Record Operating Results For First Quarter 2014 Announced By Realty Income

  Record Operating Results For First Quarter 2014 Announced By Realty Income

PR Newswire

ESCONDIDO, Calif., May 1, 2014

ESCONDIDO,Calif., May 1, 2014 /PRNewswire/ -- Realty Income Corporation
(Realty Income), The Monthly Dividend Company^® (NYSE: O), today announced
record operating results for the first quarter ended March 31, 2014. 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.

Realty Income Corporation - The Monthly Dividend Company.

COMPANY HIGHLIGHTS:

For the quarter ended March 31, 2014 (as compared to the same quarterly period
in 2013):

  oRevenue increased 26.3% to $221.6 million as compared to $175.5 million
  oNet income available to common stockholders per share was $0.23
  oFFO available to common stockholders increased 29.7% to $134.5 million
  oFFO per share increased 8.3% to $0.65
  oAFFO available to common stockholders increased 27.6% to $132.7 million
  oAFFO per share increased 6.7% to $0.64
  oSame store rents increased 1.5% to $131.4 million
  oPortfolio occupancy increased to 98.3% from 97.7%
  oInvested $656.7 million in 337 new properties and properties under
    development or expansion
  oIncreased the monthly dividend in March for the 75^th time and for the
    66^th consecutive quarter
  oDividends paid per common share increased 6.4%
  oAlso, generated net proceeds of approximately $528.5 million in 13.8
    million common share offering in April

Financial Results

Revenue
Revenue, for the quarter ended March 31, 2014, increased 26.3% to $221.6
million as compared to $175.5million, for the same quarter in 2013.

Net Income Available to Common Stockholders
Net income available to common stockholders, for the quarter ended March 31,
2014, was $47.2million as compared to $62.7 million for the same quarter in
2013. Net income available to common stockholders, for the quarter ended March
31, 2013, was impacted by an unusually large gain on sale of real estate. Net
income per share, for the quarter ended March 31, 2014, was $0.23as compared
to $0.36, for the same quarter in 2013. 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 and period to period comparisons.

Funds From Operations Available to Common Stockholders (FFO)
FFO, for the quarter ended March 31, 2014, increased 29.7% to $134.5million
as compared to $103.7 million, for the same quarter in 2013. FFO, for the
quarter ended March 31, 2013, was normalized to exclude 2013 merger-related
costs for Realty Income's acquisition of American Realty Capital Trust, Inc.,
or ARCT. All references to FFO for the first quarter of 2013 reflect this
adjustment for merger-related costs. FFO per share, for the quarter ended
March 31, 2014, increased 8.3% to $0.65 as compared to $0.60, for the same
quarter in 2013.

Net income, for the quarter ended March 31, 2013, has been adjusted from that
previously reported in Realty Income's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013, as a result of measurement period adjustments,
previously reported in Realty Income's 2013 Annual Report on Form 10-K, that
were recorded during the second half of 2013 upon completion of the real
estate valuations for the acquisition of ARCT. As a result of these
adjustments to the asset allocation, revisions were made to the consolidated
statement of income for the first quarter of 2013 for the impact related to
rental revenue and depreciation and amortization. Because of these revisions,
net income increased by $1.4 million, with no impact on earnings per share,
while FFO decreased by $1.2 million, or $0.01 per share, for the first quarter
of 2013.

Adjusted Funds From Operations Available to Common Stockholders (AFFO)
AFFO, for the quarter ended March 31, 2014, increased 27.6% to $132.7million
as compared to $104.0 million, for the same quarter in 2013. AFFO per share,
for the quarter ended March 31, 2014, increased 6.7% to $0.64 as compared to
$0.60, for the same quarter in 2013.

The company considers 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. FFO, for the first quarter of 2013, has also been
normalized to add back merger-related costs for the acquisition of ARCT. AFFO
further adjusts FFO for unique revenue and expense items, which the company
believes are not as pertinent to the measurement of the company's ongoing
operating performance. See the reconciliations of net income available to
common stockholders to FFO and AFFO on page six.

