Record Operating Results for First Quarter 2013 Announced by Realty Income

  Record Operating Results for First Quarter 2013 Announced by Realty Income

Business Wire

ESCONDIDO, Calif. -- April 25, 2013

Realty Income Corporation (Realty Income), The Monthly Dividend Company^®
(NYSE: O), today announced record operating results for the first quarter
ended March31, 2013. 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 March 31, 2013 (as compared to the same quarterly period
in 2012):

  *Revenue increased 52.9% to $171.7 million as compared to $112.3 million
  *Net income available to common stockholders per share was $0.36
  *Normalized FFO available to common stockholders increased 72.8% to $104.9
    million
  *Normalized FFO per share increased 32.6% to $0.61
  *AFFO available to common stockholders increased 56.9% to $104.0 million
  *AFFO per share increased 20.0% to $0.60
  *Same store rents increased 1.5% to $111.0 million
  *Portfolio occupancy increased to 97.7% from 96.6%
  *Invested $128 million in 27 new properties and properties under
    development or expansion
  *Acquired American Realty Capital Trust (ARCT) adding 515 additional
    properties for $3.2 billion
  *Increased the annualized dividend amount 19.2%, or $0.35, to $2.171 per
    share in January
  *Increased the monthly dividend again in March for the 71^st time and for
    the 62^nd consecutive quarter
  *Dividends paid per common share increased 17.6%
  *Issued 17,250,000 common shares for net proceeds of approximately $755
    million

Financial Results

Revenue

Revenue, for the quarter ended March 31, 2013, increased 52.9% to $171.7
million as compared to $112.3million for the same quarter in 2012.

Net Income Available to Common Stockholders

Net income available to common stockholders, for the quarter ended March 31,
2013, was $61.3million as compared to $26.1 million for the same quarter in
2012. Net income per share, for the quarter ended March 31, 2013, was $0.36as
compared to $0.20 for the same quarter in 2012.

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 March 31, 2013, increased
53.0% to $92.9million as compared to $60.7 million for the same quarter in
2012. FFO per share, for the quarter ended March 31, 2013, increased 17.4% to
$0.54 as compared to $0.46 for the same quarter in 2012.

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 March 31, 2013, increased
72.8% to $104.9million as compared to $60.7 million for the same quarter in
2012. Normalized FFO per share, for the quarter ended March 31, 2013,
increased 32.6% to $0.61 as compared to $0.46 for the same quarter in 2012.

AFFO Available to Common Stockholders

Adjusted Funds from Operations (AFFO), for the quarter ended March 31, 2013,
increased 56.9% to $104.0million as compared to $66.3 million for the same
quarter in 2012. AFFO per share, for the quarter ended March 31, 2013,
increased 20.0% to $0.60 as compared to $0.50 for the same quarter in 2012.

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
merger-related costs for our acquisition of 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

On January 22, 2013, Realty Income increased the amount of the annualized
dividend 19.2%. The new dividend amount represented 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.

In March 2013, Realty Income announced the 62^nd consecutive quarterly
dividend increase, which is the 71^st 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 March 31, 2013, was approximately $2.175 per
share. The amount of the monthly dividends paid increased 17.6% to $0.514 per
share in the first quarter of 2013 from $0.437 per share for the same period
in 2012. In addition, through March31, 2013, the company has paid 512
consecutive monthly dividends and over $2.4billion 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 March 31, 2013, Realty Income’s portfolio of freestanding, single-tenant
properties consisted of 3,525 properties located in 49 states and Puerto Rico,
leased to 195 commercial enterprises doing business in 46 industries. The
properties are leased under long-term, net leases with a weighted average
remaining lease term of approximately 11.1 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 March31, 2013,
portfolio occupancy was 97.7% with 81 properties available for lease out of a
total of 3,525 properties in the portfolio, as compared to 96.6% portfolio
occupancy for the same period in 2012.

Rent Increases

During the quarter ended March 31, 2013, same store rents on 2,407 properties
under lease increased 1.5% to $111.05million, as compared to $109.37million
for the same quarter in 2012.

Property Acquisitions

During the first quarter of 2013, Realty Income invested $128 million in 27
new properties and properties under development or expansion located in 16
states. These properties are 100% leased with a weighted average lease term of
13.8years and an initial average lease yield of 7.9%. The company also
completed the acquisition of ARCT, adding 515 properties, for $3.2 billion, to
the company’s real estate portfolio. The combined total investment in real
estate during the first quarter of 2013 is $3.3 billion.

