EX-99.2 3 a16-8920_1ex99d2.htm EX-99.2

Exhibit 99.2

SUPPLEMENTAL OPERATING & FINANCIAL DATA Q1 2016 an S&P 500 company S&P High Yield Dividend Aristocrats® index member Exhibit 99.2

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 Composition 20 Same Store Rental Revenue 21 Leasing Data Occupancy 22 Leasing Activity 23 Expirations 24 Earnings Guidance 25 Analyst Coverage 26 This Supplemental Operating & Financial Data should be read in connection with the company's first quarter 2016 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on April 26, 2016) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data. TABLE OF CONTENTS 2 Q1 2016 Supplemental Operating & Financial Data

Senior Management John P. Case, Chief Executive Officer Sumit Roy, President and Chief Operating Officer Paul M. Meurer, Executive VP, Chief Financial Officer and Treasurer Michael R. Pfeiffer, Executive VP, General Counsel and Secretary Neil M. Abraham, 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 April 2016 Current annualized dividend of $2.388 per share Compound average annual dividend growth rate of approximately 4.7% 549 consecutive monthly dividends paid 74 consecutive quarterly dividend increases Corporate Headquarters 11995 El Camino Real San Diego, California 92130 Phone: (858) 284-5000 Website: www.realtyincome.com Transfer Agent Wells Fargo Shareowner Services Phone: (877) 218-2434 Email: stocktransfer@wellsfargo.com Website: www.shareowneronline.com Corporate Profile Realty Income, The Monthly Dividend Company®, is an S&P 500 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 property portfolio. We have in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology, and capital markets capabilities. Over the past 47 years, Realty Income has been acquiring and managing freestanding commercial properties that generate rental revenue under long-term, net lease agreements. Portfolio Overview At March 31, 2016, we owned a diversified portfolio of 4,615 properties located in 49 states and Puerto Rico, with over 77.4 million square feet of leasable space. Our properties are leased to 243 different commercial tenants doing business in 47 separate industries. Approximately 79% of our quarterly rental revenues were generated from retail properties, 13% from industrial properties, and the remaining 8% were from other property types. Our physical occupancy rate as of March 31, 2016 was 97.8%, with a weighted average remaining lease term of 10.0 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O" CORPORATE OVERVIEW 3 Q1 2016 Supplemental Operating & Financial Data March 31, 2016 Closing price $ 62.51 Shares and units outstanding 251,726,239 Market value of common equity $ 15,735,407,200 Total market capitalization $ 21,273,021,200

CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share amounts) 4 Q1 2016 Supplemental Operating & Financial Data (unaudited) Three months ended March 31, 2016 2015 REVENUE Rental $ 256,801 $ 235,122 Tenant reimbursements 9,105 9,963 Other 1,210 1,782 Total revenue 267,116 246,867 EXPENSES Depreciation and amortization 107,933 98,037 Interest 60,678 58,468 General and administrative 12,318 12,862 Property (including reimbursable) 15,105 13,976 Income taxes 964 1,074 Provisions for impairment 1,923 2,087 Total expenses 198,921 186,504 Gain on sales of real estate 2,289 7,218 Net income 70,484 67,581 Net income attributable to noncontrolling interests (241 ) (317 ) Net income attributable to the Company 70,243 67,264 Preferred stock dividends (6,770 ) (6,770 ) Net income available to common stockholders $ 63,473 $ 60,494 Amounts available to common stockholders per common share: Net income, basic and diluted $ 0.25 $ 0.27

FUNDS FROM OPERATIONS (FFO) (dollars in thousands, except per share amounts) 5 Q1 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted computation per share. We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (NAREIT) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, and reduced by gains on property sales. Three months ended March 31, 2016 2015 Net income available to common stockholders $ 63,473 $ 60,494 Depreciation and amortization 107,933 98,037 Depreciation of furniture, fixtures and equipment (193 ) (185 ) Provisions for impairment on investment properties 1,923 2,087 Gain on sale of investment properties (2,289 ) (7,218 ) FFO adjustments allocable to noncontrolling interests (218 ) (315 ) FFO available to common stockholders $ 170,629 $ 152,900 FFO per common share, basic and diluted $ 0.68 $ 0.68 Distributions paid to common stockholders $ 147,345 $ 126,682 FFO available to common stockholders in excess of distributions paid to common stockholders $ 23,284 $ 26,218 Weighted average number of common shares used for computation per share: Basic 250,173,815 225,346,407 Diluted 250,381,001 225,508,832

