EX-99.1 2 a14-17417_2ex99d1.htm EX-99.1

Exhibit 99.1

| Q2 2014 SUPPLEMENTAL OPERATING & FINANCIAL DATA NYSE: O

| TABLE OF CONTENTS Q2 2014 Supplemental Operating & Financial Data 2 Corporate Overview 3 Financial Summary Consolidated Statements of Income 4 Funds from Operations (FFO) 5 Adjusted Funds from Operations (AFFO) 6 Consolidated Balance Sheets 7 Debt Summary 8 Debt Maturities 9 Capitalization & Financial Ratios 10 EBITDA & Coverage Ratios 11 Debt Covenants 12 Transaction Summary Investment Summary 13 Disposition Summary 14 Development Pipeline 15 Real Estate Portfolio Summary Tenant Diversification 16 Industry Diversification 17 Geographic Diversification 19 Property Type Diversification 20 Same Store Rental Revenue 21 Leasing Data Occupancy 23 Leasing Activity 24 Expirations 25 This Supplemental Operating & Financial Data should be read in connection with the Company's second quarter 2014 earnings press release (included as Exhibit 99.1 of the Company's Current Report on 8-K, filed on July 24, 2014) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data.

| CORPORATE OVERVIEW 3 Q2 2014 Supplemental Operating & Financial Data Senior Management John P. Case, Chief Executive Officer and Member of the Board of Directors Gary M. Malino, President and Chief Operating Officer Richard G. Collins, Executive VP, Portfolio Management Paul M. Meurer, Executive VP, Chief Financial Officer and Treasurer Michael R. Pfeiffer, Executive VP, General Counsel and Secretary Sumit Roy, Executive VP, Chief Investment Officer Credit Ratings Standard & Poor’s BBB+ Stable Outlook Moody's Baa1 Stable Outlook Fitch BBB+ Stable Outlook Dividend Information as of June 2014 Current annualized dividend is $2.19 per share Compounded average annual dividend growth rate of approximately 5% 527 consecutive monthly dividends 67 consecutive quarter dividend increases Corporate Headquarters 600 La Terraza Blvd. Escondido, California 92025 Phone: (760) 741-2111 Website: www.realtyincome.com Transfer Agent Wells Fargo Shareholder Services Phone: (877) 218-2434 Email: stocktransfer@wellsfargo.com Website: www.shareowneronline.com Corporate Profile Realty Income, The Monthly Dividend Company®, is a publicly traded real estate company with the primary business objective of generating dependable monthly cash dividends from a consistent and predictable level of cash flow from operations. Our monthly dividends are supported by the cash flow from our portfolio of properties leased to commercial tenants. We have in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, and capital markets expertise. Over the past 45 years, Realty Income has been acquiring and managing freestanding commercial properties that generate rental revenue under long-term, net lease agreements. Portfolio Overview At June 30, 2014, we owned a diversified portfolio of 4,263 properties located in 49 states and Puerto Rico, with over 69.1 million square feet of leasable space. Our properties are leased to 228 different commercial tenants doing business in 47 separate industries. Approximately 78% of our quarterly rental revenues were generated from retail properties, 11% from industrial and distribution properties, and the remaining 11% were from other property types. Our occupancy rate as of June 30, 2014 was 98.3%, with a weighted average remaining lease term of approximately 10.6 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O" June 30, 2014 Closing price $ 44.42 Shares and units outstanding 223,464,824 Market value of common equity $ 9,926,307,000 Total market capitalization $ 15,138,136,000

| CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data - unaudited) 4 Q2 2014 Supplemental Operating & Financial Data Three months ended June 30, Six months ended June 30, 2014 2013 2014 2013 REVENUE Rental $ 221,868 $ 180,089 $ 435,989 347,887 Tenant reimbursements 6,169 4,485 12,597 10,512 Other 609 1,869 1,632 3,566 Total revenue 228,646 186,443 450,218 361,965 EXPENSES Depreciation and amortization 92,894 73,906 182,864 140,655 Interest 52,712 39,232 104,432 80,831 General and administrative 11,587 12,088 24,473 23,716 Property (including reimbursable) 10,127 7,754 20,704 17,326 Income taxes 570 624 1,661 1,201 Provisions for impairment 499 290 2,182 290 Merger-related costs - 605 - 12,635 Total expenses 168,389 134,499 336,316 276,654 Gain on sales of real estate 1,964 - 3,236 - Income from continuing operations 62,221 51,944 117,138 85,311 Income from discontinued operations 20 4,572 3,097 44,432 Net income 62,241 56,516 120,235 129,743 Net income attributable to noncontrolling interests (339 ) (77 ) (671 ) (86 ) Net income attributable to the Company 61,902 56,439 119,564 129,657 Preferred stock dividends (10,482 ) (10,482 ) (20,965 ) (20,965 ) Net income available to common stockholders $ 51,420 $ 45,957 $ 98,599 $ 108,692 Amounts available to common stockholders per common share: Income from continuing operations, basic and diluted $ 0.23 $ 0.21 $ 0.45 $ 0.35 Net income, basic and diluted $ 0.23 $ 0.23 $ 0.46 $ 0.59

