Realty Income Announces First Quarter Operating Results

ESCONDIDO, Calif.--(Business Wire)--
Realty Income Corporation (Realty Income), The Monthly Dividend Company®
(NYSE:O) today announced operating results for the first quarter ended March 31,
2009. All per share amounts presented in this press release are on a diluted per
common share basis, unless stated otherwise.

COMPANY HIGHLIGHTS:

For the quarter ended March 31, 2009 (as compared to the same quarterly period
in 2008):

* Revenue increased 0.2% to $82.9 million
* Funds from Operations (FFO) available to common stockholders increased 1.7% to
$46.7 million
* FFO per share decreased 2.2% to $0.45
* Net income available to common stockholders per share was $0.23
* Portfolio occupancy was 96.4%
* Same store rents increased 0.2% to $75.9 million
* Dividends paid per common share increased 3.7%
* The monthly dividend increased for the 46th consecutive quarter to an
annualized amount of $1.70475 per share

Financial Results

Revenue Increases

Realty Income`s revenue, for the quarter ended March 31, 2009, increased 0.2% to
$82.9 million as compared to $82.7 million for the same quarter in 2008.

Net Income Available to Common Stockholders

Net income available to common stockholders, for the quarter ended March 31,
2009, was $24.0 million as compared to $23.7 million for the same quarter in
2008. Net income per share for the quarter was $0.23 per share as compared to
$0.24 per share for the same quarter in 2008.

The calculation to determine net income for a real estate company includes
impairments or gains from the sales of investment properties. The amount of
impairments or gains on property sales varies from quarter to quarter. This
variance can significantly impact net income.

During the first quarter of 2009, income from continuing operations available to
common stockholders was $0.23 per share as compared to $0.24 per share for the
same quarter in 2008.

FFO Available to Common Stockholders

FFO, for the quarter ended March 31, 2009, increased 1.7% to $46.7 million as
compared to $45.9 million for the same quarter in 2008. FFO and FFO per share
before Crest`s contribution, for the quarter ended March 31, 2009, decreased
2.2% to $0.45 per share as compared to $0.46 per share for the same quarter in
2008. Crest Net Lease, Inc. (Crest) is a wholly-owned subsidiary of Realty
Income.

The Company considers FFO to be an appropriate supplemental measure of a Real
Estate Investment Trust`s (REIT`s) operating performance as it is based on a net
income analysis of property portfolio performance that excludes non-cash items
such as depreciation. FFO is an alternative, non-GAAP measure that is also
considered to be a good indicator of a company`s ability to generate income to
pay dividends. Realty Income defines FFO consistent with the National
Association of Real Estate Investment Trust`s (NAREIT`s) definition as net
income available to common stockholders plus depreciation and amortization of
real estate assets, reduced by gains on sales of investment properties and
extraordinary items. See reconciliation of net income available to common
stockholders to FFO on pages 6 and 7.

Dividend Information

In March 2009, Realty Income announced the 46th consecutive quarterly increase
and the 53rd increase in the amount of the dividend since the Company`s listing
on the New York Stock Exchange in 1994. The annualized dividend amount as of
March 31, 2009 was $1.70475 per share. The amount of the monthly dividends paid
during the quarter increased 3.7% to $0.425 per share from $0.410 per share for
the same quarter in 2008.

Real Estate Portfolio Update

As of March 31, 2009, Realty Income`s portfolio of freestanding, single-tenant,
retail properties consisted of 2,347 properties located in 49 states, leased to
117 retail chains doing business in 30 retail industries. The properties are
leased under long-term, net leases with a weighted average remaining lease term
of approximately 11.8 years.

Portfolio Management Activities

The Company`s portfolio of retail real estate, owned primarily under 15- to
20-year net leases, continues to perform well and provide dependable lease
revenue supporting the payment of monthly dividends. As of March 31, 2009,
portfolio occupancy was 96.4% with 84 properties available for lease out of a
total of 2,347 properties in the portfolio.