ADJUSTED FUNDS FROM OPERATIONS (AFFO) (dollars in thousands , except per share amounts) 6 Q1 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted computation per share. 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 ended March 31, 2016 2015 Net income available to common stockholders $ 63,473 $ 60,494 Cumulative adjustments to calculate FFO (1) 107,156 92,406 FFO available to common stockholders 170,629 152,900 Amortization of share-based compensation 2,605 2,552 Amortization of deferred financing costs 1,299 1,293 Amortization of net mortgage premiums (1,041 ) (1,884 ) Gain on early extinguishment of mortgage debt (60 ) (78 ) Loss on interest rate swaps 5,778 1,058 Leasing costs and commissions (191 ) (313 ) Recurring capital expenditures (72 ) (1,032 ) Straight-line rent (5,151 ) (4,191 ) Amortization of above and below-market leases 2,052 1,742 Other adjustments 70 74 Total AFFO available to common stockholders $ 175,918 $ 152,121 AFFO per common share: Basic $ 0.70 $ 0.68 Diluted $ 0.70 $ 0.67 Distributions paid to common stockholders $ 147,345 $ 126,682 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 28,573 $ 25,439 Weighted average number of common shares used for computation per share: Basic 250,173,815 225,346,407 Diluted 250,381,001 225,508,832 (1) See reconciling items for FFO presented under "Funds from Operations (FFO).”

CONSOLIDATED BALANCE SHEETS (dollars in thousands , except per share amounts) 7 Q1 2016 Supplemental Operating & Financial Data March 31, 2016 December 31, 2015 ASSETS (unaudited) Real estate, at cost: Land $ 3,390,871 $ 3,286,004 Buildings and improvements 9,243,890 9,010,778 Total real estate, at cost 12,634,761 12,296,782 Less accumulated depreciation and amortization (1,768,272 ) (1,687,665 ) Net real estate held for investment 10,866,489 10,609,117 Real estate held for sale, net 1,778 9,767 Net real estate 10,868,267 10,618,884 Cash and cash equivalents 8,695 40,294 Accounts receivable, net 82,990 81,678 Acquired lease intangible assets, net 1,017,411 1,034,417 Goodwill 15,283 15,321 Other assets, net 44,457 54,785 Total assets $ 12,037,103 $ 11,845,379 LIABILITIES AND EQUITY Distributions payable $ 52,483 $ 50,344 Accounts payable and accrued expenses 86,328 115,826 Acquired lease intangible liabilities, net 249,454 250,916 Other liabilities 43,250 53,965 Line of credit payable 653,000 238,000 Term loans, net 318,908 318,835 Mortgages payable, net 514,041 646,187 Notes payable, net 3,619,149 3,617,973 Total liabilities $ 5,536,613 $ 5,292,046 Stockholders' equity: Preferred stock and paid in capital, par value $0.01 per share, 69,900,000 shares authorized, 16,350,000 shares issued and $ 395,378 $ 395,378 outstanding as of March 31, 2016 and December 31, 2015, liquidation preference $25.00 per share Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 251,081,853 shares issued and outstanding as of March 31, 2016 and 250,416,757 shares issued and outstanding as of December 31, 2015 7,699,837 7,666,428 Distributions in excess of net income (1,616,216 ) (1,530,210 ) Total stockholders' equity 6,478,999 6,531,596 Noncontrolling interests 21,491 21,737 Total equity 6,500,490 6,553,333 Total liabilities and equity $ 12,037,103 $ 11,845,379

DEBT SUMMARY (dollars in thousands) 8 Q1 2016 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date March 31, 2016 % of Debt March 31, 2016 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 653,000 12.7% 1.33% 3.2 years Unsecured Term Loans Term Loan - Tau (2) January 21, 2018 70,000 1.4% 1.64% 1.8 years Term Loan - Realty Income (3) June 30, 2020 250,000 4.9% 1.38% 4.2 years Principal amount 320,000 6.3% 1.44% 3.7 years Deferred financing costs (1,092 ) Carrying value 318,908 Senior Unsecured Notes and Bonds 5.95% Notes due 2016 September 15, 2016 275,000 5.4% 5.95% 5.375% Notes due 2017 September 15, 2017 175,000 3.4% 5.38% 2.00% Notes due 2018 January 31, 2018 350,000 6.8% 2.00% 6.75% Notes due 2019 August 15, 2019 550,000 10.6% 6.75% 5.75% Notes due 2021 January 15, 2021 250,000 4.9% 5.75% 3.25% Notes due 2022 October 15, 2022 450,000 8.8% 3.25% 4.65% Notes due 2023 August 1, 2023 750,000 14.6% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 6.8% 3.88% 4.125% Notes due 2026 October 15, 2026 250,000 4.9% 4.13% 5.875% Bonds due 2035 March 15, 2035 250,000 4.9% 5.88% Principal amount 3,650,000 71.1% 4.72% 6.2 years Unamortized discounts and deferred financing costs (30,851 ) Carrying value 3,619,149 Mortgages Payable 39 mortgages on 135 properties April 2016 - June 2032 505,864 (4) 9.9% 4.97% 4.3 years Unamortized premiums and deferred financing costs 8,177 Carrying value 514,041 TOTAL DEBT $ 5,128,864 (5) 4.11% 5.5 years Fixed Rate $ 4,453,092 87% Variable Rate $ 675,772 13% (1) We have a $2.0 billion unsecured acquisition credit facility with an initial term that expires in June 2019. It includes, at our election, two six-month extension options, at a cost of 0.075% of the facility commitment, or $1.5 million per option. As of March 31, 2016, approximately $1.35 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) Borrowing under the term loan bears interest at the current one month LIBOR, plus 0.95%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.67%. (4) The mortgages payable are at fixed interest rates, except for mortgages totaling $22.8 million at March 31, 2016. (5) Excludes non-cash unamortized original issuance discounts recorded on the senior unsecured notes and bonds, non-cash unamortized premiums recorded on the mortgages payable, and deferred financing costs on the term loans, notes and bonds, and mortgages payable.

