541 |   |   | — |   |   | — |   |   | — |   |   | 541 |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds                from exercised stock options                                  |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | 41      |                                |   | —                                              |   |   | 563 |   |   | — |   |   | — |   |   | — |   |   | 563 |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock                                               |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | 9,452   |                                |   | 9                                                    |   |   | 136,157 |   |   | — |   |   | — |   |   | — |   |   | 136,166 |   |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issuance costs                                                   |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | (5,183 | ) |   | — |   |   | — |   |   | — |   |   | (5,183 | ) |   |   |   |
|                                                                                  |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition                of minority interest                                       |   |                                                  |    |                                                  |   |                           |   |     |    |                           |   |                                     |   |                                                        |    |                                |   |                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                  | — |                                                  |   | —                        |   |     | — |                           |   | —                                  |   |                                                        | — |                                |   | —                                              |   |   | 1,017 |   |   | — |   |   | (189 | ) |   | (828 | ) |   | — |   |   |   |   |
| Balance                at December 31, 2005                                           |   |                                                  | 7,834   |                                                  | $      | 8                              |   |     | 7,244   |                           | $      | 7                                        |   |                                                        | 67,357  |                                | $      | 67                                                   |   | $ | 1,489,405 |   | $ | — |   | $ | (400,534 | ) | $ | 3,547 |   | $ | 1,092,500 |   |   |   |   |

----

|                                                                                                                                                                   |   | Years                ended December 31, |     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|
|                                                                                                                                                                   |   | 2005                                    |     | 2004 |   | 2003 |   |
| Cash                flows from operating activities:                                                                                                                   |   |                                    |     |   |   |   |   |
|                                                                                                                                                                   |   |                                    |     |   |   |   |   |
| Net                income                                                                                                                                              |   | $                                       | 64,187   |   | $ | 42,018 |   | $ | 42,440 |   |
| Adjustments                to reconcile net income to net cashprovided                by operating activities, net of effects of business                acquisitions: |   |                                    |     |   |   |   |   |   |   |   |
| Depreciation                and amortization on real estate assets                                                                                                     |   |                                    | 30,227   |   |   | 10,902 |   |   | 10,869 |   |
| Depreciation                and amortization on non-real estate assets                                                                                                 |   |                                    | 1,975    |   |   | 1,775 |   |   | 2,597 |   |
| Amortization                of above and below market leases                                                                                                           |   |                                    | 620      |   |   | — |   |   | — |   |
| Amortization                of deferred financing costs                                                                                                                |   |                                    | 9,514    |   |   | 5,535 |   |   | 4,023 |   |
| Provision                for loss on loans                                                                                                                             |   |                                    | 1,235    |   |   | 112 |   |   | 5,462 |   |
| Impairments                and provisions on assets                                                                                                                    |   |                                    | 1,117    |   |   | 9,187 |   |   | 16,943 |   |
| Gain                on sales of assets                                                                                                                                 |   |                                    | (18,007  | ) |   | (4,943 | ) |   | (3,475 | ) |
| Stock                based compensation                                                                                                                                |   |                                    | 2,593    |   |   | — |   |   | — |   |
| Increase                in accrued rental income                                                                                                                       |   |                                    | (7,906   | ) |   | (3,533 | ) |   | (5,728 | ) |
| Amortization                of investment in capital leases                                                                                                            |   |                                    | 5,507    |   |   | 2,164 |   |   | 1,810 |   |
| Net                decrease in value of mortgage loans held for sale, net of related                hedge                                                              |   |                                    | —  |   |   | — |   |   | 1,853 |   |
| Investment                in mortgage loans held for sale                                                                                                              |   |                                    | —  |   |   | — |   |   | (112 | ) |
| Collection                on mortgage loans held for sale                                                                                                              |   |                                    | —  |   |   | — |   |   | 7,635 |   |
| Changes                in inventories of real estate held for sale                                                                                                     |   |                                    | (29,179  | ) |   | (19,854 | ) |   | 29,618 |   |
| Changes                in other assets                                                                                                                                 |   |                                    | (35,181  | ) |   | (15,921 | ) |   | (9,660 | ) |
| Changes                in other payables and due to related parties                                                                                                    |   |                                    | 21,660   |   |   | 11,643 |   |   | 4,097 |   |
| Net                cash provided by operating activities                                                                                                               |   |                                    | 48,362   |   |   | 39,085 |   |   | 108,372 |   |
|                                                                                                                                                                   |   |                                    |     |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                                                                                   |   |                                    |     |   |   |   |   |   |   |   |
| Additions                to real estate investment properties and intangibles                                                                                          |   |                                    | (302,000 | ) |   | (20,726 | ) |   | — |   |
| Proceeds                from sale of assets                                                                                                                            |   |                                    | 253,787  |   |   | 20,562 |   |   | 25,312 |   |
| Proceeds                from sale of other investments                                                                                                                 |   |                                    | —  |   |   | 11,195 |   |   | 19 |   |
| Decrease/(increase)                in restricted cash                                                                                                                  |   |                                    | (6,974   | ) |   | 5,060 |   |   | (7,888 | ) |
| Acquisition                of Income Funds                                                                                                                             |   |                                    | (449,997 | ) |   | — |   |   | — |   |
| Cash                acquired through Merger                                                                                                                            |   |                                    | 43,646   |   |   | — |   |   | — |   |
| Payment                of Merger costs for USRP reverse Merger                                                                                                         |   |                                    | (14,414  | ) |   | — |   |   | — |   |
| Investment                in mortgage, equipment and other notes receivable                                                                                            |   |                                    | (5,478   | ) |   | — |   |   | — |   |
| Collection                on mortgage, equipment and other notes receivable                                                                                            |   |                                    | 27,726   |   |   | 34,789 |   |   | 29,075 |   |
| Net                cash provided by/(used in) investing activities                                                                                                     |   |                                    | (453,704 | ) |   | 50,880 |   |   | 46,518 |   |

----

|                                                                                                                                                                     |   | Years                ended December 31, |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                                                                                                                     |   | 2005                                    |       | 2004 |   | 2003 |   |
| Cash                flows from financing activities:                                                                                                                     |   |                                    |       |   |   |   |   |
| Proceeds                from borrowings on revolver, term loan and note payable                                                                                          |   |                                    | 1,354,475  |   |   | 61,552 |   |   | 34,104 |   |
| Payment                on revolver and note payable                                                                                                                      |   |                                    | (1,399,640 | ) |   | (84,177 | ) |   | (66,751 | ) |
| Proceeds                from borrowings on mortgage warehouse facilities                                                                                                 |   |                                    | 211,945    |   |   | 196,335 |   |   | 124,127 |   |
| Payments                on mortgage warehouse facilities                                                                                                                 |   |                                    | (190,617   | ) |   | (188,454 | ) |   | (176,372 | ) |
| Proceeds                from borrowings on senior notes                                                                                                                  |   |                                    | 301,188    |   |   | — |   |   | — |   |
| Proceeds                from issuance of bonds                                                                                                                           |   |                                    | 275,000    |   |   | 5,000 |   |   | 24,906 |   |
| Retirement                of bonds payable                                                                                                                               |   |                                    | (81,956    | ) |   | (29,844 | ) |   | (19,403 | ) |
| Payment                of bond issuance and debt refinancing costs                                                                                                       |   |                                    | (27,911    | ) |   | (908 | ) |   | (2,231 | ) |
| Proceeds                from termination of cash flow hedge                                                                                                              |   |                                    | 1,685      |   |   | — |   |   | — |   |
| Proceeds                from exercised stock options                                                                                                                     |   |                                    | 563        |   |   | — |   |   | — |   |
| Retirement                of convertible preferred stock                                                                                                                 |   |                                    | (32,500    | ) |   | — |   |   | — |   |
| Loans                from stockholder                                                                                                                                    |   |                                    | —    |   |   | 10,900 |   |   | 18,710 |   |
| Repayment                of loan to stockholder                                                                                                                          |   |                                    | (33,860    | ) |   | — |   |   | — |   |
| Acquisition                of minority interest                                                                                                                          |   |                                    | (655       | ) |   | — |   |   |   |   |
| Distributions                to minority interest                                                                                                                        |   |                                    | (2,249     | ) |   | (3,327 | ) |   | (1,867 | ) |
| Proceeds                from issuance of common stock                                                                                                                    |   |                                    | 136,166    |   |   | — |   |   | — |   |
| Payment                of stock issuance costs                                                                                                                           |   |                                    | (6,675     | ) |   | (1,493 | ) |   | (1,493 | ) |
| Distributions                to common stockholders                                                                                                                      |   |                                    | (75,463    | ) |   | (69,760 | ) |   | (68,244 | ) |
| Distributions                to preferred stockholders                                                                                                                   |   |                                    | (26,439    | ) |   | — |   |   | — |   |
| Net                cash provided by/(used in) financing activities                                                                                                       |   |                                    | 403,057    |   |   | (104,176 | ) |   | (134,514 | ) |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                      |   |                                    | (2,285     | ) |   | (14,211 | ) |   | 20,376 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Cash                and cash equivalents at beginning of year                                                                                                            |   |                                    | 22,744     |   |   | 36,955 |   |   | 16,579 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Cash                and cash equivalents at end of year                                                                                                                  |   | $                                       | 20,459     |   | $ | 22,744 |   | $ | 36,955 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Supplemental                disclosures of cash flow information:                                                                                                        |   |                                    |       |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Interest                paid                                                                                                                                             |   | $                                       | 80,160     |   | $ | 44,541 |   | $ | 48,114 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Income                taxes paid                                                                                                                                         |   | $                                       | 6,088      |   | $ | 8,508 |   | $ | 4,019 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Supplemental                disclosures of non-cash investing and financing                activities:                                                                   |   |                                    |       |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Acquisition                of minority interest in lieu of payment on accounts                receivable                                                                 |   | $                                       | 1,798      |   | $ | 894 |   | $ | 317 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Acquisition                of minority interest                                                                                                                          |   | $                                       | —    |   | $ | — |   | $ | 11,375 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Financing                of computer software acquisition                                                                                                                |   | $                                       | —    |   | $ | — |   | $ | 1,788 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Foreclosure                on notes receivable and acceptance of underlying real estate                collateral                                                        |   | $                                       | —    |   | $ | 452 |   | $ | 4,632 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Notes                receivable accepted in exchange for sale of properties                                                                                              |   | $                                       | 4,450      |   | $ | 3,490 |   | $ | 1,394 |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Restricted                cash accepted in exchange for sale of convenience and gas store                operations                and interest in fuel loading terminal |   | $                                       | 10,253     |   | $ | — |   | $ | — |   |
|                                                                                                                                                                     |   |                                    |       |   |   |   |   |   |   |   |
| Distributions                on common stock declared and unpaid at December 31                                                                                          |   | $                                       | 7,409      |   | $ | — |   | $ | 758 |   |