| FUNDS FROM OPERATIONS (FFO) (dollars in thousands, except per share data) 5 Q2 2014 Supplemental Operating & Financial Data (1) FFO for the three and six months ended June 30, 2013, has been normalized to exclude merger-related costs related to our acquisition of American Realty Capital Trust, Inc., or ARCT. Three months ended June 30, Six months ended June 30, 2014 2013 2014 2013 Net income available to common stockholders $ 51,420 $ 45,957 $ 98,599 $ 108,692 Depreciation and amortization: Continuing operations 92,894 73,906 182,864 140,655 Discontinued operations - 632 - 1,146 Depreciation of furniture, fixtures and equipment (104 ) (67 ) (196 ) (128 ) Provisions for impairment on investment properties: Continuing operations 499 290 2,182 290 Discontinued operations - 2,206 - 2,662 Gain on sale of investment properties: Continuing operations (1,964 ) - (3,236 ) - Discontinued operations - (5,744 ) (2,607 ) (44,304 ) Merger-related costs (1) - 605 - 12,635 FFO adjustments allocable to noncontrolling interests (336 ) (220 ) (696 ) (395 ) FFO available to common stockholders $ 142,409 $ 117,565 $ 276,910 $ 221,253 FFO per common share, basic and diluted $ 0.64 $ 0.60 $ 1.29 $ 1.20 Distributions paid to common stockholders $ 121,229 $ 106,692 $ 234,643 $ 191,669 FFO in excess of distributions paid to common stockholders $ 21,180 $ 10,873 $ 42,267 $ 29,584 Weighted average number of common shares used for computation per share: Basic 220,979,955 195,574,014 214,039,692 183,714,191 Diluted 221,043,619 195,759,091 214,089,629 183,873,647

| ADJUSTED FUNDS FROM OPERATIONS (AFFO) (dollars in thousands, except per share data) 6 Q2 2014 Supplemental Operating & Financial Data (1) See reconciling items for FFO presented under "Funds from Operations (FFO)." Three months ended June 30, Six months ended June 30, 2014 2013 2014 2013 Net income available to common stockholders $ 51,420 $ 45,957 $ 98,599 $ 108,692 Cumulative adjustments to calculate FFO(1) 90,989 71,608 178,311 112,561 FFO available to common stockholders 142,409 117,565 276,910 221,253 Amortization of share-based compensation 2,752 3,653 5,449 7,498 Amortization of deferred financing costs 1,165 1,015 2,241 2,021 Amortization of net mortgage premiums (3,009 ) (2,494 ) (5,394 ) (4,441 ) (Gain) loss on interest rate swaps 984 (1,738 ) 1,042 (1,286 ) Capitalized leasing costs and commissions (275 ) (361 ) (467 ) (774 ) Capitalized building improvements (1,090 ) (1,255 ) (2,267 ) (2,520 ) Straight-line rent (3,977 ) (3,250 ) (7,913 ) (6,454 ) Amortization of above and below-market leases 2,213 2,429 4,207 4,223 AFFO adjustments allocable to noncontrolling interests 6 20 14 27 Total AFFO available to common stockholders $ 141,178 $ 115,584 $ 273,822 $ 219,547 AFFO per common share: Basic $ 0.64 $ 0.59 $ 1.28 $ 1.20 Diluted $ 0.64 $ 0.59 $ 1.28 $ 1.19 Distributions paid to common stockholders $ 121,229 $ 106,692 $ 234,643 $ 191,669 AFFO in excess of distributions paid to common stockholders $ 19,949 $ 8,892 $ 39,179 $ 27,878 Weighted average number of common shares used for computation per share: Basic 220,979,955 195,574,014 214,039,692 183,714,191 Diluted 221,043,619 195,759,091 214,089,629 183,873,647

| CONSOLIDATED BALANCE SHEETS (dollars in thousands, except per share amounts) 7 Q2 2014 Supplemental Operating & Financial Data June 30, 2014 December 31, 2013 ASSETS (unaudited) Real estate, at cost: Land $ 2,991,946 $ 2,791,147 Buildings and improvements 7,869,046 7,108,328 Total real estate, at cost 10,860,992 9,899,475 Less accumulated depreciation and amortization (1,249,461 ) (1,114,888 ) Net real estate held for investment 9,611,531 8,784,587 Real estate held for sale, net 9,598 12,022 Net real estate 9,621,129 8,796,609 Cash and cash equivalents 8,908 10,257 Accounts receivable, net 43,751 39,323 Acquired lease intangible assets, net 1,048,139 935,459 Goodwill 15,556 15,660 Other assets, net 74,919 127,133 Total assets $ 10,812,402 $ 9,924,441 LIABILITIES AND EQUITY Distributions payable $ 44,353 $ 41,452 Accounts payable and accrued expenses 98,973 102,511 Acquired lease intangible liabilities, net 174,769 148,250 Other liabilities 36,682 44,030 Line of credit payable 70,800 128,000 Term loan 70,000 70,000 Mortgages payable, net 916,454 783,360 Notes payable, net 3,535,957 3,185,480 Total liabilities 4,947,988 4,503,083 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 June 30, 2014 and December 31, 2013 609,363 609,363 Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 222,623,256 shares issued and outstanding as of June 30, 2014 and 207,485,073 shares issued and outstanding at December 31, 2013 6,357,084 5,767,878 Distributions in excess of net income (1,130,746 ) (991,794 ) Total stockholders' equity 5,835,701 5,385,447 Noncontrolling interests 28,713 35,911 Total equity 5,864,414 5,421,358 Total liabilities and equity $ 10,812,402 $ 9,924,441

