Supplemental Disclosures of Cash Flow Information

6 Months Ended

Jun. 30, 2014

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information

17.   Supplemental Disclosures of Cash Flow Information

Cash paid for interest was $104.2 million in the first six months of 2014 and $78.6 million in the first six months of 2013.

Interest capitalized to properties under development was $220,000 in the first six months of 2014 and $369,000 in the first six months of 2013.

Cash paid for income taxes was $2.9 million in the first six months of 2014 and $1.5 million in the first six months of 2013.

The following non-cash investing and financing activities are included in the accompanying consolidated financial statements:

A.  Share-based compensation expense was $5.4 million for the first six months of 2014 and was $7.5 million for the first six months of 2013.

B.  See note 13 for a discussion of impairments recorded by Realty Income for the first six months of 2014 and 2013.

C.  During the first six months of 2014, we acquired mortgages payable to third-party lenders of $159.7 million, recorded $718,000 of net premiums, and recorded $901,000 of interest rate swap value to other assets, net, related to property acquisitions. During the first six months of 2013, we acquired mortgages payable (excluding the mortgages payable discussed in items D and E) of $113.7 million to third-party lenders and recorded $5.7 million of net premiums related to property acquisitions.

D.  During the first six months of 2013, the following components were acquired in connection with our acquisition of ARCT: (1) real estate investments and related intangible assets of $3.2 billion, (2) other assets of $19.5 million, (3) lines of credit payable of $317.2 million, (4) a term loan for $235.0 million, (5) mortgages payable of $539.0 million, (6) intangible liabilities of $79.7 million, (7) other liabilities of $29.0 million, and (8) noncontrolling interests of $14.0 million.

E.  During the first six months of 2013, we acquired $55.9 million of real estate through the assumption of a $32.4 million mortgage payable, the issuance of 534,546 units by Realty Income, L.P. and cash of $1.0 million.

F.  During the first six months of 2014, we applied $48.9 million of loans receivable to the purchase price of five properties acquired during the period.

G.  Accrued costs on properties under development resulted in an increase in buildings and improvements and accounts payable of $3.9 million at June 30, 2014, and $836,000 at June 30, 2013.