Record Operating Results for Fourth Quarter and 2012 Announced by Realty Income

  Record Operating Results for Fourth Quarter and 2012 Announced by Realty
  Income

Business Wire

ESCONDIDO, Calif. -- February 14, 2013

Realty Income Corporation (Realty Income), The Monthly Dividend Company^®
(NYSE: O), today announced record operating results for the fourth quarter and
year ended December31, 2012. Access to this document is available at
www.realtyincome.com. All per share amounts presented in this press release
are on a diluted per common share basis unless stated otherwise.

                             COMPANY HIGHLIGHTS:

For the quarter ended December 31, 2012 (as compared to the same quarterly
period in 2011):

  *Revenue increased 16.4% to $130.1 million as compared to $111.8 million
  *Net income available to common stockholders per share was $0.21
  *Normalized FFO available to common stockholders increased 8.7% to $74.0
    million
  *Normalized FFO per share increased 9.8% to $0.56
  *AFFO available to common stockholders increased 6.4% to $72.9 million
  *AFFO per share increased 5.8% to $0.55
  *Same store rents increased 0.4% to $90.85 million
  *Portfolio occupancy increased to 97.2% from 97.0%
  *Invested $447 million in real estate, acquiring 189 new properties and
    properties under development
  *The monthly dividend was increased in December, for the 69^th time and for
    the 61^st consecutive quarter
  *Raised gross proceeds of $800 million in an offering of senior unsecured
    notes due 2018 and 2022
  *Dividends paid per common share increased 4.1%

For the year ended December 31, 2012 (as compared to 2011):

  *Revenue increased 15.9% to $475.5 million as compared to $410.3 million
  *Net income available to common stockholders per share was $0.86
  *Normalized FFO available to common stockholders increased 7.8% to $268.8
    million
  *Normalized FFO per share increased 2.0% to $2.02
  *AFFO available to common stockholders increased 8.2% to $274.2 million
  *AFFO per share increased 2.5% to $2.06
  *Same store rents increased 0.1% to $360.4 million
  *Invested $1.16 billion in real estate, acquiring 423 new properties
  *Raised gross proceeds of $1.21 billion in public securities offerings to
    fund 2012 real estate acquisitions, repay borrowings under the credit
    facility, and redeem all outstanding Class D preferred shares
  *Dividends paid per common share increased 2.0%
  *Paid the 509^th consecutive monthly dividend in December 2012
  *Total return to shareholders of 20.1% based on dividends paid and share
    price growth

Major events subsequent to December 31, 2012:

  *On January 22, 2013, Realty Income closed on the acquisition of American
    Realty Capital Trust
  *Increased the annualized dividend amount by $0.35 to $2.171 per share

Financial Results

Revenue

Revenue, for the quarter ended December 31, 2012, increased 16.4% to $130.1
million as compared to $111.8million for the same quarter in 2011. Revenue
for 2012 increased 15.9% to $475.5 million as compared to $410.3 million for
2011.

Net Income Available to Common Stockholders

Net income available to common stockholders, for the quarter ended December
31, 2012, was $28.5million as compared to $34.9 million for the same quarter
in 2011. Net income per share, for the quarter ended December 31, 2012, was
$0.21as compared to $0.26 for the same quarter in 2011. The decrease in net
income available to common stockholders includes $2.4 million of ARCT
merger-related costs.

Net income available to common stockholders, in 2012, was $114.5million as
compared to $132.8 million for 2011. Net income per share, in 2012, was $0.86
as compared to $1.05 for 2011. The decrease in net income available to common
stockholders includes a $3.7 million non-cash redemption charge on the Class D
preferred shares that were redeemed in March 2012 and $7.9 million of ARCT
merger-related costs.

The calculation to determine net income for a real estate company includes
impairments and/or gains from the sales of investment properties. Impairments
and/or gains on property sales vary from quarter to quarter. This variance can
significantly impact net income.

FFO Available to Common Stockholders

Funds from Operations (FFO), for the quarter ended December 31, 2012,
increased 5.1% to $71.6million as compared to $68.1 million for the same
quarter in 2011. FFO per share, for the quarter ended December 31, 2012,
increased 5.9% to $0.54 as compared to $0.51 for the same quarter in 2011.

FFO in 2012 increased 4.6% to $260.9 million as compared to $249.4million for
2011. FFO per share, in 2012, decreased 1.0% to $1.96 as compared to $1.98 for
2011. The decrease in FFO per share is due to a $3.7million non-cash
redemption charge on the Class D preferred shares that were redeemed in March
2012 and $7.9 million of ARCT merger-related costs. Excluding the $3.7million
charge, FFO per share is $1.99 for 2012, an increase of 0.5% as compared to
2011.

Normalized FFO Available to Common Stockholders

Normalized Funds from Operations, which is based on FFO adjusted to add back
ARCT merger-related costs, for the quarter ended December 31, 2012, increased
8.7% to $74.0million as compared to $68.1 million for the same quarter in
2011. Normalized FFO per share, for the quarter ended December 31, 2012,
increased 9.8% to $0.56 as compared to $0.51 for the same quarter in 2011.

Normalized FFO in 2012 increased 7.8% to $268.8 million as compared to $249.4
million for 2011. Normalized FFO per share, in 2012, increased 2.0% to $2.02
as compared to $1.98 for 2011. Normalized FFO per share includes a
$3.7million non-cash, redemption charge on the Class D preferred shares that
were redeemed in March 2012. Excluding this $3.7 million charge, normalized
FFO per share is $2.05 for 2012, an increase of 3.5% as compared to 2011.

AFFO Available to Common Stockholders

Adjusted Funds from Operations (AFFO), for the quarter ended December 31,
2012, increased 6.4% to $72.9million as compared to $68.5 million for the
same quarter in 2011. AFFO per share, for the quarter ended December 31, 2012,
increased 5.8% to $0.55 as compared to $0.52 for the same quarter in 2011.

AFFO in 2012 increased 8.2% to $274.2 million as compared to $253.4million
for 2011. AFFO per share, in 2012, increased 2.5% to $2.06 as compared to
$2.01 for 2011.

The company considers FFO, normalized FFO and AFFO to be appropriate
supplemental measures of a Real Estate Investment Trust’s (REIT’s) operating
performance. Realty Income defines FFO consistent with the National
Association of Real Estate Investment Trust’s (NAREIT’s) definition as net
income available to common stockholders plus depreciation and amortization of
real estate assets, plus impairments of real estate, reduced by gains on sales
of investment properties and extraordinary items. Normalized FFO adds back
ARCT merger-related costs for our acquisition of American Realty Capital Trust
(ARCT). AFFO further adjusts Normalized FFO for unique revenue and expense
items which are not pertinent to the measurement of our ongoing operating
performance. See our reconciliation of net income available to common
stockholders to FFO, normalized FFO and AFFO on page seven.