| DEBT SUMMARY (dollars in thousands) 8 Q2 2014 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date June 30, 2014 % of Debt June 30, 2014 until Maturity Credit Facility Credit Facility (1) May 9, 2017 $ 70,800 1.4% 1.22% 2.9 years Unsecured Term Loan Term Loan (2) January 21, 2018 70,000 1.4% 1.35% 3.6 years Senior Unsecured Notes and Bonds 5.50% Notes due 2015 November 15, 2015 150,000 3.3% 5.50% 5.95% Notes due 2016 September 15, 2016 275,000 6.0% 5.95% 5.375% Notes due 2017 September 15, 2017 175,000 3.8% 5.38% 2.00% Notes due 2018 January 31, 2018 350,000 7.6% 2.00% 6.75% Notes due 2019 August 15, 2019 550,000 12.0% 6.75% 5.75% Notes due 2021 January 15, 2021 250,000 5.5% 5.75% 3.25% Notes due 2022 October 15, 2022 450,000 9.8% 3.25% 4.65% Notes due 2023 August 1, 2023 750,000 16.4% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 7.6% 3.88% 5.875% Bonds due 2035 March 15, 2035 250,000 5.5% 5.88% Principal amount 3,550,000 Unamortized discounts (14,043) Carrying value 3,535,957 77.2% 4.80% 7.4 years Mortgages Payable 60 mortgages on 266 properties August 2014 - June 2032 892,279 (3) 19.5% 5.09% 4.1 years Unamortized premiums 24,176 Carrying value 916,455 20.0% TOTAL DEBT $ 4,583,079 (4) 4.74% Fixed Rate $ 4,473,170 98% Variable Rate $ 109,909 2% (1) We have a $1.5 billion unsecured acquisition credit facility with an initial term that expires in May 2016. It includes, at our election, a one-year extension option, at a cost of 0.2% of the facility commitment, or $3 million. As of June 30, 2014, approximately $1.43 billion was available on the credit facility. (2) Borrowing under the term loan bears interest at the current one month LIBOR, plus 1.2%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.15%. (3) The mortgages are at fixed interest rates except for five mortgages on 14 properties totaling $77.6 million at June 30, 2014. $38.5 million of principal associated with these variable rate mortgages is subject to arrangements which limit our exposure to interest rate risk. (4) Excludes non-cash unamortized original issuance discounts recorded on the senior unsecured notes and bonds, as well as non-cash unamortized premiums recorded on the mortgages payable.

| DEBT MATURITIES (dollars in millions) 9 Q2 2014 Supplemental Operating & Financial Data Consolidated Debt Maturities Year of Credit Term Senior Unsecured Mortgages Average Maturity Facility Loan Notes and Bonds Payable Total Interest Rate (1) 2014 $ - $ - $ - $ 57.4 $ 57.4 6.63% 2015 - - 150.0 125.3 275.3 5.35% 2016 - - 275.0 248.4 523.4 5.39% 2017 70.8 - 175.0 142.3 388.1 5.53% 2018 - 70.0 350.0 15.0 435.0 2.02% Thereafter - - 2,600.0 303.9 2,903.9 4.94% Totals $ 70.8 $ 70.0 $ 3,550.0 $ 892.3 $ 4,583.1 (1) Average interest rate for 2017 excludes the credit facility. Mortgages Payable Maturities by Quarter Year of First Second Third Fourth Average Maturity Quarter Quarter Quarter Quarter Total Interest Rate 2014 $ - $ - $ 55.6 $ 1.8 $ 57.4 6.63% 2015 7.6 40.4 38.8 38.5 125.3 5.17% 2016 101.1 128.4 16.8 2.1 248.4 4.76% 2017 42.1 36.4 39.3 24.5 142.3 5.72% 2018 1.1 11.9 1.0 1.0 15.0 5.49% Thereafter 303.9 4.71% Totals $ 151.9 $ 217.1 $ 151.5 $ 67.9 $ 892.3