Dividend Information
In March 2014, Realty Income announced the 66^th consecutive quarterly
dividend increase, which is the 75^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 March 31, 2014, was approximately $2.19 per
share. The amount of monthly dividends paid per share increased 6.4% to $0.547
in the first quarter of 2014 compared to $0.514 for the same period in 2013.
In addition, through March31, 2014, the company has paid 524 consecutive
monthly dividends and over $2.9billion 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, 2014, Realty Income's portfolio of freestanding, single-tenant
properties consisted of 4,208 properties located in 49 states and Puerto Rico,
leased to 211 commercial tenants doing business in 47 industries. The
properties are leased under long-term, net leases with a weighted average
remaining lease term of approximately 10.8 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, 2014,
portfolio occupancy was 98.3% with 73 properties available for lease out of a
total of 4,208 properties in the portfolio, as compared to 97.7% portfolio
occupancy, or 81 properties available for lease, as of March 31, 2013.

Rent Increases
During the quarter ended March 31, 2014, same store rents, on 2,784 properties
under lease, increased 1.5% to $131.4million, as compared to $129.4million
for the same quarter in 2013.

Property Acquisitions
During the first quarter of 2014, Realty Income invested $656.7 million in 337
new properties and properties under development or expansion, located in 35
states. These properties are 100% leased with a weighted average lease term of
approximately 14.2 years and an initial average lease yield of 7.0%. The
tenants occupying the new properties operate in 15 industries, and the
property types consist of 88% retail, 8% industrial and distribution and 4%
office, based on annualized rental revenue.

Realty Income maintains a $1.5 billion unsecured acquisition credit facility,
which is used to fund property acquisitions in the near term. As of April 3,
2014, approximately $1.29 billion was available on the credit facility to fund
additional acquisitions, after using stock offering proceeds (discussed below)
to pay down the credit facility.

Property Dispositions
Realty Income continued to successfully execute its asset disposition program.
During the quarter ended March31, 2014, Realty Income sold 11 properties for
$12.7million, with a gain on sales of $3.9million, as compared to 17
properties sold for $60.0 million, with a gain on sales of $38.6 million,
during the same quarter in 2013.

During the first quarter of 2014, the Financial Accounting Standards Board
issued guidance that changes the definition of discontinued operations by
limiting discontinued operations reporting to disposals of components of an
entity that represent strategic shifts that have, or will have, a major effect
on an entity's operations and financial results. Previously, Realty Income had
reported all properties sold and held for sale within a period as discontinued
operations. The company early adopted the requirements of this accounting
pronouncement in the first quarter of 2014. As a result, Realty Income's
results of operations for all qualifying disposals and properties classified
as held for sale that were not previously reported in discontinued operations
in Realty Income's 2013 Annual Report on Form 10-K are presented within income
from continuing operations on the consolidated statements of income.

Other Activities

Issued 13.8 Million Shares in an Upsized Common Share Offering
On April 1, 2014, Realty Income issued 13.8 million common shares priced at
$39.96 per share. Net proceeds of approximately $528.5 million were used to
repay a portion of the borrowings under the company's acquisition credit
facility.

Realty Income Names Debra Bonebrake Senior Vice President – Industrial,
Distribution and Office Properties
On March 3, 2014, Realty Income announced that Debra Bonebrake was named
Senior Vice President – Industrial, Distribution and Office Properties.

Direct Stock Purchase and Dividend Reinvestment Plan
During the first quarter of 2014, Realty Income issued 55,870 common shares
via its Stock Plan at an average price of $40.69 per share. The Plan generated
gross proceeds of approximately $2.3 million during the quarter.

CEO Comments on Operating Results
Commenting on Realty Income's results and real estate operations, Chief
Executive Officer, John P. Case, said, "We are pleased with our operating
results for the first quarter of 2014. We achieved record quarterly AFFO per
share of $0.64, representing an increase of 6.7% from the same period last
year. The portfolio continues to perform quite well, with same store rent
rising 1.5% from a year ago and occupancy increasing to 98.3%, the highest
it's been since 2007."