Realty Income maintains a $1.0 billion unsecured acquisition credit facility,
which is used to fund property acquisitions in the near term. As of March 31,
2013, the company had borrowing capacity of approximately $883million on its
credit facility.

Property Dispositions

Realty Income continued to successfully execute its asset disposition program
in the first quarter of 2013. 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 March 31, 2013, Realty Income sold 17 properties for
$60.0million, with a gain on sales of $38.6million, as compared to five
properties sold for $3.6 million, with a gain on sales of $611,000, during the
same quarter in 2012.

Other Activities

Acquisition of American Realty Capital Trust (ARCT)

On January 22, 2013, Realty Income completed the acquisition of ARCT that was
approved by both Realty Income and ARCT shareholders at their shareholder
meetings held on January 16, 2013. The combined company has been trading under
the ticker symbol “O” on the New York Stock Exchange since the opening of the
market on January 23, 2013.

Common Stock Offering

On March 11, 2013, Realty Income issued 17,250,000 common shares for net
proceeds of approximately $755million. The offering was upsized from the
original 10,000,000 share offering amount, and an additional 2,250,000 shares
were purchased by the underwriters upon the exercise of their over-allotment
option. Net proceeds were used to repay borrowings under the company’s $1.0
billion credit facility. Any remaining proceeds were used for other general
corporate purposes, including additional acquisitions and the repayment of
other debt.

Note Repayment

Realty Income repaid all of its March 2013 $100 million 5.375% notes
outstanding, issued in March 2003, at a price equal to 100% of the principal
amount plus accrued and unpaid interest.

Direct Stock Purchase and Dividend Reinvestment Plan (the “Stock Plan”)

During the first quarter of 2013, Realty Income issued 18,237 common shares
via its Stock Plan generating gross proceeds of approximately $811,000 during
the quarter.

CEO Comments on Operating Results

Commenting on Realty Income’s financial results and real estate operations,
Chief Executive Officer, Tom A. Lewis said, “The first quarter of 2013 was the
best quarter for operations in our 44-year history. We are pleased to report
significant increases in all facets of the company’s operations during the
quarter, including continued strength in the performance of our real estate
portfolio, with occupancy increasing to 97.7% and a record level of
acquisition activity.”

“The key drivers in our first quarter operating results are: 1) the $1.16
billion in acquisitions completed in 2012, providing significant revenue
increases during the quarter; 2) the immediately accretive rental revenue from
the ARCT acquisition of 515 net-leased properties for $3.2 billion, and; 3)
$128 million invested in 27 new properties and properties under development,
during the first quarter, at an average initial lease yield of 7.9%. The
rental revenue from the combined $4.4 billion in property acquisitions should
benefit our operating performance for many years to come. Importantly,
consistent with our strategic focus on continuing to increase the overall
credit quality of our real estate portfolio, the majority of the properties
acquired are leased to investment grade-rated tenants.”

“We were also successful in accessing the capital markets during the quarter,
generating net proceeds of approximately $755 million in a March common stock
offering that was upsized from the original offering of 10 million shares to
over 17 million common shares issued. The proceeds from this offering allowed
us to pay down our $1.0billion acquisition credit facility, which we had used
to provide a portion of the capital required to complete the ARCT acquisition.
We have excellent liquidity heading into the rest of the year, with over $850
million available on our acquisition credit facility to make additional
investments from an active transaction pipeline we are experiencing.”

“For our shareholders that rely on monthly dividend income, the most notable
events during the quarter were the two increases in the amount of our
dividend, resulting in our annualized dividend moving from $1.821 per share to
$2.175 per share. These increases contributed to the dividends we paid during
the first quarter, growing over 17%, as compared to the first quarter in 2012.
We have also been able to continue our record of increasing the dividend every
quarter, with the 62^nd consecutive quarterly increase declared in March.
Given the difficulty income oriented investors face in generating adequate
yield today, we are pleased that our operations continue to provide our
shareholders with an increasing dividend.”