| CAPITALIZATION & FINANCIAL RATIOS (dollars in thousands, except per share amounts) 10 3.9 Liquidity as of June 30, 2014 Cash on Hand $ 8,908 Availability under Credit Facility 1,429,200 $ 1,438,108 Capital Structure as of June 30, 2014 Q2 2014 Supplemental Operating & Financial Data Capitalization as of June 30, 2014 Carrying Debt Value Credit Facility $ 70,800 Unsecured Term Loan 70,000 Senior Unsecured Notes and Bonds 3,550,000 Mortgage Loans 892,279 Total Debt $ 4,583,079 Stock Redemption Market Equity Shares/units Price Price (2) Value Common Stock (NYSE: O) 222,623,256 $ 44.42 $ 9,888,925 Common units (1) 841,568 $ 44.42 37,382 Common Equity 9,926,307 Class E Preferred Stock 8,800,000 $ 25.00 220,000 Class F Preferred Stock 16,350,000 $ 25.00 408,750 Total Equity $ 10,555,057 Total Market Capitalization $ 15,138,136 Debt/Total Market Capitalization 30.3% Debt and Preferred Stock/Total Market Capitalization 34.5% (1) Common units are exchangeable into cash or common stock, at our option, at a conversion ratio of 1:1. (2) The price presented for the Class E Preferred Stock is the liquidation price. Dividend Data YTD YTD Year over Year Q2 2014 Q2 2013 Growth Rate Common Dividend Paid per Share $ 1.094 $ 1.057 3.5% AFFO per Share (diluted) $ 1.28 $ 1.19 7.6% AFFO Payout Ratio 85.5% 88.8%

| EBITDA & COVERAGE RATIOS (dollars in thousands) 11 Debt Service Coverage (2) Fixed Charge Coverage (3) 3.9 Q2 2014 Supplemental Operating & Financial Data Reconciliation of Net Income to EBITDA Three months ended June 30, 2014 Net income $ 62,241 Interest 52,712 Taxes 570 Depreciation 92,894 Impairment loss 499 Loss on interest rate swaps 984 Gain on sales (1,964) Discontinued operations (EBITDA components) - Quarterly EBITDA $ 207,936 Annualized EBITDA $ 831,744 Debt/EBITDA 5.5 (1) (1) EBITDA means, for the most recent quarter, annualized earnings (net income) before (i) interest expense, (ii) income and franchise taxes, (iii) real estate depreciation and amortization, (iv) impairment losses, (v) non-cash loss (gain) on swaps, and (vi) gain on sales (Realty Income properties). (2) Refer to footnote 1 on page 12 for a detailed description of the calculation of debt service coverage. (3) Fixed charge coverage is calculated in exactly the same manner as the debt service coverage (defined on page 12), except that preferred stock dividends are also added to the denominator.

| DEBT COVENANTS 12 Q2 2014 Supplemental Operating & Financial Data As of June 30, 2014 The following is a summary of the key financial covenants for our senior unsecured notes and bonds, as defined and calculated per their terms. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show our ability to incur additional debt under the terms of our notes only and are not measures of our liquidity or performance. Required Actuals Limitation on incurrence of total debt < 60% of adjusted undepreciated assets 42.0% Limitation on incurrence of secured debt < 40% of adjusted undepreciated assets 8.4% Debt service coverage (trailing 12 months) (1) > 1.5 x 3.7x Maintenance of total unencumbered assets > 150% of unsecured debt 250.7% (1) This covenant is calculated on a pro forma basis for the preceding four-quarter period on the assumption that: (i) the incurrence of any Debt (as defined in the covenants) incurred by us since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four-quarter period), (ii) the repayment or retirement of any of our Debt since the first day of such four-quarter period, and (iii) any acquisition or disposition by us of any asset or group since the first day of such four-quarters had in each case occurred on July 1, 2013, and subject to certain additional adjustments. Such pro forma ratio has been prepared on the basis required by that debt service covenant, reflects various estimates and assumptions and is subject to other uncertainties, and therefore does not purport to reflect what our actual debt service coverage ratio would have been had transactions referred to in clauses (i), (ii) and (iii) of the preceding sentence occurred as of July 1, 2013, nor does it purport to reflect our debt service coverage ratio for any future period.

| INVESTMENT SUMMARY (dollars in thousands) 13 Q2 2014 Supplemental Operating & Financial Data First Quarter 2014 Number of Properties Investment Cash Rents Leasable Square feet Cash Capitalization Rate(1) Weighted Average Lease Term (Years) New Property Acquisitions 324 $ 643,326 $ 44,675 4,207,916 6.9% 14.2 Properties Under Development (2) 13 13,350 1,125 380,858 8.4% 15.2 Total Real Estate Investments 337 $ 656,676 $ 45,800 4,588,774 7.0% 14.2 Approximately 84% of the annualized revenue generated by these investments is from investment grade-rated tenants. Second Quarter 2014 Number of Properties Investment Cash Rents Leasable Square feet Cash Capitalization Rate(1) Weighted Average Lease Term (Years) New Property Acquisitions 57 $ 382,870 $ 27,680 2,247,813 7.2% 10.4 Properties Under Development (2) 16 22,255 1,912 155,988 8.6% 13.2 Total Real Estate Investments 73 $ 405,125 $ 29,592 2,403,801 7.3% 10.6 Approximately 55% of the annualized revenue generated by these investments is from investment grade-rated tenants. Year-to-date 2014 Number of Properties Investment Cash Rents Leasable Square feet Cash Capitalization Rate(1) Weighted Average Lease Term (Years) New Property Acquisitions 381 $ 1,026,196 $ 72,355 6,455,729 7.1% 12.7 Properties Under Development (2) 21 35,605 3,037 536,846 8.5% 14.0 Total Real Estate Investments 402 $ 1,061,801 $ 75,392 6,992,575 7.1% 12.8 Approximately 73% of the annualized revenue generated by these investments is from investment grade-rated tenants. (1) Cash capitalization rates are computed as contractual cash net operating income for the first twelve months of each lease following the acquisition date, divided by the total cost of the property (including all expenses borne by Realty Income). (2) Includes investments during the period in new development, expansion of existing properties, and redevelopment of existing properties.

