EX-99.2 3 a18-12560_1ex99d2.htm EX-99.2

Exhibit 99.2 SUPPLEMENTAL OPERATING & FINANCIAL DATA Q1 2018 an S&P 500 company S&P High Yield Dividend Aristocrats® index member

Table Of Contents 2 Q1 2018 Supplemental Operating & Financial Data This Supplemental Operating & Financial Data should be read in connection with the company's first quarter 2018 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on May 8, 2018) as certain disclosures, definitions, and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data. 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 Adjusted EBITDAre & 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 18 Property Type Composition 19 Same Store Rental Revenue 20 Leasing Data Occupancy 21 Leasing Activity 22 Lease Expirations 23 Earnings Guidance 24 Analyst Coverage 25

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 Benjamin N. Fox, Executive VP, Portfolio and Asset Management Credit Ratings Moody’s A3 Stable Outlook Standard & Poor’s BBB+ Positive Outlook Fitch BBB+ Stable Outlook Dividend Information as of April 2018 Current annualized dividend of $2.634 per share Compound average annual dividend growth rate of approximately 4.7% 574 consecutive monthly dividends declared 82 consecutive quarterly dividend increases Corporate Headquarters 11995 El Camino Real San Diego, California 92130 Phone: (858) 284-5000 Website: www.realtyincome.com Transfer Agent Equiniti Trust Company Phone: (800) 468-9716 Website: www.shareowneronline.com Corporate Profile Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing stockholders with dependable monthly dividends that increase over time. The monthly dividends are supported by the cash flow generated from real estate owned under long-term, net lease agreements with regional and national commercial tenants. Over the past 49 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, 2018, we owned a diversified portfolio of 5,326 properties located in 49 states and Puerto Rico, with over 90 million square feet of leasable space. Our properties are leased to 254 different commercial tenants doing business in 47 separate industries. Approximately 81% of our quarterly rental revenues were generated from retail properties, 13% from industrial properties, and the remaining 6% were from other property types. Our physical occupancy rate as of March 31, 2018 was 98.6%, with a weighted average remaining lease term of approximately 9.4 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O“. Corporate Overview 3 Q1 2018 Supplemental Operating & Financial Data March 31, 2018 Closing price $ 51.73 Shares and units outstanding 284,967,386 Market value of common equity $ 14,741,363,000 Total market capitalization $ 21,351,323,000

Consolidated Statements Of Income (dollars in thousands, except per share amounts) 4 Q1 2018 Supplemental Operating & Financial Data (unaudited) Three months ended March 31, 2018 2017 REVENUE Rental $ 306,548 $ 285,821 Tenant reimbursements 11,300 11,229 Other 447 975 Total revenue 318,295 298,025 EXPENSES Depreciation and amortization 131,103 121,097 Interest 59,415 59,305 General and administrative 15,684 13,565 Property (including reimbursable) 16,552 19,075 Income taxes 1,223 1,047 Provisions for impairment 14,221 5,433 Total expenses 238,198 219,522 Gain of sales of real estate 3,218 10,532 Net income 83,315 89,035 Net income attributable to noncontrolling interests (152 ) (165 ) Net income attributable to the Company 83,163 88,870 Preferred stock dividends - (3,911 ) Excess of redemption value over carrying value of preferred shares subject to redemption - (13,373 ) Net income available to common stockholders $ 83,163 $ 71,586 Net income available to common stockholders per common share: Basic and diluted $ 0.29 $ 0.27

Funds From Operations (FFO) (dollars in thousands, except per share amounts) 5 Q1 2018 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 FFO per share computations. We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (NAREIT’s) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of depreciable real estate assets, and reduced by gains on property sales. Presentation of the information regarding FFO and AFFO (described on page 6) is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments. Three months ended March 31, 2018 2017 Net income available to common stockholders $ 83,163 $ 71,586 Depreciation and amortization 131,103 121,097 Depreciation of furniture, fixtures and equipment (159 ) (157 ) Provisions for impairment 14,221 5,433 Gain on sales of real estate (3,218 ) (10,532 ) FFO adjustments allocable to noncontrolling interests (228 ) (214 ) FFO available to common stockholders $ 224,882 $ 187,213 FFO allocable to dilutive noncontrolling interests 218 220 Diluted FFO $ 225,100 $ 187,433 FFO per common share, basic and diluted $ 0.79 $ 0.71 Distributions paid to common stockholders $ 185,556 $ 162,506 FFO available to common stockholders in excess of distributions paid to common stockholders $ 39,326 $ 24,707 Weighted average number of common shares used for FFO per share computations: Basic 283,917,418 263,340,491 Diluted 284,345,328 263,934,304