DEBT MATURITIES (dollars in millions) 9 Q1 2016 Supplemental Operating & Financial Data Debt Maturities Year of Credit Term Senior Unsecured Mortgages Weighted Average Maturity Facility Loan Notes and Bonds Payable Total Interest Rate (1) 2016 $ - $ - $ 275.0 $ 21.7 $ 296.7 5.85% 2017 - - 175.0 149.8 324.8 5.38% 2018 - 70.0 350.0 15.5 435.5 2.07% 2019 653.0 - 550.0 26.3 1,229.3 6.57% 2020 - 250.0 - 82.4 332.4 2.28% Thereafter - - 2,300.0 210.2 2,510.2 4.49% Totals $ 653.0 $ 320.0 $ 3,650.0 $ 505.9 $ 5,128.9 (1) Weighted average interest rate for 2019 excludes the credit facility. Mortgages Payable Maturities by Quarter Year of First Second Third Fourth Weighted Average Maturity Quarter Quarter Quarter Quarter Total Interest Rate 2016 $ - $ 17.0 $ 2.3 $ 2.4 $ 21.7 4.55% 2017 49.0 36.8 39.4 24.6 149.8 5.39% 2018 1.3 12.0 1.1 1.1 15.5 5.48% 2019 1.1 1.2 1.2 22.8 26.3 2.85% 2020 1.2 1.2 12.6 67.4 82.4 4.98% Thereafter - - - - 210.2 4.93% Totals $ 52.6 $ 68.2 $ 56.6 $ 118.3 $ 505.9

3.9 Capital Structure as of March 31, 2016 CAPITALIZATION & FINANCIAL RATIOS (dollars in thousands , except per share amounts) 10 Q1 2016 Supplemental Operating & Financial Data Liquidity as of March 31, 2016 Cash on Hand $ 8,695 Availability under Credit Facility 1,347,000 $ 1,355,695 Capitalization as of March 31, 2016 Carrying Debt Value Credit Facility $ 653,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 3,650,000 Mortgages Payable 505,864 Total Debt $ 5,128,864 Equity Shares / Units Stock Price Redemption Price Market Value Common Stock (NYSE: O) 251,081,853 $ 62.51 $ 15,695,127 Common Units (1) 644,386 $ 62.51 40,280 Common Equity 15,735,407 Class F Preferred Stock 16,350,000 $ 25.00 408,750 Total Equity $ 16,144,157 Total Market Capitalization (2) $ 21,273,021 Debt/Total Market Capitalization (2) 24.1% Debt and Preferred Stock/Total Market Capitalization (2) 26.0% (1) Common units are exchangeable into cash or common stock at our option at a conversion ratio of 1:1, subject to certain exceptions. (2) Our enterprise value was $21,264,326 (total market capitalization less cash on hand). The percentages for both debt to enterprise value as well as debt and preferred stock to enterprise value are materially consistent with those presented for total market capitalization. Dividend Data Year-over-Year Q1 2016 Q1 2015 Growth Rate Common Dividend Paid per Share $ 0.588 $ 0.561 4.8% AFFO per Share (diluted) $ 0.70 $ 0.67 4.5% AFFO Payout Ratio 84.0% 83.7% Debt 24% Preferred 2% Common 74%

Debt Service Coverage (2) Fixed Charge Coverage (3) 3.9 EBITDA & COVERAGE RATIOS (dollars in thousands) 11 Q1 2016 Supplemental Operating & Financial Data Reconciliation of Net Income to EBITDA (1) Three months ended March 31, 2016 Net income $ 70,484 Interest 60,678 Taxes 964 Depreciation and amortization 107,933 Impairment loss 1,923 Gain on sales (2,289) Quarterly EBITDA $ 239,693 Annualized EBITDA $ 958,772 Debt/EBITDA 5.3 Debt and Preferred Stock/EBITDA 5.8 (1) EBITDA, a non-GAAP measure, means, for the most recent quarter, annualized earnings (net income) before (i) interest expense, including non-cash loss (gain) on swaps, (ii) income and franchise taxes, (iii) real estate depreciation and amortization, (iv) impairment losses, and (v) 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 (which is calculated on page 12), except that preferred stock dividends are also added to the denominator. 3.9 4.0 4.1 4.5 4.6 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 3.4 3.6 3.7 4.0 4.1 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