“With respect to the completion of our acquisition of ARCT, we added 515
properties leased to 69 tenants doing business in 28 industries, and 75% of
the properties are leased to investment grade-rated tenants. The transaction
has taken the company to an enterprise value of approximately $13 billion and
an equity market capitalization of approximately $9 billion. As evidenced by
our operating results, this acquisition was immediately accretive to our
earnings. We are pleased to have completed this acquisition and integrated
these properties into our portfolio in a timely fashion.”

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 $0.95 to $1.01, plus estimated real estate depreciation of
$1.60 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 $0.12, and deducting capitalized expenditures
and straight-line rent revenue items totaling approximately $0.10, 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 March 31, 2013, the company had paid 512 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 195 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 ended March 31, 2013 and 2012

(dollars in thousands, except per share amounts - unaudited)
                                                                   
                                       2013                        2012
REVENUE
Rental                                 $ 170,304                   $ 112,053
Other                                   1,391                     252     
Total revenue                           171,695                   112,305 
                                                                   
EXPENSES
Depreciation and amortization            69,808                      34,578
Interest                                 41,468                      28,952
General and administrative               11,613                      9,168
Property                                 3,772                       2,155
Income taxes                             671                         405
Merger-related costs                    12,030                    --      
                                                                   
Total expenses                          139,362                   75,258  
                                                                   
Income from continuing                   32,333                      37,047
operations
Income from discontinued                39,480                    2,216   
operations
                                                                   
Net income                               71,813                      39,263
Net income attributable to              (9      )                  --      
non-controlling interests
Net income attributable to               71,804                      39,263
Realty Income Corporation
Preferred stock dividends                (10,482 )                   (9,496  )
Excess of redemption value over
carrying value of preferred             --                        (3,696  )
shares redeemed
                                                                   
Net income available to common         $ 61,322                   $ 26,071  
stockholders
                                                                   
Funds from operations available        $ 92,887                    $ 60,695
to common stockholders (FFO)
Normalized funds from operations
available to common stockholders       $ 104,917                   $ 60,695
(normalized FFO)
Adjusted funds from operations
available to common stockholders       $ 103,956                   $ 66,294
(AFFO)
                                                                   
Per share information for common
stockholders:
Income from continuing                 $ 0.13                      $ 0.18
operations, basic and diluted
Net income, basic and diluted          $ 0.36                      $ 0.20
FFO, basic and diluted                 $ 0.54                      $ 0.46
Normalized FFO, basic and              $ 0.61                      $ 0.46
diluted
AFFO:
Basic                                  $ 0.61                      $ 0.50
Diluted                                $ 0.60                      $ 0.50
Cash dividends paid per common         $ 0.514                     $ 0.437
share
                                                                             
                                                                             

                                                   
FUNDS FROM OPERATIONS (FFO)

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

                               Ended 3/31/13                   Ended 3/31/12
Net income available to        $ 61,322                        $ 26,071
common stockholders
Depreciation and
amortization:
Continuing operations            69,808                          34,578
Discontinued operations          96                              724
Depreciation allocated
to noncontrolling                (175        )                   ---
interest
Depreciation of
furniture, fixtures &            (61         )                   (67         )
equipment
Provisions for
impairment on Realty             456                             --
Income investment
properties
Gain on sales of
investment properties,          (38,559     )                  (611        )
discontinued operations
FFO available to common          92,887                          60,695
stockholders
Merger-related costs            12,030                        --          
Normalized FFO available       $ 104,917                       60,695      
to common stockholders
FFO per common share,          $ 0.54                          $ 0.46
basic and diluted
Normalized FFO per
common share, basic and        $ 0.61                          $ 0.46
diluted
Dividends paid to common       $ 84,977                        $ 58,192
stockholders
Normalized FFO in excess
of dividends paid to           $ 19,940                        $ 2,503
common stockholders
Weighted average number
of common shares used
for computation per
share:
Basic                            171,659,191                     132,577,100
Diluted                          172,053,880                     132,703,954
                                                               

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 Months                           Three Months
                                                     
