8-K

United States

Securities and Exchange Commission
Washington, D.C. 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report:  February 10, 2016

(Date of Earliest Event Reported)

REALTY INCOME CORPORATION
(Exact name of registrant as specified in its charter)

Maryland	1-13374	33-0580106
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(IRS Employer Identification No.)

11995 El Camino Real, San Diego, California 92130(Address of principal executive offices)

(858) 284-5000(Registrant’s telephone number, including area code)

N/A
(former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02        Results of Operations and Financial Condition

On February 10, 2016, Realty Income Corporation (the “Company”) issued a press release setting forth its results of operations for the quarter and year ended December 31, 2015.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.  This information, including the information contained in the press release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is not incorporated by reference into any of the Company’s filings, whether made before or after the date hereof, regardless of any general incorporation language in any such filing.

Additionally, on February 10, 2016, the Company made available on its website a financial supplement containing operating and financial data of the Company (“Supplemental Operating and Financial Data”) for the quarter and year ended December 31, 2015 and such Supplemental Operating and Financial Data is furnished as Exhibit 99.2 hereto.  The Supplemental Operating and Financial Data included as Exhibit 99.2 to this report is being furnished pursuant to this Item 2.02 of Form 8-K and is also being furnished under Item 7.01—“Regulation FD Disclosure” of Form 8-K, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act and is not incorporated by reference into any of the Company’s filings, whether made before or after the date hereof, regardless of any general incorporation language in any such filing.

Item 7.01        Regulation FD Disclosure

On February 10, 2016, the Company made available on its website a financial supplement containing operating and financial data of the Company (“Supplemental Operating and Financial Data”) for the quarter and year ended December 31, 2015 and such Supplemental Operating and Financial Data is furnished as Exhibit 99.2 hereto.  The Supplemental Operating and Financial Data included as Exhibit 99.2 to this report is being furnished pursuant to this Item 7.01 of Form 8-K and is also being furnished under Item 2.02—“Results of Operations and Financial Condition” of Form 8-K, and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act and is not incorporated by reference into any of the Company’s filings, whether made before or after the date hereof, regardless of any general incorporation language in any such filing.

Item 9.01Financial Statements and Exhibits

(d)  Exhibits

99.1   Press release dated February 10, 2016

99.2   Supplemental Operating and Financial Data for the quarter and year ended December 31, 2015

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 10, 2016	REALTY INCOME CORPORATION
	By:	/s/ MICHAEL R. PFEIFFER
		Michael R. Pfeiffer
		Executive Vice President, General Counsel
		and Secretary

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release dated February 10, 2016
99.2	Supplemental Operating and Financial Data for the quarter and year ended December 31, 2015

EX-99.1

Exhibit 99.1

REALTY INCOME ANNOUNCES OPERATING RESULTS FOR
FOURTH QUARTER AND 2015

SAN DIEGO, CALIFORNIA, February 10, 2016....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the fourth quarter and year ended December 31, 2015.  All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.

COMPANY HIGHLIGHTS:

For the year ended December 31, 2015:

·      AFFO per share increased 6.6% to $2.74, compared to the year ended December 31, 2014

·      Invested $1.26 billion in 286 new properties and properties under development or expansion

For the quarter ended December 31, 2015:

·      AFFO per share increased 4.6% to $0.68, compared to the quarter ended December 31, 2014

·      Invested $204.2 million in 104 new properties and properties under development or expansion

·      Increased the monthly dividend in December for the 83rd time and for the 73rd consecutive quarter

·      In October, generated net proceeds of $517.1 million in an 11.5 million share common stock offering

Event subsequent to December 31, 2015:

·Increased annualized dividends paid per common share by 5.0% to $2.382 in February 2016 from $2.268 in February 2015

CEO Comments

“Our solid financial and operating performance for the fourth quarter contributed to excellent results in 2015,” said John P. Case, Realty Income’s Chief Executive Officer. “Our 2015 AFFO per share increased 6.6% to $2.74, driven primarily by a near-record volume of property-level acquisitions, favorable pricing and terms on our capital raising activities, and healthy portfolio occupancy. These results supported multiple dividend increases throughout 2015 and at the beginning of 2016.  With the payment of the February 2016 dividend, we will have grown our dividend by 5% as compared to the same month a year ago.”

“In 2015, we completed $1.26 billion in acquisitions, which is our third most active year for acquisitions in the company’s history. We primarily funded our investment activity by issuing $1.2 billion of common equity. Our balance sheet is well-positioned today with approximately 75% of our market capitalization represented by equity, the highest level in ten years. We also currently have $1.63 billion available on our $2 billion credit facility which offers plenty of financial flexibility as we continue to grow our company in 2016.”

“Our portfolio occupancy at the end of 2015 was 98.4%, up from 98.3% last quarter. We were able to achieve this high level of occupancy despite managing our most active year ever for lease expiration activity. We re-leased 253 properties with expiring leases to existing or new tenants, at rent above our expiring rent.”

Financial Results

Revenue

Revenue for the quarter ended December 31, 2015 increased 6.5% to $263.7 million, as compared to $247.6 million for the same quarter in 2014. Revenue for 2015 increased 9.6% to $1.023 billion, as compared to $933.5 million for 2014.

Net Income Available to Common Stockholders

Net income available to common stockholders for the quarter ended December 31, 2015 was $76.2 million, as compared to $71.0 million for the same quarter in 2014. Net income per share for the quarter ended December 31, 2015 was $0.31,

as compared to $0.32 for the same quarter in 2014. Net income available to common stockholders for the quarter ended December 31, 2014 was impacted by an unusually large gain on sales of real estate, which represented $0.11 per share.

Net income available to common stockholders for 2015 was $256.7 million, as compared to $227.6 million for 2014. Net income per share in 2015 was $1.09, as compared to $1.04 for 2014.

The calculation to determine net income for a real estate company includes impairments and/or gains on property sales. Impairments and/or gains on property sales vary from quarter to quarter. This variance can significantly impact net income and period to period comparisons.

Funds From Operations (FFO) Available to Common Stockholders

FFO for the quarter ended December 31, 2015 increased 23.8% to $177.9 million, as compared to $143.7 million for the same quarter in 2014. FFO per share for the quarter ended December 31, 2015 increased 10.9% to $0.71, as compared to $0.64 for the same quarter in 2014.

FFO for 2015 increased 15.9% to $652.4 million, as compared to $562.9 million for 2014. FFO per share in 2015 increased 7.4% to $2.77, as compared to $2.58 for 2014.