| DISPOSITION SUMMARY (dollars in thousands) 14 Q2 2014 Supplemental Operating & Financial Data First Quarter 2014 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate Occupied 8 $ 9,899 $ 7,446 $ 10,649 8.3% Vacant 3 2,811 1,297 2,041 - 11 $ 12,710 $ 8,743 $ 12,690 Second Quarter 2014 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate Occupied 4 $ 4,584 $ 3,232 $ 5,215 8.4% Vacant 2 3,942 1,795 1,818 - 6 $ 8,526 $ 5,027 $ 7,033 Year-to-date 2014 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate Occupied 12 $ 14,483 $ 10,678 $ 15,864 8.4% Vacant 5 6,753 3,092 3,859 - 17 $ 21,236 $ 13,770 $ 19,723 The unlevered internal rate of return on properties sold during the first quarter was 10.2% The unlevered internal rate of return on properties sold during the second quarter was 8.8% The unlevered internal rate of return on properties sold during the first six months was 9.7%

| DEVELOPMENT PIPELINE (dollars in thousands) 15 Q2 2014 Supplemental Operating & Financial Data Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development(1) 12 $ 14,546 $ 27,553 $ 42,099 100% Expansion of existing properties 6 11,064 4,504 15,568 100% Redevelopment of existing properties 5 881 1,889 2,770 100% 23 $ 26,491 $ 33,946 $ 60,437 (1) Includes build-to-suit developments and forward take-out commitments on development properties with leases in place. (2) Rental revenue commencement dates on properties under development range between July 2014 and November 2014.

| TENANT DIVERSIFICATION 16 Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at June 30, 2014 include the following: Investment Grade Tenants(1): Number of Properties 1,764 Percentage of Annualized Rents 44.3% (1) Investment grade tenants are defined as tenants with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). 44% of our annualized rental revenue is generated from properties leased to investment grade tenants, of which 5% are subsidiaries of investment grade companies. Q2 2014 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P)(1) Walgreens 111 5.2 % Baa1/ BBB FedEx 38 5.0 % Baa1/ BBB Dollar General 502 5.0 % Baa3/ BBB- LA Fitness 45 4.6 % - Family Dollar 450 4.5 % Baa3/ BBB- BJ's Wholesale Clubs 15 2.9 % - AMC Theatres 20 2.8 % - Diageo 17 2.7 % A3/ A- Northern Tier Energy/Super America 134 2.3 % - Regal Cinemas 20 2.1 % - Rite Aid 58 2.0 % - CVS Pharmacy 49 1.9 % Baa1/ BBB+ The Pantry 145 1.7 % - Circle K 150 1.6 % Baa3/ BBB- Walmart/Sam's Club 19 1.5 % Aa2/ AA GPM Investments/Fas Mart 141 1.4 % - NPC International 202 1.4 % - TBC Corporation 70 1.3 % - Smart & Final 36 1.2 % - FreedomRoads/Camping World 18 1.2 % - (1) Diageo (A-) and Walmart/Sam’s Club (AA) are the only two tenants in our Top 20 that currently receive ratings from Fitch. EBITDAR/Rent Ratio on Retail Properties 2.6x (1) (1) Based on most recently analyzed information from retail properties providing this information. The information that we receive from our retail tenants is not independently verified by us.

| Percentage of Rental Revenue (1) For the Quarter Ended For the Years Ended June 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2014 2013 2012 2011 2010 2009 2008 Retail industries Apparel stores 1.9 % 1.9 % 1.7 % 1.4 % 1.2 % 1.1 % 1.1 % Automotive collision services 0.8 0.8 1.1 0.9 1.0 1.1 1.0 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 services 3.2 3.6 4.7 5.6 6.4 6.9 6.7 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 electronics 0.3 0.3 0.5 0.5 0.6 0.7 0.8 Convenience stores 10.2 11.2 16.3 18.5 17.1 16.9 15.8 Crafts and novelties 0.5 0.5 0.3 0.2 0.3 0.3 0.3 Dollar stores 9.8 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 merchandise 1.2 1.1 0.6 0.6 0.8 0.8 0.8 Grocery stores 3.0 2.9 3.7 1.6 0.9 0.7 0.7 Health and fitness 7.0 6.3 6.8 6.4 6.9 5.9 5.6 Health care 1.1 1.1 - - - - - Home furnishings 0.7 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 dealerships 1.5 1.6 2.1 2.2 2.6 2.7 3.2 Office supplies 0.4 0.5 0.8 0.9 0.9 1.0 1.0 Pet supplies and services 0.7 0.8 0.6 0.7 0.9 0.9 0.8 Restaurants - casual dining 4.3 5.1 7.3 10.9 13.4 13.7 14.3 Restaurants - quick service 3.5 4.4 5.9 6.6 7.7 8.3 8.2 Shoe stores 0.1 0.1 0.1 0.2 0.1 - - Sporting goods 1.7 1.7 2.5 2.7 2.7 2.6 2.3 Theaters 5.2 6.2 9.4 8.8 8.9 9.2 9.0 Transportation services 0.1 0.1 0.2 0.2 0.2 0.2 0.2 Wholesale clubs 4.2 3.9 3.2 0.7 - - - Other 0.1 0.1 0.1 0.1 0.3 1.1 1.2 Retail industries 80.2 % 79.8 % 86.7 % 88.6 % 95.4 % 98.3 % 98.2 % INDUSTRY DIVERSIFICATION 17 Q2 2014 Supplemental Operating & Financial Data * Less than 0.1% (1) Includes rental revenue for all properties owned by Realty Income at the 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.