----

----

| 1. | Organization                and Summary of Significant Accounting Policies: |
|----|-----------------------------------------------------------------------------|

----

| 1. | Organization                and Summary of Significant Accounting Policies - Continued: |
|----|-----------------------------------------------------------------------------------------|

*Operating      method*

*Direct      financing method *
* *

----

| 1. | Organization                and Summary of Significant Accounting Policies -                Continued: |
|----|--------------------------------------------------------------------------------------------------------|

----

| 1. | Organization                and Summary of Significant Accounting Policies -                Continued: |
|----|--------------------------------------------------------------------------------------------------------|

*Fair-value      hedge transactions*

*Cash-flow      hedge transactions*

----

| 1. | Organization                and Summary of Significant Accounting Policies -                Continued: |
|----|--------------------------------------------------------------------------------------------------------|

----

| 1. | Organization                and Summary of Significant Accounting Policies -                Continued: |
|----|--------------------------------------------------------------------------------------------------------|

----

| 1. | Organization                and Summary of Significant Accounting Policies -                Continued: |
|----|--------------------------------------------------------------------------------------------------------|

| 2. | Merger: |
|----|---------|

----

| 2. | Merger                - Continued: |
|----|------------------------------------|

|   | · | The                fair value of land and buildings was estimated as if the properties                were                vacant. The land value was estimated and the buildings were valued                at                estimated replacement cost less                depreciation. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For                properties currently under lease, an analysis was performed to determine                whether the current lease terms were above or below market rate and                an                asset or liability, respectively, was determined using discounted                cash                flows. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For                properties currently under lease, the value associated with having                a lease                in place was estimated by evaluating the present value of the lost                rents                for each property that would have resulted if the properties had                to be                constructed and the costs related to executing the lease. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                benefit of having a tenant in each specific property with a high                likelihood of renewing the lease at the end of the current term was                evaluated and a value was determined using the present value of rents                during a standard re-lease period. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Equity                Interest |   |  Shares(in                thousands) |   |   Price |   | Total                Market Value(in                thousands) |   |   |    |
|--------------------------------------------|--------|-------------------------------------------|--------|-------------------|--------|----------------------------------------------------------------|--------|--------|---------|
|                                       |   |                                      |   |              |   |                                                           |   |   |    |
| Series                A Preferred Stock    |   |                                      | 4,084  |              | $      | 23.53                                                          |   | $      | 96,099  |   |   |   |   |
| Series                B Preferred Stock    |   |                                      | 25     |              |   | 1,300.00                                                       |   |   | 32,500  |  (a) |   |   |   |
| Common                Stock                |   |                                      | 22,599 |              |   | 15.24                                                          |   |   | 344,411 |   |   |   |   |
|                                       |   |                                      |   |              |   |                                                           |   |   | 473,010 |   |   |   |   |
| Transaction                costs           |   |                                      |   |              |   |                                                           |   |   | 14,414  |   |   |   |   |
| Total                                      |   |                                      |   |              |   |                                                           |   | $      | 487,424 |   |   |   |   |

----

| 2. | Merger                - Continued: |
|----|------------------------------------|

|                                                                                                                                                                                   |   | (In                thousands) |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                                                                                                                   |   |                          |    |
| Cash                Consideration................................................................. |   | $                             | 449,997 |   |
| Preferred                Share Consideration (3,749.9 million shares at $23.53 per                share)                                                                               |   |                          | 88,235  |   |
| Purchase                Price including transaction costs......................................                                        |   | $                             | 538,232 |   |

----

| 2. | Merger                - Continued: |
|----|------------------------------------|

|                                                           |   | (In                thousands) |      |      |   |
|----------------------------------------------------------------|--------|-------------------------------|-----------|-----------|--------|
| Consideration:                                                 |   |                          |      |      |   |
| Exchange                of equity interests                    |   | $                             | 473,010   |      |   |   |   |
| Transaction                costs                               |   |                          | 14,414    |      |   |   |   |
| Cash                                                           |   |                          | 449,997   |      |   |   |   |
| Series                A Preferred Shares                       |   |                          | 88,235    |      |   |   |   |
| Total                consideration                             |   | $                             | 1,025,656 |      |   |   |   |
|                                                           |   |                          |      |      |   |   |   |
| Assets                Acquired:                                |   |                          |      |      |   |   |   |
| Real                estate investment properties               |   | $                             | 958,329   |      |   |   |   |
| Net                investment in capital leases                |   |                          | 63,648    |      |   |   |   |
| Real                estate held for sale                       |   |                          | 62,077    |      |   |   |   |
| Cash                                                           |   |                          | 43,646    |      |   |   |   |
| Restricted                cash                                 |   |                          | 7,835     |      |   |   |   |
| Mortgage                and equipment notes receivable         |   |                          | 15,077    |      |   |   |   |
| Accounts                receivable                             |   |                          | 3,140     |      |   |   |   |
| Other                assets:                                   |   |                          |      |      |   |   |   |
| Above                market leases                             |   |                          | 43,872    |      |   |   |   |
| Leases                in place                                 |   |                          | 15,325    |      |   |   |   |
| Tenant                relationships                            |   |                          | 9,069     |      |   |   |   |
| Other                                                          |   |                          | 3,496     |      |   |   |   |
| Goodwill                                                       |   |                          | 179,635   |  (1) |   |   |   |
| Total                                                          |   |                          | 1,405,149 |      |   |   |   |
|                                                           |   |                          |      |      |   |   |   |
| Liabilities                Assumed:                            |   |                          |      |      |   |   |   |
| Revolver                                                       |   |                          | 14,150    |      |   |   |   |
| Notes                payable                                   |   |                          | 158,189   |      |   |   |   |
| Bonds                payable                                   |   |                          | 143,505   |      |   |   |   |
| Due                to related parties                          |   |                          | 270       |      |   |   |   |
| Other                payables:                                 |   |                          |      |      |   |   |   |
| Below                market leases                             |   |                          | 27,457    |      |   |   |   |
| Environmental                and exit costs liability          |   |                          | 5,619     |      |   |   |   |
| Distributions                payable                           |   |                          | 4,506     |      |   |   |   |
| Other                                                          |   |                          | 23,941    |      |   |   |   |
| Minority                interests                              |   |                          | 2,080     |      |   |   |   |
| Loan                due from stockholder (reduction of equity) |   |                          | (224      | )         |   |   |   |
| Total                                                          |   |                          | 379,493   |      |   |   |   |
|                                                           |   |                          |      |      |   |   |   |
| Net                assets acquired                             |   | $                             | 1,025,656 |      |   |   |   |

----

| 2. | Merger                - Continued: |
|----|------------------------------------|

----

| 2. | Merger                - Continued: |
|----|------------------------------------|

|                                                                                                                                                                                |   | Proforma(in                thousands)   |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                                                                                                |   | Years                ended December 31, |    |
|                                                                                                                                                                                |   | 2005                                    |    | 2004 |   | 2003 |   |
|                                                                                                                                                                                |   |                                    |    |   |   |   |   |
| Revenues                                                                                                                                                                            |   | $                                       | 209,476 |   | $ | 220,576 |   | $ | 227,138 |   |
|                                                                                                                                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Income                from continuing operationsbefore                discontinued operations and cumulative                effect of change in accounting                principle |   | $                                       | 14,688  |   | $ | 15,569 |   | $ | 13,369 |   |
| Income                from discontinued operations                                                                                                                                  |   |                                    | 43,488  |   |   | 52,657 |   |   | 48,954 |   |
| Cumulative                effect of change in accounting                principle                                                                                                   |   |                                    | — |   |   | — |   |   | (220 | ) |
| Net                income                                                                                                                                                           |   |                                    | 58,176  |   |   | 68,226 |   |   | 62,103 |   |
| Dividends                to preferred stockholders                                                                                                                                  |   |                                    | (28,703 | ) |   | (28,703 | ) |   | (28,703 | ) |
| Net                income allocable to common stockholders                                                                                                                          |   | $                                       | 29,473  |   | $ | 39,523 |   | $ | 33,400 |   |
|                                                                                                                                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Basic                and diluted earnings per share                                                                                                                                 |   | $                                       | 0.50    |   | $ | 0.69 |   | $ | 0.60 |   |
|                                                                                                                                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Basic                and diluted weighted average shares                outstanding:                                                                                                |   |                                    |    |   |   |   |   |   |   |   |
| Basic                                                                                                                                                                               |   |                                    | 58,459  |   |   | 57,589 |   |   | 55,261 |   |
| Diluted                                                                                                                                                                             |   |                                    | 58,459  |   |   | 57,688 |   |   | 55,349 |   |

|   | The                proforma amounts for                the year ended December 31, 2005, includes a non-cash tax charge                of $3.2                million and $8.7 million of Merger                expenses. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Real                Estate Investment Properties: |
|----|---------------------------------------------------|

|                                         |   | (In                thousands) |      |
|----------------------------------------------|--------|-------------------------------|-----------|
|                                         |   | December                31,   |      |
|                                         |   | 2005                          |      |  2004 |   |
|                                         |   |                          |      |
| Land                                         |   | $                             | 946,735   |   | $ | 271,693 |   |
| Buildings                                    |   |                          | 871,521   |   |   | 307,409 |   |
| Equipment                and other           |   |                          | 3,351     |   |   | 1,251 |   |
|                                         |   |                          | 1,821,607 |   |   | 580,353 |   |
| Less                accumulated depreciation |   |                          | (84,463   | ) |   | (60,146 | ) |
|                                         |   |                          |      |   |   |   |   |
|                                         |   | $                             | 1,737,144 |   | $ | 520,207 |   |