Adjusted Funds From Operations (AFFO) (dollars in thousands, except per share amounts) 6 Q1 2018 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 AFFO per share computations. 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). (1) See reconciling items for FFO presented under "Funds from Operations (FFO).” Three months ended March 31, 2018 2017 Net income available to common stockholders $ 83,163 $ 71,586 Cumulative adjustments to calculate FFO (1) 141,719 115,627 FFO available to common stockholders 224,882 187,213 Excess of redemption value over carrying value of Class F preferred share redemption - 13,373 Amortization of share-based compensation 3,662 2,753 Amortization of deferred financing costs 844 1,487 Amortization of net mortgage premiums (459 ) (630 ) Gain on interest rate swaps (2,007 ) (1,330 ) Leasing costs and commissions (917 ) (410 ) Recurring capital expenditures (11 ) (341 ) Straight-line rent (5,365 ) (3,283 ) Amortization of above and below-market leases 3,864 2,432 Other adjustments 67 72 Total AFFO available to common stockholders $ 224,560 $ 201,336 AFFO allocable to dilutive noncontrolling interests 229 294 Diluted AFFO $ 224,789 $ 201,630 AFFO per common share, basic and diluted $ 0.79 $ 0.76 Distributions paid to common stockholders $ 185,556 $ 162,506 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 39,004 $ 38,830 Weighted average number of common shares used for AFFO per share computations: Basic 283,917,418 263,340,491 Diluted 284,345,328 264,022,486

Consolidated Balance Sheets (dollars in thousands , except per share amounts) 7 Q1 2018 Supplemental Operating & Financial Data March 31, 2018 December 31, 2017 ASSETS (unaudited) Real estate, at cost: Land $ 4,259,909 $ 4,080,400 Buildings and improvements 11,145,329 10,936,069 Total real estate, at cost 15,405,238 15,016,469 Less accumulated depreciation and amortization (2,433,678 ) (2,346,644 ) Net real estate held for investment 12,971,560 12,669,825 Real estate held for sale, net 29,953 6,674 Net real estate 13,001,513 12,676,499 Cash and cash equivalents 20,627 6,898 Accounts receivable, net 125,690 119,533 Acquired lease intangible assets, net 1,262,252 1,194,930 Goodwill 14,943 14,970 Other assets, net 49,068 45,336 Total assets $ 14,474,093 $ 14,058,166 LIABILITIES AND EQUITY Distributions payable $ 62,904 $ 60,799 Accounts payable and accrued expenses 92,379 109,523 Acquired lease intangible liabilities, net 303,204 268,796 Other liabilities 123,705 116,869 Line of credit payable 1,082,000 110,000 Term loans, net 319,441 445,286 Mortgages payable, net 313,173 325,941 Notes payable, net 4,879,628 5,230,244 Total liabilities $ 7,176,434 $ 6,667,458 Stockholders' equity: Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 284,380,175 shares issued and outstanding as of March 31, 2018 and 284,213,685 shares issued and outstanding as of December 31, 2017 9,625,200 9,624,264 Distributions in excess of net income (2,357,220 ) (2,252,763 ) Total stockholders' equity 7,267,980 7,371,501 Noncontrolling interests 29,679 19,207 Total equity 7,297,659 7,390,708 Total liabilities and equity $ 14,474,093 $ 14,058,166