Dividend Information

In December 2012, Realty Income announced the 61^st consecutive quarterly
dividend increase, which is the 69^th increase in the amount of the dividend
since the company’s listing on the New York Stock Exchange in 1994. The
annualized dividend amount, as of December 31, 2012, was $1.821 per share. The
amount of the monthly dividends paid increased 2.0% to $1.771625 per share in
2012 from $1.736625 per share for 2011. In addition, through December 31,
2012, the company has paid 509 consecutive monthly dividends and over
$2.3billion in total dividends since 1969. Realty Income has a dividend
reinvestment and stock purchase program that can be accessed at
www.realtyincome.com. The program is administered by Wells Fargo Shareowner
Services.

Real Estate Portfolio Update

As of December 31, 2012, Realty Income’s portfolio of freestanding,
single-tenant properties consisted of 3,013 properties located in 49 states,
leased to 150 commercial enterprises doing business in 44 industries. The
properties are leased under long-term, net leases with a weighted average
remaining lease term of approximately 11.0 years.

Portfolio Management Activities

The company’s portfolio of commercial real estate, owned primarily under 10-
to 20-year net leases, continues to perform well and provide dependable lease
revenue supporting the payment of monthly dividends. As of December31, 2012,
portfolio occupancy was 97.2% with 84 properties available for lease out of a
total of 3,013 properties in the portfolio, as compared to 97.0% portfolio
occupancy as of September 30, 2012.

Rent Increases

During the quarter ended December 31, 2012, same store rents on 2,220
properties under lease increased 0.4% to $90.85million, as compared to
$90.47million for the same quarter in 2011. During 2012, same store rents on
2,220 properties under lease increased 0.1% to $360.4million, as compared to
$360.0million for 2011.

Property Acquisitions

During the fourth quarter of 2012, Realty Income invested $447 million in real
estate, acquiring 189 new properties and properties under development. The new
properties are located in 27 states and are 100% leased with an average lease
term of 14.9years and an initial average lease yield of 7.4%.

During 2012, Realty Income invested $1.16 billion in real estate, acquiring
423 new properties and properties under development. The new properties are
located in 37 states and are 100% leased with an average lease term of 14.6
years and an initial average lease yield of 7.2%.

Realty Income maintains a $1.0 billion unsecured acquisition credit facility,
which is used to fund property acquisitions in the near term. As of December
31, 2012, outstanding borrowings on the company’s acquisition credit facility
were $158 million, and borrowing capacity was $842 million.

Property Dispositions

Realty Income continued to successfully execute its asset disposition program
in the fourth quarter of 2012. The objective of this program is to sell assets
when the company believes the reinvestment of the sales proceeds will generate
higher returns, enhance the credit quality of the company's real estate
portfolio, increase the average lease length, and/or decrease tenant or
industry concentration.

During the quarter ended December 31, 2012, Realty Income sold 14 properties
for $16.3million, with a gain on sales of $3.9million, as compared to five
properties sold for $11.7 million, with a gain on sales of $1.2 million,
during the same quarter in 2011.

During 2012, Realty Income sold 44 properties for $50.6 million, with a gain
on sales of $9.9 million, as compared to 26 properties sold for $24.1 million,
with a gain on sales of $5.7 million, during 2011.

Other Activities

Acquisition of American Realty Capital Trust (ARCT)

In September 2012, Realty Income entered into a definitive merger agreement to
acquire all of the outstanding shares of ARCT. This transaction closed on
January 22, 2013 and, at that time, Realty Income issued approximately
45.6million shares to ARCT shareholders based on a fixed exchange ratio of
0.2874 shares of Realty Income stock for each share of ARCT common stock
owned. The company also made a cash payment of $0.35 per ARCT share to each
ARCT shareholder. In conjunction with the acquisition of ARCT, Realty Income
assumed approximately $516.3million of mortgages payable and repaid
approximately $552.9 million of borrowings under ARCT’s revolving credit
facility and term loan. The total transaction value is approximately $3.1
billion. Upon closing, Realty Income became the 18^th largest real estate
investment trust in the US, with an enterprise value of approximately $12.6
billion and an equity market capitalization of approximately $8.5 billion. In
addition, the company’s real estate portfolio, upon the closing, consisted of
3,528 properties leased to 202 tenants doing business in 48 industries. A
“Supplemental Information” section has been added to the end of this press
release to provide pro forma operating metrics for Realty Income after
integrating the ARCT real estate into the company’s core portfolio.

January 2013 Dividend Increase

On January 22, 2013, Realty Income increased the amount of the annualized
dividend 19.2%. The new dividend amount represents an annualized increase of
$0.35 per share, to $2.171 per share, as compared to the prior annualized
dividend amount of $1.821 per share. The new monthly dividend amount of
$0.1890167 per share will be paid on February 15, 2013 to shareholders of
record on February 1, 2013.

Priced $800 Million of Senior Unsecured Notes Due 2018 and 2022

On October 10, 2012, the company closed its offering of $350 million of 5-year
2.00% fixed rate Notes, due January 2018, and $450 million of 10-year 3.25%
fixed rate Notes, due October 2022. The public offering price for the 5-year
notes was 99.910% of the principal amount for an effective yield to maturity
of 2.017%. The public offering price for the 10-year notes was 99.382% of the
principal amount for an effective yield to maturity of 3.323%. The net
proceeds from the offering were used to repay borrowings outstanding on the
company’s $1.0billion acquisition credit facility, and the remaining proceeds
were used for general corporate purposes, which included additional property
acquisitions.

CEO Comments on Operating Results

Commenting on Realty Income’s financial results and real estate operations,
Chief Executive Officer, Tom A. Lewis said, “We are very pleased to report
increases in rental revenue, adjusted funds from operations (AFFO) and
dividends during the fourth quarter of 2012. In addition, our net-leased
property portfolio continued to exhibit strong performance with occupancy
increasing to 97.2%.

“We also invested $447 million in real estate during the fourth quarter,
acquiring 189 new properties and properties under development, bringing our
total dollars invested in real estate to $1.16 billion in 2012, the highest
level in a single year since the company was founded in 1969. The initial
average lease yield for the fourth quarter acquisitions was 7.4% and for 2012
was 7.2%. Importantly, the majority of the properties acquired are leased to
investment-grade tenants, consistent with our strategic focus on continuing to
increase the overall credit quality of our real estate portfolio. As we begin
2013, real estate transaction flow continues to offer us ample real estate
investment opportunities.