----

| 3. | Real                Estate Investment Properties - Continued: |
|----|---------------------------------------------------------------|

|       |   | (In                thousands)                                                                                  |      |
|------------|--------|----------------------------------------------------------------------------------------------------------------|-----------|
|       |   |                                                                                                           |      |
| 2006       |   | $                 163,915 |      |
| 2007       |   |                                                                                                           | 161,977   |   |
| 2008       |   |                                                                                                           | 159,906   |   |
| 2009       |   |                                                                                                           | 157,507   |   |
| 2010       |   |                                                                                                           | 153,962   |   |
| Thereafter |   |                                                                                                           | 1,121,223 |   |
|       |   | $                                                                                                              | 1,918,490 |   |

|                                                             |   | (In                thousands) |     |
|------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                             |   | December                31,   |     |
|                                                             |   | 2005                          |     |  2004 |   |
| Minimum                lease payments receivable                 |   | $                             | 217,841  |   | $ | 172,927 |   |
| Estimated                residual values                         |   |                          | 42,392   |   |   | 24,556 |   |
| Interest                receivable from secured equipment leases |   |                          | 4        |   |   | 7 |   |
| Less                unearned income                              |   |                          | (109,601 | ) |   | (101,027 | ) |
|                                                             |   |                          |     |   |   |   |   |
| Net                investment in capital leases                  |   | $                             | 150,636  |   | $ | 96,463 |   |

----

|       |   | (In                thousands) |    |
|------------|--------|-------------------------------|---------|
|       |   |                          |    |
| 2006       |   | $                             | 18,729  |   |
| 2007       |   |                          | 18,868  |   |
| 2008       |   |                          | 18,999  |   |
| 2009       |   |                          | 19,050  |   |
| 2010       |   |                          | 18,511  |   |
| Thereafter |   |                          | 123,684 |   |
|       |   | $                             | 217,841 |   |

| 5. | Real                Estate Held for Sale: |
|----|-------------------------------------------|

|                                     |   | (In                thousands) |    |
|------------------------------------------|--------|-------------------------------|---------|
|                                     |   | 2005                          |    | 2004 |   |
|                                     |   |                          |    |   |   |
| Real                estate segment       |   | $                             | 22,677  |   | $ | 49,261 |   |
| Specialty                finance segment |   |                          | 206,455 |   |   | 115,861 |   |
|                                     |   |                          |    |   |   |   |   |
|                                     |   | $                             | 229,132 |   | $ | 165,122 |   |

----

| 5. | Real                Estate Held for Sale -                Continued: |
|----|----------------------------------------------------------------------|

|                                                                 |   | (In                thousands)          |     |
|----------------------------------------------------------------------|--------|----------------------------------------|----------|
|                                                                 |   | Year                ended December 31, |     |
|                                                                 |   | 2005                                   |     | 2004 |   | 2003 |   |
|                                                                 |   |                                   |     |   |   |   |   |
| Rental                income                                         |   | $                                      | 13,144   |   | $ | 14,364 |   | $ | 14,946 |   |
| Food,                beverage and retail revenues                    |   |                                   | 34,776   |   |   | 13,471 |   |   | 13,728 |   |
| Food,                beverage and retail expenses                    |   |                                   | (33,878  | ) |   | (14,258 | ) |   | (13,856 | ) |
| Other                property related expenses                       |   |                                   | (3,013   | ) |   | (2,157 | ) |   | (2,232 | ) |
| Interest                expense                                      |   |                                   | (5,715   | ) |   | (3,534 | ) |   | (2,267 | ) |
| Impairment                provisions                                 |   |                                   | (448     | ) |   | (4,999 | ) |   | (9,447 | ) |
|                                                                 |   |                                   |     |   |   |   |   |   |   |   |
| Earnings                from discontinued operations                 |   |                                   | 4,866    |   |   | 2,887 |   |   | 872 |   |
|                                                                 |   |                                   |     |   |   |   |   |   |   |   |
| Sales                of real estate                                  |   |                                   | 318,142  |   |   | 290,977 |   |   | 226,250 |   |
| Cost                of real estate sold                              |   |                                   | (270,213 | ) |   | (248,027 | ) |   | (197,920 | ) |
|                                                                 |   |                                   |     |   |   |   |   |   |   |   |
| Gain                on disposal of discontinued operations           |   |                                   | 47,929   |   |   | 42,950 |   |   | 28,330 |   |
|                                                                 |   |                                   |     |   |   |   |   |   |   |   |
| Income                tax (provision)/benefit                        |   |                                   | (9,955   | ) |   | (10,938 | ) |   | 6,346 |   |
|                                                                 |   |                                   |     |   |   |   |   |   |   |   |
| Income                from discontinued operations, after income tax |   | $                                      | 42,840   |   | $ | 34,899 |   | $ | 35,548 |   |

| 6. | Mortgage,                Equipment and Other Notes Receivable: |
|----|----------------------------------------------------------------|

|                                             |   | (In                thousands) |    |
|--------------------------------------------------|--------|-------------------------------|---------|
|                                             |   | 2005                          |    |  2004 |   |
|                                             |   |                          |    |
| Outstanding                principal             |   | $                             | 93,332  |   | $ | 296,412 |   |
| Accrued                interest income           |   |                          | 742     |   |   | 2,277 |   |
| Deferred                financing income         |   |                          | (129    | ) |   | (1,321 | ) |
| Unamortized                deferred costs        |   |                          | — |   |   | 33 |   |
| Allowance                for uncollectible notes |   |                          | (5,706  | ) |   | (7,261 | ) |
|                                             |   | $                             | 88,239  |   | $ | 290,140 |   |

----

| 6. | Mortgage,                Equipment and Other Notes Receivable - Continued: |
|----|----------------------------------------------------------------------------|

|                                                      |   | (In                thousands) |   |
|-----------------------------------------------------------|--------|-------------------------------|--------|
|                                                      |   | 2005                          |   |  2004 |   |
|                                                      |   |                          |   |
| Balance                at beginning of year               |   | $                             | 7,261  |   | $ | 13,964 |   |
| Provision                for loan losses                  |   |                          | 1,296  |   |   | 112 |   |
| Recoveries                on loans previously charged off |   |                          | (1,222 | ) |   | (683 | ) |
| Interest                income reserves                   |   |                          | 124    |   |   | 311 |   |
| Loans                charged off                          |   |                          | (1,753 | ) |   | (6,443 | ) |
| Balance                at end of year                     |   | $                             | 5,706  |   | $ | 7,261 |   |

|                                              |   |   Total                principal amount(In                thousands) |     | Principal                amount > 60 dayspast                due(In                thousands) |   |
|---------------------------------------------------|--------|--------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------------------------------|--------|
|                                              |   | 2005                                                                           |     | 2004                                                                                             |   | 2005 |   | 2004 |   |
|                                              |   |                                                                           |     |                                                                                             |   |   |   |   |   |
| Mortgage                loans                     |   | $                                                                              | 424,684  |                                                                                             | $      | 660,712 |   | $ | 3,566 |   | $ | 9,315 |   |
| Equipment                and other loans          |   |                                                                           | 12,593   |                                                                                             |   | 22,597 |   |   | — |   |   | — |   |
|                                              |   |                                                                           |     |                                                                                             |   |   |   |   |   |   |   |   |   |
| Total                loans managed or securitized |   |                                                                           | 437,277  |                                                                                             |   | 683,309 |   |   | 3,566 |   |   | 9,315 |   |
|                                              |   |                                                                           |     |                                                                                             |   |   |   |   |   |   |   |   |   |
| Less:                                             |   |                                                                           |     |                                                                                             |   |   |   |   |   |   |   |   |   |
| Loans                securitized                  |   |                                                                           | (343,945 | )                                                                                                |   | (386,897 | ) |   | (1,617 | ) |   | (8,717 | ) |
|                                              |   |                                                                           |     |                                                                                             |   |   |   |   |   |   |   |   |   |
| Loans                held in portfolio (Note 6)   |   | $                                                                              | 93,332   |                                                                                             | $      | 296,412 |   | $ | 1,949 |   | $ | 598 |   |