Rent Increases

During the three months ended March 31, 2009, same store rents on 2,092
properties under lease increased 0.2% to $75.87 million as compared to $75.73
million for the same quarter in 2008. Excluding 104 properties leased to
Buffets, Inc. (for which rents were renegotiated in September 2008), for the
quarter ended March 31, 2009, same store rents on 1,988 properties under lease
increased 1.2% to $71.0 million, as compared to $70.19 million for the same
quarter in 2008.

Property Acquisitions

During the first quarter of 2009, Realty Income invested $1.3 million in
previously acquired properties. No new properties were acquired by Realty Income
or Crest during the first quarter of 2009.

Realty Income maintains a $355 million unsecured acquisition credit facility,
which is used to fund property acquisitions in the near term. There is currently
no outstanding balance on the Company`s acquisition credit facility, and the
full $355 million is available to fund new property acquisitions. In addition,
the Company had cash and cash equivalents of $10.4 million at March 31, 2009.

Property Dispositions

Realty Income continued to successfully execute its asset disposition program in
2009. The objective of this program is to sell assets when the Company believes
the reinvestment of the sales proceeds will generate higher returns, enhance the
credit quality of the Company's real estate portfolio, increase the average
lease length, or decrease tenant or industry concentration.

During the quarter ended March 31, 2009, Realty Income sold one property for
$1.1 million, which resulted in a gain on sale of $198,000.

Other Activities

Buffets Emerges from Reorganization

On April 28, 2009, Buffets Holdings, Inc. ("Buffets") announced that it had
emerged from Chapter 11 reorganization. Buffets noted that "in addition to
strengthening its balance sheet and reducing its debt, Buffets has also used the
Chapter 11 process to right-size its organization, including streamlining its
portfolio of restaurants and reducing operating expenses across the business."
Buffets remains Realty Income`s largest tenant, representing approximately 6.0%
of Realty Income`s annualized rental revenues.

Retired $20 million of 8.0% Senior Notes

In January 2009, Realty Income retired all of its $20 million of 8.0% Senior
Notes, due January 2009. Repayment of the Notes was made with cash on hand. The
Company has no additional debt maturing until 2013.

Crest Net Lease

Crest is focused on acquiring and subsequently marketing net-leased properties
for sale. Crest did not acquire or sell any properties during the first quarter
of 2009. At March 31, 2009, Crest`s property inventory consisted of five
properties valued at $5.7 million.

Crest`s contribution to Realty Income`s FFO (and net income) depends on the
timing and number of property sales, if any, in a given quarter. Therefore,
Crest`s contribution can fluctuate and add volatility to Realty Income`s
reported FFO and net income on a comparable quarterly and annualized
basis.During the first quarters of 2009 and 2008, Crest did not contribute to
Realty Income`s FFO.

CEO Comments on Operating Results

Commenting on Realty Income`s financial results and real estate operations,
Chief Executive Officer, Tom A. Lewis said, "We are pleased with our results
given the current environment in the credit markets and overall economy. We are
fortunate to be in a very liquid position with over $10 million of cash on hand
at the end of the quarter and no balance on our $355 million credit facility.
The Company also has no mortgages on any of its 2,347 properties and no debt
maturities for four years, or until 2013. Additionally, we have no properties
under development, no joint ventures and no off balance sheet assets or
liabilities of any kind. As such, we believe we are well positioned to manage
the Company during these difficult times."

"Our focus during the first quarter continued to be on strengthening our balance
sheet, maintaining substantial liquidity and managing our portfolio to maximize
current occupancy and ongoing cash flow. During the quarter, we retired $20
million of 8.0% Senior Notes that were due in January 2009. These notes were
retired with cash on hand."

"At March 31st, occupancy remained solid at 96.4% with just 84 of our 2,347
properties available for lease. We were pleased with the emergence of Buffets
from reorganization, with the impact on us almost exactly as we had anticipated.
In addition, same store rents rose 0.2% during the first quarter. Given the
ongoing softness in the retail industry, we are very pleased with this
performance."