“Perhaps the highlight of 2012 was the announcement of our planned acquisition
of ARCT, which closed on January22, 2013. As we commented on many times
during the merger and acquisition process, the completion of the ARCT
acquisition positions Realty Income as the largest public net-lease REIT, and
one of the larger REITs in our industry. More importantly, the 515 properties
that were added to our real estate portfolio are immediately accretive to our
earnings and significantly advance our objective to increase the overall
credit quality of the lease revenue supporting the payment of dividends. Upon
closing of the transaction, anticipated lease revenue generated by investment
grade rated tenants rises to 34%, compared to 19% prior to the ARCT
acquisition.”

“We were also successful in accessing the capital markets during 2012,
generating gross proceeds of $1.21 billion through total preferred stock
offerings of $409 million in both February and April 2012, and senior
unsecured notes offerings of $800million in October 2012. This capital
raising activity allowed us to fund our acquisitions during 2012. In addition,
we entered into a new and expanded $1.0 billion credit facility with our
commercial banks earlier in the year, so we have ample access to funds
allowing us to pursue additional real estate investment opportunities.

“Our ability to increase the amount of the monthly dividend paid to our
shareholders was supported by the record operating results during the year. We
were able to provide four quarterly dividend increases, as well as a special
August 2012 increase of 3.4%. As a result, our shareholders enjoyed a 2.0%
increase in the amount of the dividends paid per share during 2012. Since the
closing of the ARCT acquisition, we announced another $0.35 per share annual
increase in the amount of the dividend. The new annualized dividend amount, as
of January 22, 2013, is $2.171 per share. Providing monthly dividends that
increase over time is our mission, thus we remain focused on operating our
business in a manner consistent with achieving that mission.”

FFO Commentary

Realty Income’s FFO per share has historically tended to be stable and fairly
predictable because of the long-term leases that are the primary source of the
company’s revenue. There are, however, several factors that can cause FFO per
share to vary from levels that have been anticipated by the company. These
factors include, but are not limited to, changes in interest rates and
occupancy rates, periodically accessing the capital markets, the level and
timing of property and entity acquisitions and dispositions, integration of
the acquired ARCT properties including the finalization of purchase price
allocations, lease rollovers, the general real estate market, and the economy.

2013 Earnings Estimates

Normalized FFO is based on FFO adjusted to add back ARCT merger-related costs.
The Normalized 2013 FFO and AFFO estimates are as follows (excluding the costs
associated with the ARCT transaction):

Normalized FFO per share for 2013 should range from $2.32 to $2.38 per share,
an increase of 14.9% to 17.8% over the Normalized 2012 FFO per share of $2.02.
Normalized FFO per share for 2013 is based on an estimated net income per
share range of $1.05 to $1.11, plus estimated real estate depreciation of
$1.50 and reduced by potential estimated gains on sales of investment
properties of $0.23 per share (in accordance with NAREIT’s definition of FFO).

AFFO per share for 2013 should range from $2.33 to $2.39per share, an
increase of 13.1% to 16.0% over the 2012 AFFO per share of $2.06. The AFFO per
share estimate for 2013 is based on adding back items to FFO, that reduce net
income, totaling approximately $0.10, and deducting capitalized expenditures
and straight-line rent revenue items totaling approximately $0.08, for a net
increase of $0.01 to $0.02 over Normalized FFO.

About Realty Income

Realty Income is The Monthly Dividend Company^®, a New York Stock Exchange
real estate company dedicated to providing shareholders with dependable
monthly income. As of January 15, 2013, the company had paid 510 consecutive
monthly dividends throughout its 44-year operating history. The monthly income
is supported by the cash flows from over 3,500 properties owned under
long-term lease agreements with 202 leading regional and national commercial
enterprises. The company is an active buyer of net-leased properties
nationwide. Additional information about the company can be obtained from the
corporate website at www.realtyincome.com or www.twitter.com/realtyincome.

Forward-Looking Statements

Statements in this press release that are not strictly historical are
“forward-looking” statements. Forward-looking statements involve known and
unknown risks, which may cause the company’s actual future results to differ
materially from expected results. These risks include, among others, general
economic conditions, local real estate conditions, tenant financial health,
the availability of capital to finance planned growth, continued volatility
and uncertainty in the credit markets and broader financial markets, property
acquisitions and the timing of these acquisitions, charges for property
impairments, integration of the ARCT acquisition, and the outcome of any legal
proceedings to which the company is a party, as described in the company’s
filings with the Securities and Exchange Commission. Consequently,
forward-looking statements should be regarded solely as reflections of the
company’s current operating plans and estimates. Actual operating results may
differ materially from what is expressed or forecast in this press release.
The company undertakes no obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date these statements were made.

Note to Editors: Realty Income press releases are available via the internet
at http://www.realtyincome.com/invest/newsroom-library/press-releases.shtml.

                                                              
CONSOLIDATED STATEMENTS OF INCOME

For the three months and years ended December 31, 2012 and 2011

(dollars in thousands, except per share amounts - unaudited)
                                                                           
                     Three             Three
                     Months            Months            Year Ended        Year Ended

                     Ended             Ended             12/31/12          12/31/11
                     12/31/12          12/31/11
REVENUE
Rental               $ 129,619         $ 110,978         $ 473,741         $ 408,640
Other                 520             777             1,769           1,612   
Total revenue         130,139         111,755         475,510         410,252 
                                                                           
EXPENSES
Depreciation
and                    42,313            33,714            149,597           118,874
amortization
Interest               35,065            28,983            122,542           108,301
General and            10,223            7,953             37,998            30,954
administrative
Property               1,669             1,950             7,269             6,018
Income taxes           215               367               1,430             1,470
ARCT
merger-related         2,404             --                7,899             --
costs
Provisions for        2,804           --              2,804           10      
impairment
                                                                           
Total expenses        94,693          72,967          329,539         265,627 
                                                                           
Income from
continuing             35,446            38,788            145,971           144,625
operations
Income from
discontinued          3,578           2,216           13,181          12,407  
operations
                                                                           
Net income             39,024            41,004            159,152           157,032
Preferred
stock                  (10,482 )         (6,063  )         (40,918 )         (24,253 )
dividends
Excess of
redemption
value over
carrying value        --              --              (3,696  )        --      
of preferred
shares
redeemed
                                                                           
Net income
available to         $ 28,542         $ 34,941         $ 114,538        $ 132,779 
common
stockholders
                                                                           