----

|                                                           |   | (In                thousands) |   |
|----------------------------------------------------------------|--------|-------------------------------|--------|
|                                                           |   | 2005                          |   |  2004 |   | 2003 |   |
|                                                           |   |                          |   |   |   |
| Servicing                fees received                         |   | $                             | 1,298  |   | $ | 1,387 |   | $ | 1,597 |   |
| Other                cash flows received on retained interests |   | $                             | 1,715  |   | $ | 3,820 |   | $ | 4,332 |   |
| Servicing                advances paid                         |   | $                             | (4,062 | ) | $ | (3,949 | ) | $ | (4,128 | ) |
| Collection                of servicing advances                |   | $                             | 4,117  |   | $ | 3,041 |   | $ | 3,603 |   |

| 8. | Intangible                Lease Costs: |
|----|----------------------------------------|

|                                               |   | (in                thousands) |   |
|----------------------------------------------------|--------|-------------------------------|--------|
|                                               |   | 2005                          |   | 2004 |   |
|                                               |   |                          |   |   |   |
| Intangible                lease origination costs: |   |                          |   |   |   |
| Leases                in place                     |   | $                             | 29,524 |   | $ | — |   |
| Tenant                relationships                |   |                          | 12,300 |   |   | — |   |
|                                               |   |                          | 41,824 |   |   |   |   |
| Less                accumulated amortization       |   |                          | (5,197 | ) |   | — |   |
|                                               |   |                          | 36,627 |   |   | — |   |
|                                               |   |                          |   |   |   |   |   |
| Above                market lease values           |   |                          | 45,505 |   |   | — |   |
| Less                accumulated amortization       |   |                          | (4,469 | ) |   | — |   |
|                                               |   |                          | 41,036 |   |   | — |   |
|                                               |   |                          |   |   |   |   |   |
| Total                                              |   | $                             | 77,663 |   | $ | — |   |

----

| 8. | Intangible                Lease Costs - Continued: |
|----|----------------------------------------------------|

|   | The                Company recognized aggregate amortization expense on intangible assets                of                approximately $9.8 million for 2005. Based on the balance of intangible                assets at December 31, 2005, subject to amortization, the estimated                aggregate amortization expense for each of the succeeding five years                and                thereafter is as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       |   | (In                thousands) |   |
|------------|--------|-------------------------------|--------|
|       |   |                          |   |
| 2006       |   | $                             | 10,727 |   |
| 2007       |   |                          | 9,464  |   |
| 2008       |   |                          | 8,366  |   |
| 2009       |   |                          | 7,414  |   |
| 2010       |   |                          | 6,617  |   |
| Thereafter |   |                          | 35,075 |   |
|       |   | $                             | 77,663 |   |

| 9. | Borrowings: |
|----|-------------|

|                                           |   | 2005                                |        |   |                       | 2004   |
|------------------------------------------------|--------|-------------------------------------|-------------|--------|----------------------------|--------|
|                                           |   | Amount(In                thousands) | AverageRate |   | Capacity                   |   | Expectedmaturity/retirement                date |   | Amount(In                thousands) | Average                rate |
|                                           |   |                                |        |   |                       |   |   |   |   |   |
| Revolver                                       |   | $                55,000             | 5.96%       |   | $                175,000   |   | April                2008 |   | $                21,000 | 4.04% |
| Term                loan                       |   | 275,000                             | 5.71%       |   | 275,000                    |   | April                2010 |   | — | — |
| Senior                unsecured notes          |   | 300,000                             | 7.50%       |   | 300,000                    |   | April                2015 |   | — | — |
| Notes                payable                   |   | 2,027                               | 6.81%       |   | 6,150                      |   | 2006 |   | 162,810 | 5.83% |
| Mortgage                note payable (a)       |   | 829                                 | 8.00%       |   | 829                        |   | June                2007 |   | — | — |
| Mortgage                warehouse facilities   |   | 122,722                             | 4.78%       |   | 260,000                    |   | Annual |   | 101,394 | 2.78% |
| Subordinated                note payable       |   | —                             | —     |   | —                    |   | — |   | 21,875 | 7.00% |
| Series                2000-A bonds payable     |   | 219,158                             | 7.97%       |   | 219,158                    |   | 2009-2017 |   | 239,165 | 7.96% |
| Series                2001-A bonds payable (a) |   | 129,460                             | 3.91%       |   | 129,460                    |   | August                2006 |   | — | — |
| Series                2001-4 bonds payable     |   | 25,447                              | 8.90%       |   | 25,447                     |   | 2009-2013 |   | 28,489 | 8.90% |
| Series                2001 bonds payable       |   | 93,137                              | 3.77%       |   | 93,137                     |   | October                2006 |   | 111,577 | 1.89% |
| Series                2003 bonds payable       |   | 8,512                               | 7.95%       |   | 8,512                      |   | 2006-2007 |   | 26,190 | 6.02% |
| Series                2005 bonds payable       |   | 266,487                             | 4.67%       |   | 266,487                    |   | 2012 |   | — | — |
|                                           |   | 1,497,779                           |        |   | $                1,759,180 |   |   |   | $                712,500 |   |
| Senior                unsecured notes premium  |   | 1,146                               |        |   |                       |   |   |   |   |   |
|                                           |   | $                1,498,925          |        |   |                       |   |   |   |   |   |

|   | (a) | Assumed                debt as a result of the Merger described in Note                2. |
|--------|-----|-------------------------------------------------------------------------------------------|

----

| 9. | Borrowings                - Continued: |
|----|----------------------------------------|

*Revolver      and Term Loan. *

| Type                of Hedge($                in millions) |   | NotionalAmount                atDecember                31, 2005(in                millions) |   | Cap                Strike Price or Swap Rate |   | Trade                Date |   | Maturity                Date |     | Estimated                ValueatDecember                31, 2005(in                millions) |   |
|------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|---------------------------|--------|------------------------------|----------|----------------------------------------------------------------------------------------------|--------|
|                                                       |   |                                                                                         |   |                                         |   |                      |   |                         |     |                                                                                         |   |
| Interest                Rate Cap                           |   | $                                                                                            | 142.5  |                                         |   | 6.000                     | %      |                         | 08/13/01 |                                                                                         |   | 08/26/06 |   | $ | — |   |
| Interest                Rate Cap                           |   | $                                                                                            | 106.4  |                                         |   | 4.500                     | %      |                         | 09/28/01 |                                                                                         |   | 10/25/06 |   | $ | 0.2 |   |
| Interest                Rate Swap                          |   | $                                                                                            | 175.0  |                                         |   | 4.202                     | %      |                         | 05/16/05 |                                                                                         |   | 04/01/10 |   | $ | 3.7 |   |
| Interest                Rate Cap                           |   | $                                                                                            | 21.5   |                                         |   | 3.500                     | %      |                         | 12/17/03 |                                                                                         |   | 02/01/11 |   | $ | 0.7 |   |

----

| 9. | Borrowings                - Continued: |
|----|----------------------------------------|

*Senior      Unsecured Notes. *

*Notes      Payable.*

*Mortgage      Note Payable. *

*Mortgage      Warehouse Facilities.*

----

| 9. | Borrowings                - Continued: |
|----|----------------------------------------|

*Subordinated      Note Payable. *

*Bonds      Payable. *

----

| 9. | Borrowings                - Continued: |
|----|----------------------------------------|

*Series      B Preferred Stock.*

|       |   | (In                thousands) |      |
|------------|--------|-------------------------------|-----------|
|       |   |                          |      |
| 2006       |   | $                             | 378,161   |   |
| 2007       |   |                          | 25,526    |   |
| 2008       |   |                          | 81,916    |   |
| 2009       |   |                          | 30,233    |   |
| 2010       |   |                          | 308,032   |   |
| Thereafter |   |                          | 673,911   |   |
|       |   | $                             | 1,497,779 |   |

----

| 11. | Income                Tax: |
|-----|----------------------------|

----

| 11. | Income                Tax - Continued: |
|-----|----------------------------------------|

|                                                        |   | (In                thousands) |    |
|-------------------------------------------------------------|--------|-------------------------------|---------|
|                                                        |   | 2005                          |    | 2004 |   |
|                                                        |   |                          |    |   |   |
| Deferred                tax asset:                          |   |                          |    |   |   |
| Cash                flow hedge related difference           |   | $                             | — |   | $ | 3,355 |   |
| Loan                valuation and related hedge differences |   |                          | 3,980   |   |   | (1,668 | ) |
| Loan                origination fees                        |   |                          | 262     |   |   | 535 |   |
| Real                estate loss reserves               |   |                          | 577     |   |   | 846 |   |
| Reserve                for investment losses                |   |                          | 2,014   |   |   | 1,906 |   |
| Fixed                assets                                 |   |                          | (2,110  | ) |   | 407 |   |
| Other                                                       |   |                          | 836     |   |   | (42 | ) |
| Net                recorded deferred tax asset              |   | $                             | 5,559   |   | $ | 5,339 |   |

|                                                                                             |   | (In                thousands) |    |
|--------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
|                                                                                             |   | 2005                          |    | 2004 |   | 2003 |   |
|                                                                                             |   |                          |    |   |   |   |   |
| Expected                tax at US statutory rate                                                 |   | $                             | 7,471   |   | $ | 2,420 |   | $ | 2,343 |   |
| REIT                income not subject to US income tax (dividend                paid deduction) |   |                          | (16,293 | ) |   | (8,001 | ) |   | (9,801 | ) |
| Benefit                allocated to discontinued operations                                      |   |                          | 8,822   |   |   | 5,581 |   |   | 454 |   |
| Change                in valuation allowance                                                     |   |                          | — |   |   | — |   |   | 7,004 |   |
|                                                                                             |   |                          |    |   |   |   |   |   |   |   |
| Provision                for income taxes from continuing operations                             |   | $                             | — |   | $ | — |   | $ | — |   |