Debt Summary (dollars in thousands) 8 Q1 2018 Supplemental Operating & Financial Data (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. The credit facility also has a $1.0 billion expansion option. As of March 31, 2018, approximately $918 million was available on the credit facility. (2) Borrowing under the term loan bears interest at the current one month LIBOR plus 0.90%. In January 2018 we entered into a six-month extension of this loan, which now matures in July 2018 and includes, at our election, two six-month extension options. (3) Borrowing under the term loan bears interest at the current one month LIBOR plus 0.90%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.62%. (4) The mortgages payable are at fixed interest rates, except for mortgages totaling $22.3 million as of March 31, 2018. (5) Excludes non-cash unamortized net original issuance premiums recorded on the senior unsecured notes and bonds, non-cash unamortized net premiums recorded on the mortgages payable, and deferred financing costs on the term loans, notes and bonds, and mortgages payable. (6) The totals are calculated as the weighted average interest rate as of March 31, 2018 for each respective category. Principal Interest Weighted Maturity Date as of Balance as of Rate as of Average Years March 31, 2018 March 31, 2018 % of Debt March 31, 2018 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 1,082,000 16.4% 2.70% 1.2 years Unsecured Term Loans Term Loan - Tau (2) July 21, 2018 70,000 1.1% 2.56% 0.3 years Term Loan - Realty Income (3) June 30, 2020 250,000 3.7% 2.62% 2.3 years Principal amount 320,000 4.8% 2.61% (6) 1.8 years Deferred financing costs (559) Carrying value 319,441 Senior Unsecured Notes and Bonds 5.750% Notes due 2021 January 15, 2021 250,000 3.8% 5.75% 3.250% Notes due 2022 October 15, 2022 950,000 14.4% 3.25% 4.650% Notes due 2023 August 1, 2023 750,000 11.3% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 5.3% 3.88% 4.125% Notes due 2026 October 15, 2026 650,000 9.8% 4.13% 3.000% Notes due 2027 January 15, 2027 600,000 9.1% 3.00% 3.650% Notes due 2028 January 15, 2028 550,000 8.3% 3.65% 5.875% Bonds due 2035 March 15, 2035 250,000 3.8% 5.88% 4.650% Notes due 2047 March 15, 2047 550,000 8.3% 4.65% Principal amount 4,900,000 74.1% 4.06% (6) 9.7 years Unamortized net premiums and deferred financing costs (20,372) Carrying value 4,879,628 Mortgages Payable 27 mortgages on 61 properties December 2018 - June 2032 307,960 (4) 4.7% 5.07% 3.9 years Unamortized net premiums and deferred financing costs 5,213 Carrying value 313,173 TOTAL DEBT $ 6,609,960 (5) 3.81% (6) 7.7 years Fixed Rate $ 5,435,661 82% Variable Rate $ 1,174,299 18%

Debt Maturities (dollars in millions) 9 Q1 2018 Supplemental Operating & Financial Data Debt Maturities Year of Credit Term Mortgages Senior Unsecured Weighted Average Maturity Facility Loans Payable Notes and Bonds Total Interest Rate (1) 2018 $ - $ 70.0 $ 9.6 $ - $ 79.6 3.08% 2019 1,082.0 - 20.7 - 1,102.7 4.71% 2020 - 250.0 82.4 - 332.4 3.88% 2021 - - 67.0 250.0 317.0 5.71% 2022 - - 109.7 950.0 1,059.7 3.43% Thereafter - - 18.6 3,700.0 3,718.6 4.16% Totals $ 1,082.0 $ 320.0 $ 308.0 $ 4,900.0 $ 6,610.0 Mortgages Payable Maturities by Quarter Year of First Second Third Fourth Weighted Average Maturity Quarter Quarter Quarter Quarter Total Interest Rate 2018 $ - $ 1.1 $ 1.2 $ 7.3 $ 9.6 4.93% 2019 1.2 1.3 17.0 1.2 20.7 4.71% 2020 1.2 1.2 12.6 67.4 82.4 4.99% 2021 18.2 17.7 30.7 0.4 67.0 5.54% 2022 0.4 10.0 61.6 37.7 109.7 4.98% Thereafter - - - - 18.6 5.12% Totals $ 21.0 $ 31.3 $ 123.1 $ 114.0 $ 308.0 (1) Weighted average interest rate for 2019 excludes the credit facility.

Capital Structure as of March 31, 2018 Capitalization & Financial Ratios (dollars in thousands , except per share amounts) 10 Q1 2018 Supplemental Operating & Financial Data Liquidity as of March 31, 2018 Cash on Hand $ 20,627 Availability under Credit Facility 918,000 $ 938,627 Capitalization as of March 31, 2018 Principal Debt Balance Credit Facility $ 1,082,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 4,900,000 Mortgages Payable 307,960 Total Debt $ 6,609,960 Equity Shares / Units Stock Price Market Value Common Stock (NYSE: O) 284,380,175 $ 51.73 $ 14,710,987 Common Units (1) 587,211 $ 51.73 30,376 Total Equity $ 14,741,363 Total Market Capitalization (2) $ 21,351,323 Debt/Total Market Capitalization (2) 31.0% (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 $21,330,696 (total market capitalization less cash on hand). The percentage for debt to enterprise value is materially consistent with that presented for total market capitalization. Dividend Data Year-over-Year Q1 2018 Q1 2017 Growth Rate Common Dividend Paid per Share $ 0.651 $ 0.624 4.3% AFFO per Share (diluted) $ 0.79 $ 0.76 3.9% AFFO Payout Ratio 82.4% 82.1% Debt 31.0% Common Stock 69.0%