Funds from
operations
available to         $ 71,579          $ 68,077          $ 260,862         $ 249,392
common
stockholders
(FFO)
Normalized
funds from
operations
available to         $ 73,983          $ 68,077          $ 268,761         $ 249,392
common
stockholders
(Normalized
FFO)
Adjusted funds
from
operations
available to         $ 72,892          $ 68,524          $ 274,183         $ 253,372
common
stockholders
(AFFO)
                                                                           
Per share
information
for common
stockholders:
Income from
continuing
operations,          $ 0.19            $ 0.25            $ 0.76            $ 0.95
basic and
diluted
Net income,
basic and            $ 0.21            $ 0.26            $ 0.86            $ 1.05
diluted
FFO, basic and       $ 0.54            $ 0.51            $ 1.96            $ 1.98
diluted
Normalized
FFO, basic and       $ 0.56            $ 0.51            $ 2.02            $ 1.98
diluted
AFFO, basic          $ 0.55            $ 0.52            $ 2.06            $ 2.01
and diluted
Cash dividends
paid per             $ 0.454           $ 0.436           $ 1.772           $ 1.737
common share
                                                                           
                                                                           

                                                                          
FUNDS FROM OPERATIONS (FFO)

(dollars in thousands, except per share amounts)
                                                                                       
                     Three Months          Three Months          Year Ended            Year Ended

                     Ended 12/31/12        Ended 12/31/11        12/31/12              12/31/11
Net income
available to         $ 28,542              $ 34,941              $ 114,538             $ 132,779
common
stockholders
Depreciation
and
amortization:
Continuing             42,313                33,714                149,597               118,874
operations
Discontinued           172                   659                   1,710                 3,305
operations
Depreciation
of furniture,          (57         )         (59         )         (249        )         (238        )
fixtures &
equipment
Provisions for
impairment on
Realty Income         4,472                 27                    5,139                 405
investment
properties
Gain on sales
of investment
properties:
Continuing             --                    (330        )         --                    (540        )
operations
Discontinued          (3,863      )        (875        )        (9,873      )        (5,193      )
operations
FFO available
to common              71,579                68,077                260,862               249,392
stockholders
ARCT
merger-related        2,404               --                  7,899               --          
costs
Normalized FFO
available to         $ 73,983             $ 68,077              268,761            $ 249,392     
common
stockholders
FFO per common
share, basic         $ 0.54                $ 0.51                $ 1.96                $ 1.98
and diluted
Normalized FFO
per common           $ 0.56                $ 0.51                $ 2.02                $ 1.98
share, basic
and diluted
Dividends paid
to common            $ 60,629              $ 58,021              $ 236,348             $ 219,297
stockholders
Normalized FFO
in excess of
dividends paid       $ 13,354              $ 10,056              $ 32,413              $ 30,095
to common
stockholders
Weighted
average number
of common
shares used
for
computation
per share:
Basic                  132,846,497           132,353,040           132,817,472           126,142,696
Diluted                132,979,552           132,609,319           132,884,933           126,189,399
                                                                                       

We define FFO, a non-GAAP measure, consistent with the National Association of
Real Estate Investment Trust’s definition, as net income available to common
stockholders, plus depreciation and amortization of real estate assets, plus
impairments of real estate assets, reduced by gains on sales of investment
properties and extraordinary items. We define normalized FFO, a non-GAAP
measure, as FFO excluding the ARCT merger-related costs.


ADJUSTED FUNDS FROM OPERATIONS (AFFO)

(dollars in thousands, except per share amounts)

Most companies in our industry use a similar measurement to AFFO, but they may use
the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available
for Distribution).

                      Three            Three
                      Months           Months           Year Ended        Year Ended
                                                             
                      Ended            Ended            12/31/12          12/31/11
                      12/31/12         12/31/11
Net income
available to          $ 28,542         $ 34,941         $ 114,538         $ 132,779
common
stockholders
Cumulative
adjustments to
calculate              45,441         33,136         154,223         116,613 
normalized
FFO^(1)
Normalized FFO
available to            73,983           68,077           268,761           249,392
common
stockholders
Excess of
redemption
value over
carrying value          --               --               3,696             --
of preferred
share
redemption
Amortization of
share-based             2,221            1,775            10,001            7,873
compensation
Amortization of
deferred                543              546              2,177             1,881
financing
costs^(2)
Capitalized
leasing costs           (401   )         (478   )         (1,619  )         (1,722  )
and commissions
Capitalized
building                (1,652 )         (714   )         (4,935  )         (2,450  )
improvements
Other                  (1,802 )        (682   )        (3,898  )        (1,602  )
adjustments^(3)
Total AFFO
available to          $ 72,892        $ 68,524        $ 274,183        $ 253,372 
common
stockholders
AFFO per common
share, basic          $ 0.55           $ 0.52           $ 2.06            $ 2.01
and diluted
Dividends paid
to common             $ 60,629         $ 58,021         $ 236,348         $ 219,297
stockholders
AFFO in excess
of dividends          $ 12,263         $ 10,503         $ 37,835          $ 34,075
paid to common
stockholders
                                                                          

^(1)   See FFO and normalized FFO calculation above for reconciling items.
         Includes the amortization of costs incurred and capitalized when our
         senior notes were issued in March 2003, November 2003, March 2005,
         September 2005, September 2006, September 2007, June 2010, June 2011,
         and October 2012. Additionally, this includes the amortization of
^(2)     deferred financing costs incurred and capitalized in connection with
         our assumption of the mortgages payable. These costs are being
         amortized over the lives of the respective mortgages. No costs
         associated with our credit facility agreements or annual fees paid to
         credit rating agencies have been included.
^(3)     Includes straight-line rent revenue, and the amortization of above
         and below-market leases.
         
         

                                                                                         
HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)
                                                                                                     
For the three
months ended         2012                2011                2010                2009                2008
December 31,
                                                                                                     
Net income
available to         $ 28,542            $ 34,941            $ 31,814            $ 29,268            $ 28,269
common
stockholders
Depreciation
and                    42,428              34,314              25,045              22,916              22,869
amortization
Provisions for
impairment on
Realty Income          4,472               27                  42                  110                 --
investment
properties
Gain on sales
of investment         (3,863      )      (1,205      )      (4,392      )      (3,809      )      (4,111      )
properties
                                                                                                     
FFO                    71,579              68,077              52,509              48,485              47,027
ARCT
merger-related        2,404             --                --                --                --          
costs
Normalized FFO       $ 73,983           $ 68,077           $ 52,509           $ 48,485           $ 47,027      
                                                                                                     
Normalized FFO
per diluted          $ 0.56              $ 0.51              $ 0.47              $ 0.47              $ 0.46
share
                                                                                                     