Adjusted Funds From Operations (AFFO) Available to Common Stockholders

AFFO for the quarter ended December 31, 2015 increased 16.9% to $170.0 million, as compared to $145.4 million for the same quarter in 2014. AFFO per share for the quarter ended December 31, 2015 increased 4.6% to $0.68, as compared to $0.65 for the same quarter in 2014.

AFFO for 2015 increased 15.2% to $647.0 million, as compared to $561.7 million for 2014. AFFO per share for 2015 increased 6.6% to $2.74, as compared to $2.57 for 2014.

The company considers FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust’s (REIT’s) operating performance. 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, plus impairments of real estate, reduced by gains on sales of investment properties and extraordinary items. AFFO further adjusts FFO for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company’s ongoing operating performance. See the reconciliations of net income available to common stockholders to FFO and AFFO on pages six and seven.

Dividend Increases

In December 2015, Realty Income announced the 73rd consecutive quarterly dividend increase, which is the 83rd 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 December 31, 2015 was $2.292 per share. The amount of monthly dividends paid per share increased 3.6% to $2.271 in 2015 from $2.192 in 2014.

In January 2016, Realty Income increased the amount of the dividend by 5.0%, with the new dividend representing an annualized dividend of $2.382 per share, as compared to the February 2015 annualized dividend amount of $2.268 per share.  The new monthly dividend amount of $0.1985 per share will be paid on February 16, 2016 to shareholders of record on February 1, 2016.

Real Estate Portfolio Update

As of December 31, 2015, Realty Income’s portfolio of freestanding, single-tenant properties consisted of 4,538 properties located in 49 states and Puerto Rico, leased to 240 commercial tenants doing business in 47 industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 10.0 years.

Portfolio Management Activities

The company’s portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provides dependable rental revenue supporting the payment of monthly dividends. As of December 31, 2015, portfolio occupancy was 98.4% with 71 properties available for lease out of a total of 4,538 properties in the portfolio, as compared to 98.4%, with 70 properties available for lease as of December 31, 2014. Economic occupancy, or occupancy as measured by rental revenue, was 99.2% as of December 31, 2015 and December 31, 2014.

Since September 30, 2015, when the company reported 74 properties available for lease, the company had 44 lease expirations, re-leased 32 properties and sold 15 vacant properties.  Of the 32 properties re-leased during the fourth quarter of 2015, 27 properties were re-leased to existing tenants, one was re-leased to a new tenant without vacancy, and four were re-leased to new tenants after a period of vacancy.  The annual new rent on these re-leases was $4.71 million, as compared to the previous annual rent of $4.83 million on the same properties, representing a rent recapture rate of 97.5% on the properties re-leased for the quarter ended December 31, 2015. Since December 31, 2014, 253 properties were released to existing or new tenants with a rent recapture rate of 100.9% on the properties re-leased during 2015.

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Rent Increases

During the quarter ended December 31, 2015, same store rents on 3,636 properties under lease increased 1.3% to $200.3 million, as compared to $197.8 million for the same quarter in 2014. During 2015, same store rents on 3,636 properties under lease increased 1.3% to $794.4 million, as compared to $784.2 million for 2014.

Investments in Real Estate

During the quarter ended December 31, 2015, Realty Income invested $204.2 million in 104 new properties and properties under development or expansion, located in 26 states. These properties are 100% leased with a weighted average lease term of approximately 15.7 years and an initial average cash lease yield of 7.1%. The tenants occupying the new properties operate in 17 industries, and the property types consist of 89.1% retail and 10.9% industrial, based on rental revenue. Approximately 28% of the rental revenue generated from acquisitions during the fourth quarter of 2015 is from investment grade rated tenants.

During 2015, Realty Income invested approximately $1.26 billion in 286 new properties and properties under development or expansion, located in 40 states. These properties are 100% leased with a weighted average lease term of approximately 16.5 years and an initial average cash lease yield of 6.6%.  The tenants occupying the new properties operate in 21 industries, and the property types consist of 87.3% retail and 12.7% industrial, based on rental revenue.  Approximately 46% of the rental revenue generated from the 2015 acquisitions is from investment grade rated tenants.

Property Dispositions

During the quarter ended December 31, 2015, Realty Income sold 16 properties for $13.9 million, with a gain on sales of $5.1 million, as compared to 18 properties sold for $53.7 million, with a gain on sales of $25.3 million, during the same quarter in 2014.

During 2015, Realty Income sold 38 properties for $65.8 million, with a gain on sales of $22.2 million, as compared to 46 properties sold for $107.2 million, with a gain on sales of $42.1 million during 2014.

Liquidity and Capital Markets

Issued 11.5 Million Shares in Common Stock Offering

In October 2015, Realty Income issued 11.5 million common shares.  A portion of the net proceeds of $517.1 million was used to repay borrowings under the company’s revolving credit facility, and the remaining portion was used for other general corporate purposes, including acquisitions.

At-the-Market (ATM) Program

In September 2015, Realty Income established an at-the-market equity distribution program where up to 12 million shares of common stock can be offered or sold to, or through, our sales agents at prevailing market prices or agreed-upon prices.  During the quarter and year ended December 31, 2015, Realty Income issued 714,301 common shares via the ATM program, generating net proceeds of $35.8 million.

Direct Stock Purchase and Dividend Reinvestment Plan Activities

Realty Income has a dividend reinvestment and stock purchase program that can be accessed at http://investors.realtyincome.com/direct-stock-purchase-and-dividend-reinvestment-plan. The program is administered by Wells Fargo Shareowner Services. During the quarter ended December 31, 2015, Realty Income issued 42,922 common shares via its Direct Stock Purchase Plan, generating net proceeds of $2.1 million.  During 2015, Realty Income issued 7,608,354 common shares via its Direct Stock Purchase Plan, generating net proceeds of $361.3 million.

Credit Facility

In June 2015, Realty Income closed on a $2.25 billion unsecured credit facility. This credit facility is comprised of a $2.0 billion revolving credit facility and a $250 million five-year unsecured term loan. As of December 31, 2015, Realty Income had a borrowing capacity of $1.76 billion available on our revolving credit facility.

2016 Earnings Guidance

We estimate FFO per share for 2016 of $2.82 to $2.89, an increase of 1.8% to 4.3% over 2015 FFO per share of $2.77. FFO per share for 2016 is based on a net income per share range of $1.14 to $1.21, plus estimated real estate depreciation of $1.76 per share, and reduced by potential estimated gains on sales of investment properties of $0.08 per share (in accordance with NAREIT’s definition of FFO).

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. AFFO further adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of Realty Income’s ongoing operating performance.