"With respect to real estate acquisitions, we have largely remained on the
sidelines for the past year as we felt that properties we could have purchased
would likely be less expensive in the future. As such, during the first quarter
we did not acquire any new properties. We continue to believe that the initial
lease yields on potential property acquisitions do not yet fully reflect the
tightness in the credit markets and so we are unwilling to invest at the current
prices. With that said, we continue to review acquisition opportunities and
perform due diligence on a number of potential transactions. Given our
substantial liquidity position, we have funds on hand to invest in size should
attractively priced acquisitions emerge over the coming months."

"We continue to operate conservatively in a challenging economic and retail
environment, and we were pleased to be able to increase the amount of the
monthly dividend for the 46th consecutive quarter to an annualized amount of
$1.70475 per share. We have been fortunate to have a strong portfolio of good
properties, which have remained profitable to our retailers, and are often the
key to the ongoing profitability of our tenant`s business. We believe this has
kept occupancy high and, when coupled with our conservative balance sheet and
strong liquidity, is serving us very well during the current economic downturn."

FFO Commentary

Realty Income`s FFO per share has historically tended to be stable and fairly
predictable because of the long-term leases that are the primary source of the
Company`s revenue. There are, however, several factors that can cause FFO per
share to vary from levels that have been anticipated by the Company. These
factors include, but are not limited to, changes in interest rates, occupancy
rates, periodically accessing the capital markets, the level and timing of
property acquisitions and dispositions, lease rollovers, the general real estate
market, the economy, charges for property impairments, and the operations of
Crest.

2009 Estimates

Management estimates that FFO per share for 2009 should range from $1.83 to
$1.87, which represents annual FFO per share growth of approximately 0.0% to
2.2%, as compared to 2008 FFO per share of $1.83. FFO for 2009 is based on an
estimated net income per share range of $1.00 to $1.04, adjusted (in accordance
with NAREIT`s definition of FFO) for estimated real estate depreciation of $0.88
and potential gain on sales of investment properties of $0.05 per share.

Management notes that, given the volatility in the markets, it is more
challenging than usual to estimate a number of factors that will impact the
Company`s future results. For example, new property acquisition levels could
vary depending on the number of opportunities, capitalization rates and the
availability of attractively priced permanent financing. As such, management
would add that the $1.83 FFO per share estimate assumes no new property
acquisitions for 2009. The $1.87 FFO per share estimate assumes property
acquisitions of approximately $250 million in 2009.

Management further estimates that Crest could contribute between $0.00 and $0.01
per share to Realty Income`s FFO during 2009. Crest`s primary business is the
purchase and sale of properties for a profit. These sales may occur at various
times during the course of the year and could cause FFO, in certain quarters, to
fluctuate on a comparable quarterly and annualized basis.

About Realty Income

Realty Income is The Monthly Dividend Company®, a New York Stock Exchange real
estate company dedicated to providing shareholders with dependable monthly
income. As of March 31, 2009, the Company had paid 464 consecutive monthly
dividends throughout its 40-year operating history. The monthly income is
supported by the cash flows from 2,347 retail properties owned under long-term
lease agreements with leading regional and national retail chains. The Company
is a buyer of net-leased retail properties nationwide.

Forward-Looking Statements

Statements in this press release that are not strictly historical are
"forward-looking" statements. Forward-looking statements involve known and
unknown risks, which may cause the Company`s actual future results to differ
materially from expected results. These risks include, among others, general
economic conditions, local real estate conditions, 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, the outcome of any legal
proceedings to which the Company is a party, and the profitability of Crest, the
Company`s subsidiary, as described in the Company`s filings with the Securities
and Exchange Commission. Consequently, such forward-looking statements should be
regarded solely as reflections of the Company`s current operating plans and
estimates. Actual operating results may differ materially from what is expressed
or forecast in this press release. The Company undertakes no obligation to
publicly release the results of any revisions to these forward-looking
statements that may be made to reflect events or circumstances after the date
these statements were made.

Note to Editors: Realty Income press releases are available at no charge by
calling our toll-free investor hotline number: 888-811-2001, or via the internet
at http://www.realtyincome.com/Investing/News.html.