Debt Service & Fixed Charge Coverage (3) Adjusted EBITDAre & Coverage Ratios (dollars in thousands) 11 Q1 2018 Supplemental Operating & Financial Data Reconciliation of Net Income to Adjusted EBITDAre (1) Three months ended March 31, 2018 Net income $ 83,315 Interest 59,415 Income taxes 1,223 Depreciation and amortization 131,103 Impairment loss 14,221 Gain on sales of real estate (3,218) Quarterly Adjusted EBITDAre $ 286,059 Annualized Adjusted EBITDAre $ 1,144,236 Debt/Adjusted EBITDAre (2) 5.8 (1) The National Association of Real Estate Investment Trust (NAREIT) came to the conclusion that a NAREIT-defined EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) would provide investors with a consistent measure to help make investment decisions among REITs. Although this update has not changed our calculation, we have re-labeled our Adjusted EBITDA to “Adjusted EBITDAre” in order to be consistent with the NAREIT definition. Adjusted EBITDAre, a non-GAAP financial measure, means, for the most recent quarter, 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 of real estate. Our Adjusted EBITDAre is consistent with the National Association of Real Estate Investment Trusts’ definition, but may not be comparable to Adjusted EBITDAre reported by other companies that interpret the definitions of Adjusted EBITDAre differently than we do. Management believes Adjusted EBITDAre to be a meaningful measure of a REIT’s performance because it is widely followed by industry analysts, lenders and investors. Management also believes the use of an annualized quarterly Adjusted EBITDAre metric is meaningful because it represents the company’s current earnings run rate for the period presented. The ratio of our total debt to our annualized quarterly Adjusted EBITDAre is also used to determine vesting of performance share awards granted to our executive officers. Adjusted EBITDAre should be considered along with, but not as an alternative to net income as a measure of our operating performance. Our ratio of debt to Adjusted EBITDAre, which is used by management as a measure of leverage, is calculated by annualizing quarterly Adjusted EBITDAre and then dividing by our total debt per the consolidated balance sheet. (2) Our ratio of debt to adjusted EBITDAre, which is used by management as a measure of leverage, is calculated by annualizing quarterly adjusted EBITDAre and then dividing by our total debt per the consolidated balance sheet. (3) Fixed charge coverage is calculated in exactly the same manner as the debt service coverage, except that preferred stock dividends are also added to the denominator. Since we redeemed our Class F preferred stock in April 2017, our fixed charge coverage is equivalent to our debt service coverage. Refer to footnote 1 on page 12 for a detailed description of the calculation of debt service and fixed charge coverage. 4.1 4.4 4.7 4.8 4.6 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Debt Covenants 12 Q1 2018 Supplemental Operating & Financial Data As of March 31, 2018 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 unsecured 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 42.6% Limitation on incurrence of secured debt < 40% of adjusted undepreciated assets 2.1% Debt service and fixed charge coverage (trailing 12 months) (1) > 1.5x 4.6x Maintenance of total unencumbered assets > 150% of unsecured debt 237.0% (1) Our debt service coverage ratio 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, 2017, 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, 2017, nor does it purport to reflect our debt service coverage ratio for any future period. Our fixed charge coverage is calculated in exactly the same manner as our debt service coverage, except that preferred stock dividends are also added to the denominator; since we redeemed our Class F preferred dividends in April 2017, our fixed charge coverage ratio is equivalent to our debt service coverage.

First Quarter 2018 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions 168 $ 506,040 $ 31,268 851,528 6.2% 14.0 Properties under Development (2) 6 3,767 254 102,728 6.7% 12.7 Total Real Estate Investments 174 $ 509,807 $ 31,522 954,256 6.2% 14.0 Approximately 85% of the annualized revenue generated by these investments is from investment grade tenants (3) (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) Includes investments during the period in new development and development of existing properties. Cash rents noted reflect total cash rents to be received on this investment amount upon completion of the properties under development. (3) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Investment Summary (dollars in thousands) 13 Q1 2018 Supplemental Operating & Financial Data

First Quarter 2018 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 3 $ 6,635 $ 5,651 $ 8,448 6.6% Vacant 11 15,405 4,875 5,331 - Total Real Estate Dispositions 14 $ 22,040 $ 10,526 $ 13,779 The unlevered internal rate of return on properties sold during the first quarter was 7.3% Disposition Summary (dollars in thousands) 14 Q1 2018 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 borne 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 are between April 2018 and June 2018. Development Pipeline (dollars in thousands) 15 Q1 2018 Supplemental Operating & Financial Data Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 3 $ 18,347 $ 8,194 $ 26,541 100% Development of existing properties 1 1,056 1,088 2,144 100% 4 $ 19,403 $ 9,282 $ 28,685 Non-Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 1 $ - $ 48,704 $ 48,704 100% Development of existing properties - - - - - 1 $ - $ 48,704 $ 48,704 Total Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 4 $ 18,347 $ 56,898 $ 75,245 100% Development of existing properties 1 1,056 1,088 2,144 100% 5 $ 19,403 $ 57,986 $ 77,389

Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at March 31, 2018 include the following: Investment Grade Tenants (2) : Number of Properties 2,802 Percentage of Annualized Rents 51% Percentage of Leases with Rental Increases, Based on Revenue 76% Weighted Average EBITDAR/Rent Ratio on Retail Properties 2.8x (1) Median EBITDAR/Rent Ratio on Retail Properties 2.6x (1) (1) Based on the analysis of the most recently provided information from all retail tenants that provide such information. We do not independently verify the information we receive from our retail tenants. (2) We define investment grade tenants as tenants with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). 51% of our annualized rental revenue is generated from properties leased to investment grade tenants, including approximately 9% from properties leased to subsidiaries of investment grade companies. Refer to page 20 for investment grade composition by property type. Tenant Diversification 16 Q1 2018 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P/Fitch) Walgreens 221 6.7 % Baa2/ BBB/ BBB FedEx 43 5.0 % Baa2/ BBB/ - Dollar General 532 3.8 % Baa2/ BBB/ - LA Fitness 53 3.8 % - 7-Eleven 224 3.6 % Baa1/ AA-/ - Dollar Tree / Family Dollar 468 3.5 % Baa3/ BBB-/ - AMC Theatres 32 3.5 % - Walmart / Sam’s Club 51 3.0 % Aa2/ AA/ AA Circle K (Couche-Tard) 298 2.4 % Baa2/ BBB/ - BJ’s Wholesale Clubs 15 2.2 % - Treasury Wine Estates 17 2.0 % - CVS Pharmacy 80 2.0 % Baa1/ BBB/ - Life Time Fitness 11 2.0 % - Regal Cinemas 25 1.9 % - Super America (Andeavor) 134 1.8 % Baa3/ BBB-/ BBB- GPM Investments / Fas Mart 216 1.7 % - TBC Corporation (Sumitomo) 159 1.5 % Baa1/ A-/ - Kroger 14 1.4 % Baa1/ BBB/ BBB Rite Aid 50 1.3 % - FreedomRoads / Camping World 19 1.2 % - 37% 44% 14% 5% Investment Grade, Retail Non-Investment Grade or Non-Rated, Retail Investment Grade, Non-Retail Non-Investment Grade or Non-Rated, Non-Retail

Industry Diversification 17 Q1 2018 Supplemental Operating & Financial Data * Less than 0.1% Percentage of Rental Revenue For the Quarter Ended For the Year Ended March 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2018 2017 2016 2015 2014 2013 Apparel stores 1.3 % 1.6 % 1.9 % 2.0 % 2.0 % 1.9 % Automotive collision services 0.9 1.0 1.0 1.0 0.8 0.8 Automotive parts 1.6 1.3 1.3 1.4 1.3 1.2 Automotive service 2.3 2.2 1.9 1.9 1.8 2.1 Automotive tire services 2.4 2.6 2.7 2.9 3.2 3.6 Beverages 2.6 2.7 2.6 2.7 2.8 3.3 Aerospace 0.9 0.9 1.0 1.1 1.2 1.2 Book stores * * * * * * Child care 1.9 1.8 1.9 2.0 2.2 2.8 Consumer appliances 0.5 0.5 0.5 0.6 0.5 0.6 Consumer electronics 0.3 0.3 0.3 0.3 0.3 0.3 Consumer goods 0.7 0.8 0.9 0.9 0.9 1.0 Convenience stores 9.1 9.6 8.7 9.2 10.1 11.2 Crafts and novelties 0.7 0.6 0.6 0.6 0.6 0.6 Diversified industrial 0.8 0.9 0.9 0.8 0.5 0.2 Dollar stores 7.5 7.9 8.6 8.9 9.6 6.2 Drug stores 10.5 10.9 11.2 10.6 9.5 8.1 Electric utilities 0.1 0.1 0.1 0.1 0.1 * Entertainment 0.5 0.4 0.5 0.5 0.5 0.6 Food processing 0.6 0.6 1.1 1.2 1.4 1.5 Equipment services 0.4 0.4 0.6 0.5 0.6 0.5 Financial services 2.3 2.4 1.8 1.7 1.8 2.0 General merchandise 2.2 2.0 1.8 1.7 1.5 1.1 Government services 0.9 1.0 1.1 1.2 1.3 1.4 Grocery stores 5.1 4.4 3.1 3.0 3.0 2.9 Health and fitness 7.6 7.5 8.1 7.7 7.0 6.3 Health care 1.4 1.4 1.5 1.7 1.8 1.9 Home furnishings 0.9 0.9 0.8 0.9 0.9 1.1 Home improvement 3.0 2.6 2.5 2.4 1.7 1.6 Machinery 0.1 0.1 0.1 0.1 0.2 0.2 Motor vehicle dealerships 2.4 2.1 1.9 1.6 1.6 1.6 Insurance 0.1 0.1 0.1 0.1 0.1 0.1 Jewelry 0.1 0.1 0.1 0.1 0.1 0.1 Office supplies 0.2 0.2 0.3 0.3 0.4 0.5 Other manufacturing 0.7 0.8 0.8 0.7 0.7 0.6 Packaging 1.2 1.0 0.8 0.8 0.8 0.9 Paper 0.1 0.1 0.1 0.1 0.1 0.2 Pet supplies and services 0.5 0.6 0.6 0.7 0.7 0.8 Education 0.2 0.3 0.3 0.3 0.4 0.4 Restaurants - casual dining 3.6 3.8 3.9 3.8 4.3 5.1 Restaurants - quick service 5.3 5.1 4.9 4.2 3.7 4.4 Shoe stores 0.5 0.6 0.7 0.7 0.9 1.0 Sporting goods 1.2 1.4 1.6 1.8 1.6 1.7 Telecommunications 0.6 0.6 0.6 0.7 0.7 0.7 Theaters 5.8 5.0 4.9 5.1 5.3 6.2 Transportation services 5.2 5.4 5.5 5.4 5.2 5.4 Wholesale clubs 3.1 3.3 3.6 3.8 4.1 3.9 Other 0.1 0.1 0.2 0.2 0.2 0.2 Totals 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