Normalized FFO       $ 73,983            $ 68,077            $ 52,509            $ 48,485            $ 47,027
Add (less) FFO
contributed by        (245        )      (176        )      551               (649        )      (8          )
Crest
                                                                                                     
Normalized FFO
before Crest         $ 73,738           $ 67,901           $ 53,060           $ 47,836           $ 47,019      
contribution
                                                                                                     
Normalized FFO
components,
per diluted
share^(1):
FFO before
Crest                $ 0.55              $ 0.51              $ 0.47              $ 0.46              $ 0.46
contribution
Crest FFO            $ 0.00              $ 0.00              $ 0.00              $ 0.01              $ 0.00
contribution
Normalized FFO       $ 0.56              $ 0.51              $ 0.47              $ 0.47              $ 0.46
                                                                                                     
AFFO                 $ 72,892            $ 68,524            $ 53,327            $ 48,622            $ 47,399
                                                                                                     
AFFO per             $ 0.55              $ 0.52              $ 0.48              $ 0.47              $ 0.46
diluted share
                                                                                                     
Cash dividends       $ 0.454             $ 0.436             $ 0.432             $ 0.428             $ 0.423
paid per share
Weighted
average                132,979,552         132,609,319         112,067,874         103,491,891         103,266,636
diluted shares
outstanding
                                                                                                     
                                                                                                     
For the years
ended December       2012                2011                2010                2009                2008
31,
                                                                                                     
Net income
available to         $ 114,538           $ 132,779           $ 106,531           $ 106,874           $ 107,588
common
stockholders
Depreciation
and                    151,058             121,941             95,858              91,629              91,486
amortization
Provisions for
impairment on
Realty Income          5,139               405                 213                 110                 --
investment
properties
Gain on sales
of investment         (9,873      )      (5,733      )      (8,676      )      (8,059      )      (13,550     )
properties
                                                                                                     
FFO                    260,862             249,392             193,926             190,554             185,524
ARCT
merger-related        7,899             --                --                --                --          
costs
Normalized FFO       $ 268,761          $ 249,392          $ 193,926          $ 190,554          $ 185,524     
                                                                                                     
Normalized FFO
per diluted          $ 2.02              $ 1.98              $ 1.83              $ 1.84              $ 1.83
share
                                                                                                     
Normalized FFO       $ 268,761           $ 249,392           $ 193,926           $ 190,554           $ 185,524
Less FFO
contributed by        (824        )      (736        )      (35         )      (958        )      (1,346      )
Crest
                                                                                                     
Normalized FFO
before Crest         $ 267,937          $ 248,656          $ 193,891          $ 189,596          $ 184,178     
contribution
                                                                                                     
Normalized FFO
components,
per diluted
share^(1):
FFO before
Crest                $ 2.02              $ 1.97              $ 1.83              $ 1.83              $ 1.82
contribution
Crest FFO            $ 0.01              $ 0.01              $ 0.00              $ 0.01              $ 0.01
contribution
Normalized FFO       $ 2.02              $ 1.98              $ 1.83              $ 1.84              $ 1.83
                                                                                                     
AFFO                 $ 274,183           $ 253,372           $ 197,256           $ 192,739           $ 192,003
                                                                                                     
AFFO per             $ 2.06              $ 2.01              $ 1.86              $ 1.86              $ 1.90
diluted share
                                                                                                     
Cash dividends       $ 1.772             $ 1.737             $ 1.722             $ 1.707             $ 1.662
paid per share
Weighted
average                132,884,933         126,189,399         105,942,721         103,581,053         101,209,883
diluted shares
outstanding
                                                                                                     

         The above FFO per share amounts have been rounded to the nearest two
^(1)   decimals and, as such, the individual amounts may not add up to the
         “Total FFO” amount.
         
         

                                                    
CONSOLIDATED BALANCE SHEETS

As of December 31, 2012 and December 31, 2011

(dollars in thousands, except per share amounts)
                                                                 
                                 2012                            2011
                                 (unaudited)
ASSETS
Real estate, at cost:
Land                             $ 1,999,820                     $ 1,749,378
Buildings and improvements        3,920,865                     3,222,603 
Total real estate, at cost         5,920,685                       4,971,981
Less accumulated
depreciation and                  (897,767  )                    (814,126  )
amortization
                                                                 
Net real estate held for           5,022,918                       4,157,855
investment
Real estate held for sale,        19,219                        2,153     
net
Net real estate                    5,042,137                       4,160,008
Cash and cash equivalents          5,248                           4,165
Accounts receivable, net           21,659                          15,375
Goodwill                           16,945                          17,206
Other assets, net                 357,374                       222,635   
                                                                 
Total assets                     $ 5,443,363                    $ 4,419,389 
                                                                 
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Distributions payable            $ 23,745                        $ 21,405
Accounts payable and               70,426                          58,770
accrued expenses
Other liabilities                  52,530                          29,179
Lines of credit payable            158,000                         237,400
Mortgages payable, net             175,868                         67,781
Notes payable                     2,550,000                     1,750,000 
                                                                 
Total liabilities                 3,030,569                     2,164,535 
                                                                 
Stockholders’ equity:
Preferred stock and paid           609,363                         337,790
in capital
Common stock and paid in           2,572,092                       2,563,048
capital
Distributions in excess of        (768,661  )                    (645,984  )
net income
                                                                 
Total stockholders’ equity        2,412,794                     2,254,854 
                                                                 
Total liabilities and            $ 5,443,363                    $ 4,419,389 
stockholders’ equity
                                                                 
                                                                 

                                                                                                      
Realty Income Performance vs. Major Stock Indices
                                                                                                               
                                       Equity                  Dow Jones                                       NASDAQ
               Realty Income           REIT Index^(1)          Industrial Average      S&P 500                 Composite
               Dividend  Total        Dividend  Total        Dividend  Total        Dividend  Total        Dividend  Total
               Yield      Return^(2)   Yield      Return^(3)   Yield      Return^(3)   Yield      Return^(3)   Yield      Return^(4)
                                                                                                                          