CONSOLIDATED STATEMENTS OF INCOME

For the three months ended March 31, 2009 and 2008

(dollars in thousands, except per share amounts)

2009 2008
REVENUE
Rental $ 82,140 $ 81,241
Other 754 1,448
82,894 82,689
EXPENSES
Depreciation and amortization 22,951 22,076
Interest 21,410 23,386
General and administrative 5,950 5,544
Property 2,233 1,216
Income taxes 303 398

52,847 52,620

Income from continuing operations 30,047 30,069
Income (loss) from discontinued operations:
Real estate acquired for resale by Crest (125 ) (929 )
Real estate held for investment 162 621
37 (308 )

Net income 30,084 29,761
Preferred stock cash dividends (6,063 ) (6,063 )

Net income available to common stockholders $ 24,021 $ 23,698

Funds from operations available to common stockholders (FFO) $ 46,734 $ 45,937

Basic and diluted per share information for common stockholders:
Income from continuing operations $ 0.23 $ 0.24
Net income $ 0.23 $ 0.24
FFO, basic and diluted
FFO before Crest contribution $ 0.45 $ 0.46
Crest Net Lease $ 0.00 $ 0.00
Total FFO $ 0.45 $ 0.46
Cash dividends paid $ 0.425 $ 0.410

FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)

Three Months Three Months

Ended 3/31/09
Ended 3/31/08

Net income available to common stockholders $ 24,021 $ 23,698
Depreciation and amortization:
Continuing operations 22,951 22,076
Discontinued operations 41 897
Depreciation of furniture, fixtures & equipment (81 ) (77 )
Gain on sales of investment properties:
Continuing operations -- (439 )
Discontinued operations (198 ) (218 )

Funds from operations available to common stockholders $ 46,734 $ 45,937

FFO per common share, basic and diluted $ 0.45 $ 0.46

Dividends paid to common stockholders $ 44,362 $ 41,554

FFO in excess of dividends paid to common stockholders $ 2,372 $ 4,383

Weighted average number of common shares used for computation per share:
Basic 103,439,114 100,280,264
Diluted 103,445,044 100,365,576

CONTRIBUTIONS BY CREST TO FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)

Crest acquires properties with the intention of reselling them rather than holding them as investments and operating the
properties. Consequently, we typically classify properties acquired by Crest as held for sale at the date of acquisition
and do not depreciate them. The operations of Crest`s properties are classified as "income (loss) from discontinued
operations, real estate acquired for resale".

Three Months Three Months

Ended 3/31/09
Ended 3/31/08
Gain on sales of real estate acquired for $ -- $ 2,706
resale
Rental revenue 66 1,036
Other revenue 351 71
Interest expense (173 ) (632 )
General and administrative expense (86 ) (162 )
Property expenses (34 ) (11 )
Provisions for impairment (311 ) (2,394 )
Income taxes 62 (808 )

Funds from operations contributed by Crest $ (125 ) $ (194 )

Crest FFO per common share, basic and $ 0.00 $ 0.00
diluted

Total FFO $ 46,734 $ 45,937
Add FFO contributed by Crest 125 194

FFO before Crest contribution $ 46,859 $ 46,131

FFO before Crest contribution per common share, basic and diluted $ 0.45 $ 0.46

We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust`s
definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets
reduced by gains on sales of investment properties and extraordinary items.

HISTORICAL FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)

For the three months ended March 31, 2009 2008 2007 2006 2005

Net income available to common stockholders $ 24,021 $ 23,698 $ 30,260 $ 22,537 $ 21,152
Depreciation and amortization 22,911 22,896 18,085 13,515 10,832
Gain on sales of investment properties (198 ) (657 ) (1,806 ) (752 ) (822 )

Total FFO $ 46,734 $ 45,937 $ 46,539 $ 35,300 $ 31,162

Total FFO per diluted share $ 0.45 $ 0.46 $ 0.46 $ 0.42 $ 0.39

Total FFO $ 46,734 $ 45,937 $ 46,539 $ 35,300 $ 31,162
Add (less) FFO contributed by Crest 125 194 (1,748 ) (879 ) (833 )