Additional earnings guidance detail can be found in Realty Income’s supplemental materials available on Realty Income’s corporate website at http://investors.realtyincome.com/quarterly-results.

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Conference Call Information

In conjunction with the release of Realty Income’s operating results, the company will host a conference call on February 11, 2016 at 11:30 a.m. PT to discuss the results. To access the conference, dial (888) 572-7025. When prompted, provide the access code: 8748157.

Shareholders may also access a telephone replay of the conference call by calling (888) 203-1112 and entering the access code: 8748157. The telephone replay will be available through February 25, 2016. A live webcast will be available in listen-only mode by clicking on the webcast link on the company’s home page or in the investors section at www.realtyincome.com.  A replay of the conference call webcast will be available approximately two hours after the conclusion of the live broadcast. The webcast replay will be available through February 25, 2016. No access code is required for this replay.

Supplemental Materials and Website

Supplemental materials on the fourth quarter and 2015 operating results are available on Realty Income’s corporate website at http://investors.realtyincome.com/quarterly-results.

About Realty Income

Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing shareholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 4,500 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 548 consecutive common stock monthly dividends throughout its 47-year operating history and increased the dividend 84 times since Realty Income’s public listing in 1994 (NYSE: O). The company has in-house acquisition, portfolio management, asset management, credit research, real estate research, legal, finance and accounting, information technology, and capital markets capabilities. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.

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, 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.

Investor Contact:

Jonathan Pong, CFA, CPA

VP, Capital Markets

(858) 284-5177

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CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts) (unaudited)

	Three Months			Three Months			Year			Year
	Ended			Ended			Ended			Ended
	12/31/15			12/31/14			12/31/15			12/31/14
REVENUE
Rental	$	252,733		$	230,635		$	976,865		$	893,457
Tenant reimbursements	10,259			16,246			42,015			37,118
Other	676			692			4,405			2,930
Total revenue	263,668			247,573			1,023,285			933,505
EXPENSES
Depreciation and amortization	105,739			96,537			409,215			374,661
Interest	51,982			59,120			233,079			216,366
General and administrative	12,966			15,586			49,298			51,085
Property (including reimbursable)	12,897			20,397			55,352			53,871
Income taxes	721			1,103			3,169			3,461
Provisions for impairment	1,378			1,450			10,560			4,126
Total expenses	185,683			194,193			760,673			703,570
Gain on sales of real estate	5,126			24,994			22,243			39,205
Income from continuing operations	83,111			78,374			284,855			269,140
Loss from discontinued operations	-			(297		)	-			2,800
Net income	83,111			78,077			284,855			271,940
Net income attributable to noncontrolling interests	(170		)	(289		)	(1,089		)	(1,305		)
Net income attributable to the Company	82,941			77,788			283,766			270,635
Preferred stock dividends	(6,770		)	(6,770		)	(27,080		)	(37,062		)
Excess of redemption value over carrying value of preferred shares redeemed	-			-			-			(6,015		)
Net income available to common stockholders	$	76,171		$	71,018		$	256,686		$	227,558
Funds from operations (FFO) available to common stockholders	$	177,908		$	143,706		$	652,437		$	562,889
Adjusted funds from operations (AFFO) available to common stockholders	$	170,023		$	145,394		$	647,028		$	561,661
Per share information for common stockholders:
Income from continuing operations, basic and diluted	$	0.31		$	0.32		$	1.09		$	1.03
Net income, basic and diluted	$	0.31		$	0.32		$	1.09		$	1.04
FFO:
Basic	$	0.72		$	0.64		$	2.77		$	2.58
Diluted	$	0.71		$	0.64		$	2.77		$	2.58
AFFO, basic and diluted	$	0.68		$	0.65		$	2.74		$	2.57
Cash dividends paid per common share	$	0.572		$	0.549		$	2.271		$	2.192

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FUNDS FROM OPERATIONS (FFO)

(dollars in thousands, except per share amounts)

We define FFO, a non-GAAP measure, consistent with NAREIT’s definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, reduced by gains on property sales and extraordinary items.

	Three Months			Three Months			Year			Year
	Ended 12/31/15			Ended 12/31/14			Ended 12/31/15			Ended 12/31/14
Net income available to common stockholders	$	76,171		$	71,018		$	256,686		$	227,558
Depreciation and amortization	105,739			96,537			409,215			374,661
Depreciation of furniture, fixtures and equipment	(202		)	(161		)	(811		)	(482		)
Provisions for impairment on investment properties:
Continuing operations	1,378			1,450			10,560			4,126
Discontinued operations	-			510			-			510
Gain on sale of investment properties:
Continuing operations	(5,126		)	(24,994		)	(22,243		)	(39,205		)
Discontinued operations	-			(276		)	-			(2,883		)
FFO adjustments allocable to noncontrolling interests	(52		)	(378		)	(970		)	(1,396		)
FFO available to common stockholders	$	177,908		$	143,706		$	652,437		$	562,889
FFO allocable to dilutive noncontrolling interests	221			-			-			-
Diluted FFO (1)	$	178,129		$	143,706		$	652,437		$	562,889
FFO per common share:
Basic	$	0.72		$	0.64		$	2.77		$	2.58
Diluted	$	0.71		$	0.64		$	2.77		$	2.58
Distributions paid to common stockholders	$	140,471		$	122,521		$	533,238		$	479,256
FFO available to common stockholders in excess of distributions paid to common stockholders	$	37,437		$	21,185		$	119,199		$	83,633
Weighted average number of common shares used for FFO:
Basic	248,515,893			223,034,266			235,767,932			218,390,885
Diluted	249,508,956			223,262,633			235,891,368			218,450,863

(1)Diluted FFO for the three months ended December 31, 2015 include FFO allocable to dilutive noncontrolling interests.  Noncontrolling interests were anti-dilutive for all other periods presented.