* Less than 0.1% (1) Includes rental revenue for all properties owned at March 31, 2018. Excludes rental revenue of $95 from sold properties. Geographic Diversification (dollars in thousands) 18 Q1 2018 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, 2018 (1) Revenue Alabama 170 98 % 1,602,900 $ 5,883 1.9 % Alaska 3 100 274,600 253 0.1 Arizona 115 99 1,808,300 6,817 2.2 Arkansas 74 100 887,700 2,218 0.7 California 186 99 5,316,000 27,572 9.0 Colorado 83 99 1,459,000 5,482 1.8 Connecticut 22 91 521,100 2,001 0.7 Delaware 18 100 93,000 734 0.2 Florida 382 99 4,133,500 17,321 5.7 Georgia 267 98 4,340,100 13,221 4.3 Idaho 12 100 87,000 401 0.1 Illinois 253 99 5,754,500 19,181 6.3 Indiana 175 98 2,181,000 8,494 2.8 Iowa 42 88 2,978,500 4,164 1.4 Kansas 93 97 1,854,200 4,869 1.6 Kentucky 68 99 1,667,700 4,417 1.4 Louisiana 107 97 1,556,000 4,963 1.6 Maine 16 100 180,300 1,137 0.4 Maryland 37 97 1,017,500 4,758 1.6 Massachusetts 78 99 727,000 3,566 1.2 Michigan 163 99 1,781,000 6,620 2.2 Minnesota 159 100 2,028,500 10,222 3.3 Mississippi 140 96 1,616,900 4,668 1.5 Missouri 153 97 2,705,000 8,353 2.7 Montana 11 100 87,000 434 0.1 Nebraska 39 100 752,100 1,927 0.6 Nevada 23 100 1,191,100 1,954 0.6 New Hampshire 19 100 315,800 1,742 0.6 New Jersey 74 100 997,100 5,847 1.9 New Mexico 33 100 364,300 1,026 0.3 New York 113 100 2,782,700 14,735 4.8 North Carolina 182 99 2,789,200 9,046 3.0 North Dakota 6 100 117,700 211 0.1 Ohio 257 99 6,780,300 15,783 5.2 Oklahoma 134 100 1,653,500 4,692 1.5 Oregon 28 100 593,300 2,525 0.8 Pennsylvania 180 98 1,985,600 8,389 2.7 Rhode Island 4 100 161,600 841 0.3 South Carolina 166 99 1,658,200 7,824 2.6 South Dakota 15 100 195,200 469 0.2 Tennessee 249 98 3,602,800 10,207 3.3 Texas 588 99 9,950,800 28,920 9.4 Utah 22 100 970,600 2,276 0.7 Vermont 5 100 98,000 489 0.2 Virginia 177 97 3,131,400 8,338 2.7 Washington 43 98 733,400 2,819 0.9 West Virginia 18 100 395,600 1,278 0.4 Wisconsin 114 100 2,383,000 6,925 2.3 Wyoming 6 100 54,700 292 0.1 Puerto Rico 4 100 28,300 149 * Totals\Average 5,326 99 % 90,344,600 $ 306,453 100.0 %