| INDUSTRY DIVERSIFICATION (CONT’D) 18 Q2 2014 Supplemental Operating & Financial Data * Less than 0.1% Percentage of Rental Revenue(1) For the Quarter Ended For the Years Ended June 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2014 2013 2012 2011 2010 2009 2008 Non-retail industries Aerospace 1.2 1.2 0.9 0.5 - - - Beverages 2.8 3.3 5.1 5.6 3.0 - - Consumer appliances 0.5 0.6 0.1 - - - - Consumer goods 0.9 1.0 0.1 - - - - Crafts and novelties 0.1 0.1 - - - - - Diversified industrial 0.5 0.2 0.1 - - - - Electric utilities 0.1 * - - - - - Equipment services 0.5 0.4 0.3 0.2 - - - Financial services 0.4 0.5 0.4 0.3 - - - Food processing 1.4 1.5 1.3 0.7 - - - General merchandise 0.4 - - - - - - Government services 1.3 1.4 0.1 0.1 0.1 0.1 - Health care 0.7 0.8 * * - - - Home furnishings 0.2 0.2 - - - - - Home improvement 0.1 - - - - - - Insurance 0.1 0.1 * - - - - Machinery 0.1 0.2 0.1 - - - - Other manufacturing 0.7 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 0.7 0.7 0.8 0.7 - - - Transportation services 5.1 5.3 2.2 1.6 - - - Other 0.3 0.1 1.0 1.2 1.5 1.6 1.8 Non-retail industries 19.8 % 20.2 % 13.3 % 11.4 % 4.6 % 1.7 % 1.8 % Totals 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (1) Includes rental revenue for all properties owned by Realty Income at the 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.

| GEOGRAPHIC DIVERSIFICATION (dollars in thousands) 19 (1) Includes rental revenue for all properties owned by Realty Income at June 30, 2014, including revenue from properties reclassified as discontinued operations of $18. Excludes revenue of $44 from properties owned by Crest and $406 from sold properties that were included in continuing operations. Q2 2014 Supplemental Operating & Financial Data * Less than 0.1% Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet June 30, 2014 (1) Revenue Alabama 127 98 % 1,029,300 $ 3,428 1.5 % Alaska 2 100 128,500 307 0.1 Arizona 114 96 1,409,800 5,741 2.6 Arkansas 53 98 782,600 1,655 0.7 California 165 99 5,112,300 22,717 10.3 Colorado 72 99 1,045,400 2,951 1.3 Connecticut 25 96 536,900 2,281 1.0 Delaware 17 100 78,300 541 0.2 Florida 320 99 3,363,700 13,555 6.1 Georgia 233 98 3,029,200 9,428 4.3 Hawaii -- -- -- -- -- Idaho 12 100 87,000 433 0.2 Illinois 160 99 4,406,500 12,681 5.7 Indiana 106 99 1,172,800 5,271 2.4 Iowa 35 94 2,751,700 3,326 1.5 Kansas 82 99 1,638,200 3,443 1.6 Kentucky 56 98 902,200 3,131 1.4 Louisiana 87 98 944,300 2,786 1.3 Maine 9 100 126,400 837 0.4 Maryland 33 100 772,000 4,203 1.9 Massachusetts 83 96 758,000 3,425 1.5 Michigan 106 98 1,009,400 3,285 1.5 Minnesota 155 100 1,153,200 7,350 3.3 Mississippi 121 98 1,551,500 3,800 1.7 Missouri 133 98 2,568,400 8,047 3.6 Montana 1 100 5,400 13 * Nebraska 31 100 708,700 1,750 0.8 Nevada 22 95 413,000 1,289 0.6 New Hampshire 20 100 320,100 1,467 0.7 New Jersey 66 98 562,900 3,350 1.5 New Mexico 29 100 277,400 638 0.3 New York 87 95 2,203,500 10,587 4.8 North Carolina 149 99 1,508,100 5,689 2.6 North Dakota 7 100 66,000 118 0.1 Ohio 213 98 5,058,200 12,118 5.5 Oklahoma 124 99 1,583,700 3,814 1.7 Oregon 25 100 525,400 1,844 0.8 Pennsylvania 147 99 1,800,600 7,071 3.2 Rhode Island 4 100 157,200 929 0.4 South Carolina 134 99 1,011,100 4,389 2.0 South Dakota 11 100 133,500 244 0.1 Tennessee 194 96 3,005,500 5,946 2.7 Texas 434 98 7,801,800 21,387 9.7 Utah 13 100 749,000 1,337 0.6 Vermont 6 100 100,700 492 0.2 Virginia 140 97 2,628,600 6,979 3.2 Washington 38 100 415,300 1,575 0.7 West Virginia 12 100 261,200 883 0.4 Wisconsin 43 95 1,481,600 2,693 1.2 Wyoming 3 100 21,100 63 * Puerto Rico 4 100 28,300 149 0.1 Totals/Average 4,263 98 % 69,185,500 $ 221,436 100.0 %