"Acquisitions again contributed to these positive first quarter results. We
completed $656.7 million in acquisitions this quarter, making it our second
most acquisitive quarter in our company's history. These acquisitions include
$274.3million of the previously announced $503 million transaction with
Inland Diversified Real Estate Trust, Inc. We expect the majority of the
remaining properties to close during the second quarter of 2014. The
properties acquired during the quarter are leased to 22 different tenants in
15 industries, and located across 35 states. Retail properties comprised the
majority of acquisitions accounting for 88%, while industrial and distribution
accounted for 8%. Approximately 84% of the revenue generated by these
acquisitions is from investment grade-rated tenants. We are pleased to have
continued to add to the portfolio's credit quality and diversification through
these acquisitions, while achieving a weighted average lease term of 14.2
years and an initial average lease yield of 7.0%."

"Subsequent to the quarter-end, we successfully accessed the capital markets,
raising approximately $529 million in net proceeds in a common stock offering
on April 1^st. The original offering of 10.5 million shares was upsized to
13.8million shares, allowing us to pay down our $1.5 billion acquisitions
credit facility. We are well positioned with ample liquidity to fund 2014
acquisitions activity."

FFO and AFFO Commentary
Realty Income's FFO and AFFO 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 and AFFO 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, lease rollovers, the general real estate market, and the
economy.

2014 Earnings Estimates
FFO per share for 2014 should range from $2.53 to $2.58, an increase of 5% to
7% over 2013 FFO (normalized to exclude 2013 ARCT merger-related costs) per
share of $2.41. FFO per share for 2014 is based on a net income per share
range of $0.86 to $0.91, plus estimated real estate depreciation of $1.72 per
share, and reduced by potential estimated gains on sales of investment
properties of $0.05 per share (in accordance with NAREIT's definition of
FFO).

AFFO per share for 2014 should range from $2.53 to $2.58, an increase of 5% to
7% over the 2013 AFFO per diluted share of $2.41. AFFO further adjusts FFO for
unique revenue and expense items, which are not as pertinent to the
measurement of the company's ongoing operating performance.

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, 2014, the company had paid 524 consecutive
monthly dividends throughout its 45-year operating history. The monthly income
is supported by the cash flows from over 4,200 properties owned under
long-term lease agreements with 211 leading regional and national commercial
tenants. 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, 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
(dollars in thousands, except per share amounts - unaudited)
                                                  Three months   Three months
                                                  Ended 3/31/14  Ended 3/31/13
REVENUE
Rental                                            $   214,122    $ 167,798
Tenant reimbursements                                 6,427        6,027
Other                                                 1,023        1,697
Total revenue                                         221,572      175,522
EXPENSES
Depreciation and amortization                         89,970       66,749
Interest                                              51,720       41,599
General and administrative                            12,886       11,628
Property (including reimbursable)                     10,577       9,572
Income taxes                                          1,091        577
Merger-related costs                                  -            12,030
Provisions for impairment                             1,683        -
Total expenses                                        167,927      142,155
Gain on sales of real estate                          1,271        -
Income from continuing operations                     54,916       33,367
Income from discontinued operations                   3,077        39,859
Net income                                            57,993       73,226
Net income attributable to noncontrolling             (332)        (9)
interests
Net income attributable to the Company                57,661       73,217
Preferred stock dividends                             (10,482)     (10,482)
Net income available to common stockholders       $   47,179     $ 62,735
Funds from operations available to common                        
stockholders (FFO)                                $
                                                      134,520    $ 103,688^(1)
Adjusted funds from operations available to                        
common stockholders (AFFO)                        $   132,660    $
                                                                   103,972
Per share information for common stockholders:
Income from continuing operations,
basic and diluted                                 $   0.21       $ 0.13
Net income:
Basic                                             $   0.23       $ 0.37
Diluted                                           $   0.23       $ 0.36
FFO, basic and diluted                            $   0.65       $ 0.60^(1)
AFFO:
Basic                                             $   0.64       $ 0.61
Diluted                                           $   0.64       $ 0.60
Cash dividends paid per common share              $   0.547      $ 0.514