                           Ended 3/31/13                          Ended
                                                                  3/31/12
Net income
available to               $  61,322                              $  26,071
common
stockholders
Cumulative
adjustments to
calculate                    43,595                               34,624  
normalized
FFO^(1)
Normalized FFO
available to                  104,917                                60,695
common
stockholders
Excess of
redemption value
over carrying                 --                                     3,696
value of
preferred share
redemption
Amortization of
share-based                   3,845                                  2,956
compensation
Amortization of
deferred                      1,458                                  630
financing
costs^(2)
Amortization of
net mortgage                  (1,947   )                             (97     )
premiums
Capitalized
leasing costs and             (413     )                             (266    )
commissions
Capitalized
building                      (1,265   )                             (793    )
improvements
Other                        (2,639   )                            (527    )
adjustments^(3)
Total AFFO
available to               $  103,956                            $  66,294  
common
stockholders
AFFO per common
share:
Basic                      $  0.61                                $  0.50
Diluted                    $  0.60                                $  0.50
Dividends paid to
common                     $  84,977                              $  58,192
stockholders
AFFO in excess of
dividends paid to          $  18,979                              $  8,102
common
stockholders
                                                                             

^(1)   See FFO and normalized FFO calculation above for reconciling items.
         Includes the amortization of costs incurred and capitalized when our
         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
         deferred financing costs incurred and capitalized in connection with
^(2)     our assumption of the mortgages payable and the issuance of our term
         loan, along with non-cash interest expense related to our swaps. The
         deferred financing costs are being amortized over the lives of the
         respective mortgages and term loan. 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         2013                2012                2011                2010                2009
March 31,
                                                                                                     
Net income
available to         $ 61,322            $ 26,071            $ 29,936            $ 24,142            $ 24,021
common
stockholders
Depreciation
and                    69,668              35,235              26,791              23,213              22,911
amortization
Provisions for
impairment on
Realty Income          456                 --                  200                 34                  --
investment
properties
Gain on sales
of investment         (38,559     )      (611        )      (129        )      (703        )      (198        )
properties
                                                                                                     
FFO                    92,887              60,695              56,798              46,686              46,734
Merger-related        12,030            --                --                --                --          
costs
Normalized FFO       $ 104,917          $ 60,695           $ 56,798           $ 46,686           $ 46,734      
                                                                                                     
Normalized FFO
per diluted          $ 0.61              $ 0.46              $ 0.48              $ 0.45              $ 0.45
share
                                                                                                     
Normalized FFO       $ 104,917           $ 60,695            $ 56,798            $ 46,686            $ 46,734
Add (less) FFO
contributed by        (261        )      (161        )      (180        )      (206        )      125         
Crest
                                                                                                     
Normalized FFO
before Crest         $ 104,656          $ 60,534           $ 56,618           $ 46,480           $ 46,859      
contribution
                                                                                                     
Normalized FFO
components,
per diluted
share^(1):
FFO before
Crest                $ 0.61              $ 0.46              $ 0.48              $ 0.45              $ 0.45
contribution
Crest FFO            $ 0.00              $ 0.00              $ 0.00              $ 0.00              $ 0.00
contribution
Normalized FFO       $ 0.61              $ 0.46              $ 0.48              $ 0.45              $ 0.45
                                                                                                     
AFFO                 $ 103,956           $ 66,294            $ 58,239            $ 47,615            $ 47,675
                                                                                                     
AFFO per             $ 0.60              $ 0.50              $ 0.49              $ 0.46              $ 0.46
diluted share
                                                                                                     
Cash dividends       $ 0.514             $ 0.437             $ 0.433             $ 0.429             $ 0.425
paid per share
Weighted
average                172,053,880         132,703,954         119,109,044         103,686,440         103,445,044
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 March 31, 2013 and December 31, 2012

(dollars in thousands)
                                                                 
                                   2013                          2012
                                   (unaudited)
ASSETS
Real estate, at cost:
Land                               $ 2,453,696                   $ 1,999,820
Buildings and improvements          6,185,550                   3,920,865 
Total real estate, at cost           8,639,246                     5,920,685
Less accumulated
depreciation and                    (946,828  )                  (897,767  )
amortization
                                                                 
Net real estate held for             7,692,418                     5,022,918
investment
Real estate held for sale,          10,499                      19,219    
net
Net real estate                      7,702,917                     5,042,137
Cash and cash equivalents            4,159                         5,248
Accounts receivable, net             24,594                        21,659
Acquired lease intangible            848,666                       242,125
assets, net
Goodwill                             15,975                        16,945
Other assets, net                   167,292                     115,249   
                                                                 