| PROPERTY TYPE DIVERSIFICATION (dollars in thousands) 20 Approximate Rental Revenue for the Percentage of Number of Leasable Quarter Ended Rental Property Type Properties Square Feet June 30, 2014 (1) Revenue Retail 4,102 45,327,100 $ 172,153 77.7 % Industrial and distribution 86 16,278,800 23,463 10.6 Office 46 3,519,900 15,004 6.8 Manufacturing 14 3,875,200 5,607 2.5 Agriculture 15 184,500 5,209 2.4 Totals 4,263 69,185,500 $ 221,436 100.0 % (1) Includes rental revenue for all properties owned by Realty Income at June 30, 2014, including revenue from properties reclassified as discontinued operations of $18. Excludes revenue of $44 from properties owned by Crest and $406 from sold properties that were included in continuing operations. Q2 2014 Supplemental Operating & Financial Data

| SAME STORE RENTAL REVENUE (dollars in thousands) 21 Same Store Rental Revenue Number of Properties 2,774 Square Footage 35,916,267 Q2 2014 $ 130,450 Q2 2013 $ 128,674 Increase (in dollars) $ 1,776 Increase (percent) 1.4% Q2 2014 Supplemental Operating & Financial Data Top 3 Industries Contributing to the Change Quarter Ended Quarter Ended Net % Change Industry June 30, 2014 June 30, 2013 Change by Industry Convenience Stores $ 19,777 $ 19,237 $ 540 2.8% Automotive Tire Services 6,031 5,655 376 6.7% Health and Fitness 9,487 9,252 235 2.5% Same Store Rental Revenue Number of Properties 2,774 Square Footage 35,916,267 YTD Q2 2014 $ 261,533 YTD Q2 2013 $ 257,816 Increase (in dollars) $ 3,717 Increase (percent) 1.4% Top 3 Industries Contributing to the Change Six Months Ended Six Months Ended Net % Change Industry June 30, 2014 June 30, 2013 Change by Industry Convenience Stores $ 39,283 $ 38,379 $ 904 2.4% Automotive Tire Services 11,996 11,286 710 6.3% Restaurants - Quick Service 13,777 13,326 451 3.4% Second Quarter – Quarter-to-date Second Quarter – Year-to-date

| SAME STORE RENTAL REVENUE (CONT’D) (dollars in thousands) 22 Q2 2014 Supplemental Operating & Financial Data Same Store Pool Defined For purposes of determining the same store rent property pool, we include all properties that were owned for the entire year-to-date period, for both the current and prior year except for properties during the current or prior year that were: (i) vacant at any time, (ii) under development or redevelopment, or (iii) involved in eminent domain and rent was reduced. Second Quarter – Quarter-to-date Quarter ended Quarter ended Net % Change by Contribution by Property Type June 30, 2014 June 30, 2013 Change Property Type Property Type Retail $ 111,592 109,858 1,734 1.6% 97.7% Office 3,018 2,965 53 1.8% 3.0% Agriculture 5,209 5,145 64 1.3% 3.6% Industrial and distribution 6,557 6,530 27 0.4% 1.5% Manufacturing(1) 4,074 4,176 (102) (2.4%) (5.8%) Total $ 130,450 128,674 1,776 1.4% 100.0% (1) Decrease in same store rent is attributable to the completion of a capital expense reimbursement paid by tenant through additional rent. Second Quarter – Year-to-date Six months ended Six months ended Net % Change by Contribution by Property Type June 30, 2014 June 30, 2013 Change Property Type Property Type Retail $ 223,839 220,262 3,577 1.6% 96.2% Office 6,035 5,907 128 2.2% 3.4% Agriculture 10,418 10,290 128 1.3% 3.5% Industrial and distribution 13,107 13,019 88 0.7% 2.4% Manufacturing(1) 8,134 8,338 (204) (2.5%) (5.5%) Total $ 261,533 257,816 3,717 1.4% 100.0% (1) Decrease in same store rent is attributable to the completion of a capital expense reimbursement paid by tenant through additional rent. Same Store Rental Revenue by Property Type