----

|                                              |   | (Unaudited)                        |   |
|---------------------------------------------------|--------|------------------------------------|--------|
|                                              |   | Common                Shareholders |   | Preferred                Shareholders (all classes) |   |
|                                              |   |                               |   |   |   |
| Ordinary                income                    |   |                               | 62.24  | % |   | 80.64 | % |
| Qualified                dividend income          |   |                               | 14.45  | % |   | 18.73 | % |
| 25%                Section 1250 unrecaptured gain |   |                               | 0.49   | % |   | 0.63 | % |
| Total                taxable income               |   |                               | 77.18  | % |   | 100.00 | % |
|                                              |   |                               |   |   |   |   |   |
| Return                of capital                  |   |                               | 22.82  | % |   | 0.00 | % |
|                                              |   |                               |   |   |   |   |   |
| Total                                             |   |                               | 100.00 | % |   | 100.00 | % |

|                                                                                       |   | (In                thousands) |    |
|--------------------------------------------------------------------------------------------|--------|-------------------------------|---------|
| Amounts                received (paid):                                                    |   | 2005                          |    | 2004 |   | 2003 |   |
|                                                                                       |   |                          |    |   |   |   |   |
| Services                purchased from affiliates (1)                                      |   | $                             | (927    | ) | $ | (2,268 | ) | $ | (3,094 | ) |
|                                                                                       |   |                          |    |   |   |   |   |   |   |   |
| Rental                and other expenses to affiliates for office                space (2) |   | $                             | (1,621  | ) | $ | (1,411 | ) | $ | (1,445 | ) |
|                                                                                       |   |                          |    |   |   |   |   |   |   |   |
| Dealer                servicing fee (3)                                                    |   | $                             | 1,747   |   | $ | (1,493 | ) | $ | (1,493 | ) |
|                                                                                       |   |                          |    |   |   |   |   |   |   |   |
| Servicing                fees from affiliates (4)                                          |   | $                             | 1,401   |   | $ | 2,884 |   | $ | 4,612 |   |
|                                                                                       |   |                          |    |   |   |   |   |   |   |   |
| Referral                fees from the Bank (5)                                             |   | $                             | — |   | $ | 1,657 |   | $ | 1,109 |   |

----

| 13. | Related                Party Transactions - Continued: |
|-----|--------------------------------------------------------|

|   | (1) | Services                purchased from affiliates include human resources, tax planning and                compliance, computer systems support, investor relations and other                services. Post Merger, the Company performed substantially all of                these                functions internally. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | In                May 2002, the Company purchased a combined five percent partnership                interest in CNL Plaza, Ltd. and CNL Plaza Venture, Ltd. (the “Plaza”)                which owns and operates the office tower in which the Company headquarters                are located, for $0.2 million. Affiliates of two members of the Board                of                Directors, including the Chairman, own the remaining partnership                interests. The Company has severally guaranteed 8.33 percent of an                unsecured promissory note on behalf of the Plaza. The guaranty, after                a                refinancing during 2005 by the Plaza, equated to $1.2 million of                the $14                million unsecured promissory note. The guaranty continues through                December                31, 2010. The Company received distributions of $0.10 million, $0.07                million and $0.07 million during the years ended December 31, 2005,                2004                and 2003, respectively, from the Plaza. Since November 1999, the                Company                has leased its office space from CNL Plaza, Ltd., an affiliate of                a member                of the Company’s board of directors. As of March 15, 2006, the Company is                currently discussing and evaluating the possible sale of the five                percent                interest. As a result of the Merger, the Company is incurring the                rental                expenses under these leases in 2005. The Company’s leases expire in 2014                and provide for scheduled rent increases over the term of the lease.                Rental and other expenses for the years ended December 31, 2005,                2004 and                2003 include accrued rental expense (the additional rent expense                resulting                from the straight-lining of scheduled rent increases over the term                of the                lease) and executory costs. Future commitments due under the office                space                operating leases are as follows at December 31,                2005: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       |   | (In                thousands) |   |
|------------|--------|-------------------------------|--------|
|       |   |                          |   |
| 2006       |   | $                             | 1,436  |   |
| 2007       |   |                          | 1,480  |   |
| 2008       |   |                          | 1,525  |   |
| 2009       |   |                          | 1,570  |   |
| 2010       |   |                          | 1,617  |   |
| Thereafter |   |                          | 6,661  |   |
|       |   |                          |   |   |
|       |   | $                             | 14,289 |   |

|   | (3) | Soliciting                dealer servicing fee paid to an affiliate in connection with the                Company’s                previous common stock offerings. During 2005, the Company received                a                refund of approximately $1.7 million from the affiliate and began                paying                an outside stock transfer agent for stock and investor servicing                fees. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Property                management and other administrative services provided to affiliates                investing in restaurant net lease properties and loans. During 2005,                these                affiliates became part of the Company as a result of the                Merger. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | During                the years ended December 31, 2004 and 2003, the Company received                referral                fees paid by the Bank, a partner in the specialty finance segment                through                January 1, 2005, under a business referral program between the Company                and                the Bank. The Company did not receive any referral fees from the                Bank in                2005. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13. | Related                Party Transactions - Continued: |
|-----|--------------------------------------------------------|

| 14. | Stock                Options and Restricted Shares: |
|-----|-----------------------------------------------------|

----

| 14. | Stock                Options and Restricted Shares - Continued: |
|-----|-----------------------------------------------------------------|

|                                                                              |   | $12.23 |   | $15.50 |   | All                options |   |
|-----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|----------------------------|--------|
|                                                                              |   |   |   |   |   |                       |   |
| Options                outstanding (in thousands)                                 |   |   | 4      |   |   | 8                          |   |   | 12 |   |
| Average                option price per share                                     |   | $      | 12.23  |   | $      | 15.50                      |   | $ | 14.36 |   |
| Weighted                average remaining contractual life                (years) |   |   | 2.43   |   |   | 0.82                       |   |   | 1.38 |   |
| Options                exercisable (in thousands)                                 |   |   | 4      |   |   | 8                          |   |   | 12 |   |
| Average                option price per share                                     |   | $      | 12.23  |   | $      | 15.50                      |   | $ | 14.36 |   |

|                                                                    |   | Number                of options(in                thousands) |    | Weighted                average exercise price at grant date |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------------------------|---------|--------------------------------------------------------------|--------|
|                                                                    |   |                                                          |    |                                                         |   |
| Options                outstanding at December 31, 2004                 |   |                                                          | — |                                                         | $      | — |   |
| Options                assumed through Merger                           |   |                                                          | 71      |                                                         | $      | 14.95 |   |
| Exercised                                                               |   |                                                          | (44     | )                                                            | $      | 13.85 |   |
| Forfeited                                                               |   |                                                          | — |                                                         | $      | — |   |
| Expired                                                                 |   |                                                          | (15     | )                                                            | $      | 21.57 |   |
|                                                                    |   |                                                          |    |                                                         |   |   |   |
| Options                outstanding and exercisable at December 31, 2005 |   |                                                          | 12      |                                                         | $      | 14.36 |   |

----

| 14. | Stock                Options and Restricted Shares - Continued: |
|-----|-----------------------------------------------------------------|

|                                                    |   | Number                of shares(in                thousands) |    | Weighted                average fair value at grant date |   |
|---------------------------------------------------------|--------|--------------------------------------------------------------|---------|----------------------------------------------------------|--------|
|                                                    |   |                                                         |    |                                                     |   |
| Non-vested                shares at beginning of period |   |                                                         | — |                                                     | $      | — |   |
| Granted                                                 |   |                                                         | 138     |                                                     | $      | 17.01 |   |
| Vested                                                  |   |                                                         | — |                                                     | $      | — |   |
| Forfeited                                               |   |                                                         | (18     | )                                                        | $      | 17.20 |   |
|                                                    |   |                                                         |    |                                                     |   |   |   |
| Non-vested                shares at December 31, 2005   |   |                                                         | 120     |                                                     | $      | 16.98 |   |

| 15. | Stockholders’                Equity: |
|-----|--------------------------------------------|

*Outstanding      Warrants - *

*Redeemable      Preferred Stock*

*Series      A Preferred Stock - *

----

| 15. | Stockholders’                Equity - Continued: |
|-----|--------------------------------------------------------|

*Series      C Preferred Stock - *

----

| 15. | Stockholders’                Equity - Continued: |
|-----|--------------------------------------------------------|

|   | *Computation                of Earnings Per Common Share*                -                For the years ended December 31, 2005, 2004 and 2003, basic and diluted                earnings per common share for income (loss) from continuing operations                available to common stockholders has been computed as                follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                               |   | Year                ended December 31,(in                thousands) |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|---------|
|                                                                                                                                               |   | 2005                                                                |    | 2004 |   | 2003 |   |
|                                                                                                                                               |   |                                                                |    |   |   |   |   |
| Numerator:                                                                                                                                         |   |                                                                |    |   |   |   |   |
| Income                from continuing operations                                                                                                   |   | $                                                                   | 11,704  |   | $ | 6,984 |   | $ | 6,901 |   |
| Gain                on sale of assets                                                                                                              |   |                                                                | 9,643   |   |   | 135 |   |   | (9 | ) |
| Less:                Preferred stock dividends                                                                                                     |   |                                                                | (24,448 | ) |   | — |   |   | — |   |
|                                                                                                                                               |   |                                                                |    |   |   |   |   |   |   |   |
| Income/(loss)                from continuing operations available to common                stockholders                                            |   | $                                                                   | (3,101  | ) | $ | 7,119 |   |   | 6,892 |   |
|                                                                                                                                               |   |                                                                |    |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                       |   |                                                                |    |   |   |   |   |   |   |   |
| Basic                and diluted weighted average number of shares outstanding (1)                (2)                                              |   |                                                                | 55,053  |   |   | 35,032 |   |   | 35,032 |   |
|                                                                                                                                               |   |                                                                |    |   |   |   |   |   |   |   |
| Basic                and diluted income/(loss) from continuing operations allocable to                common                stockholders per share |   | $                                                                   | (0.06   | ) | $ | 0.20 |   | $ | 0.20 |   |
|                                                                                                                                               |   |                                                                |    |   |   |   |   |   |   |   |