^(1) Normalized to exclude ARCT merger-related costs



FUNDS FROM OPERATIONS (FFO)
(dollars in thousands, except per share amounts)
                                           Three months        Three months
                                           Ended 3/31/14       Ended 3/31/13
Net income available to common             $      47,179       $    62,735
stockholders
Depreciation and amortization:
               Continuing operations              89,970            66,749
               Discontinued operations            -                 513
Depreciation of furniture, fixtures               (91)              (61)
and equipment
Provisions for impairment on
investment properties
               Continuing operations              1,683             -
               Discontinued operations            -                 456
Gain on sale of investment properties,
               Continuing operations              (1,271)           -
               Discontinued operations            (2,607)           (38,559)
Merger-related costs ^(1)                         -                 12,030
FFO adjustments allocable to                      (343)             (175)
non-controlling interests
FFO available to common stockholders,      $      134,520      $    103,688
basic and diluted
FFO per common share, basic and            $      0.65         $    0.60
diluted
Distributions paid to common               $      113,414      $    84,977
stockholders
FFO in excess of distributions paid to     $      21,106       $    18,711
common stockholders, basic and diluted
Weighted average number of common shares used for
FFO:
               Basic                       207,003,950         171,659,191
               Diluted                     207,007,341         172,053,880
^(1) FFO for the three months ended March 31, 2013, has been normalized to
exclude ARCT merger-related costs.
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.
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(dollars in thousands, except per share amounts)
We define AFFO as FFO adjusted for unique revenue and expense items, which the
company believes are not as pertinent to the measurement of the company's
ongoing operating performance. 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 3/31/14       Ended 3/31/13
Net income available to common             $      47,179       $    62,735
stockholders
Cumulative adjustments to calculate               87,341            40,953
FFO ^(1)
FFO available to common stockholders              134,520           103,688
Amortization of share-based                       2,697             3,845
compensation
Amortization of deferred financing                1,076             1,006
costs ^(2)
Amortization of net mortgage premiums             (2,385)           (1,947)
Loss on interest rate swaps                       57                452
Capitalized leasing costs and                     (192)             (413)
commissions
Capitalized building improvements                 (1,177)           (1,265)
Straight-line rent                                (3,936)           (3,204)
Amortization of above and below-market            1,994             1,794
leases
AFFO adjustments allocable to                     6                 16
non-controlling interests
AFFO available to common stockholders,     $      132,660      $    103,972
basic and diluted
AFFO per common share:
               Basic                       $      0.64         $    0.61
               Diluted                     $      0.64         $    0.60
Distributions paid to common               $      113,414      $    84,977
stockholders
AFFO in excess of distributions paid to    $      19,246       $    18,995
common stockholders, basic and diluted
Weighted average number of common shares used for
AFFO:
               Basic                       207,003,950         171,659,191
               Diluted                     207,007,341         172,053,880

^(1) See 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, October 2012
     and July 2013. Additionally, this includes the amortization of deferred
^(2) financing costs incurred and capitalized in connection with our
     assumption of our mortgages payable and the issuance of our term loan.
     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.



HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(dollars in thousands, except per share amounts)
For the three
months ended       2014         2013          2012         2011         2010
March 31,
Net income
available to    $  47,179    $  62,735    $   26,071   $   29,936   $   24,142
common
stockholders
Depreciation
and                89,879       67,201        35,235       26,791       23,213
amortization
Provisions for
impairment on      1,683        456           -            200          34
investment
properties
Gain on sales
of investment      (3,878)      (38,559)      (611)        (129)        (703)
properties
Merger-related     -            12,030        -            -            -
costs^(1)
FFO adjustments
allocable to       (343)        (175)         -            -            -
non-controlling
interests
FFO                134,520      103,688       60,695       56,798       46,686
FFO per diluted $  0.65      $  0.60      $   0.46     $   0.48     $   0.45
share
AFFO            $  132,660   $  103,972   $   66,294   $   58,239   $   47,615
AFFO per        $  0.64      $  0.60      $   0.50     $   0.49     $   0.46
diluted share
Cash dividends  $  0.547     $  0.514     $   0.437    $   0.433    $   0.429
paid per share
Weighted
average diluted 207,007,341  172,053,880  132,703,954  119,109,044  103,686,440
shares
outstanding

^(1) FFO for the three months ended March 31, 2013, has been normalized to
     exclude ARCT merger-related costs.