DEBT COVENANTS 12 Q1 2016 Supplemental Operating & Financial Data As of March 31, 2016 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 senior notes and bonds as well as to disclose our current compliance with such covenants, and are not measures of our liquidity or performance. Required Actuals Limitation on incurrence of total debt < 60% of adjusted undepreciated assets 40.3% Limitation on incurrence of secured debt < 40% of adjusted undepreciated assets 4.1% Debt service coverage (trailing 12 months) (1) > 1.5 x 4.6x Maintenance of total unencumbered assets > 150% of unsecured debt 255.7% (1) This covenant is calculated on a pro forma basis for the preceding four-quarter period on the assumptions 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 April 1, 2015, 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 April 1, 2015, nor does it purport to reflect our debt service coverage ratio for any future period.

First Quarter 2016 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 80 $ 300,523 $ 19,708 877,997 6.6% 16.3 Properties under Development (3) 23 52,118 3,547 853,273 6.8% 13.1 Total Real Estate Investments 103 $ 352,641 $ 23,255 1,731,270 6.6% 15.8 Approximately 23% of the annualized revenue generated by these investments is from investment grade tenants(4) (1) Cash capitalization rates are computed as contractual cash net operating income for the first twelve months following the acquisition date, divided by the total cost of the property (including all expenses borne by Realty Income). (2) The new property acquisitions were completed through 19 independent transactions during the first quarter of 2016. (3) Includes investments during the period in new development, expansion of existing properties, and redevelopment of existing properties. Cash rents noted reflect total cash rents to be received on this investment amount upon completion of the properties under development. (4) Refer to footnote 2 on page 16 for our definition of investment grade tenants. INVESTMENT SUMMARY (dollars in thousands) 13 Q1 2016 Supplemental Operating & Financial Data

First Quarter 2016 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 2 $ 3,455 $ 2,535 $ 3,377 6.9% Vacant 9 12,511 6,148 7,661 - Total Real Estate Dispositions 11 $ 15,966 $ 8,683 $ 11,038 The unlevered internal rate of return on properties sold during the first quarter was 6.6% DISPOSITION SUMMARY (dollars in thousands) 14 Q1 2016 Supplemental Operating & Financial Data (1) Cash capitalization rates are computed as annualized current month contractual cash net operating income, divided by the net proceeds received upon sale of the property (including all expenses paid by Realty Income).

(1) Includes build-to-suit developments and forward take-out commitments on development properties with leases in place. (2) Estimated rental revenue commencement dates on properties under development is between April 2016 and January 2017. DEVELOPMENT PIPELINE (dollars in thousands) 15 Q1 2016 Supplemental Operating & Financial Data Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) - $ - $ - $ - - Expansion of existing properties - - - - - Redevelopment of existing properties 5 4,426 12,300 16,726 100% 5 $ 4,426 $ 12,300 $ 16,726 Non-Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 1 $ 3,187 $ 5,974 $ 9,161 100% Expansion of existing properties 1 7,832 1,303 9,135 100% Redevelopment of existing properties - - - - - 2 $ 11,019 $ 7,277 $ 18,296 Total Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 1 $ 3,187 $ 5,974 $ 9,161 100% Expansion of existing properties 1 7,832 1,303 9,135 100% Redevelopment of existing properties 5 4,426 12,300 16,726 100% 7 $ 15,445 $ 19,577 $ 35,022

Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at March 31, 2016 include the following: Investment Grade Tenants (2): Number of Properties 1,719 Percentage of Annualized Rents 44% Percentage of Leases with Rental Increases, Based on Revenue 74% Average EBITDAR/Rent Ratio on Retail Properties 2.7x (1) Median EBITDAR/Rent Ratio on Retail Properties 2.6x (1) (1) Based on the analysis of the most recently provided information from retail tenants that provide such information. We do not independently verify the information we receive from our retail tenants. (2) 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, including approximately 7% from properties leased to subsidiaries of investment grade companies. Refer to page 20 for investment grade composition by property type. TENANT DIVERSIFICATION 16 Q1 2016 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P/Fitch) Walgreens 176 6.8 % Baa2/ BBB/ A- FedEx 40 5.3 % Baa2/ BBB/ BBB Dollar General 524 4.5 % Baa3/ BBB/ - LA Fitness 47 4.2 % - Dollar Tree / Family Dollar 457 4.1 % - Circle K / The Pantry 301 2.9 % Baa2/ BBB/ - AMC Theatres 22 2.8 % - BJ's Wholesale Club 15 2.6 % - Diageo 17 2.4 % A3/ A-/ A- Northern Tier Retail / SuperAmerica 134 2.1 % - GPM Investments / Fas Mart 217 2.0 % - Regal Cinemas 22 2.0 % - Rite Aid 69 2.0 % - CVS Pharmacy 61 2.0 % Baa1/ BBB+/- Life Time Fitness 9 2.0 % - TBC Corporation 149 1.7 % Baa1/ A-/ - Walmart / Sam's Club 19 1.3 % Aa2/AA/AA NPC International 193 1.2 % - FreedomRoads / Camping World 18 1.2 % - Smart & Final 36 1.1 % - 26% 53% 18% 3% Investment Grade, Retail Non-Investment Grade or Non-Rated, Retail Investment Grade, Non-Retail Non-Investment Grade or Non-Rated, Non-Retail