|   | (1) | For                the year ended December 31, 2005, the potential dilution from the                Company’s outstanding Common Stock Equivalents was anti-dilutive to the                loss from continuing operations per share calculation. As such, the                Company excluded stock options to purchase approximately 0.012 million                shares of common stock, warrants to purchase 0.4 million shares of                common                stock, restricted stock of approximately 0.1 million shares and the                conversion of Series A and Series C Preferred Stock into 16.6 million                shares of common stock from the computation of diluted earnings per                share                as these Common Stock Equivalents were                anti-dilutive. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | For                the years ended December 31, 2004 and 2003, the Company did not have                any                Common Stock Equivalents. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | Stockholders’                Equity - Continued: |
|-----|--------------------------------------------------------|

|                                                                                                                                                       |   | (In                thousands)          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                                                                                       |   | Year                ended December 31, |   |
|                                                                                                                                                       |   | 2005                                   |   | 2004 |   | 2003 |   |
|                                                                                                                                                       |   |                                   |   |   |   |   |   |
| Historical                income (loss) from continuing operations and gain of sale of assets                less                preferred stock dividends |   | $                                      | (3,101 | ) | $ | 7,119 |   | $ | 6,892 |   |
| Proforma                adjustment for Series C Preferred Stock dividends                                                                                  |   |                                   | (2,264 | ) |   | (13,583 | ) |   | (13,583 | ) |
| Proforma                loss from continuing operations allocable to common                stockholders                                                    |   | $                                      | (5,365 | ) | $ | (6,464 | ) | $ | (6,691 | ) |
|                                                                                                                                                       |   |                                   |   |   |   |   |   |   |   |   |
| Basic                and diluted proforma earnings (loss) per share:                                                                                       |   |                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                       |   |                                   |   |   |   |   |   |   |   |   |
| From                continuing operations                                                                                                                  |   | $                                      | (0.10  | ) | $ | (0.18 | ) | $ | (0.19 | ) |
| From                discontinued operations                                                                                                                |   |                                   | 0.78   |   |   | 1.00 |   |   | 1.01 |   |
|                                                                                                                                                       |   | $                                      | 0.68   |   | $ | 0.82 |   | $ | 0.82 |   |

----

| 17. | Segment                Information: |
|-----|-------------------------------------|

|                                                                                  |   | Year                ended December 31, 2005(In                thousands) |      |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|-----------|
|                                                                                  |   | Real                estate segment                                       |      | Specialty                finance segment |   | Other |   | ConsolidatedTotals |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |
| Revenues                                                                              |   | $                                                                        | 177,645   |   | $ | 17,351 |   | $ | (4,917 | ) | $ | 190,079 |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                             |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| General                operating and administrative                                   |   |                                                                     | 12,853    |   |   | 28,602 |   |   | (3,485 | ) |   | 37,970 |   |
| Interest                expense                                                       |   |                                                                     | 80,539    |   |   | 10,556 |   |   | (1,021 | ) |   | 90,074 |   |
| Property                expenses, state and other taxes                               |   |                                                                     | 7,153     |   |   | 487 |   |   | (406 | ) |   | 7,234 |   |
| Depreciation                and amortization                                          |   |                                                                     | 29,490    |   |   | 1,447 |   |   | — |   |   | 30,937 |   |
| Loss                on termination of cash flow hedge                                 |   |                                                                     | 8,558     |   |   | — |   |   | — |   |   | 8,558 |   |
| Impairments                and provisions on assets                                   |   |                                                                     | 1,889     |   |   | 75 |   |   | — |   |   | 1,964 |   |
| Minority                interest net of equity in earnings                            |   |                                                                     | 250       |   |   | 1,388 |   |   | — |   |   | 1,638 |   |
|                                                                                  |   |                                                                     | 140,732   |   |   | 42,555 |   |   | (4,912 | ) |   | 178,375 |   |
| Discontinued                operations:                                               |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations, net of income tax                 |   |                                                                     | 10,575    |   |   | 32,265 |   |   | — |   |   | 42,840 |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of assets                                                 |   |                                                                     | 9,643     |   |   | — |   |   | — |   |   | 9,643 |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Net                income/(loss)                                                      |   | $                                                                        | 57,131    |   | $ | 7,061 |   | $ | (5 | ) | $ | 64,187 |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Assets                at December 31, 2005                                            |   | $                                                                        | 2,304,122 |   | $ | 379,100 |   | $ | 914 |   | $ | 2,684,136 |   |
|                                                                                  |   |                                                                     |      |   |   |   |   |   |   |   |   |   |   |
| Investments                accounted for under the equity method at December 31, 2005 |   | $                                                                        | 834       |   | $ | — |   | $ | — |   | $ | 834 |   |

----

| 17. | Segment                Information - (Continued): |
|-----|---------------------------------------------------|

|                                                                                                       |   | Year                ended December 31, 2004(In                thousands) |    |
|------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                                                                       |   | Real                estate segment                                       |    | Specialty                finance segment |   | Other |   | ConsolidatedTotals |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |
| Revenues                                                                                                   |   | $                                                                        | 76,957  |   | $ | 29,337 |   | $ | (3,010 | ) | $ | 103,284 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                  |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| General                operating and administrative                                                        |   |                                                                     | 8,868   |   |   | 21,515 |   |   | (1,975 | ) |   | 28,408 |   |
| Interest                expense                                                                            |   |                                                                     | 29,262  |   |   | 18,314 |   |   | 423 |   |   | 47,999 |   |
| Property                expenses, state and other taxes                                                    |   |                                                                     | 575     |   |   | — |   |   | — |   |   | 575 |   |
| Depreciation                and amortization                                                               |   |                                                                     | 10,653  |   |   | 874 |   |   | — |   |   | 11,527 |   |
| Loss                on termination of cash flow hedge                                                      |   |                                                                     | — |   |   | 940 |   |   | — |   |   | 940 |   |
| Impairments                and provisions on assets                                                        |   |                                                                     | 2,684   |   |   | 554 |   |   | — |   |   | 3,238 |   |
| Minority                interest net of equity in earnings                                                 |   |                                                                     | 61      |   |   | 3,552 |   |   | — |   |   | 3,613 |   |
|                                                                                                       |   |                                                                     | 52,103  |   |   | 45,749 |   |   | (1,552 | ) |   | 96,300 |   |
| Discontinued                operations:                                                                    |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations, net of income tax                                      |   |                                                                     | 5,730   |   |   | 29,169 |   |   | — |   |   | 34,899 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Gain                on sale of assets                                                                      |   |                                                                     | 135     |   |   | — |   |   | — |   |   | 135 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Net                income/(loss)                                                                           |   | $                                                                        | 30,719  |   | $ | 12,757 |   | $ | (1,458 | ) | $ | 42,018 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Assets                at December 31, 2004                                                                 |   | $                                                                        | 795,125 |   | $ | 451,237 |   | $ | (2,713 | ) | $ | 1,243,649 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Investments                accounted for under the  equity                method at December 31, 2004 |   | $                                                                        | 947     |   | $ | — |   | $ | — |   | $ | 947 |   |
|                                                                                                       |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |

----

| 17. | Segment                Information - (Continued): |
|-----|---------------------------------------------------|

|                                                                         |   | Year                ended December 31, 2003(In                thousands) |    |
|------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                                         |   | Real                estate segment                                       |    | Specialty                finance segment |   | Other |   | ConsolidatedTotals |   |
|                                                                         |   |                                                                     |    |   |   |   |   |   |   |
| Revenues                                                                     |   | $                                                                        | 81,996  |   | $ | 32,254 |   | $ | (3,180 | ) | $ | 111,070 |   |
|                                                                         |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                    |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| General                operating and administrative                          |   |                                                                     | 8,980   |   |   | 21,059 |   |   | (2,417 | ) |   | 27,622 |   |
| Interest                expense                                              |   |                                                                     | 27,481  |   |   | 23,653 |   |   | (558 | ) |   | 50,576 |   |
| Property                expenses, state and other taxes                      |   |                                                                     | 929     |   |   | — |   |   | — |   |   | 929 |   |
| Depreciation                and amortization                                 |   |                                                                     | 11,109  |   |   | 934 |   |   | — |   |   | 12,043 |   |
| Loss                on termination of cash flow hedge                        |   |                                                                     | — |   |   | 502 |   |   | — |   |   | 502 |   |
| Impairments                and provisions on assets                          |   |                                                                     | 4,350   |   |   | 6,342 |   |   | — |   |   | 10,692 |   |
| Minority                interest net of equity in earnings                   |   |                                                                     | 114     |   |   | 1,691 |   |   | — |   |   | 1,805 |   |
|                                                                         |   |                                                                     | 52,963  |   |   | 54,181 |   |   | (2,975 | ) |   | 104,169 |   |
| Discontinued                operations:                                      |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Income/(loss)                from discontinued operations, net of income tax |   |                                                                     | (1,266  | ) |   | 36,814 |   |   | — |   |   | 35,548 |   |
|                                                                         |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Loss                on sale of assets                                        |   |                                                                     | — |   |   | (9 | ) |   | — |   |   | (9 | ) |
|                                                                         |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |
| Net                income/(loss)                                             |   | $                                                                        | 27,767  |   | $ | 14,878 |   | $ | (205 | ) | $ | 42,440 |   |
|                                                                         |   |                                                                     |    |   |   |   |   |   |   |   |   |   |   |

| 18. | Commitments                and Contingencies: |
|-----|-----------------------------------------------|

|       |   | (In                thousands) |   |
|------------|--------|-------------------------------|--------|
| 2006       |   | $                             | 3,214  |   |
| 2007       |   |                          | 2,872  |   |
| 2008       |   |                          | 2,255  |   |
| 2009       |   |                          | 1,647  |   |
| 2010       |   |                          | 1,162  |   |
| Thereafter |   |                          | 4,994  |   |
|       |   | $                             | 16,144 |   |

----

| 18. | Commitments                and Contingencies - Continued: |
|-----|-----------------------------------------------------------|