REALTY INCOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2014 and December 31, 2013
(dollars in thousands, except per share data)
                                                    2014           2013
ASSETS                                              (unaudited)
Real estate, at cost:
Land                                              $ 2,917,117    $ 2,791,147
Buildings and improvements                          7,603,513      7,108,328
Total real estate, at cost                          10,520,630     9,899,475
Less accumulated depreciation and amortization      (1,179,550)    (1,114,888)
Net real estate held for investment                 9,341,080      8,784,587
Real estate held for sale, net                      12,145         12,022
Net real estate                                     9,353,225      8,796,609
Cash and cash equivalents                           14,142         10,257
Accounts receivable, net                            40,329         39,323
Acquired lease intangible assets, net               986,063        935,459
Goodwill                                            15,598         15,660
Other assets, net                                   71,424         127,133
Total assets                                      $ 10,480,781   $ 9,924,441
LIABILITIES AND EQUITY
Distributions payable                             $ 41,543       $ 41,452
Accounts payable and accrued expenses               70,340         102,511
Acquired lease intangible liabilities, net          155,195        148,250
Other liabilities                                   40,769         44,030
Line of credit payable                              740,100        128,000
Term loan                                           70,000         70,000
Mortgages payable, net                              822,270        783,360
Notes payable, net                                  3,185,796      3,185,480
Total liabilities                                   5,126,013      4,503,083
Commitments and contingencies
Stockholders' equity:
Preferred stock and paid in capital, par value                    
$0.01 per share, 69,900,000 shares authorized and
25,150,000 shares issued and outstanding as of      609,363        609,363
March 31, 2014 and December 31, 2013
Common stock and paid in capital, par value $0.01
per share, 370,100,000 shares authorized,                         
207,631,143 shares issued and outstanding as of
March 31, 2014 and 207,485,073 shares issued and    5,774,395      5,767,878
outstanding at December 31, 2013
Distributions in excess of net income               (1,058,120)    (991,794)
Total stockholders' equity                          5,325,638      5,385,447
Noncontrolling interests                            29,130         35,911
Total equity                                        5,354,768      5,421,358
Total liabilities and equity                      $ 10,480,781   $ 9,924,441



Realty Income Performance vs. Major Stock Indices
                             Equity                                                   NASDAQ
           Realty Income     REIT Index ^(1)    DJIA               S&P 500            Composite
           Dividend  Total   Dividend  Total    Dividend  Total    Dividend  Total    Dividend  Total
           yield     return  yield     return   yield     return   yield     return   yield     return
                     ^(2)              ^(3)               ^(3)               ^(3)               ^(4)
10/18 to   10.5%     10.8%   7.7%      0.0%     2.9%      (1.6%)   2.9%      (1.2%)   0.5%      (1.7%)
12/31/1994
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%
2013       5.8%      (1.8%)  3.9%      2.9%     2.3%      29.6%    2.0%      32.4%    1.4%      38.3%
Q1 YTD     5.3%      10.9%   3.6%      3.3%     2.2%      (0.1%)   2.0%      1.8%     1.2%      0.5%
2014
Compounded Average
Annual Total Return  16.7%             10.9%              10.1%              9.4%               9.1%
^(5)

Note: All of these dividend yields are calculated as annualized dividends
based on the 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 period
     end less the closing stock price as of previous period, plus dividends
^(2) paid in period, divided by closing stock price as of end of previous
     period. Does not include reinvestment of dividends for the annual
     percentages.
^(3) Includes reinvestment of dividends. Source: 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, 2014, and (except for NASDAQ) assuming reinvestment of
^(5) dividends. 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, 2014 (dollars in
thousands):
                                                 Rental          Percentage
                                    Approximate    Revenue for     of
                      Number of               the Quarter     Rental
                                    Leasable       Ended
Property Type         Properties     Square      March 31,       Revenue
                                    Feet           2014^(1)
Retail                4,056         43,720,800     $   166,573     77.9%
Industrial and        81            16,007,300         22,962      10.7
distribution
Office                43            3,240,300          13,975      6.5
Manufacturing         13            3,715,200          5,278       2.5
Agriculture           15            184,500            5,209       2.4
Totals                4,208         66,868,100     $   213,997     100.0%

     Includes rental revenue for all properties owned by Realty Income at
     March 31, 2014, including revenue from properties reclassified as
^(1) discontinued operations of $13. Excludes revenue of $44 from properties
     owned by Crest and $94 from sold properties that were included in
     continuing operations.