FFO before Crest contribution $ 46,859 $ 46,131 $ 44,791 $ 34,421 $ 30,329

FFO components, per diluted share(1):
FFO before Crest contribution $ 0.45 $ 0.46 $ 0.45 $ 0.41 $ 0.38
Crest FFO contribution $ 0.00 $ 0.00 $ 0.02 $ 0.01 $ 0.01

Total FFO $ 0.45 $ 0.46 $ 0.46 $ 0.42 $ 0.39

Cash dividends paid per share $ 0.425 $ 0.410 $ 0.380 $ 0.349 $ 0.330
Diluted shares outstanding 103,445,044 100,365,576 100,276,300 83,412,391 79,659,364

(1) The above FFO per share amounts have been rounded to the nearest two
decimals and, as such, the individual amounts may not add up to the "Total FFO"
amount.

CONSOLIDATED BALANCE SHEETS

As of March 31, 2009 and December 31, 2008

(dollars in thousands, except per share amounts)

2009 2008
ASSETS
Real estate,
at cost:
Land $ 1,157,731 $ 1,157,885
Buildings and 2,247,961 2,251,025
improvements
3,405,692 3,408,910
Less (573,039 ) (553,417 )
accumulated
depreciation
and
amortization

Net real 2,832,653 2,855,493
estate held
for
investment
Real estate 7,725 6,660
held for
sale, net
Net real 2,840,378 2,862,153
estate
Cash and cash 10,438 46,815
equivalents
Accounts 10,122 10,624
receivable
Goodwill 17,206 17,206
Other assets, 53,487 57,381
net

Total assets $ 2,931,631 $ 2,994,179

LIABILITIES
AND
STOCKHOLDERS`
EQUITY
Distributions $ 16,841 $ 16,793
payable
Accounts 17,860 38,027
payable and
accrued
expenses
Other 11,485 14,698
liabilities
Line of -- --
credit
payable
Notes payable 1,350,000 1,370,000

Total 1,396,186 1,439,518
liabilities

Stockholders`
equity:
Preferred 337,790 337,790
stock and
paid in
capital, par
value $1.00
per share,
20,000,000
shares
authorized,
13,900,000
issued and
outstanding
in 2009 and
2008
Common stock 1,625,795 1,624,622
and paid in
capital, par
value $1.00
per share,
200,000,000
shares
authorized,
104,319,051
and
104,211,541
shares issued
and
outstanding
as of March
31, 2009 and
December 31,
2008,
respectively
Distributions (428,140 ) (407,751 )
in excess of
net income

Total 1,535,445 1,554,661
stockholders`
equity

Total $ 2,931,631 $ 2,994,179
liabilities
and
stockholders`
equity

Industry Diversification

The following table sets forth certain information regarding Realty Income`s property portfolio (excluding properties owned by Crest) classified according to the business of the respective tenants, expressed as a
percentage of our total rental revenue:

Percentage of Rental Revenue(1)
For the Quarter For the Years Ended
Ended
March 31,