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ADJUSTED FUNDS FROM OPERATIONS (AFFO)

(dollars in thousands, except per share amounts)

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			Three Months			Year			Year
	Ended 12/31/15			Ended 12/31/14			Ended 12/31/15			Ended 12/31/14
Net income available to common stockholders	$	76,171		$	71,018		$	256,686		$	227,558
Cumulative adjustments to calculate FFO (1)	101,737			72,688			395,751			335,331
FFO available to common stockholders	177,908			143,706			652,437			562,889
Excess of redemption value over carrying value of Class E preferred share redemption	-			-			-			6,015
Amortization of share-based compensation	2,793			4,306			10,391			11,959
Amortization of deferred financing costs (2)	1,334			1,328			5,294			4,804
Amortization of net mortgage premiums	(1,725		)	(2,147		)	(6,978		)	(9,208		)
(Gain) loss on early extinguishment of debt	(148		)	99			(504		)	(3,428		)
(Gain) loss on interest rate swaps	(4,094		)	940			3,043			1,349
Leasing costs and commissions	(193		)	(167		)	(748		)	(821		)
Recurring capital expenditures	(3,786		)	(1,328		)	(7,606		)	(5,210		)
Straight-line rent	(4,185		)	(3,108		)	(16,468		)	(14,872		)
Amortization of above and below-market leases	2,040			1,650			7,861			8,024
Other adjustments (3)	79			115			306			160
AFFO available to common stockholders	$	170,023		$	145,394		$	647,028		$	561,661
AFFO allocable to dilutive noncontrolling interests	219			-			-			-
Diluted AFFO (4)	$	170,242		$	145,394		$	647,028		$	561,661
AFFO per common share, basic and diluted	$	0.68		$	0.65		$	2.74		$	2.57
Distributions paid to common stockholders	$	140,471		$	122,521		$	533,238		$	479,256
AFFO available to common stockholders in excess of distributions paid to common stockholders	$	29,552		$	22,873		$	113,790		$	82,405
Weighted average number of common shares used for AFFO:
Basic	248,515,893			223,034,266			235,767,932			218,390,885
Diluted	249,508,956			223,262,633			235,891,368			218,450,863

(1)       See FFO calculation on page 6 for reconciling items.

(2)       Includes the amortization of costs incurred and capitalized upon issuance of our notes payable, assumption of our mortgages payable and upon issuance of our term loans. The deferred financing costs are being amortized over the lives of the respective mortgages and term loan. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included.

(3)       Includes adjustments allocable to both noncontrolling interests and capital lease obligations.

(4)       Diluted AFFO for the three months ended December 31, 2015 include AFFO allocable to dilutive noncontrolling interests. Noncontrolling interests were anti-dilutive for all other periods presented.

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HISTORICAL FFO AND AFFO

(dollars in thousands, except per share amounts)

For the three months ended December 31,	2015			2014			2013			2012			2011
Net income available to common stockholders	$	76,171		$	71,018		$	53,854		$	28,542		$	34,941
Depreciation and amortization	105,537			96,376			85,243			42,428			34,314
Provisions for impairment on investment properties	1,378			1,960			-			4,472			27
Gain on sales of investment properties	(5,126		)	(25,270		)	(14,276		)	(3,863		)	(1,205		)
Merger-related costs	-			-			138			2,404			-
FFO adjustments allocable to noncontrolling interests	(52		)	(378		)	(329		)	-			-
FFO	$	177,908		$	143,706		$	124,630		$	73,983		$	68,077
FFO per diluted share	$	0.71		$	0.64		$	0.61		$	0.56		$	0.51
AFFO	$	170,023		$	145,394		$	125,700		$	72,892		$	68,524
AFFO per diluted share	$	0.68		$	0.65		$	0.62		$	0.55		$	0.52
Cash dividends paid per share	$	0.572		$	0.549		$	0.546		$	0.454		$	0.436
Weighted average diluted shares outstanding	249,508,956			223,262,633			203,326,838			132,979,552			132,609,319
For the year ended December 31,	2015			2014			2013			2012			2011
Net income available to common stockholders	$	256,686		$	227,558		$	203,634		$	114,538		$	132,779
Depreciation and amortization	408,404			374,179			308,107			151,058			121,941
Provisions for impairment on investment properties	10,560			4,636			3,028			5,139			405
Gain on sales of investment properties	(22,243		)	(42,088		)	(64,743		)	(9,873		)	(5,733		)
Merger-related costs	-			-			13,013			7,899			-
FFO adjustments allocable to noncontrolling interests	(970		)	(1,396		)	(1,009		)	-			-
FFO	$	652,437		$	562,889		$	462,030		$	268,761		$	249,392
FFO per diluted share	$	2.77		$	2.58		$	2.41		$	2.02		$	1.98
AFFO	$	647,028		$	561,661		$	463,139		$	274,183		$	253,372
AFFO per diluted share	$	2.74		$	2.57		$	2.41		$	2.06		$	2.01
Cash dividends paid per share	$	2.271		$	2.192		$	2.147		$	1.772		$	1.737
Weighted average diluted shares outstanding	235,891,368			218,450,863			191,781,622			132,884,933			126,189,399

- 8 -

REALTY INCOME CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2015 and 2014

(dollars in thousands, except per share data) (unaudited)

	2015			2014
ASSETS
Real estate, at cost:
Land	$	3,286,004		$	3,046,372
Buildings and improvements	9,010,778			8,107,199
Total real estate, at cost	12,296,782			11,153,571
Less accumulated depreciation and amortization	(1,687,665		)	(1,386,871		)
Net real estate held for investment	10,609,117			9,766,700
Real estate held for sale, net	9,767			14,840
Net real estate	10,618,884			9,781,540
Cash and cash equivalents	40,294			3,852
Accounts receivable, net	81,678			64,386
Acquired lease intangible assets, net	1,034,417			1,039,724
Goodwill	15,321			15,470
Other assets, net	75,276			107,650
Total assets	$	11,865,870		$	11,012,622
LIABILITIES AND EQUITY
Distributions payable	$	50,344		$	43,675
Accounts payable and accrued expenses	115,826			123,287
Acquired lease intangible liabilities, net	250,916			220,469
Other liabilities	53,965			53,145
Lines of credit payable	238,000			223,000
Term loans	320,000			70,000
Mortgages payable, net	646,740			852,575
Notes payable, net	3,636,746			3,785,372
Total liabilities	5,312,537			5,371,523
Commitments and contingencies
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 outstanding as of December 31, 2015 and December 31, 2014	395,378			395,378
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 250,416,757 shares issued and outstanding as of December 31, 2015 and 224,881,192 shares issued and outstanding as of December 31, 2014	7,666,428			6,464,987
Distributions in excess of net income	(1,530,210		)	(1,246,964		)
Total stockholders’ equity	6,531,596			5,613,401
Noncontrolling interests	21,737			27,698
Total equity	6,553,333			5,641,099
Total liabilities and equity	$	11,865,870		$	11,012,622