----

| 18. | Commitments                and Contingencies - Continued: |
|-----|-----------------------------------------------------------|

|                                                                                                                                           |   | (In                thousands except for per share data) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |
| 2005                Quarter                                                                                                                    |   | First                                                   |   | Second |   | Third |   | Fourth |   | Year |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |
| Continuing                operations:                                                                                                          |   |                                                    |   |   |   |   |   |   |   |   |   |
| Revenues                (1)                                                                                                                    |   | $                                                       | 33,482 |   | $ | 50,810 |   | $ | 52,093 |   | $ | 53,694 |   | $ | 190,079 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings/(loss)                from continuing                operations allocable                to common stockholders                (1)(2) |   | $                                                       | (4,301 | ) | $ | (2,713 | ) | $ | 2,392 |   | $ | 1,521 |   | $ | (3,101 | ) |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations:                                                                                                        |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                and gainsfrom                discontinued operations,                 net                (1)                      |   |                                                    | 4,827  |   |   | 13,686 |   |   | 9,296 |   |   | 15,031 |   |   | 42,840 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income allocable to common                stockholders                                                                      |   | $                                                       | 526    |   | $ | 10,973 |   | $ | 11,688 |   | $ | 16,552 |   | $ | 39,739 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income/(loss) per share of common                stock (basic and diluted):                                                 |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations (1)                                                                                                       |   | $                                                       | (0.08  | ) | $ | (0.04 | ) | $ | 0.03 |   | $ | 0.03 |   | $ | (0.06 | ) |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations (1)                                                                                                     |   | $                                                       | 0.09   |   | $ | 0.25 |   | $ | 0.17 |   | $ | 0.27 |   | $ | 0.78 |   |

----

|                                                                                                                                           |   | (In                thousands except for per share data) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                                                                                           |   |                                                    |   |
| 2004                Quarter                                                                                                                    |   | First                                                   |   | Second |   | Third |   | Fourth |   | Year |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |
| Continuing                operations:                                                                                                          |   |                                                    |   |   |   |   |   |   |   |   |   |
| Revenues                (1)                                                                                                                    |   | $                                                       | 25,682 |   | $ | 25,116 |   | $ | 26,989 |   | $ | 25,497 |   | $ | 103,284 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings/(loss)                from continuing                operations allocable                to common stockholders                (1)(2) |   | $                                                       | 3,172  |   | $ | 1,038 |   | $ | 3,587 |   | $ | (678 | ) | $ | 7,119 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations:                                                                                                        |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                and gainsfrom                discontinued operations,                net (1)                                           |   |                                                    | 7,676  |   |   | 8,182 |   |   | 11,329 |   |   | 7,712 |   |   | 34,899 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income allocable to common stockholders                                                                                     |   | $                                                       | 10,848 |   | $ | 9,220 |   | $ | 14,916 |   | $ | 7,034 |   | $ | 42,018 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income/(loss) per share of common                stock (basic and diluted):                                                 |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations (1)                                                                                                       |   | $                                                       | 0.09   |   | $ | 0.03 |   | $ | 0.10 |   | $ | (0.02 | ) | $ | 0.20 |   |
|                                                                                                                                           |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations (1)                                                                                                     |   | $                                                       | 0.22   |   | $ | 0.23 |   | $ | 0.33 |   | $ | 0.22 |   | $ | 1.00 |   |

|   | (1) | The                results of operations relating to properties that were either disposed                of                or that were classified as held for sale during the year ended December                31, 2005 and 2004 are reported as discontinued operations. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Earnings/(loss)                from continuing operations allocable to common stockholders includes                income from continuing operations and gain/(loss) on sale of assets,                net                of dividends to preferred                stockholders. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**PART      IV**

**Item      15. Exhibits and Financial Statement Schedules.**

|   | 2.1 | Agreement                and Plan of Merger by and between the Registrant and CNL Restaurant                Properties, Inc., dated as of August 9, 2004 (previously filed as                Exhibit                2.1 to the Registrant’s current report on Form 8-K filed on August 10,                2004 and incorporated herein by                reference). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2 | Agreements                and Plans of Merger by and among the Registrant, a separate, wholly-owned                subsidiary of the operating partnership of the Registrant and each                of the                18 Income Funds (previously filed as Exhibits 2.2 - 2.19 to the                Registrant’s current report on Form 8-K filed on August 10, 2004 and                incorporated herein by                reference). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.1 | Restated                Articles of Incorporation of the Registrant dated November 11, 1997,                as                amended by the Articles of Amendment to the Articles of Restatement                of the                Registrant dated February 24, 2005 and the Articles of Amendment                to the                Articles of Restatement of the Registrant dated February 24, 2005                (previously filed as Exhibit 3.1 to the Registrant’s quarterly report on                Form 10-Q for the fiscal quarter ended March 31, 2005 and incorporated                herein by reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Third                Amended and Restated Bylaws (previously filed as Exhibit 3.1 on the                Company’s current report on Form 8-K filed on August 15, 2005 and                incorporated herein by reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Specimen                of Common Stock Certificate (previously filed as Exhibit 4.1 to the                Registrant’s Registration Statement on Form S-4 (File No. 333-21403) and                incorporated herein by reference). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                Series A Cumulative Convertible Preferred Stock (previously filed                as                Exhibit 3.2 to the Registrant’s current report on Form 8-K filed on                November 14, 1997 and incorporated herein by                reference). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Amendment                to Articles Supplementary Classifying and Designating a Series of                Preferred Stock as Series A Cumulative Convertible Preferred Stock                (previously filed as Exhibit 3.2 to the Registrant’s current report on                Form 8-K filed on February 25, 2005 and incorporated herein by                reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                8% Series B Convertible Preferred Stock (previously filed as Exhibit                4.01                to the Registrant’s Form 10-Q for the fiscal quarter ended June 30, 2003                and incorporated herein by                reference). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                8% Series B-1 Convertible Preferred Stock (previously filed as Exhibit                99.5 to the Registrant’s current report on Form 8-K filed on September 16,                2004 and incorporated herein by                reference). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.6 | Articles                Supplementary Establishing and Fixing The Rights and Preferences                of 7.5%                Series C Redeemable Convertible Preferred Stock (previously filed                as                Exhibit 4.1 to the Registrant’s registration statement on Form 8-A (File                No. 001-13089) and incorporated herein by                reference). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.7 | Specimen                of 7.5% Series C Redeemable Convertible Preferred Stock Certificate                (previously filed as Exhibit 4.2 to the Registrant’s registration                statement on Form 8-A (File No. 001-13089) and incorporated herein                by                reference). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.8 | Indenture                dated as of March 4, 2005, among Net Lease Funding 2005, LP, MBIA                Insurance Corporation and Wells Fargo Bank, N.A., as indenture trustee                relating to $275,000,000 Triple Net Lease Mortgage Notes, Series                2005                (previously filed as Exhibit 99.1 to the Registrant’s current report on                Form 8-K filed on March 10, 2005 and incorporated herein by                reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.9 | Securities                Purchase Agreement relating to the Series B Preferred Stock (previously                filed as Exhibit 4.02 to the Registrant’s Form 10-Q for the fiscal quarter                ended June 30, 2003 and incorporated herein by                reference). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.10 | Registration                Rights Agreement relating to Series B Preferred Stock (previously                filed as                Exhibit 4.03 to the Registrant’s Form 10-Q for the fiscal quarter ended                June 30, 2003 and incorporated herein by                reference). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.11 | Stock                Purchase Warrant - Omnicron Master Trust (previously filed as Exhibit                4.04                to the Registrant’s Form 10-Q for the fiscal quarter ended June 30, 2003                and incorporated herein by                reference). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.12 | Stock                Purchase Warrant - The Riverview Group, LLC (previously filed as                Exhibit                4.05 to the Registrant’s Form 10-Q for the fiscal quarter ended June 30,                2003 and incorporated herein by                reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.13 | Indenture,                dated as of March 23, 2005, between the Registrant and Wells Fargo                Bank,                National Association, as trustee, relating to the Registrant’s 7 1⁄2% Senior                Noted due 2015 (previously filed as Exhibit 4.1 to the Registrant’s                current report on Form 8-K filed on March 28, 2005 and incorporated                herein                by reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4* | Pursuant                to Regulation S-K Item 601(b)(4)(iii), the Registrant by this filing                agrees, upon request, to furnish to the Securities and Exchange Commission                a copy of instruments defining the rights of holders of long-term                debt of                the Registrant. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Registrant                Flexible Incentive Plan, as amended, (previously filed as Exhibit                10.1 to                the Registrant’s Current Report on Form 8-K filed on March 20, 2006 and                incorporated herein by reference). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Bridge                Credit Agreement dated as of February 25, 2005, by and among the                Registrant, as borrower, certain subsidiaries of the Registrant,                as                guarantors, Bank of America, N.A., as Administrative Agent, L/C Issuer                and                Swing Line Lender, and certain other lenders party thereto, and Banc                of                America Securities LLC, as Sole Lead Arranger and Sole Book Manager                (previously filed as Exhibit 10.1 to the Registrant’s current report on                Form 8-K filed on March 3, 2005 and incorporated herein by                reference). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Bridge                Credit Agreement dated as of February 25, 2005, by and among Net                Lease                Funding 2005, LP, as borrower, Bank of America, as Administrative                Agent,                and certain other lenders party thereto, and Banc of America Securities                LLC, as Sole Lead Arranger and Sole Book Manager (previously filed                as                Exhibit 10.2 to the Registrant’s current report on Form 8-K filed on March                3, 2005 and incorporated herein by                reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.9 | Credit                Agreement, dated as of April 8, 2005, by and among the Registrant,                as                borrower, certain subsidiaries of the Registrant, as guarantors,                Bank of                America, N.A., as Administrative Agent, L/C Issuer and Swing Line                Lender,                Bank of America Securities LLC, as Sole Lead Arranger and Sole Book                Manager, Key Bank, National Association, as Syndication Agent, Credit                Suisse First Boston, Societe Generale, and Wachovia Bank National                Association, as Co-Documentation Agents, and the lenders party thereto                (previously filed as Exhibit 10.1 to the Registrant’s current report on                Form 8-K filed on April 13, 2005 and incorporated herein by                reference). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Pledge                Agreement, dated as of April 8, 2005, by substantially all of the                Borrower’s domestic subsidiaries, in favor of Bank of America, N.A., in                its capacity as Administrative Agent (previously filed as Exhibit                10.2 to                the Registrant’s current report on Form 8-K filed on April 13, 2005 and                incorporated herein by reference). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12.1 | Ratio                of Earnings to Combined Fixed Charges and Preferred Stock Dividends                (previously filed on the Company’s annual report on Form 10-K filed on                March 16, 2006 and incorporated herein by                reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 21 | Subsidiaries                of Registrant (previously filed on the Company’s annual report on Form                10-K filed on March 16, 2006 and incorporated herein by                reference). |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 23.1 | Consent                of PricewaterhouseCoopers LLP (filed                herewith). |
|--------|------|---------------------------------------------------------------------------------------|