Property Type Composition (dollars in thousands) 19 Q1 2018 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at March 31, 2018. Excludes rental revenue of $95 from sold properties. (2) Refer to footnote 2 on page 16 for our definition of investment grade tenants. 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, 2018 (1) March 31, 2018 (2) Retail 5,153 61,032,000 $ 247,789 80.9 % 45.5 % Industrial 116 26,023,400 38,493 12.6 82.2 Office 42 3,104,700 13,593 4.4 87.2 Agriculture 15 184,500 6,578 2.1 - Totals 5,326 90,344,600 $ 306,453 100.0 % Retail 80.9% Industrial 12.6% Office 4.4% Agriculture 2.1%

Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry March 31, 2018 March 31, 2017 Change by Industry Motor Vehicle Dealerships $ 7,144 $ 6,673 $ 471 17.9 % Health and Fitness 20,896 20,601 295 11.2 % Grocery Stores 9,902 9,691 211 8.0 % First Quarter 2018 Same Store Rental Revenue (dollars in thousands) 20 Q1 2018 Supplemental Operating & Financial Data Same Store Pool Defined For purposes of determining the properties used to calculate our same store rental revenue pool, we include all properties that we 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. Rental revenue amounts presented in our same store rent calculation exclude straight-line rent and the amortization of above and below-market leases. Same Store Rental Revenue Number of Properties 4,747 Square Footage 78,972,950 Q1 2018 $276,662 Q1 2017 $274,024 Increase (in dollars) $2,638 Increase (percent) 1.0% Same Store Rental Revenue by Property Type Quarter ended Quarter ended Net % Change by Property Type March 31, 2018 March 31, 2017 Change Property Type Retail $ 220,710 $ 218,215 $ 2,495 1.1% Industrial 36,023 36,075 (52) -0.1% Office 13,351 13,223 128 1.0% Agriculture 6,578 6,511 67 1.0% Total $ 276,662 $ 274,024 $ 2,638 1.0%

By Property Occupied Properties 5,251 Total Properties 5,326 Occupancy 98.6% By Square Footage Occupied Square Footage 89,074,680 Total Square Footage 90,344,565 Occupancy 98.6% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 304,066,434 Quarterly Vacant Rental Revenue(1) $ 3,731,761 Occupancy 98.8% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 12/31/17 83 Expiration Activity (1) + 58 Leasing Activity (2) - 55 Vacant Property Sales Activity (3) - 11 Vacant Properties at 3/31/18 75 (1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current quarter. (2) Includes 46 expirations that were re-leased to the same tenants. without vacancy, three that were re-leased to a new tenant without vacancy, and six that were re-leased to a new tenant after a period of vacancy. See page 22 for additional detail on re-leasing activity. (3) Includes 10 properties that were vacant at the beginning of the quarter. Occupancy 21 Q1 2018 Supplemental Operating & Financial Data Occupancy by Number of Properties 97.8% 98.0% 98.3% 98.3% 98.3% 98.5% 98.3% 98.4% 98.6% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Allocation Based on Number of Leases Leasing Activity (dollars in thousands) 22 Q1 2018 Supplemental Operating & Financial Data Q1 2018 Re-leased to New Tenant Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 7,048 $ 160 $ 3,151 $ 10,359 New Cash Rents* $ 7,065 $ 187 $ 3,145 $ 10,397 Recapture Rate 100.2 % 116.6 % 99.8 % 100.4 % Number of Leases 46 3 6 55 Average Months Vacant - - 11.0 1.2 Additional Invested Capital(1) $ 2,550 $ - $ 1,809 $ 4,359 Incremental Yield(2) 9.8 % 38.2 % 11.0 % *Percentage of Total Annualized Portfolio Rental Revenue: 0.8 % (1) Additional invested capital figures include $0 of lease incentive for the quarter ended March 31, 2018. (2) Incremental yield reflects the yield generated by capital commitments made at the time of re-lease, and is calculated as the incremental cash rents divided by additional invested capital. Incremental cash rents are calculated by subtracting prior rents, or management’s estimate of rents to be paid for unimproved space, from the contractual cash rents for the first twelve months following rent commencement. 84% 16% Same Tenant New Tenant