- 9 -

Realty Income Performance vs. Major Stock Indices

					Equity												NASDAQ
	Realty Income				REIT Index (1)				DJIA				S&P 500				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)
10/18 to 12/31/1994	10.5	%	10.8	%	7.7	%	0.0	%	2.9	%	(1.6	%)	2.9	%	(1.2	%)	0.5	%	(1.7	%)
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	%)
2009	6.6	%	19.3	%	3.7	%	28.0	%	2.6	%	22.6	%	2.0	%	26.5	%	1.0	%	43.9	%
2010	5.1	%	38.6	%	3.5	%	27.9	%	2.6	%	14.0	%	1.9	%	15.1	%	1.2	%	16.9	%
2011	5.0	%	7.3	%	3.8	%	8.3	%	2.8	%	8.3	%	2.3	%	2.1	%	1.3	%	(1.8	%)
2012	4.5	%	20.1	%	3.5	%	19.7	%	3.0	%	10.2	%	2.5	%	16.0	%	2.6	%	15.9	%
2013	5.8	%	(1.8	%)	3.9	%	2.9	%	2.3	%	29.6	%	2.0	%	32.4	%	1.4	%	38.3	%
2014	4.6	%	33.7	%	3.6	%	28.0	%	2.3	%	10.0	%	2.0	%	13.7	%	1.3	%	13.4	%
2015	4.4	%	13.0	%	3.9	%	2.8	%	2.6	%	0.2	%	2.2	%	1.4	%	1.4	%	5.7	%
Compound Average Annual Total Return (5)			17.0	%			11.0	%			9.8	%			9.3	%			9.3	%

  Note:   All of these dividend yields are calculated as annualized dividends based on the last dividend paid in applicable time period divided by the closing price as of period end.  Dividend yield sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream / Thomson Financial.

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

(2)Calculated as the difference between the closing stock price as of period end less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price as of end of previous period.  Does not include reinvestment of dividends for the annual percentages.

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

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

(5)All of these Compound Average Annual Total Return rates are calculated in the same manner: from Realty Income’s NYSE listing on October 18, 1994 through December 31, 2015, and (except for NASDAQ) assuming reinvestment of dividends. Past performance does not guarantee future performance.  Realty Income presents this data for informational purposes only and makes no representation about its future performance or how it will compare in performance to other indices in the future.

- 10 -

EX-99.2

Q4 2015 Supplemental Operating & Financial Data NYSE: O 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 23 Leasing Activity 24 Expirations 25 Earnings Guidance 26 Analyst Coverage 27 This Supplemental Operating & Financial Data should be read in connection with the company's fourth quarter 2015 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on February 10, 2016) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data. TABLE OF CONTENTS 2 Q4 2015 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 February 2016 ▪ Current annualized dividend of $2.382 per share ▪ Compound average annual dividend growth rate of approximately 4.7% ▪ 546 consecutive monthly dividends paid ▪ 73 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 December 31, 2015, we owned a diversified portfolio of 4,538 properties located in 49 states and Puerto Rico, with over 76.0 million square feet of leasable space. Our properties are leased to 240 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 occupancy rate as of December 31, 2015 was 98.4%, with a weighted average remaining lease term of approximately 10 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O" CORPORATE OVERVIEW 3 Q4 2015 Supplemental Operating & Financial Data December 31, 2015 Closing price $ 51.63 Shares and units outstanding 251,065,143 Market value of common equity $ 12,962,493,333 Total market capitalization $ 18,216,901,333

CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share amounts) 4 Q4 2015 Supplemental Operating & Financial Data (unaudited) (unaudited) Three months ended Year ended December 31, December 31, 2015 2014 2015 2014 REVENUE Rental $ 252,733 $ 230,635 $ 976,865 $ 893,457 Tenant reimbursements 10,259 16,246 42,015 37,118 Other 676 692 4,405 2,930 Total revenue 263,668 247,573 1,023,285 933,505 EXPENSES Depreciation and amortization 105,739 96,537 409,215 374,661 Interest 51,982 59,120 233,079 216,366 General and administrative 12,966 15,586 49,298 51,085 Property (including reimbursable) 12,897 20,397 55,352 53,871 Income taxes 721 1,103 3,169 3,461 Provisions for impairment 1,378 1,450 10,560 4,126 Total expenses 185,683 194,193 760,673 703,570 Gain on sales of real estate 5,126 24,994 22,243 39,205 Income from continuing operations 83,111 78,374 284,855 269,140 Income from discontinued operations - (297 ) - 2,800 Net income 83,111 78,077 284,855 271,940 Net income attributable to noncontrolling interests (170 ) (289 ) (1,089 ) (1,305 ) Net income attributable to the Company 82,941 77,788 283,766 270,635 Preferred stock dividends (6,770 ) (6,770 ) (27,080 ) (37,062 ) Excess of redemption value over carrying value of preferred shares redeemed - - - (6,015 ) Net income available to common stockholders $ 76,171 $ 71,018 $ 256,686 $ 227,558 Amounts available to common stockholders per common share, basic and diluted: Income from continuing operations $ 0.31 $ 0.32 $ 1.09 $ 1.03 Net income $ 0.31 $ 0.32 $ 1.09 $ 1.04

FUNDS FROM OPERATIONS (FFO) (dollars in thousands, except per share amounts) 5 Q4 2015 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, reduced by gains on property sales and extraordinary items. Three months ended Year ended December 31, December 31, 2015 2014 2015 2014 Net income available to common stockholders $ 76,171 $ 71,018 $ 256,686 $ 227,558 Depreciation and amortization 105,739 96,537 409,215 374,661 Depreciation of furniture, fixtures and equipment (202 ) (161 ) (811 ) (482 ) Provisions for impairment on investment properties: Continuing operations 1,378 1,450 10,560 4,126 Discontinued operations - 510 - 510 Gain on sale of investment properties: Continuing operations (5,126 ) (24,994 ) (22,243 ) (39,205 ) Discontinued operations - (276 ) - (2,883 ) FFO adjustments allocable to noncontrolling interests (52 ) (378 ) (970 ) (1,396 ) FFO available to common stockholders $ 177,908 $ 143,706 $ 652,437 $ 562,889 FFO allocable to dilutive noncontrolling interests 221 - - - Diluted FFO $ 178,129 $ 143,706 $ 652,437 $ 562,889 FFO per common share: Basic $ 0.72 $ 0.64 $ 2.77 $ 2.58 Diluted $ 0.71 $ 0.64 $ 2.77 $ 2.58 Distributions paid to common stockholders $ 140,471 $ 122,521 $ 533,238 $ 479,256 FFO available to common stockholders in excess of distributions paid to common stockholders $ 37,437 $ 21,185 $ 119,199 $ 83,633 Weighted average number of common shares used for computation per share: Basic 248,515,893 223,034,266 235,767,932 218,390,885 Diluted 249,508,956 223,262,633 235,891,368 218,450,863