* Less than 0.1% INDUSTRY DIVERSIFICATION 17 Q1 2016 Supplemental Operating & Financial Data Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended March 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2016 2015 2014 2013 2012 2011 Retail industries Apparel stores 1.9 % 2.0 % 2.0 % 1.9 % 1.7 % 1.4 % Automotive collision services 1.0 1.0 0.8 0.8 1.1 0.9 Automotive parts 1.3 1.4 1.3 1.2 1.0 1.2 Automotive service 1.8 1.9 1.8 2.1 3.1 3.7 Automotive tire services 2.8 2.9 3.2 3.6 4.7 5.6 Book stores * * * * 0.1 0.1 Child care 2.0 2.0 2.2 2.8 4.5 5.2 Consumer electronics 0.3 0.3 0.3 0.3 0.5 0.5 Convenience stores 9.0 9.2 10.1 11.2 16.3 18.5 Crafts and novelties 0.4 0.5 0.5 0.5 0.3 0.2 Dollar stores 8.8 8.9 9.6 6.2 2.2 - Drug stores 11.0 10.6 9.5 8.1 3.5 3.8 Education 0.3 0.3 0.4 0.4 0.7 0.7 Entertainment 0.5 0.5 0.5 0.6 0.9 1.0 Equipment services * 0.1 0.1 0.1 0.1 0.2 Financial services 1.3 1.3 1.4 1.5 0.2 0.2 General merchandise 1.4 1.4 1.2 1.1 0.6 0.6 Grocery stores 3.0 3.0 3.0 2.9 3.7 1.6 Health and fitness 8.3 7.7 7.0 6.3 6.8 6.4 Health care 0.9 1.0 1.1 1.1 - - Home furnishings 0.7 0.7 0.7 0.9 1.0 1.1 Home improvement 2.4 2.4 1.7 1.6 1.5 1.7 Jewelry 0.1 0.1 0.1 0.1 - - Motor vehicle dealerships 1.6 1.6 1.6 1.6 2.1 2.2 Office supplies 0.3 0.3 0.4 0.5 0.8 0.9 Pet supplies and services 0.7 0.7 0.7 0.8 0.6 0.7 Restaurants - casual dining 3.8 3.8 4.3 5.1 7.3 10.9 Restaurants - quick service 5.0 4.2 3.7 4.4 5.9 6.6 Shoe stores 0.5 0.5 0.1 0.1 0.1 0.2 Sporting goods 1.8 1.8 1.6 1.7 2.5 2.7 Theaters 5.2 5.1 5.3 6.2 9.4 8.8 Transportation services 0.1 0.1 0.1 0.1 0.2 0.2 Wholesale clubs 3.6 3.8 4.1 3.9 3.2 0.7 Other * * * 0.1 0.1 0.1 Retail industries 81.8 % 81.1 % 80.4 % 79.8 % 86.7 % 88.6 % (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations.

* Less than 0.1% INDUSTRY DIVERSIFICATION (CONT’D) 18 Q1 2016 Supplemental Operating & Financial Data Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended March 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2016 2015 2014 2013 2012 2011 Non-retail industries Aerospace 1.0 1.1 1.2 1.2 0.9 0.5 Beverages 2.5 2.7 2.8 3.3 5.1 5.6 Consumer appliances 0.5 0.6 0.5 0.6 0.1 - Consumer goods 1.0 0.9 0.9 1.0 0.1 - Crafts and novelties 0.1 0.1 0.1 0.1 - - Diversified industrial 0.9 0.8 0.5 0.2 0.1 - Electric utilities 0.1 0.1 0.1 * - - Equipment services 0.5 0.4 0.5 0.4 0.3 0.2 Financial services 0.4 0.4 0.4 0.5 0.4 0.3 Food processing 1.2 1.2 1.4 1.5 1.3 0.7 General merchandise 0.3 0.3 0.3 - - - Government services 1.1 1.2 1.3 1.4 0.1 0.1 Health care 0.6 0.7 0.7 0.8 * * Home furnishings 0.1 0.2 0.2 0.2 - - Insurance 0.1 0.1 0.1 0.1 * - Machinery 0.1 0.1 0.2 0.2 0.1 - Other manufacturing 0.8 0.7 0.7 0.6 - - Packaging 0.8 0.8 0.8 0.9 0.7 0.4 Paper 0.1 0.1 0.1 0.2 0.1 0.1 Shoe stores 0.2 0.2 0.8 0.9 - - Telecommunications 0.6 0.7 0.7 0.7 0.8 0.7 Transportation services 5.0 5.3 5.1 5.3 2.2 1.6 Other 0.2 0.2 0.2 0.1 1.0 1.2 Non-retail industries 18.2 % 18.9 % 19.6 % 20.2 % 13.3 % 11.4 % Totals 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations.