Total assets                       $ 8,763,603                  $ 5,443,363 
                                                                 
LIABILITIES AND EQUITY
Distributions payable              $ 39,113                      $ 23,745
Accounts payable and accrued         51,724                        70,426
expenses
Acquired lease intangible            103,141                       26,471
liabilities, net
Other liabilities, net               27,496                        26,059
Lines of credit payable              116,600                       158,000
Mortgages payable, net               764,140                       175,868
Term loan                            70,000                        --
Notes payable                       2,450,000                   2,550,000 
                                                                 
Total liabilities                   3,622,214                   3,030,569 
                                                                 
Stockholders’ equity:
Preferred stock and paid in          609,363                       609,363
capital
Common stock and paid in             5,325,854                     2,572,092
capital
Distributions in excess of          (807,626  )                  (768,661  )
net income
                                                                 
Total stockholders’ equity           5,127,591                     2,412,794
Non-controlling interests           13,798                      --        
                                                                 
Total equity                        5,141,389                   2,412,794 
                                                                 
Total liabilities and equity       $ 8,763,603                  $ 5,443,363 
                                                                 
                                                                 

                                                                                                                   
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)
                                                                                                                                              
10/18 to         10.5  %      10.8   %       7.7   %      0.0    %       2.9   %      (1.6   %)      2.9   %      (1.2    %)     0.5   %      (1.7   %)
12/31/94
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   %
YTD Q1           4.8   %      14.1   %       3.3   %      8.1    %       2.3   %      12.0   %       2.0   %      10.6    %      1.1   %      8.2    %
2013
                                                                                                                                                     
Compounded

Average
Annual                        18.0   %                    11.3   %                    9.9    %                    8.8     %                   8.2    %

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 the closing price
as of period end. Dividend yield sources: NAREIT website and Bloomberg, except
for the 1994 NASDAQ dividend yield which was sourced from Datastream/Thomson
Financial.

^(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 March 31, 2013, and assuming reinvestment of
^(5)     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 March 31, 2013 (dollars in
thousands):

                                                               
                                                                 Rental          Percentage
                                               Approximate       Revenue         of
                                                                 for
                                                                 the
                              Number of        Leasable          Quarter         Rental
                                                                 Ended
          Property Type    Properties    Square Feet    March 31,    Revenue
                                                                 2013^(1)
          Retail              3,390            33,083,200        $ 134,874       79.1    %
          Distribution        64               14,892,900          18,140        10.6
          Office              34               2,040,700           7,834         4.6
          Agriculture         15               184,500             5,145         3.0
          Manufacturing       10               3,117,100           4,215         2.5
          Industrial       12            383,200         378        0.2     
          Totals           3,525         53,701,600     $ 170,586    100.0   %
                                                                                 

                   Includes rental revenue for all properties owned by Realty
     ^(1)   Income at March 31, 2013, including revenue from properties
                   reclassified as discontinued operations of $303. Excludes
                   revenue of $21 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 31,     Dec 31,     Dec 31,     Dec 31,     Dec 31,     Dec 31,
                    March                                                      
                       31,         2012        2011        2010        2009        2008        2007

                       2013
Retail Industries                                                                   
Apparel stores         2.0   %     1.7   %     1.4   %     1.2   %     1.1   %     1.1   %     1.2   %
Automotive             0.9         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     2.3         3.1         3.7         4.7         4.8         4.8         5.2
Automotive tire        4.0         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             3.2         4.5         5.2         6.5         7.3         7.6         8.4
Consumer               0.3         0.5         0.5         0.6         0.7         0.8         0.9
electronics
Convenience stores     12.0        16.3        18.5        17.1        16.9        15.8        14.0
Crafts and             0.6         0.3         0.2         0.3         0.3         0.3         0.3
novelties
Dollar stores          5.6         2.2         --          --          --          --          --
Drug stores            6.0         3.5         3.8         4.1         4.3         4.1         2.7
Education              0.5         0.7         0.7         0.8         0.9         0.8         0.8
Entertainment          0.7         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     1.4         0.2         0.2         0.2         0.2         0.2         0.2
General                0.9         0.6         0.6         0.8         0.8         0.8         0.7
merchandise
Grocery stores         3.2         3.7         1.6         0.9         0.7         0.7         0.7
Health and fitness     6.0         6.8         6.4         6.9         5.9         5.6         5.1
Home furnishings       0.9         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
Jewelry                0.1         --          --          --          --          --          --
Motor vehicle          1.9         2.1         2.2         2.6         2.7         3.2         3.1
dealerships
Office supplies        0.5         0.8         0.9         0.9         1.0         1.0         1.1
Pet supplies and       0.4         0.6         0.7         0.9         0.9         0.8         0.9
services
Restaurants -          5.6         7.3         10.9        13.4        13.7        14.3        14.9
casual dining
Restaurants -          4.9         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         1.8         2.5         2.7         2.7         2.6         2.3         2.6
Theaters               6.7         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         0.2         1.0         1.1         1.7
Wholesale clubs        3.5         3.2         0.7         --          --          --          --
Other                0.1      0.1      0.1      0.1      0.1      0.1      0.1   
Retail Industries    78.8  %   86.7  %   88.6  %   95.4  %   98.3  %   98.2  %   97.8  %
                                                                                               