ADJUSTED FUNDS FROM OPERATIONS (AFFO) (dollars in thousands , except per share amounts) 6 Q4 2015 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 Year ended December 31, December 31, 2015 2014 2015 2014 Net income available to common stockholders $ 76,171 $ 71,018 $ 256,686 $ 227,558 Cumulative adjustments to calculate FFO (1) 101,737 72,688 395,751 335,331 FFO available to common stockholders 177,908 143,706 652,437 562,889 Excess of redemption value over carrying value of Class E preferred share redemption - - - 6,015 Amortization of share-based compensation 2,793 4,306 10,391 11,959 Amortization of deferred financing costs 1,334 1,328 5,294 4,804 Amortization of net mortgage premiums (1,725 ) (2,147 ) (6,978 ) (9,208 ) (Gain) loss on early extinguishment of mortgage debt (148 ) 99 (504 ) (3,428 ) (Gain) loss on interest rate swaps (4,094 ) 940 3,043 1,349 Leasing costs and commissions (193 ) (167 ) (748 ) (821 ) Recurring capital expenditures (3,786 ) (1,328 ) (7,606 ) (5,210 ) Straight-line rent (4,185 ) (3,108 ) (16,468 ) (14,872 ) Amortization of above and below-market leases 2,040 1,650 7,861 8,024 Other adjustments 79 115 306 160 AFFO available to common stockholders $ 170,023 $ 145,394 $ 647,028 $ 561,661 AFFO allocable to dilutive noncontrolling interests 219 - - - Diluted AFFO $ 170,242 $ 145,394 $ 647,028 $ 561,661 AFFO per common share, basic and diluted $ 0.68 $ 0.65 $ 2.74 $ 2.57 Distributions paid to common stockholders $ 140,471 $ 122,521 $ 533,238 $ 479,256 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 29,552 $ 22,873 $ 113,790 $ 82,405 Weighted average number of common shares used for computation per share: Basic 248,515,893 223,034,266 235,767,932 218,390,885 Diluted 249,508,956 223,262,633 235,891,368 218,450,863 (1) See reconciling items for FFO presented under "Funds from Operations (FFO).”

CONSOLIDATED BALANCE SHEETS (dollars in thousands , except per share amounts) 7 Q4 2015 Supplemental Operating & Financial Data (unaudited) December 31, 2015 December 31, 2014 ASSETS Real estate, at cost: Land $ 3,286,004 $ 3,046,372 Buildings and improvements 9,010,778 8,107,199 Total real estate, at cost 12,296,782 11,153,571 Less accumulated depreciation and amortization (1,687,665 ) (1,386,871 ) Net real estate held for investment 10,609,117 9,766,700 Real estate held for sale, net 9,767 14,840 Net real estate 10,618,884 9,781,540 Cash and cash equivalents 40,294 3,852 Accounts receivable, net 81,678 64,386 Acquired lease intangible assets, net 1,034,417 1,039,724 Goodwill 15,321 15,470 Other assets, net 75,276 107,650 Total assets $ 11,865,870 $ 11,012,622 LIABILITIES AND EQUITY Distributions payable $ 50,344 $ 43,675 Accounts payable and accrued expenses 115,826 123,287 Acquired lease intangible liabilities, net 250,916 220,469 Other liabilities 53,965 53,145 Lines of credit payable 238,000 223,000 Term loans 320,000 70,000 Mortgages payable, net 646,740 852,575 Notes payable, net 3,636,746 3,785,372 Total liabilities $ 5,312,537 $ 5,371,523 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 December 31, 2015 and December 31, 2014 Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 250,416,757 shares issued and outstanding as of December 31, 2015 and 224,881,192 shares issued and outstanding as of December 31, 2014 7,666,428 6,464,987 Distributions in excess of net income (1,530,210 ) (1,246,964 ) Total stockholders' equity 6,531,596 5,613,401 Noncontrolling interests 21,737 27,698 Total equity 6,553,333 5,641,099 Total liabilities and equity $ 11,865,870 $ 11,012,622

DEBT SUMMARY (dollars in thousands) 8 Q4 2015 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date December 31, 2015 % of Debt December 31, 2015 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 238,000 4.9% 1.22% 3.5 years Unsecured Term Loans Term Loan - Tau (2) January 21, 2018 70,000 1.4% 1.44% 2.1 years Term Loan - Realty Income (3) June 30, 2020 250,000 5.2% 1.37% 4.5 years Principal amount 320,000 Senior Unsecured Notes and Bonds 5.95% Notes due 2016 September 15, 2016 275,000 5.7% 5.95% 5.375% Notes due 2017 September 15, 2017 175,000 3.6% 5.38% 2.00% Notes due 2018 January 31, 2018 350,000 7.2% 2.00% 6.75% Notes due 2019 August 15, 2019 550,000 11.4% 6.75% 5.75% Notes due 2021 January 15, 2021 250,000 5.2% 5.75% 3.25% Notes due 2022 October 15, 2022 450,000 9.3% 3.25% 4.65% Notes due 2023 August 1, 2023 750,000 15.5% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 7.2% 3.88% 4.125% Notes due 2026 October 15, 2026 250,000 5.1% 4.13% 5.875% Bonds due 2035 March 15, 2035 250,000 5.1% 5.88% Principal amount 3,650,000 4.72% 6.5 years Unamortized discounts (13,254) Carrying value 3,636,746 Mortgages Payable 44 mortgages on 183 properties January 2016 - June 2032 637,658 (4) 13.2% 4.92% 3.6 years Unamortized premiums 9,082 Carrying value 646,740 TOTAL DEBT $ 4,845,658 (5) 4.36% Fixed Rate $ 4,592,174 95% Variable Rate $ 253,484 5% (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 December 31, 2015, approximately $1.76 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 $15.5 million at December 31, 2015. (5) Excludes non-cash unamortized original issuance discounts recorded on the senior unsecured notes and bonds, as well as non-cash unamortized premiums recorded on the mortgages payable.