2009
Industries Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2008 2007 2006 2005 2004 2003
Apparel stores 1.1 % 1.1 % 1.2 % 1.7 % 1.6 % 1.8 % 2.1 %
Automotive collision services 1.0 1.0 1.1 1.3 1.3 1.0 0.3
Automotive parts 1.5 1.6 2.1 2.8 3.4 3.8 4.5
Automotive service 5.1 4.8 5.2 6.9 7.6 7.7 8.3
Automotive tire services 7.1 6.7 7.3 6.1 7.2 7.8 3.1
Book stores 0.2 0.2 0.2 0.2 0.3 0.3 0.4
Business services * * 0.1 0.1 0.1 0.1 0.1
Child care 7.3 7.6 8.4 10.3 12.7 14.4 17.8
Consumer electronics 0.8 0.8 0.9 1.1 1.3 2.1 3.0
Convenience stores 16.5 15.8 14.0 16.1 18.7 19.2 13.3
Crafts and novelties 0.3 0.3 0.3 0.4 0.4 0.5 0.6
Distribution and office 1.0 1.0 0.6 -- -- -- --
Drug stores 4.2 4.1 2.7 2.9 2.8 0.1 0.2
Entertainment 1.2 1.2 1.4 1.6 2.1 2.3 2.6
Equipment rental services 0.2 0.2 0.2 0.2 0.4 0.3 0.2
Financial services 0.2 0.2 0.2 0.1 0.1 0.1 --
General merchandise 0.8 0.8 0.7 0.6 0.5 0.4 0.5
Grocery stores 0.7 0.7 0.7 0.7 0.7 0.8 0.4
Health and fitness 5.7 5.6 5.1 4.3 3.7 4.0 3.8
Home furnishings 1.4 2.4 2.6 3.1 3.7 4.1 4.9
Home improvement 1.9 1.9 2.1 3.4 1.1 1.0 1.1
Motor vehicle dealerships 3.0 3.1 3.1 3.4 2.6 0.6 --
Office supplies 1.0 1.0 1.1 1.3 1.5 1.6 1.9
Pet supplies and services 0.9 0.8 0.9 1.1 1.3 1.4 1.7
Private education 0.8 0.8 0.8 0.8 0.8 1.1 1.2
Restaurants 21.6 21.8 21.2 11.9 9.4 9.7 11.8
Shoe stores -- -- -- -- 0.3 0.3 0.9
Sporting goods 2.3 2.3 2.6 2.9 3.4 3.4 3.8
Theaters 9.1 9.0 9.0 9.6 5.2 3.5 4.1
Travel plazas 0.2 0.2 0.2 0.3 0.3 0.4 0.3
Video rental 1.0 1.1 1.7 2.1 2.5 2.8 3.3
Other 1.9 1.9 2.3 2.7 3.0 3.4 3.8
Totals 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

* 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 to
discontinued operations.

Lease Expirations

The following table sets forth certain information regarding Realty Income`s property portfolio (excluding properties owned by Crest) regarding the timing of the lease term expirations (excluding extension options) on
our 2,253 net leased, single-tenant retail properties as of March 31, 2009 (dollars in thousands):

Total Portfolio Initial Expirations(3) Subsequent Expirations(4)
Year Number Rental % of Number Rental % of Total Rental Revenue Number Rental % of Total

of Leases Revenue
Total Rental Revenue
of Leases Expiring Revenue
of Leases Expiring
Revenue
Rental Revenue
Expiring(1)
for the
for the
for the

Quarter Ended
Quarter Ended
Quarter Ended March 31,2009

March 31, 2009(2)
March 31, 2009
2009 132 $ 2,684 3.4 % 29 $ 598 0.8 % 103 $ 2,086 2.6 %
2010 98 2,043 2.6 47 1,074 1.4 51 969 1.2
2011 105 3,447 4.4 59 2,361 3.0 46 1,086 1.4
2012 115 2,721 3.4 74 1,846 2.3 41 875 1.1
2013 140 5,068 6.4 98 4,059 5.1 42 1,009 1.3
2014 61 2,250 2.8 36 1,806 2.3 25 444 0.5
2015 109 3,040 3.8 85 2,499 3.1 24 541 0.7
2016 114 2,040 2.6 112 1,995 2.5 2 45 0.1
2017 47 1,619 2.0 39 1,469 1.8 8 150 0.2
2018 42 1,789 2.3 34 1,617 2.0 8 172 0.3
2019 96 4,836 6.1 91 4,500 5.7 5 336 0.4
2020 76 2,894 3.6 73 2,821 3.5 3 73 0.1
2021 180 7,668 9.7 179 7,614 9.6 1 54 0.1
2022 100 2,923 3.7 99 2,875 3.6 1 48 0.1
2023 246 7,944 10.0 244 7,871 9.9 2 73 0.1
2024 61 1,726 2.2 61 1,726 2.2 -- -- --
2025 70 5,437 6.9 66 5,369 6.8 4 68 0.1
2026 120 6,815 8.6 118 6,757 8.5 2 58 0.1
2027 152 4,612 5.8 151 4,595 5.8 1 17 *
2028 82 4,002 5.0 80 3,953 4.9 2 49 0.1
2029 46 1,124 1.4 45 1,109 1.4 1 15 *
2030 20 921 1.2 20 921 1.2 -- -- --
2031 27 648 0.8 27 648 0.8 -- -- --
2032 2 57 0.1 2 57 0.1 -- -- --
2033 7 422 0.5 7 422 0.5 -- -- --
2034 2 230 0.3 2 230 0.3 -- -- --
2037 2 354 0.4 2 354 0.4 -- -- --
2043 1 13 * -- -- -- 1 13 *
Totals 2,253 $ 79,327 100.0 % 1,880 $ 71,146 89.5 % 373 $ 8,181 10.5 %