                                                                                               
Non-retail
Industries
Aerospace              0.9         0.9         0.5         --          --          --          --
Beverages              3.6         5.1         5.6         3.0         --          --          --
Consumer               0.6         0.1         --          --          --          --          --
appliances
Consumer goods         1.0         0.1         --          --          --          --          --
Crafts and             0.1         --          --          --          --          --          --
novelties
Diversified            0.1         0.1         --          --          --          --          --
industrial
Equipment services     0.3         0.3         0.2         --          --          --          --
Financial services     0.5         0.4         0.3         --          --          --          --
Food processing        1.6         1.3         0.7         --          --          --          --
Government             1.3         0.1         0.1         0.1         0.1         --          --
services
Health care            1.8         *           *           --          --          --          --
Home furnishings       0.2         --          --          --          --          --          --
Home improvement       0.3         --          --          --          --          --          --
Insurance              0.1         *           --          --          --          --          --
Machinery              0.2         0.1         --          --          --          --          --
Other                  0.4         --          --          --          --          --          --
manufacturing
Packaging              1.0         0.7         0.4         --          --          --          --
Paper                  0.2         0.1         0.1         --          --          --          --
Pet supplies and       0.4         --          --          --          --          --          --
services
Shoe stores            0.8         --          --          --          --          --          --
Telecommunications     0.7         0.8         0.7         --          --          --          --
Transportation         5.1         2.2         1.6         --          --          --          --
services
Other                0.0      1.0      1.2      1.5      1.6      1.8      2.2   
Non-retail           21.2  %   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
March 31, 2013 include the following:
Fed-Ex                 5.7  %        Regal Cinemas             2.4  %
L.A. Fitness              4.5  %           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          1.7  %
                                           Hut
BJ’s Wholesale            3.2  %           CVS Pharmacy                 1.7  %
Clubs
Walgreens                 2.9  %           Smart & Final                1.5  %
Northern Tier
Energy/Super              2.8  %
America
                                                                        
                                                                        

                              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 3,430
net leased, single-tenant properties as of March 31, 2013 (dollars in
thousands):

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

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

                                              2013^(2)                               2013                                   2013
2013          139            1,020,300    $ 3,458     2.0   %   34         $ 1,073     0.6   %   105        $ 2,385    1.4  %
2014          159              1,101,400        3,864       2.3         54             1,769       1.1         105            2,095      1.2
2015          162              875,900          3,921       2.3         67             2,014       1.2         95             1,907      1.1
2016          180              930,500          4,177       2.5         117            2,423       1.4         63             1,754      1.1
2017          165              1,942,200        5,494       3.2         45             2,944       1.7         120            2,550      1.5
2018          223              3,099,400        8,882       5.2         161            7,027       4.1         62             1,855      1.1
2019          163              2,732,700        9,076       5.4         152            8,594       5.1         11             482        0.3
2020          102              3,280,200        7,591       4.5         91             7,236       4.3         11             355        0.2
2021          180              5,059,500        12,006      7.1         172            11,496      6.8         8              510        0.3
2022          193              6,970,700        12,466      7.4         185            12,238      7.2         8              228        0.2
2023          313              3,943,600        15,239      9.0         304            14,687      8.7         9              552        0.3
2024          95               1,921,100        5,245       3.1         95             5,245       3.1         --             --         0.0
2025          289              3,352,000        15,563      9.2         284            15,436      9.1         5              127        0.1
2026          232              3,307,400        10,923      6.4         229            10,840      6.4         3              83         *
2027          436              4,245,100        14,331      8.5         434            14,291      8.5         2              40         *
2028-2043   399            8,611,600     37,006    21.9     392         36,860    21.8     7           146      0.1  
Totals      3,430          52,393,600   $ 169,242   100.0 %   2,816      $ 154,173   91.1  %   614        $ 15,069   8.9  %
                                                                                                                                              