DEBT MATURITIES (dollars in millions) 9 Q4 2015 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 $ 170.1 $ 445.1 5.45% 2017 - - 175.0 142.9 317.9 5.53% 2018 - 70.0 350.0 15.5 435.5 2.03% 2019 238.0 - 550.0 26.3 814.3 6.56% 2020 - 250.0 - 82.4 332.4 2.27% Thereafter - - 2,300.0 200.5 2,500.5 4.48% Totals $ 238.0 $ 320.0 $ 3,650.0 $ 637.7 $ 4,845.7 (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 $ 102.7 $ 48.2 $ 16.9 $ 2.2 $ 170.0 4.63% 2017 42.3 36.6 39.4 24.6 142.9 5.72% 2018 1.2 12.0 1.1 1.1 15.4 5.47% 2019 1.2 1.2 1.2 22.8 26.4 2.65% 2020 1.2 1.2 12.6 67.4 82.4 4.98% 2021 18.2 17.7 21.0 0.4 57.3 4.84% Thereafter - - - - 143.3 Totals $ 166.8 $ 116.9 $ 92.2 $ 118.5 $ 637.7

3.9 Capital Structure as of December 31, 2015 CAPITALIZATION & FINANCIAL RATIOS (dollars in thousands , except per share amounts) 10 Q4 2015 Supplemental Operating & Financial Data Capitalization as of December 31, 2015 Carrying Debt Value Credit Facility $ 238,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 3,650,000 Mortgages Payable 637,658 Total Debt $ 4,845,658 Stock Redemption Market Equity Shares/units Price Price Value Common Stock (NYSE: O) 250,416,757 $ 51.63 $ 12,929,017 Common Units (1) 648,386 $ 51.63 33,476 Common Equity 12,962,493 Class F Preferred Stock 16,350,000 $ 25.00 408,750 Total Equity $ 13,371,243 Total Market Capitalization (2) $ 18,216,901 Debt/Total Market Capitalization (2) 26.6% Debt and Preferred Stock/Total Market Capitalization (2) 28.8% (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 $18,176,607 (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 2015 2014 Growth Rate Common Dividend Paid per Share $ 2.271 S 2.192 3.6% AFFO per Share (diluted) $ 2.74 S 2.57 6.6% AFFO Payout Ratio 82.9% 85.3% Liquidity as of December 31, 2015 Cash on Hand $ 40,294 Availability under Credit Facility 1,762,000 $ 1,802,294 Debt 27% Preferred 2% Common 71%

Debt Service Coverage (2) Fixed Charge Coverage (3) 3.9 EBITDA & COVERAGE RATIOS (dollars in thousands) 11 Q4 2015 Supplemental Operating & Financial Data Reconciliation of Net Income to EBITDA (1) Three months ended December 31, 2015 Net income $ 83,111 Interest 51,982 Taxes 721 Depreciation and amortization 105,739 Impairment loss 1,378 Gain on sales (5,126) Quarterly EBITDA $ 237,805 Annualized EBITDA $ 951,220 Debt/EBITDA 5.1 (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. 3.8 3.9 4.0 4.1 4.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 3.4 3.4 3.6 3.7 4.0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

DEBT COVENANTS 12 Q4 2015 Supplemental Operating & Financial Data As of December 31, 2015 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 39.0% Limitation on incurrence of secured debt ≤ 40% of adjusted undepreciated assets 5.2% Debt service coverage (trailing 12 months) (1) ≥ 1.5 x 4.5x Maintenance of total unencumbered assets ≥ 150% of unsecured debt 266.8% (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 there from (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 January 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 January 1, 2015, nor does it purport to reflect our debt service coverage ratio for any future period.

First Quarter 2015 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 58 $ 194,617 $ 13,101 951,490 6.7% 15.8 Properties under Development (3) 25 15,271 1,371 661,317 9.0% 12.8 Total Real Estate Investments 83 $ 209,888 $ 14,472 1,612,807 6.9% 15.5 Approximately 60% of the annualized revenue generated by these investments is from investment grade tenants. (4) 2015 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 251 $ 1,213,421 $ 78,658 5,501,427 6.5% 16.8 Properties under Development (3) 35 45,809 4,425 729,375 9.7% 12.0 Total Real Estate Investments 286 $ 1,259,230 $ 83,083 6,230,802 6.6% 16.5 Approximately 46% 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 nine independent transactions during the first quarter of 2015, 16 independent transactions during the second quarter of 2015, ten independent transactions during the third quarter of 2015, and 14 independent transactions for the fourth quarter for 2015, respectively. (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 two on page 16 for our definition of investment grade tenants. INVESTMENT SUMMARY (dollars in thousands) 13 Q4 2015 Supplemental Operating & Financial Data Second Quarter 2015 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 78 $ 706,146 $ 43,940 2,537,293 6.2% 18.4 Properties under Development (3) 22 15,123 1,457 17,658 9.6% 11.6 Total Real Estate Investments 100 $ 721,269 $ 45,397 2,554,951 6.3% 18.2 Approximately 49% of the annualized revenue generated by these investments is from investment grade tenants. (4) Third Quarter 2015 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 29 $ 117,234 $ 7,872 959,550 6.7% 11.0 Properties under Development (3) 18 6,664 823 - 12.4% 9.6 Total Real Estate Investments 47 $ 123,898 $ 8,695 959,550 7.0% 10.9 Approximately 35% of the annualized revenue generated by these investments is from investment grade tenants. (4) Fourth Quarter 2015 Cash Capitalization Rate Weighted Average Lease Term (Years) Number of Properties Investment Cash Rents Leasable Square Feet New Property Acquisitions (2) 86 $ 195,424 $ 13,745 1,053,094 7.0% 15.8 Properties under Development (3) 18 8,751 774 348,588 8.9% 13.8 Total Real Estate Investments 104 $ 204,175 $ 14,519 1,401,682 7.1% 15.7 Approximately 28% of the annualized revenue generated by these investments is from investment grade tenants. (4)

First Quarter 2015 Number of Properties Original Investment Net Book Value Net Proceeds (1) Cash Capitalization Rate (2) Occupied 4 $ 15,028 $ 12,487 $ 18,576 7.7% Vacant 5 4,468 2,362 3,534 - Total Real Estate Dispositions 9 $ 19,496 $ 14,849 $ 22,110 The unlevered internal rate of return on properties sold during the first quarter was 12.5%. DISPOSITION SUMMARY (dollars in thousands) 14 Q4 2015 Supplemental Operating & Financial Data Second Quarter 2015 Number of Properties Original Investment Net Book Value Net Proceeds (1) Cash Capitalization Rate (2) Occupied 1 $ 4,776 $ 3,690 $ 5,981 8.1% Vacant 4 2,144 777 1,988 - Total Real Estate Dispositions 5 $ 6,920 $ 4,467 $ 7,969 The unlevered internal rate of return on properties sold during the second quarter was 11.6%. Third Quarter 2015 Number of Properties Original Investment Net Book Value Net Proceeds (1) Cash Capitalization Rate (2) Occupied 3 $ 14,850 $ 12,822 $ 18,737 7.2% Vacant 5 5,566 2,223 2,766 - Total Real Estate Dispositions 8 $ 20,416 $ 15,045 $ 21,503 The unlevered internal rate of return on properties sold during the third quarter was 14.2%. (1) Data excludes properties sold as a result of eminent domain activities. During the first quarter of 2015 we received net proceeds of $164,000 related to two eminent domain transactions. During the second quarter of 2015, we received net proceeds of $212,000 related to one eminent domain transaction. (2) 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). Fourth Quarter 2015 Cash Capitalization Rate (2) Number of Properties Original Investment Net Book Value Net Proceeds (1) Occupied 1 $ 1,501 $ 1,185 $ 1,603 8.1% Vacant 15 17,535 7,498 12,257 - Total Real Estate Dispositions 16 $ 19,036 $ 8,683 $ 13,860 The unlevered internal rate of return on properties sold during the third quarter was 10.3%. 2015 Cash Capitalization Rate (2) Number of Properties Original Investment Net Book Value Net Proceeds (1) Occupied 9 $ 36,155 $ 30,184 $ 44,897 7.6% Vacant 29 29,713 12,860 20,545 - Total Real Estate Dispositions 38 $ 65,868 $ 43,044 $ 65,442 The unlevered internal rate of return on properties sold during the third quarter was 12.1%.