(1) Includes rental revenue for all properties owned at March 31, 2016. Excludes rental revenue of $51 from sold properties. EXPIRATIONS (dollars in thousands) GEOGRAPHIC DIVERSIFICATION (dollars in thousands) 19 Q1 2016 Supplemental Operating & Financial Data Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet March 31, 2016 (1) Revenue Alabama 165 97 % 1,272,900 $ 5,088 2.0 % Alaska 3 100 275,900 421 0.2 Arizona 111 98 1,624,300 6,253 2.4 Arkansas 55 100 816,500 1,797 0.7 California 167 100 5,273,700 24,505 9.5 Colorado 72 99 1,015,800 3,798 1.5 Connecticut 24 92 534,900 2,535 1.0 Delaware 18 100 93,000 863 0.3 Florida 331 99 4,035,800 14,616 5.7 Georgia 246 97 3,695,500 11,281 4.4 Hawaii -- -- -- -- -- Idaho 12 100 87,000 379 0.1 Illinois 163 98 4,611,400 13,639 5.3 Indiana 150 100 1,486,300 6,958 2.7 Iowa 39 90 2,943,200 4,006 1.6 Kansas 93 98 1,729,900 4,205 1.6 Kentucky 61 93 1,023,000 3,738 1.5 Louisiana 96 97 1,116,800 3,111 1.2 Maine 10 90 145,300 889 0.3 Maryland 35 100 861,300 4,509 1.8 Massachusetts 81 98 757,600 3,721 1.4 Michigan 152 97 1,555,200 5,812 2.3 Minnesota 156 99 1,383,000 8,891 3.5 Mississippi 137 96 1,628,800 4,483 1.7 Missouri 140 95 2,835,500 8,648 3.4 Montana 4 100 67,100 190 0.1 Nebraska 37 100 780,400 2,020 0.8 Nevada 22 100 413,000 1,307 0.5 New Hampshire 19 100 315,800 1,475 0.6 New Jersey 70 99 697,400 4,386 1.7 New Mexico 30 100 293,200 856 0.3 New York 91 99 2,434,200 12,400 4.8 North Carolina 161 98 2,158,300 6,888 2.7 North Dakota 7 86 66,000 132 0.1 Ohio 238 97 6,034,500 14,111 5.5 Oklahoma 130 99 1,564,300 4,139 1.6 Oregon 27 100 593,400 1,973 0.8 Pennsylvania 148 99 1,854,500 7,566 2.9 Rhode Island 4 100 157,200 809 0.3 South Carolina 143 99 1,033,400 4,659 1.8 South Dakota 14 100 158,700 297 0.1 Tennessee 219 97 3,025,000 7,736 3.0 Texas 449 98 8,424,000 23,773 9.2 Utah 18 100 933,400 2,019 0.8 Vermont 5 100 98,000 482 0.2 Virginia 144 97 2,899,400 7,586 3.0 Washington 42 98 690,800 2,722 1.1 West Virginia 14 100 279,100 1,023 0.4 Wisconsin 54 100 1,604,500 3,685 1.4 Wyoming 4 100 49,600 221 0.1 Puerto Rico 4 100 28,300 149 0.1 Totals\Average 4,615 98 % 77,456,100 $ 256,750 100.0 %

PROPERTY TYPE COMPOSITION (dollars in thousands) 20 Q1 2016 Supplemental Operating & Financial Data Number of Properties Approximate Leasable Square Feet Rental Revenue for the Quarter Ended Percentage of Rental Revenue for the Quarter Ended Percentage of Annualized Revenue from Investment Grade Tenants Property Type March 31, 2016 (1) March 31, 2016 (2) Retail 4,454 51,672,900 $ 203,622 79.2 % 32.4 % Industrial 102 22,195,500 32,755 12.8 82.5 Office 44 3,403,200 15,033 5.9 91.2 Agriculture 15 184,500 5,340 2.1 100 Totals 4,615 77,456,100 $ 256,750 100.0 % (1) Includes rental revenue for all properties owned at March 31, 2016. Excludes rental revenue of $51 from sold properties. (2) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Retail 79.2% Industrial 12.8% Office 5.9% Agriculture 2.1%

Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry March 31, 2016 March 31, 2015 Change by Industry Convenience Stores $ 22,882 $ 22,162 $ 720 3.2 % Theaters 12,501 11,811 690 5.8 % Restaurants – Casual Dining 8,204 7,739 465 6.0 % First Quarter 2016 SAME STORE RENTAL REVENUE (dollars in thousands) 21 Q1 2016 Supplemental Operating & Financial Data Same Store Pool Defined For purposes of determining the properties used to calculate the same store rental revenue 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. Same Store Rental Revenue Number of Properties 4,112 Square Footage 67,266,381 Q1 2016 $224,704 Q1 2015 $221,886 Increase (in dollars) $2,818 Increase (percent) 1.3% Same Store Rental Revenue by Property Type Quarter ended Quarter ended Net % Change by Contribution by Property Type March 31, 2016 March 31, 2015 Change Property Type Property Type Retail $ 178,184 $ 175,973 $ 2,211 1.3% 78.5% Industrial 26,780 26,332 448 1.7% 15.9% Office 14,400 14,307 93 0.7% 3.3% Agriculture 5,340 5,274 66 1.2% 2.3% Total $ 224,704 $ 221,886 $ 2,818 1.3% 100%