Tenant Diversification
The largest tenants based on percentage of total portfolio rental revenue at
March 31, 2014 include the following:
Walgreens                 5.4%            Northern Tier Energy/Super  2.3%
                                          America
FedEx                     5.2%            Rite Aid                    2.0%
Dollar General            5.0%            Regal Cinemas               2.0%
Family Dollar             4.7%            CVS Pharmacy                2.0%
LA Fitness                4.6%            The Pantry                  1.7%
AMC Theatres              2.9%            Circle K                    1.6%
Diageo                    2.8%            Walmart/Sam's Club          1.5%
BJ's Wholesale            2.7%
Clubs



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
                   Quarter    For the Years Ended
                   Ended
                   March      Dec      Dec      Dec      Dec      Dec    Dec
                   31,        31,      31,      31,      31,      31,    31,
                   2014       2013     2012     2011     2010     2009   2008
Retail industries
Apparel stores     1.8%       1.9%     1.7%     1.4%     1.2%     1.1%   1.1%
Automotive         0.8        0.8      1.1      0.9      1.0      1.1    1.0
collision services
Automotive parts   1.2        1.2      1.0      1.2      1.4      1.5    1.6
Automotive service 1.8        2.1      3.1      3.7      4.7      4.8    4.8
Automotive tire    3.3        3.6      4.7      5.6      6.4      6.9    6.7
services
Book stores        *          *        0.1      0.1      0.1      0.2    0.2
Child care         2.3        2.8      4.5      5.2      6.5      7.3    7.6
Consumer           0.3        0.3      0.5      0.5      0.6      0.7    0.8
electronics
Convenience stores 10.3       11.2     16.3     18.5     17.1     16.9   15.8
Crafts and         0.5        0.5      0.3      0.2      0.3      0.3    0.3
novelties
Dollar stores      9.1        6.2      2.2      -        -        -      -
Drug stores        9.5        8.1      3.5      3.8      4.1      4.3    4.1
Education          0.4        0.4      0.7      0.7      0.8      0.9    0.8
Entertainment      0.6        0.6      0.9      1.0      1.2      1.3    1.2
Equipment services 0.1        0.1      0.1      0.2      0.2      0.2    0.2
Financial services 1.4        1.5      0.2      0.2      0.2      0.2    0.2
General            1.1        1.1      0.6      0.6      0.8      0.8    0.8
merchandise
Grocery stores     2.8        2.9      3.7      1.6      0.9      0.7    0.7
Health and fitness 6.9        6.3      6.8      6.4      6.9      5.9    5.6
Health care        1.1        1.1      -        -        -        -      -
Home furnishings   0.8        0.9      1.0      1.1      1.3      1.3    2.4
Home improvement   1.3        1.6      1.5      1.7      2.0      2.2    2.1
Jewelry            0.1        0.1      -        -        -        -      -
Motor vehicle      1.7        1.6      2.1      2.2      2.6      2.7    3.2
dealerships
Office supplies    0.4        0.5      0.8      0.9      0.9      1.0    1.0
Pet supplies and   0.8        0.8      0.6      0.7      0.9      0.9    0.8
services
Restaurants -      4.5        5.1      7.3      10.9     13.4     13.7   14.3
casual dining
Restaurants -      4.0        4.4      5.9      6.6      7.7      8.3    8.2
quick service
Shoe stores        0.1        0.1      0.1      0.2      0.1      -      -
Sporting goods     1.6        1.7      2.5      2.7      2.7      2.6    2.3
Theaters           5.4        6.2      9.4      8.8      8.9      9.2    9.0
Transportation     0.1        0.1      0.2      0.2      0.2      0.2    0.2
services
Wholesale clubs    4.1        3.9      3.2      0.7      -        -      -
Other              0.1        0.1      0.1      0.1      0.3      1.1    1.2
Retail industries  80.3%      79.8%    86.7%    88.6%    95.4%    98.3%  98.2%