| OCCUPANCY 23 96.6% 97.0% 97.2% 97.7% 98.2% 98.1% 98.2% 98.3% Q2 2014 Supplemental Operating & Financial Data By Property Occupied Properties 4,189 Total Properties 4,263 Occupancy 98.3% By Square Footage Occupied Square Footage 68,514,700 Total Square Footage 69,185,500 Occupancy 99.0% By Rental Revenue Quarterly Rental Revenue $ 219,387,900 Quarterly Vacant Rental Revenue $ 2,067,200 (1) Occupancy 99.1% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 3/31/2014 73 Expiration Activity (1) + 40 Leasing Activity (2) - 37 Vacant Property Sales Activity - 2 Vacant Properties at 6/30/2014 74 (1) Includes scheduled and unscheduled expirations as well as future expirations resolved in the current quarter. (2) Includes 36 expirations that were re-leased to the same or new tenants without vacancy, and one that was re-leased after a period of vacancy. See page 24 for additional detail of re-leasing activity.

| LEASING ACTIVITY (dollars in thousands) 24 Q2 2014 Supplemental Operating & Financial Data Released to New Tenant Q2 2014 Released to Same Tenant Without Vacancy After a Period of Vacancy Releasing Totals Prior Cash Rents $ 4,400 $ 303 $ 320 $ 5,023 New Cash Rents $ 4,472 $ 253 $ 428 $ 5,153 Releasing spread 101.6% 83.6% 133.8% 102.6% Number of Leases 33 3 1 37 Percentage of Total Annualized Portfolio Rental Revenue 0.6% Released to New Tenant Q1 2014 Released to Same Tenant Without Vacancy After a Period of Vacancy Releasing Totals Prior Cash Rents $ 6,761 $ 30 $ 712 $ 7,503 New Cash Rents $ 6,725 $ 26 $ 507 $ 7,258 Releasing spread 99.5% 88.0% 71.2% 96.7% Number of Leases 30 1 8 39 Percentage of Total Annualized Portfolio Rental Revenue 0.9% Released to New Tenant 2013 Released to Same Tenant Without Vacancy After a Period of Vacancy Releasing Totals Prior Cash Rents $ 17,759 $ 1,142 $ 2,441 $ 21,342 New Cash Rents $ 17,992 $ 1,063 $ 1,832 $ 20,887 Releasing spread 101.3% 93.1% 75.1% 97.9% Number of Leases 132 13 27 172 Percentage of Total Annualized Portfolio Rental Revenue 2.6% . Allocation Based on Number of Leases

| EXPIRATIONS (dollars in thousands) 25 Q2 2014 Supplemental Operating & Financial Data * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,169 net leased, single-tenant properties as of June 30, 2014. It excludes 20 multi-tenant properties and 74 vacant properties, one of which is a multi-tenant property. The lease expirations for properties under construction are based on the estimated date of completion of those properties. (2) Includes rental revenue of $18 from properties reclassified as discontinued operations and excludes revenue of $2,540 from 20 multi-tenant properties and from 74 vacant properties at June 30, 2014, $406 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. Our leased, single-tenant properties have a weighted average remaining lease term of approximately 10.6 years Total Portfolio (1) 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 of Approx. Ended Total Number Ended Total Number Ended Total Leases Expiring Leasable Jun 30, Rental of Leases Jun 30, Rental of Leases Jun 30, Rental Year Retail Non-Retail Sq. Feet 2014 (2) Revenue Expiring 2014 Revenue Expiring 2014 Revenue 2014 85 - 634,100 $ 2,045 1.0 % 22 $ 795 0.4 % 63 $ 1,250 0.6 % 2015 172 - 866,600 3,693 1.7 67 1,520 0.7 105 2,173 1.0 2016 201 1 1,220,100 4,629 2.1 121 2,835 1.3 81 1,794 0.8 2017 187 2 2,116,500 6,031 2.8 49 3,050 1.4 140 2,981 1.4 2018 273 10 3,480,500 10,881 5.0 165 7,658 3.5 118 3,223 1.5 2019 214 11 3,599,800 11,619 5.3 167 10,001 4.6 58 1,618 0.7 2020 108 12 3,706,300 9,616 4.4 105 8,875 4.1 15 741 0.3 2021 184 13 5,487,900 14,332 6.6 187 13,780 6.3 10 552 0.3 2022 220 19 7,529,200 15,391 7.0 223 14,978 6.8 16 413 0.2 2023 344 22 6,561,600 20,875 9.5 353 20,203 9.2 13 672 0.3 2024 154 11 2,816,200 8,606 3.9 164 8,570 3.9 1 36 * 2025 296 10 4,201,900 18,124 8.3 299 17,873 8.2 7 251 0.1 2026 233 5 3,514,700 12,651 5.7 235 12,568 5.7 3 83 * 2027 462 2 4,901,800 16,080 7.4 462 16,040 7.4 2 40 * 2028 282 5 5,989,800 16,082 7.3 285 16,027 7.3 2 55 * 2029 - 2043 596 35 10,966,500 48,241 22.0 623 48,034 21.9 8 207 0.1 Totals 4,011 158 67,593,500 $ 218,896 100.0 % 3,527 $ 202,807 92.7 % 642 $ 16,089 7.3 %