By Property Occupied Properties 4,514 Total Properties 4,615 Occupancy 97.8% By Square Footage Occupied Square Footage 76,550,451 Total Square Footage 77,456,186 Occupancy 98.8% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 250,958,905 Quarterly Vacant Rental Revenue $ 2,999,285 (1) Occupancy 98.8% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 12/31/2015 71 Expiration Activity (1) + 77 Leasing Activity (2) - 38 Vacant Property Sales Activity (3) - 9 Vacant Properties at 3/31/2016 101 (1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy) as well as future expirations resolved in the current quarter. (2) Includes 29 expirations that were re-leased to the same tenants without vacancy, five that were re-leased to new tenants without vacancy, and four that were re-leased after a period of vacancy. See page 23 for additional detail on re-leasing activity. (3) Includes eight properties that were vacant at the beginning of the quarter. OCCUPANCY 22 Q1 2016 Supplemental Operating & Financial Data Occupancy by Number of Properties 98.3% 98.3% 98.3% 98.4% 98.0% 98.2% 98.3% 98.4% 97.8% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Allocation Based on Number of Leases LEASING ACTIVITY (dollars in thousands) 23 Q1 2016 Supplemental Operating & Financial Data Re-leased to New Tenant(1) Q1 2016 Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 4,256 $ 902 $ 263 $ 5,421 New Cash Rents* $ 4,468 $ 1,253 $ 354 $ 6,076 Recapture Rate 105.0 % 138.9 % 134.6 % 112.1 % Number of Leases 29 5 4 38 Average Months Vacant 0 0 11.5 1.2 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.6 % Includes five existing properties under redevelopment, where approximately $8.5 million of capital has been committed. Excluding these properties, new cash rents on properties re-leased was $4,686, as compared to previous cash rent of $4,590, representing a rent recapture rate of 102.1%. 76% 24% Same Tenant New Tenant

24 * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,494 net leased, single-tenant properties as of March 31, 2016. Excludes 20 multi-tenant properties and 101 vacant properties. The lease expirations for properties under construction are based on the estimated completion date of those properties. (2) Excludes revenue of $4,534 from 20 multi-tenant properties and from 101 vacant properties at March 31, 2016, and $51 from sold properties. (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-leased. Our leased, single-tenant properties have a weighted average remaining lease term of 10 years. EXPIRATIONS (dollars in thousands) Q1 2016 Supplemental Operating & Financial Data 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 March 31, Rental of Leases March 31, Rental of Leases March 31, Rental Year Retail Non-Retail Sq. Feet 2016 (2) Revenue Expiring 2016 Revenue Expiring 2016 Revenue 2016 100 - 630,800 $ 2,754 1.1 % 47 $ 1,016 0.4 % 53 $ 1,738 0.7 % 2017 198 1 1,929,600 5,352 2.1 51 1,875 0.7 148 3,477 1.4 2018 280 9 3,692,700 10,898 4.3 155 7,337 2.9 134 3,561 1.4 2019 255 10 3,914,400 13,519 5.4 174 11,147 4.4 91 2,372 1.0 2020 188 12 4,214,600 12,490 5.0 114 9,862 4.0 86 2,628 1.0 2021 263 13 5,635,400 15,991 6.3 184 13,691 5.4 92 2,300 0.9 2022 235 17 7,541,000 15,689 6.2 220 14,293 5.7 32 1,396 0.5 2023 353 20 6,461,400 21,911 8.7 357 20,914 8.3 16 997 0.4 2024 197 12 4,349,400 12,045 4.8 199 11,357 4.5 10 688 0.3 2025 322 15 5,544,100 20,916 8.3 312 20,216 8.0 25 700 0.3 2026 248 5 3,605,000 11,805 4.7 237 11,312 4.5 16 493 0.2 2027 494 3 5,565,900 19,659 7.8 463 18,531 7.4 34 1,128 0.4 2028 288 5 5,989,200 16,115 6.4 284 15,911 6.3 9 204 0.1 2029 397 4 6,498,300 19,922 7.9 372 19,195 7.6 29 727 0.3 2030 81 11 1,749,000 11,690 4.6 81 11,368 4.5 11 322 0.1 2031-2043 435 23 8,240,000 41,460 16.4 413 39,334 15.6 45 2,126 0.8 Totals 4,334 160 75,560,800 $ 252,216 100 % 3,663 $ 227,359 90.2 % 831 $ 24,857 9.8 %