Industry Diversification (continued)
                     Percentage of Rental Revenue^(1)
                     For the
                     Quarter  For the Years Ended
                     Ended
                     March    Dec 31,  Dec 31,  Dec     Dec     Dec     Dec
                     31,                        31,     31,     31,     31,
                     2014     2013     2012     2011    2010    2009    2008
Non-retail
industries
Aerospace            1.2      1.2      0.9      0.5     -       -       -
Beverages            2.9      3.3      5.1      5.6     3.0     -       -
Consumer appliances  0.5      0.6      0.1      -       -       -       -
Consumer goods       1.0      1.0      0.1      -       -       -       -
Crafts and novelties 0.1      0.1      -        -       -       -       -
Diversified          0.2      0.2      0.1      -       -       -       -
industrial
Electric utilities   0.1      *        -        -       -       -       -
Equipment services   0.5      0.4      0.3      0.2     -       -       -
Financial services   0.5      0.5      0.4      0.3     -       -       -
Food processing      1.4      1.5      1.3      0.7     -       -       -
General merchandise  0.2      -        -        -       -       -       -
Government services  1.3      1.4      0.1      0.1     0.1     0.1     -
Health care          0.8      0.8      *        *       -       -       -
Home furnishings     0.2      0.2      -        -       -       -       -
Insurance            0.1      0.1      *        -       -       -       -
Machinery            0.2      0.2      0.1      -       -       -       -
Other manufacturing  0.6      0.6      -        -       -       -       -
Packaging            0.8      0.9      0.7      0.4     -       -       -
Paper                0.1      0.2      0.1      0.1     -       -       -
Shoe stores          0.8      0.9      -        -       -       -       -
Telecommunications   0.6      0.7      0.8      0.7     -       -       -
Transportation       5.2      5.3      2.2      1.6     -       -       -
services
Other                0.4      0.1      1.0      1.2     1.5     1.6     1.8
Non-retail           19.7%    20.2%    13.3%    11.4%   4.6%    1.7%    1.8%
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 the
^(1) end of each period presented, including revenue from properties
     reclassified as discontinued operations. Excludes revenue from properties
     owned by Crest Net Lease, Inc., or Crest.



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 4,116 net leased, single-tenant properties as of March 31, 2014 (dollars in thousands):
Total Portfolio                                      Initial Expirations^(3)     Subsequent Expirations^(4)
                                   Rental                       Rental                      Rental
                                   Revenue                      Revenue                     Revenue
                                   for the                      for the                     for the
                                   Quarter   % of               Quarter  % of               Quarter  % of
        Number        Approx.      Ended     Total   Number     Ended    Total   Number     Ended    Total
        of Leases     Leasable     Mar 31,   Rental  of         Mar 31,  Rental  of         Mar 31,  Rental
                                                     Leases                      Leases
Year    Expiring^(1)  Sq. Feet     2014^(2)  Revenue Expiring   2014     Revenue Expiring   2014     Revenue
2014    119           846,900    $ 2,952     1.4%    39       $ 1,348    0.6%    80       $ 1,604    0.8%
2015    173           876,600      3,950     1.8     66         1,767    0.8     107        2,183    1.0
2016    204           1,231,400    4,947     2.3     121        2,812    1.3     83         2,135    1.0
2017    181           2,069,900    6,040     2.9     47         3,194    1.5     134        2,846    1.4
2018    284           3,576,000    11,155    5.3     166        7,890    3.7     118        3,265    1.6
2019    208           3,123,200    11,024    5.3     163        9,832    4.7     45         1,192    0.6
2020    113           3,513,000    9,137     4.3     101        8,461    4.0     12         676      0.3
2021    192           5,340,500    13,803    6.5     184        13,291   6.3     8          512      0.2
2022    226           7,250,700    14,780    7.0     217        14,500   6.9     9          280      0.1
2023    362           6,341,400    20,510    9.7     349        19,847   9.4     13         663      0.3
2024    148           2,407,900    7,647     3.6     148        7,647    3.6     -          -        -
2025    299           4,120,200    17,583    8.4     294        17,456   8.3     5          127      0.1
2026    237           3,471,200    12,524    5.9     234        12,441   5.9     3          83       *
2027    461           4,755,500    15,346    7.3     459        15,306   7.3     2          40       *
2028    288           5,913,900    15,833    7.5     286        15,780   7.5     2          53       *
2029 -  621           10,567,600   43,800    20.8    613        43,592   20.7    8          208      0.1
2043
Totals  4,116         65,405,900 $ 211,031   100.0%  3,487    $ 195,164  92.5%   629      $ 15,867   7.5%