*Less than 0.1%

(1) Excludes ten multi-tenant properties and 84 vacant unleased 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 $50 from properties reclassified as discontinued
operations and excludes revenue of $2,863 from ten multi-tenant properties and
from 84 vacant and unleased properties at March 31, 2009.

(3) Represents leases to the initial tenant of the property that are expiring
for the first time.

(4) Represents lease expirations on properties in the portfolio, which have
previously been renewed, extended or re-tenanted.

Geographic Diversification

The following table sets forth certain state-by-state information regarding Realty Income`s property portfolio (excluding properties owned by Crest) as of March 31, 2009 (dollars in thousands):

Approximate Rental Revenue for Percentage of
Number of Percent Leasable the Quarter Ended Rental
State Properties Leased Square Feet March 31, 2009(1) Revenue
Alabama 63 98 % 425,300 $ 1,924 2.4 %
Alaska 2 100 128,500 277 0.3
Arizona 80 98 395,800 2,411 2.9
Arkansas 18 94 98,500 393 0.5
California 64 98 1,160,700 4,474 5.5
Colorado 53 96 486,300 1,839 2.2
Connecticut 24 96 276,600 1,181 1.4
Delaware 17 100 33,300 429 0.5
Florida 168 95 1,449,300 6,600 8.0
Georgia 132 97 926,900 3,998 4.9
Idaho 13 92 85,400 331 0.4
Illinois 74 97 877,800 4,175 5.1
Indiana 82 96 689,600 3,228 3.9
Iowa 22 95 296,100 1,010 1.2
Kansas 33 91 573,500 1,101 1.3
Kentucky 22 100 110,600 675 0.8
Louisiana 33 97 190,400 888 1.1
Maine 3 100 22,500 160 0.2
Maryland 29 97 271,200 1,581 1.9
Massachusetts 66 100 580,400 2,616 3.2
Michigan 52 98 257,300 1,246 1.5
Minnesota 21 100 392,100 1,547 1.9
Mississippi 71 97 347,600 1,505 1.8
Missouri 62 97 640,100 2,193 2.7
Montana 2 100 30,000 76 0.1
Nebraska 19 95 196,300 473 0.6
Nevada 15 93 191,000 749 0.9
New Hampshire 14 100 109,900 563 0.7
New Jersey 33 100 261,300 1,929 2.4
New Mexico 8 100 56,400 178 0.2
New York 40 93 502,300 2,332 2.8
North Carolina 96 98 548,300 2,827 3.4
North Dakota 6 100 36,600 57 0.1
Ohio 137 95 852,700 3,675 4.5
Oklahoma 25 96 145,900 584 0.7
Oregon 18 100 297,300 870 1.1
Pennsylvania 99 99 683,800 3,542 4.3
Rhode Island 3 100 11,000 57 0.1
South Carolina 100 99 374,400 2,176 2.7
South Dakota 9 100 24,900 102 0.1
Tennessee 135 95 635,500 2,907 3.5
Texas 213 92 2,234,300 8,002 9.7
Utah 5 80 30,600 87 0.1
Vermont 4 100 12,700 124 0.2
Virginia 104 99 637,100 3,484 4.2
Washington 35 91 230,300 697 0.9
West Virginia 2 100 23,000 121 0.1
Wisconsin 20 90 248,100 778 1.0
Wyoming 1 100 4,200 18 *
Totals/Average 2,347 96 % 19,093,700 $ 82,190 100.0 %

* Less than 0.1%

(1) Includes rental revenue for all properties owned by Realty Income at March
31, 2009, including revenue from properties reclassified as discontinued
operations of $50.