1995           8.3   %    42.0   %     7.4   %    15.3   %     2.4   %    36.9   %     2.3   %    37.6    %    0.6   %    39.9   %
1996           7.9   %    15.4   %     6.1   %    35.3   %     2.2   %    28.9   %     2.0   %    23.0    %    0.2   %    22.7   %
1997           7.5   %    14.5   %     5.5   %    20.3   %     1.8   %    24.9   %     1.6   %    33.4    %    0.5   %    21.6   %
1998           8.2   %    5.5    %     7.5   %    (17.5  %)    1.7   %    18.1   %     1.3   %    28.6    %    0.3   %    39.6   %
1999           10.5  %    (8.7   %)    8.7   %    (4.6   %)    1.3   %    27.2   %     1.1   %    21.0    %    0.2   %    85.6   %
2000           8.9   %    31.2   %     7.5   %    26.4   %     1.5   %    (4.7   %)    1.2   %    (9.1    %)   0.3   %    (39.3  %)
2001           7.8   %    27.2   %     7.1   %    13.9   %     1.9   %    (5.5   %)    1.4   %    (11.9   %)   0.3   %    (21.1  %)
2002           6.7   %    26.9   %     7.1   %    3.8    %     2.6   %    (15.0  %)    1.9   %    (22.1   %)   0.5   %    (31.5  %)
2003           6.0   %    21.0   %     5.5   %    37.1   %     2.3   %    28.3   %     1.8   %    28.7    %    0.6   %    50.0   %
2004           5.2   %    32.7   %     4.7   %    31.6   %     2.2   %    5.6    %     1.8   %    10.9    %    0.6   %    8.6    %
2005           6.5   %    (9.2   %)    4.6   %    12.2   %     2.6   %    1.7    %     1.9   %    4.9     %    0.9   %    1.4    %
2006           5.5   %    34.8   %     3.7   %    35.1   %     2.5   %    19.0   %     1.9   %    15.8    %    0.8   %    9.5    %
2007           6.1   %    3.2    %     4.9   %    (15.7  %)    2.7   %    8.8    %     2.1   %    5.5     %    0.8   %    9.8    %
2008           7.3   %    (8.2   %)    7.6   %    (37.7  %)    3.6   %    (31.8  %)    3.2   %    (37.0   %)   1.3   %    (40.5  %)
2009           6.6   %    19.3   %     3.7   %    28.0   %     2.6   %    22.6   %     2.0   %    26.5    %    1.0   %    43.9   %
2010           5.1   %    38.6   %     3.5   %    27.9   %     2.6   %    14.0   %     1.9   %    15.1    %    1.2   %    16.9   %
2011           5.0   %    7.3    %     3.8   %    8.3    %     2.8   %    8.3    %     2.3   %    2.1     %    1.3   %    (1.8   %)
2012           4.5   %    20.1   %     3.5   %    19.7   %     3.0   %    10.2   %     2.5   %    16.0    %    2.6   %    15.9   %
                                                                                                                          
Compounded

Average
                          17.4   %                11.0   %                9.3    %                8.3     %               7.8    %
Annual
Total

Return^(5)
                                                                                                                          

Note: All of these Dividend Yields are calculated as annualized dividend based
on last dividend paid in applicable time period divided by closing price as of
period end. Dividend Yield sources: NAREIT website and Bloomberg.

^(1)   FTSE NAREIT US Equity REIT Index, as per NAREIT website.
         Calculated as the difference between the closing stock price as of
^(2)     period end less the closing stock price as of previous period, plus
         dividends paid in period, divided by closing stock price as of end of
         previous period. Does not include reinvestment of dividends.
^(3)     Includes reinvestment of dividends. Sources: NAREIT website and
         Factset.
^(4)     Price only index, does not include dividends. Source: Factset.
         All of these Compounded Average Annual Total Return rates are
         calculated in the same manner: from Realty Income’s NYSE listing on
         October 18, 1994 through December 31, 2012, and assuming reinvestment
^(5)     of dividends, except for NASDAQ. Past performance does not guarantee
         future performance. Realty Income presents this data for
         informational purposes only and makes no representation about its
         future performance or how it will compare in performance to other
         indices in the future.
         
         

                        Property Type Diversification

The following table sets forth certain property type information regarding
Realty Income’s property portfolio as of December 31, 2012 (dollars in
thousands):

                                                             
                                                             Rental          Percentage
                                           Approximate       Revenue         of
                                                             for
                                                             the
                          Number of        Leasable          Quarter         Rental
                                                             Ended
                                                             December
      Property Type    Properties    Square Feet    31,          Revenue
                                                             2012^(1)
      Retail              2,941            27,520,200        $ 111,218       84.9    %
      Distribution        23               5,181,200           6,131         4.7
      Agriculture         15               184,500             5,138         3.9
      Manufacturing       10               3,117,100           3,775         2.9
      Office              9                824,000             3,110         2.4
      Industrial       15            850,500         1,570      1.2     
      Totals           3,013         37,677,500     $ 130,942    100.0   %
                                                                             

               Includes rental revenue for all properties owned by Realty
   ^(1)   Income at December 31, 2012, including revenue from properties
               reclassified as discontinued operations of $1,347. Excludes
               revenue of $24 from properties owned by Crest.
               
               

                           Industry Diversification

The following table sets forth certain information regarding Realty Income’s
property portfolio classified according to the business of the respective
tenants, expressed as a percentage of our total rental revenue:

                                                                                    
                      Percentage of Rental Revenue^(1)
                         For the      For the Years Ended
                         Quarter
                         Ended
                                        Dec         Dec         Dec         Dec         Dec         Dec 31,
                     December    31,      31,      31,      31,      31,     
                         31,                                                                        2007
                                        2012        2011        2010        2009        2008
                         2012
Retail Industries                                                                        
Apparel stores           2.4      %     1.7   %     1.4   %     1.2   %     1.1   %     1.1   %     1.2   %
Automotive               1.1            1.1         0.9         1.0         1.1         1.0         1.1
collision services
Automotive parts         1.1            1.0         1.2         1.4         1.5         1.6         2.1
Automotive service       2.9            3.1         3.7         4.7         4.8         4.8         5.2
Automotive tire          4.3            4.7         5.6         6.4         6.9         6.7         7.3
services
Book stores              0.1            0.1         0.1         0.1         0.2         0.2         0.2
Business services        *              *           *           *           *           *           0.1
Child care               4.1            4.5         5.2         6.5         7.3         7.6         8.4
Consumer                 0.5            0.5         0.5         0.6         0.7         0.8         0.9
electronics
Convenience stores       14.9           16.3        18.5        17.1        16.9        15.8        14.0
Crafts and               0.7            0.3         0.2         0.3         0.3         0.3         0.3
novelties
Dollar stores            4.3            2.2         --          --          --          --          --
Drug stores              3.3            3.5         3.8         4.1         4.3         4.1         2.7
Education                0.6            0.7         0.7         0.8         0.9         0.8         0.8
Entertainment            0.9            0.9         1.0         1.2         1.3         1.2         1.4
Equipment services       0.1            0.1         0.2         0.2         0.2         0.2         0.2
Financial services       0.2            0.2         0.2         0.2         0.2         0.2         0.2
General                  0.5            0.6         0.6         0.8         0.8         0.8         0.7
merchandise
Grocery stores           3.3            3.7         1.6         0.9         0.7         0.7         0.7
Health and fitness       6.7            6.8         6.4         6.9         5.9         5.6         5.1
Home furnishings         1.0            1.0         1.1         1.3         1.3         2.4         2.6
Home improvement         1.3            1.5         1.7         2.0         2.2         2.1         2.4
Motor vehicle            2.0            2.1         2.2         2.6         2.7         3.2         3.1
dealerships
Office supplies          0.7            0.8         0.9         0.9         1.0         1.0         1.1
Pet supplies and         0.5            0.6         0.7         0.9         0.9         0.8         0.9
services
Restaurants -            6.7            7.3         10.9        13.4        13.7        14.3        14.9
casual dining
Restaurants -            5.7            5.9         6.6         7.7         8.3         8.2         6.6
quick service
Shoe stores              0.1            0.1         0.2         0.1         --          --          --
Sporting goods           2.3            2.5         2.7         2.7         2.6         2.3         2.6
Theaters                 8.7            9.4         8.8         8.9         9.2         9.0         9.0
Transportation           0.1            0.2         0.2         0.2         0.2         0.2         0.2
services
Video rental             0.0            0.0         0.0         0.2         1.0         1.1         1.7
Wholesale clubs          4.4            3.2         0.7         --          --          --          --
Other                 0.1         0.1      0.1      0.1      0.1      0.1      0.1   
Retail Industries     85.6     %   86.7  %   88.6  %   95.4  %   98.3  %   98.2  %   97.8  %
                                                                                                    