25 We estimate FFO per share for 2016 of $2.82 to $2.89. We estimate AFFO per share for 2016 of $2.85 to $2.90, an increase of 4.0% to 5.8% over 2015 AFFO per share of $2.74. Summarized below are approximate estimates of the key components of the company’s 2016 earnings guidance: EARNINGS GUIDANCE Q1 2016 Supplemental Operating & Financial Data 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. (1) Excludes tenant reimbursement revenue. 2016 Guidance Net income per share $1.13 to $1.20 Real estate depreciation per share $1.77 Gains on sales of properties per share ($0.08) FFO per share $2.82 to $2.89 AFFO per share $2.85 to $2.90 Same store rent growth 1.3% Occupancy 98% G&A expenses (% of revenues)(1) 5.0% Property expenses (non-reimbursable) (% of revenues)(1) 1.5% Acquisition volume $900 million Disposition volume $50 to $75 million

26 Q1 2016 Supplemental Operating & Financial Data Realty Income Corporation is covered by the analysts at the firms listed above. This list may not be complete and is subject to change. Please note that any opinions, estimates or forecasts regarding Realty Income Corporation's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts of Realty Income Corporation or its management. Realty Income Corporation does not by its reference above or distribution imply, and expressly disclaims, any endorsement of or concurrence with any information, estimates, forecasts, opinions, conclusions or recommendations provided by analysts. ANALYST COVERAGE Equity Research Baird RJ Milligan rjmilligan@rwbaird.com (813) 273-8252 William Harman wharman@rwbaird.com (414) 298-2337 Bank of America Merrill Lynch Juan Sanabria juan.sanabria@baml.com (646) 855-1589 Camille Tan camille.tan@baml.com (646) 556-2095 Capital One Chris Lucas christopher.lucas@capitalone.com (571) 633-8151 Vineet Khanna vineet.khanna@capitalone.com (571) 835-7013 Citigroup Michael Bilerman michael.bilerman@citi.com (212) 816-1383 Nicholas Joseph nicholas.joseph@citi.com (212) 816-1909 John Ellwanger john.ellwanger@citi.com (212) 816-5871 D.A. Davidson Barry Oxford boxford@dadco.com (212) 240-9871 James O. Lykins jlykins@dadco.com (212) 576-1845 Edward Jones Roy Shepard royal.shepard@edwardjones.com (314) 515-3510 Goldman Sachs Andrew Rosivach andrew.rosivach@gs.com (212) 902-2796 Caitlin Burrows caitlin.burrows@gs.com (212) 902-4736 Brad Burke brad.burke@gs.com (917) 343-2082 Jeffrey Pehl jeffrey.pehl@gs.com (212) 357-4474 Green Street Cedrik Lachance clachance@greenstreetadvisors.com (949) 640-8780 Tyler Grant tgrant@greenstreetadvisors.com (949) 640-8780 Janney Robert Stevenson robstevenson@janney.com (646) 840-3217 Venkat Kommineni vkommineni@janney.com (646)840-3219 J.P. Morgan Anthony Paolone anthony.paolone@jpmorgan.com (212) 622-6682 Gene Nusinzon gene.nusinzon@jpmorgan.com (212) 622-1041 Ladenburg Thalmann Daniel Donlan ddonlan@ladenburg.com (212) 409-2056 John Massocca jmassocca@ladenburg.com (212) 409-2543 Mitsubishi UFJ Securities (USA), Inc. Karin Ford kford@us.sc.mufg.jp (212) 405-7349 Morgan Stanley Vikram Malhotra vikram.malhotra@morganstanley.com (212) 761-7064 Landon Park landon.park@morganstanley.com (212) 761-6368 Morningstar Edward Mui edward.mui@morningstar.com (312) 348-2379 Oppenheimer Steve Manaker stephen.manaker@opco.com (212) 667-5950 Amit Nihalani amit.nihalani@opco.com (212) 667-8204 Raymond James Collin Mings collin.mings@raymondjames.com (727) 567-2585 Paul Puryear paul.puryear@raymondjames.com (727) 567-2253 Daniel Mannix daniel.mannix@raymondjames.com (727) 567-2619 RBC Capital Markets Rich Moore rich.moore@rbccm.com (440) 715-2646 James Bambrick james.bambrick@rbccm.com (440) 715-2654 Stifel Simon Yarmak yarmaks@stifel.com (443) 224-1345 David Corak corakd@stifle.com (443) 224-1340 UBS Ross Nussbaum ross.nussbaum@ubs.com (212) 713-2484 Frank Lee frank-a.lee@ubs.com (415) 352-5679 Wells Fargo Todd Stender todd.stender@wellsfargo.com (562) 637-1371 Philip DeFelice philip.defelice@wellsfargo.com (443) 263-6442 Jason Belcher jason.belcher@wellsfargo.com (443) 462-7354 Wunderlich Craig Kucera ckucera@wundernet.com (540) 277-3366