Realty Income Performance vs. Major Stock Indices

Realty Income Equity REIT Index(1) DJIA S&P 500 NASDAQ Composite
Dividend Total Dividend Total Dividend Total Dividend Total Dividend Total
Yield Return(2) Yield Return(3) Yield Return(3) Yield Return(3) Yield Return(4)

1995 8.3 % 42.0 % 7.4 % 15.3 % 2.4 % 36.9 % 2.3 % 37.6 % 0.6 % 39.9 %
1996 7.9 % 15.4 % 6.1 % 35.3 % 2.2 % 28.9 % 2.0 % 23.0 % 0.2 % 22.7 %
1997 7.5 % 14.5 % 5.5 % 20.3 % 1.8 % 24.9 % 1.6 % 33.4 % 0.5 % 21.6 %
1998 8.2 % 5.5 % 7.5 % (17.5 %) 1.7 % 18.1 % 1.3 % 28.6 % 0.3 % 39.6 %
1999 10.5 % (8.7 %) 8.7 % (4.6 %) 1.3 % 27.2 % 1.1 % 21.0 % 0.2 % 85.6 %
2000 8.9 % 31.2 % 7.5 % 26.4 % 1.5 % (4.7 %) 1.2 % (9.1 %) 0.3 % (39.3 %)
2001 7.8 % 27.2 % 7.1 % 13.9 % 1.9 % (5.5 %) 1.4 % (11.9 %) 0.3 % (21.1 %)
2002 6.7 % 26.9 % 7.1 % 3.8 % 2.6 % (15.0 %) 1.9 % (22.1 %) 0.5 % (31.5 %)
2003 6.0 % 21.0 % 5.5 % 37.1 % 2.3 % 28.3 % 1.8 % 28.7 % 0.6 % 50.0 %
2004 5.2 % 32.7 % 4.7 % 31.6 % 2.2 % 5.6 % 1.8 % 10.9 % 0.6 % 8.6 %
2005 6.5 % (9.2 %) 4.6 % 12.2 % 2.6 % 1.7 % 1.9 % 4.9 % 0.9 % 1.4 %
2006 5.5 % 34.8 % 3.7 % 35.1 % 2.5 % 19.0 % 1.9 % 15.8 % 0.8 % 9.5 %
2007 6.1 % 3.2 % 4.9 % (15.7 %) 2.7 % 8.8 % 2.1 % 5.5 % 0.8 % 9.8 %
2008 7.3 % (8.2 %) 7.6 % (37.7 %) 3.6 % (31.8 %) 3.2 % (37.0 %) 1.3 % (40.5 %)
1Q 2009 9.1 % (16.9 %) 9.0 % (31.9 %) 3.9 % (12.4 %) 3.0 % (11.7 %) 1.1 % (3.1 %)
Compounded 14.5 % 5.5 % 7.0 % 5.7 % 4.9 %
Average
Annual Total
Return(5)

Note: All of these Dividend yields are calculated as annualized dividend based
on last dividend paid in applicable time period divided by closing price as of
period end. Dividend yield sources: NAREIT website and Bloomberg.

(1) FTSE NAREIT US Equity REIT Index, as per NAREIT website.

(2) Calculated as closing stock price as of period end plus dividends paid in
period divided by closing stock price as of end of previous period. Does not
include reinvestment of dividends.

(3) Includes reinvestment of dividends. Sources: NAREIT website and Factset.

(4) Price only index, does not include dividends. Source: Factset.

(5) All of these Compounded Average Annual Total Return rates are calculated in
the same manner: from Realty Income`s NYSE listing on October 18, 1994 through
March 31, 2009, and assuming reinvestment of dividends.

Realty Income Corporation
Tere Miller
Vice President, Corporate Communications
760-741-2111 ext. 1177

Copyright Business Wire 2009