                                                                                                    
Non-retail
Industries
Aerospace                1.0            0.9         0.5         --          --          --          --
Beverages                4.7            5.1         5.6         3.0         --          --          --
Consumer                 0.3            0.1         --          --          --          --          --
appliances
Consumer goods           0.3            0.1         --          --          --          --          --
Diversified              0.2            0.1         --          --          --          --          --
industrial
Equipment services       0.5            0.3         0.2         --          --          --          --
Financial services       0.4            0.4         0.3         --          --          --          --
Food processing          1.6            1.3         0.7         --          --          --          --
Insurance                0.1            *           --          --          --          --          --
Machinery                0.3            0.1         --          --          --          --          --
Packaging                1.0            0.7         0.4         --          --          --          --
Paper                    0.1            0.1         0.1         --          --          --          --
Telecommunications       0.8            0.8         0.7         --          --          --          --
Transportation           2.1            2.2         1.6         --          --          --          --
services
Other                 1.0         1.1      1.3      1.6      1.7      1.8      2.2   
Non-retail            14.4     %   13.3  %   11.4  %   4.6   %   1.7   %   1.8   %   2.2   %
Industries
Totals                100.0    %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %   100.0 %
                                                                                                    

*      Less than 0.1%

         Includes rental revenue for all properties owned by Realty Income at
^(1)     the end of each period presented, including revenue from properties
         reclassified as discontinued operations. Excludes revenue from
         properties owned by Crest.
         
         

  
      Tenant Diversification
      
      The largest tenants based on percentage of total portfolio rental
      revenue at December 31, 2012 include the following:
                                           NPC
      L.A. Fitness         5.1  %      International/Pizza       2.3  %
                                           Hut
      AMC Theatres           4.6  %        Rite Aid                    2.2  %
      Family Dollar          4.4  %        Friendly’s Ice Cream        2.1  %
      Diageo                 4.4  %        Smart & Final               2.1  %
      BJ’s Wholesale         4.3  %        Fed-Ex                      2.0  %
      Clubs
      Northern Tier                        FreedomRoads/Camping
      Energy/Super           3.8  %        World                       2.0  %
      America
      Regal Cinemas          3.2  %        National Tire &             1.9  %
                                           Battery
      The Pantry             2.7  %
                                                                       
                                                                       

                              Lease Expirations

The following table sets forth certain information regarding Realty Income's
property portfolio regarding the timing of the lease term expirations
(excluding rights to extend a lease at the option of the tenant) on our 2,913
net leased, single-tenant properties as of December 31, 2012 (dollars in
thousands):

                                                                                                        
              Total Portfolio                                         Initial Expirations^(3)              Subsequent Expirations^(4)
                                              Rental                                 Rental                                 Rental

                                              Revenue                                Revenue                                Revenue
                                                            % of        Number                     % of        Number                    % of
              Number           Approx.        for the                                for the                                for the
                                                            Total       of                         Total       of                        Total
Year        of Leases      Leasable     Quarter               Leases     Quarter               Leases     Quarter   
                                                            Rental                                 Rental                                Rental
              Expiring^(1)     Sq. Feet       Ended                     Expiring     Ended                     Expiring     Ended
                                                            Revenue                                Revenue                               Revenue
                                              Dec. 31,                               Dec. 31,                               Dec. 31,

                                              2012^(2)                               2012                                   2012
2013          157            1,209,200    $ 3,879     3.0   %     39         $ 1,319     1.0   %     118        $ 2,560    2.0   %
2014          155              1,019,400        3,717       2.9         52             1,652       1.3         103            2,065      1.6
2015          161              859,500          3,690       2.9         67             1,774       1.4         94             1,916      1.5
2016          176              1,144,300        3,840       3.0         115            2,380       1.9         61             1,460      1.1
2017          165              1,940,200        5,633       4.4         44             2,902       2.3         121            2,731      2.1
2018          144              2,116,600        6,411       5.0         90             4,691       3.7         54             1,720      1.3
2019          143              1,511,800        7,298       5.7         132            6,815       5.3         11             483        0.4
2020          86               1,986,500        5,455       4.2         76             5,109       4.0         10             346        0.2
2021          163              2,353,000        8,426       6.5         155            7,916       6.1         8              510        0.4
2022          127              3,713,600        7,396       5.7         119            7,153       5.5         8              243        0.2
2023          257              2,294,400        10,634      8.3         250            10,106      7.9         7              528        0.4
2024          62               686,900          2,764       2.1         62             2,764       2.1         --             --         0.0
2025          253              2,707,700        13,478      10.5        248            13,363      10.4        5              115        0.1
2026          153              2,311,400        8,335       6.5         150            8,253       6.4         3              82         0.1
2027-2043   711            10,152,200    37,694    29.3     702         37,509    29.2     9           185      0.1   
Totals      2,913          36,006,700   $ 128,650   100.0 %   2,301      $ 113,706   88.5  %   612        $ 14,944   11.5  %
                                                                                                                                         

         Excludes 16 multi-tenant properties and 84 vacant unleased
^(1)   properties, one of which is a multi-tenant property. The lease
         expirations for properties under construction are based on the
         estimated date of completion of those properties.
         Includes rental revenue of $1,347 from properties reclassified as
         discontinued operations and excludes revenue of $2,292 from 16
^(2)     multi-tenant properties and from 84 vacant and unleased properties at
         December 31, 2012. Excludes revenue of $24 from four properties owned
         by Crest.
^(3)     Represents leases to the initial tenant of the property that are
         expiring for the first time.
^(4)     Represents lease expirations on properties in the portfolio, which
         have previously been renewed, extended or re-tenanted.
         