|   | 31.1 | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) as adopted                pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) as adopted                pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|   | TRUSTREET                PROPERTIES, INC. |
|--------|-------------------------------------------|
|   |                                      |
|   | By:                                       |   |
|   |                                      |   |
|   |                                      | /s/                CURTIS B. McWILLIAMS |
|   |                                      | Curtis                B. McWilliams |
|   |                                      | Chief                Executive Officer |
|   |                                      | (Principal                Executive Officer) |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |
|   |                                      |   |

----

**EXHIBIT      INDEX**

*Exhibit      Number*

|   | 2.1 | Agreement                and Plan of Merger by and between the Registrant and CNL Restaurant                Properties, Inc., dated as of August 9, 2004 (previously filed as                Exhibit                2.1 to the Registrant’s current report on Form 8-K filed on August 10,                2004 and incorporated herein by                reference). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.2 | Agreements                and Plans of Merger by and among the Registrant, a separate, wholly-owned                subsidiary of the operating partnership of the Registrant and each                of the                18 Income Funds (previously filed as Exhibits 2.2 - 2.19 to the                Registrant’s current report on Form 8-K filed on August 10, 2004 and                incorporated herein by reference). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.1 | Restated                Articles of Incorporation of the Registrant dated November 11, 1997,                as                amended by the Articles of Amendment to the Articles of Restatement                of the                Registrant dated February 24, 2005 and the Articles of Amendment                to the                Articles of Restatement of the Registrant dated February 24, 2005                (previously filed as Exhibit 3.1 to the Registrant’s quarterly report on                Form 10-Q for the fiscal quarter ended March 31, 2005 and incorporated                herein by reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3.2 | Third                Amended and Restated Bylaws (previously filed as Exhibit 3.1 on the                Company’s current report on Form 8-K filed on August 15, 2005 and                incorporated herein by reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Specimen                of Common Stock Certificate (previously filed as Exhibit 4.1 to the                Registrant’s Registration Statement on Form S-4 (File No. 333-21403) and                incorporated herein by reference). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                Series A Cumulative Convertible Preferred Stock (previously filed                as                Exhibit 3.2 to the Registrant’s current report on Form 8-K filed on                November 14, 1997 and incorporated herein by                reference). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Amendment                to Articles Supplementary Classifying and Designating a Series of                Preferred Stock as Series A Cumulative Convertible Preferred Stock                (previously filed as Exhibit 3.2 to the Registrant’s current report on                Form 8-K filed on February 25, 2005 and incorporated herein by                reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                8% Series B Convertible Preferred Stock (previously filed as Exhibit                4.01                to the Registrant’s Form 10-Q for the fiscal quarter ended June 30, 2003                and incorporated herein by                reference). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | Articles                Supplementary Classifying and Designating a Series of Preferred Stock                as                8% Series B-1 Convertible Preferred Stock (previously filed as Exhibit                99.5 to the Registrant’s current report on Form 8-K filed on September 16,                2004 and incorporated herein by                reference). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.6 | Articles                Supplementary Establishing and Fixing The Rights and Preferences                of 7.5%                Series C Redeemable Convertible Preferred Stock (previously filed                as                Exhibit 4.1 to the Registrant’s registration statement on Form 8-A (File                No. 001-13089) and incorporated herein by                reference). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.7 | Specimen                of 7.5% Series C Redeemable Convertible Preferred Stock Certificate                (previously filed as Exhibit 4.2 to the Registrant’s registration                statement on Form 8-A (File No. 001-13089) and incorporated herein                by                reference). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 4.8 | Indenture                dated as of March 4, 2005, among Net Lease Funding 2005, LP, MBIA                Insurance Corporation and Wells Fargo Bank, N.A., as indenture trustee                relating to $275,000,000 Triple Net Lease Mortgage Notes, Series                2005                (previously filed as Exhibit 99.1 to the Registrant’s current report on                Form 8-K filed on March 10, 2005 and incorporated herein by                reference). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.9 | Securities                Purchase Agreement relating to the Series B Preferred Stock (previously                filed as Exhibit 4.02 to the Registrant’s Form 10-Q for the fiscal quarter                ended June 30, 2003 and incorporated herein by                reference). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.10 | Registration                Rights Agreement relating to Series B Preferred Stock (previously                filed as                Exhibit 4.03 to the Registrant’s Form 10-Q for the fiscal quarter ended                June 30, 2003 and incorporated herein by                reference). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.11 | Stock                Purchase Warrant - Omnicron Master Trust (previously filed as Exhibit                4.04                to the Registrant’s Form 10-Q for the fiscal quarter ended June 30, 2003                and incorporated herein by                reference). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.12 | Stock                Purchase Warrant - The Riverview Group, LLC (previously filed as                Exhibit                4.05 to the Registrant’s Form 10-Q for the fiscal quarter ended June 30,                2003 and incorporated herein by                reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.13 | Indenture,                dated as of March 23, 2005, between the Registrant and Wells Fargo                Bank,                National Association, as trustee, relating to the Registrant’s 7 1⁄2% Senior                Noted due 2015 (previously filed as Exhibit 4.1 to the Registrant’s                current report on Form 8-K filed on March 28, 2005 and incorporated                herein                by reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4* | Pursuant                to Regulation S-K Item 601(b)(4)(iii), the Registrant by this filing                agrees, upon request, to furnish to the Securities and Exchange Commission                a copy of instruments defining the rights of holders of long-term                debt of                the Registrant. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.6 | Registrant                Flexible Incentive Plan, as amended, (previously filed as Exhibit                10.1 to                the Registrant’s Current Report on Form 8-K filed on March 20, 2006 and                incorporated herein by reference). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.7 | Bridge                Credit Agreement dated as of February 25, 2005, by and among the                Registrant, as borrower, certain subsidiaries of the Registrant,                as                guarantors, Bank of America, N.A., as Administrative Agent, L/C Issuer                and                Swing Line Lender, and certain other lenders party thereto, and Banc                of                America Securities LLC, as Sole Lead Arranger and Sole Book Manager                (previously filed as Exhibit 10.1 to the Registrant’s current report on                Form 8-K filed on March 3, 2005 and incorporated herein by                reference). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.8 | Bridge                Credit Agreement dated as of February 25, 2005, by and among Net                Lease                Funding 2005, LP, as borrower, Bank of America, as Administrative                Agent,                and certain other lenders party thereto, and Banc of America Securities                LLC, as Sole Lead Arranger and Sole Book Manager (previously filed                as                Exhibit 10.2 to the Registrant’s current report on Form 8-K filed on March                3, 2005 and incorporated herein by                reference). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 10.9 | Credit                Agreement, dated as of April 8, 2005, by and among the Registrant,                as                borrower, certain subsidiaries of the Registrant, as guarantors,                Bank of                America, N.A., as Administrative Agent, L/C Issuer and Swing Line                Lender,                Bank of America Securities LLC, as Sole Lead Arranger and Sole Book                Manager, Key Bank, National Association, as Syndication Agent, Credit                Suisse First Boston, Societe Generale, and Wachovia Bank National                Association, as Co-Documentation Agents, and the lenders party thereto                (previously filed as Exhibit 10.1 to the Registrant’s current report on                Form 8-K filed on April 13, 2005 and incorporated herein by                reference). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.10 | Pledge                Agreement, dated as of April 8, 2005, by substantially all of the                Borrower’s domestic subsidiaries, in favor of Bank of America, N.A., in                its capacity as Administrative Agent (previously filed as Exhibit                10.2 to                the Registrant’s current report on Form 8-K filed on April 13, 2005 and                incorporated herein by reference). |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     12.1 | Ratio                of Earnings to Combined Fixed Charges and Preferred Stock Dividends                (previously filed on the Company’s annual report on Form 10-K filed on                March 16, 2006 and incorporated herein by reference). |
|--------|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                    21 | Subsidiaries                of Registrant (previously filed on the Company’s annual report on Form                10-K filed on March 16, 2006 and incorporated herein by                reference). |
|--------|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                    23.1 | Consent                of PricewaterhouseCoopers LLP (filed                herewith). |
|--------|----------------------------------------|---------------------------------------------------------------------------------------|

|   | 31.1 | Certification                of Chief Executive Officer pursuant to Rule 13a-14(a) as adopted                pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                of Chief Financial Officer pursuant to Rule 13a-14(a) as adopted                pursuant                to Section 302 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
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|   | 32.2 | Certification                of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as                adopted                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed                herewith). |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|