23 (1) This table sets forth the timing of remaining lease term expirations in our portfolio and their contribution to rental revenue for the quarter ended March 31, 2018. The lease expirations for leases under construction are based on the estimated date of completion of those projects. Excludes revenue of $454 from 96 expired leases, and $95 from sold properties at March 31, 2018. Leases on our multi-tenant properties are counted separately in the table above. Our leases have a weighted average remaining lease term of approximately 9.4 years. Lease Expirations (dollars in thousands) Q1 2018 Supplemental Operating & Financial Data Total Portfolio (1) Approx. % of Expiring Leases Leasable Rental Rental Year Retail Non-Retail Sq. Feet Revenue Revenue 2018 167 8 1,769,800 $ 6,134 2.0 % 2019 265 10 4,008,900 13,313 4.4 2020 220 13 4,253,400 13,350 4.4 2021 311 15 5,383,300 15,563 5.1 2022 402 21 9,926,800 20,935 6.8 2023 499 23 8,692,600 26,243 8.6 2024 229 11 4,153,100 12,912 4.2 2025 335 14 5,281,800 21,602 7.1 2026 314 3 4,643,500 15,948 5.2 2027 543 5 6,285,200 22,290 7.3 2028 305 10 7,660,600 18,925 6.2 2029 405 7 7,440,700 21,565 7.0 2030 98 13 2,758,400 15,569 5.1 2031 287 25 5,782,300 26,899 8.8 2032 84 4 3,129,100 11,779 3.8 2033 - 2043 674 3 7,905,200 42,972 14.0 Totals 5,138 185 89,074,700 $ 305,999 100.0 %

24 We estimate FFO per share for 2018 of $3.11 to $3.19. We estimate AFFO per share for 2018 of $3.14 to $3.20, an increase of 3% to 5% over 2017 AFFO per share of $3.06. Summarized below are approximate estimates of the key components of the company’s 2018 earnings guidance: Earnings Guidance Q1 2018 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 Supplemental Operating & Financial Data. 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. 2018 Guidance Net income per share $1.21 to $1.29 Real estate depreciation and impairments per share $1.97 Gains on sales of properties per share ($0.07) FFO per share $3.11 to $3.19 AFFO per share $3.14 to $3.20 Same store rent growth 1.0% Occupancy 98% G&A expenses (% of revenues) (1) 5.0% Property expenses (non-reimbursable) (% of revenues) (1) 1.5% to 2.0% Acquisition volume $1.0 to $1.5 billion Disposition volume Approximately $200 million

25 Q1 2018 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 Joshua Dennerlein joshua.dennerlein@baml.com (646) 855-1681 BTIG Michael Gorman mgorman@btig.com (212) 738-6138 James Sullivan jsullivan@btig.com (212) 738-6139 Capital One Chris Lucas christopher.lucas@capitalone.com (571) 633-8151 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 Robert Galante rgalante@dadco.com (212) 223-5363 Edward Jones Matt Kopsky matt.kopsky@edwardjones.com (314) 515-5319 Goldman Sachs Andrew Rosivach andrew.rosivach@gs.com (212) 902-2796 Caitlin Burrows caitlin.burrows@gs.com (212) 902-4736 Green Street Michael Knott mknott@greenstreetadvisors.com (949) 640-8780 Andrew Suh asuh@greenstreetadvisors.com (949) 640-8780 Janney Montgomery Scott Robert Stevenson robstevenson@janney.com (646) 840-3217 Venkat Kommineni vkommineni@janney.com (646) 840-3219 Hersh Shintre hshintre@janney.com (646) 840-3201 J.P. Morgan Anthony Paolone anthony.paolone@jpmorgan.com (212) 622-6682 Nikita Bely nikita.bely@jpmorgan.com (212) 622-0695 Ladenburg Thalmann John Massocca jmassocca@ladenburg.com (212) 409-2543 Mitsubishi UFG Securities (USA), Inc. Karin Ford karin.ford@mufgsecurities.com (212) 405-7249 Ryan Cybart ryan.cybart@mufgsecurities.com (212) 405-6591 Mizuho Securities USA, Inc. Haendel St. Juste haendel.st.juste@us.mizuho-sc.com (212) 205-7860 Jieren Huang jieren.huang@us.mizuho-sc.com (212) 205-7862 Morgan Stanley Vikram Malhotra vikram.malhotra@morganstanley.com (212) 761-7064 Kevin Egan kevin.egan@morganstanley.com (212) 761-5028 Raymond James Collin Mings collin.mings@raymondjames.com (727) 567-2585 Paul Puryear paul.puryear@raymondjames.com (727) 567-2253 Marnie Georges marnie.georges@raymondjames.com (727) 567-2638 RBC Capital Markets Wes Golladay wes.golladay@rbccm.com (440) 715-2650 Stifel Simon Yarmak yarmaks@stifel.com (443) 224-1345 Alexander Fraser frasera@stifel.com (443) 224-1264 UBS Nick Yulico nick.yulico@ubs.com (212) 713-3402 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