         

                          Geographic Diversification

The following table sets forth certain state-by-state information regarding
Realty Income's property portfolio as of December 31, 2012 (dollars in
thousands):

                                                                 
                                                              Rental
                                                              Revenue
                                                              for           Percentage
                                              Approximate                   of
                   Number of      Percent                     the
State                                   Leasable      Quarter     Rental
                   Properties     Leased                      Ended
                                              Square Feet                   Revenue
                                                              December
                                                              31,
                                                              2012^(1)
Alabama            71             96   %      500,500         $ 1,831       1.4     %
Alaska             2              100         128,500           307         0.2
Arizona            96             98          710,300           3,496       2.7
Arkansas           21             95          135,000           340         0.3
California         142            100         3,821,700         18,204      13.9
Colorado           57             96          497,700           1,985       1.5
Connecticut        25             92          456,500           2,037       1.6
Delaware           16             100         29,500            391         0.3
Florida            211            98          2,229,600         8,364       6.4
Georgia            152            94          1,342,400         5,040       3.8
Hawaii             --             --          --                --          --
Idaho              12             92          80,700            329         0.3
Illinois           111            99          1,428,900         6,264       4.8
Indiana            87             98          858,400           3,858       2.9
Iowa               28             89          1,878,400         2,331       1.8
Kansas             67             96          920,600           1,905       1.5
Kentucky           26             96          202,200           733         0.6
Louisiana          44             100         428,500           1,449       1.1
Maine              3              100         22,500            139         0.1
Maryland           30             100         492,500           2,661       2.0
Massachusetts      63             92          572,700           2,279       1.7
Michigan           69             100         421,900           1,579       1.2
Minnesota          151            100         1,019,000         6,807       5.2
Mississippi        77             95          775,300           1,982       1.5
Missouri           78             99          1,057,800         3,861       2.9
Montana            2              100         30,000            77          0.1
Nebraska           22             100         220,400           604         0.5
Nevada             16             100         333,700           1,054       0.8
New Hampshire      17             94          234,000           961         0.7
New Jersey         33             94          267,300           1,941       1.5
New Mexico         19             100         154,700           421         0.3
New York           46             98          918,900           4,614       3.5
North Carolina     99             96          895,400           3,127       2.4
North Dakota       6              100         36,600            78          0.1
Ohio               151            97          2,192,200         5,231       4.0
Oklahoma           57             98          961,500           1,742       1.3
Oregon             20             100         384,200           1,325       1.0
Pennsylvania       105            98          1,092,500         4,740       3.6
Rhode Island       3              100         11,000            37          *
South Carolina     102            97          564,500           2,571       2.0
South Dakota       10             100         89,800            186         0.1
Tennessee          136            96          1,351,500         3,240       2.5
Texas              328            97          4,271,900         12,205      9.3
Utah               9              100         159,300           413         0.3
Vermont            4              100         12,700            133         0.1
Virginia           115            97          2,429,400         5,351       4.1
Washington         34             97          293,000           1,147       0.9
West Virginia      4              100         87,400            134         0.1
Wisconsin          33             94          653,400           1,375       1.1
Wyoming          3            100      21,100         63        *       
Totals/Average   3,013        97   %    37,677,500    $ 130,942   100.0   %
                                                                                    

*      Less than 0.1%
         
         Includes rental revenue for all properties owned by Realty Income at
^(1)     December 31, 2012, including revenue from properties reclassified as
         discontinued operations of $1,347. Excludes revenue of $24 from
         properties owned by Crest.
         
         

                           SUPPLEMENTAL INFORMATION

On January 22, 2013, Realty Income acquired American Realty Capital Trust
(ARCT). The information that follows provides pro forma operating metrics
after integrating the ARCT real estate into the company’s core portfolio.

                   Pro Forma Property Type Diversification

The following table sets forth certain property type information regarding
Realty Income’s property portfolio after the acquisition of ARCT (dollars in
thousands):

                                                              
                                                             Annualized       Percentage
                                                                              of
                                           Approximate       Rental           Annualized
                          Number of        Leasable          Revenue          Rental
      Property Type    Properties    Square Feet    at            Revenue
                                                             12/31/12
      Retail              3,387            32,853,300        $  549,943       77.2    %
      Distribution        61               14,189,100           79,258        11.1
      Office              40               2,221,700            39,752        5.6
      Agriculture         15               184,500              20,551        2.9
      Manufacturing       10               3,117,100            16,588        2.3
      Industrial       15            850,500          6,320      0.9     
      Totals           3,528         53,416,200     $  712,412    100.0   %
                                                                              
                                                                              

  
      Pro Forma Tenant Diversification
      
      Largest Tenants based on Percentage of Total Portfolio Rental Revenue
      after the Acquisition of ARCT
      FedEx                5.5  %      Regal Cinemas             2.4  %
      L.A. Fitness           3.9  %        Dollar General              2.0  %
      Family Dollar          3.5  %        The Pantry                  2.0  %
      AMC Theatres           3.5  %        Rite Aid                    1.9  %
                                           NPC
      Diageo                 3.3  %        International/Pizza         1.8  %
                                           Hut
      BJ’s Wholesale         3.3  %        Friendly’s Ice Cream        1.6  %
      Club
      Walgreens              2.9  %        CVS                         1.6  %
      Northern Tier
      Energy/Super           2.9  %
      America
                                                                       
                                                                       

                           Industry Diversification

The following table sets forth certain information regarding Realty Income's
property portfolio after the acquisition of ARCT classified according to the
business of the respective tenants, expressed as a percentage of our total
rental revenue:

*Story too large*
                         
                              Historical Percentage of Rental Revenue^(1)
                              For the Years Ended
               Pro Forma

               Percentage
               of
                              Dec       Dec       Dec       Dec       Dec       Dec
               Annualized     31,       31,       31,       31,       31,       31,
                                                                
               Rental         2011      2010      2009      2008      2007      2006

               Revenue

               at
               12/31/2012
Retail                                                               
Industries
Apparel        1.6    %       1.4 %     1.2 %     1.1 %     1.1 %     1.2 %     1.7 %
stores
Automotive
collision      0.8            0.9       1.0       1.1
services

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