*      Less than 0.1%
         Excludes 14 multi-tenant properties and 81 vacant unleased
^(1)     properties, two of which are multi-tenant properties. The lease
         expirations for properties under construction are based on the
         estimated date of completion of those properties.
         Includes rental revenue of $303 from properties reclassified as
         discontinued operations and excludes revenue of $1,344 from 14
^(2)     multi-tenant properties and from 81 vacant and unleased properties at
         March 31, 2013. Excludes revenue of $21 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 March 31, 2013 (dollars in
thousands):

                                                              Rental
                                                              Revenue
                                              Approximate     for           Percentage
                   Number of      Percent                                   of
State                                   Leasable      the        
                   Properties     Leased                      Quarter       Rental
                                              Square Feet     Ended
                                                                            Revenue
                                                              March 31,
                                                              2013^(1)
Alabama          87           97   %    659,000       $ 2,414     1.4     %
Alaska             2              100         128,500           307         0.2
Arizona            101            97          1,080,100         4,578       2.7
Arkansas           29             93          540,100           910         0.5
California         149            100         4,005,600         18,828      11.0
Colorado           66             97          594,200           2,317       1.4
Connecticut        24             100         468,000           2,071       1.2
Delaware           16             100         29,500            392         0.2
Florida            234            98          2,457,600         10,002      5.9
Georgia            177            95          2,346,300         6,810       4.0
Hawaii             --             --          --                --          --
Idaho              14             93          97,500            425         0.3
Illinois           131            100         3,379,700         8,576       5.0
Indiana            91             98          909,200           4,133       2.4
Iowa               35             91          2,680,100         2,918       1.7
Kansas             75             97          1,549,500         2,853       1.7
Kentucky           37             97          603,300           2,271       1.3
Louisiana          65             100         620,600           2,083       1.2
Maine              5              100         67,800            336         0.2
Maryland           32             100         1,113,500         3,464       2.0
Massachusetts      81             94          690,700           2,829       1.7
Michigan           96             100         861,300           2,595       1.5
Minnesota          156            100         1,141,900         7,129       4.2
Mississippi        83             94          834,800           2,176       1.3
Missouri           108            99          1,727,100         5,786       3.4
Montana            2              50          30,000            49          *
Nebraska           26             100         381,800           1,109       0.7
Nevada             18             100         366,300           1,184       0.7
New Hampshire      18             100         280,300           1,125       0.7
New Jersey         63             97          403,900           2,438       1.4
New Mexico         21             100         166,800           497         0.3
New York           78             99          1,947,600         8,745       5.1
North Carolina     113            96          1,013,000         3,997       2.3
North Dakota       7              100         66,000            103         0.1
Ohio               180            97          4,449,000         8,783       5.2
Oklahoma           65             98          1,041,900         2,169       1.3
Oregon             24             100         455,200           1,346       0.8
Pennsylvania       146            99          1,671,800         6,391       3.7
Rhode Island       3              100         11,000            37          *
South Carolina     118            97          710,000           3,655       2.1
South Dakota       11             100         133,500           243         0.1
Tennessee          146            97          1,662,200         4,158       2.4
Texas              366            98          5,209,400         16,925      9.9
Utah               11             100         737,900           1,021       0.6
Vermont            5              100         78,200            357         0.2
Virginia           121            97          2,480,900         6,120       3.6
Washington         36             97          372,100           1,193       0.7
West Virginia      11             100         252,000           713         0.4
Wisconsin          35             94          1,145,500         1,796       1.1
Wyoming            3              100         21,100            64          0.1
Puerto Rico      4            100      28,300         165       0.1     
Totals/Average   3,525        98   %    53,701,600    $ 170,586   100.0   %
                                                                                    

*      Less than 0.1%
         Includes rental revenue for all properties owned by Realty Income at
^(1)     March 31, 2013, including revenue from properties reclassified as
         discontinued operations of $303. Excludes revenue of $21 from
         properties owned by Crest.

Contact:

Realty Income Corporation
Tere H. Miller
Vice President, Corporation Communications
(760) 741-2111, x1177
 
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