*    Less than 0.1%
     Excludes 19 multi-tenant properties and 73 vacant unleased properties,
^(1) 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 $13 from properties reclassified as
     discontinued operations and excludes revenue of $2,965 from 19
^(2) multi-tenant properties and from 73 vacant and unleased properties at
     March 31, 2014, $94 from sold properties included in continuing
     operations and $44 from 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, 2014 (dollars in
thousands):
                                                         Rental     Percentage
                                            Approximate  Revenue    of
                                                         for
                                                         the
                        Number of  Percent  Leasable     Quarter    Rental
                                                         Ended
State                   Properties Leased   Square Feet  March 31,  Revenue
                                                         2014^(1)
Alabama     127        98%      1,029,300    $ 3,252    1.5%
Alaska     2          100      128,500        307      0.1
Arizona     114        96       1,235,000      5,564    2.6
Arkansas     54         96       793,200        1,556    0.7
California     161        98       4,780,800      22,716   10.6
Colorado     69         99       792,100        2,885    1.4
Connecticut     24         96       490,500        2,061    1.0
Delaware     16         100      29,500         420      0.2
Florida     320        99       3,363,700      12,995   6.1
Georgia     229        98       2,917,600      8,976    4.2
Hawaii     --         --       --             --       *
Idaho     12         100      87,000         427      0.2
Illinois     158        99       4,249,400      12,283   5.7
Indiana     105        99       1,166,100      4,950    2.3
Iowa     35         97       2,751,700      3,353    1.6
Kansas     82         99       1,638,200      3,404    1.6
Kentucky     54         98       886,900        3,046    1.4
Louisiana     88         97       954,300        2,700    1.3
Maine                   9          100      126,400        837      0.4
Maryland     32         100      654,100        3,709    1.7
Massachusetts     84         96       761,000        3,192    1.5
Michigan     105        98       955,200        3,221    1.5
Minnesota     155        100      1,153,200      7,346    3.4
Mississippi     121        98       1,551,500      3,677    1.7
Missouri     131        98       2,554,000      7,788    3.6
Montana     1          100      5,400          13       *
Nebraska     31         100      708,700        1,663    0.8
Nevada     22         95       413,000        1,287    0.6
New Hampshire     20         100      320,100        1,238    0.6
New Jersey     65         98       497,000        2,642    1.2
New Mexico     26         100      208,000        563      0.3
New York     85         95       2,048,900      10,185   4.8
North Carolina     147        99       1,496,900      5,548    2.6
North Dakota     7          100      66,000         117      0.1
Ohio     211        98       5,004,600      11,840   5.5
Oklahoma     124        100      1,583,700      3,777    1.8
Oregon     25         100      525,400        1,747    0.8
Pennsylvania     146        99       1,747,500      6,943    3.3
Rhode Island     4          100      157,200        459      0.2
South Carolina     133        99       963,700        4,368    2.1
South Dakota     11         100      133,500        244      0.1
Tennessee     191        97       2,994,700      5,995    2.8
Texas     415        98       7,369,800      20,892   9.8
Utah     13         100      749,000        1,337    0.6
Vermont     6          100      100,700        499      0.2
Virginia     140        97       2,628,600      6,883    3.2
Washington     38         100      415,300        1,556    0.7
West Virginia     12         100      261,200        882      0.4
Wisconsin     41         95       1,370,600      2,442    1.1
Wyoming     3          100      21,100         63       *
Puerto Rico             4          100      28,300         149      0.1
Totals\Average          4,208      98%      66,868,100   $ 213,997  100.0%

*    Less than 0.1%
     Includes rental revenue for all properties owned by Realty Income at
     March 31, 2014, including revenue from properties reclassified as
^(1) discontinued operations of $13. Excludes revenue of $44 from properties
     owned by Crest and $94 from sold properties that were included in
     continuing operations.

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SOURCE Realty Income Corporation

Website: http://www.realtyincome.com
Contact: Paul M. Meurer, Executive Vice President, Chief Financial Officer &
Treasurer, (760) 741-2111 ext. 1109
 
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