(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 February 2016 and August 2016. DEVELOPMENT PIPELINE (dollars in thousands) 15 Q4 2015 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 12 2,916 13,438 16,354 100% 12 $ 2,916 $ 13,438 $ 16,354 Non-Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 3 $ 2,527 $ 55,714 $ 58,241 100% Expansion of existing properties 1 7,975 1,158 9,133 100% Redevelopment of existing properties - - - - - 4 $ 10,502 $ 56,872 $ 67,374 Total Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 3 $ 2,527 $ 55,714 $ 58,241 100% Expansion of existing properties 1 7,975 1,158 9,133 100% Redevelopment of existing properties 12 2,916 13,438 16,354 100% 16 $ 13,418 $ 70,310 $ 83,728

Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at December 31, 2015 include the following: Investment Grade Tenants (2): Number of Properties 1,686 Percentage of Annualized Rents 44% Percentage of Leases with Rental Increases, Based on Revenue 75% Average EBITDAR/Rent Ratio on Retail Properties 2.6x (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 providing this 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 Q4 2015 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P/Fitch) Walgreens 176 6.9 % Baa2/ BBB/ A- FedEx 39 5.2 % Baa1/ BBB/ BBB Dollar General 524 4.6 % Baa3/ BBB/ - LA Fitness 46 4.2 % - Dollar Tree / Family Dollar 457 4.2 % - Circle K / The Pantry 302 3.0 % Baa2/ BBB/ - AMC Theatres 20 2.7 % - BJ's Wholesale Club 15 2.6 % - Diageo 17 2.4 % A3/ A-/ A- Regal Cinemas 23 2.1 % - GPM Investments / Fas Mart 217 2.1 % - Rite Aid 68 2.0 % - Northern Tier Retail / SuperAmerica 134 2.0 % - Life Time Fitness 9 2.0 % - CVS Pharmacy 56 1.9 % Baa1/ BBB+/ - TBC Corporation 149 1.7 % A3/ A-/ - Walmart / Sam's Club 19 1.3 % Aa2/AA/AA NPC International 202 1.3 % - 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% (1) Includes rental revenue for all properties owned by Realty Income at the end of each period presented, including revenue from properties reclassified as discontinued operations. Excludes revenue from properties owned by Crest Net Lease, Inc., or Crest. INDUSTRY DIVERSIFICATION 17 Q4 2015 Supplemental Operating & Financial Data Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended December 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2015 2015 2014 2013 2012 2011 Retail industries Apparel stores 2.0 % 2.0 % 2.0 % 1.9 % 1.7 % 1.4 % Automotive collision services 0.9 1.0 0.8 0.8 1.1 0.9 Automotive parts 1.5 1.4 1.3 1.2 1.0 1.2 Automotive service 1.9 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 8.8 9.2 10.1 11.2 16.3 18.5 Crafts and novelties 0.5 0.5 0.5 0.5 0.3 0.2 Dollar stores 8.8 8.9 9.6 6.2 2.2 - Drug stores 10.9 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 0.1 0.2 Financial services 1.3 1.3 1.4 1.5 0.2 0.2 General merchandise 1.5 1.4 1.2 1.1 0.6 0.6 Grocery stores 2.8 3.0 3.0 2.9 3.7 1.6 Health and fitness 8.4 7.7 7.0 6.3 6.8 6.4 Health care 1.0 1.0 1.1 1.1 - - Home furnishings 0.7 0.7 0.7 0.9 1.0 1.1 Home improvement 2.5 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 3.7 3.8 4.3 5.1 7.3 10.9 Restaurants - quick service 4.5 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 1.7 1.8 1.6 1.7 2.5 2.7 Theaters 5.0 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 3.7 3.8 4.1 3.9 3.2 0.7 Other * * * 0.1 0.1 0.1 Retail industries 81.4 % 81.1 % 80.4 % 79.8 % 86.7 % 88.6 %

* Less than 0.1% (1) Includes rental revenue for all properties owned by Realty Income at the end of each period presented, including revenue from properties reclassified as discontinued operations. Excludes revenue from properties owned by Crest. INDUSTRY DIVERSIFICATION (CONT’D) 18 Q4 2015 Supplemental Operating & Financial Data Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended December 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2015 2015 2014 2013 2012 2011 Non-retail industries Aerospace 1.1 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 0.3 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 1.2 1.2 1.3 1.4 0.1 0.1 Health care 0.6 0.7 0.7 0.8 * * Home furnishings 0.2 0.2 0.2 0.2 - - Insurance 0.1 0.1 0.1 0.1 * - Machinery * 0.1 0.2 0.2 0.1 - Other manufacturing 0.7 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 5.5 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 18.6 % 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 by Realty Income at December 31, 2015. Excludes revenue of $63 from properties owned by Crest and $68 from sold properties that were included in continuing operations. EXPIRATIONS (dollars in thousands) GEOGRAPHIC DIVERSIFICATION (dollars in thousands) 19 Q4 2015 Supplemental Operating & Financial Data Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet December 31, 2015 (1) Revenue Alabama 149 99 % 1,220,600 $ 4,093 1.6 % Alaska 3 100 275,900 681 0.3 Arizona 109 98 1,611,600 6,227 2.5 Arkansas 54 100 797,400 1,749 0.7 California 167 100 5,273,700 24,773 9.8 Colorado 70 99 1,003,000 3,999 1.6 Connecticut 24 91 534,900 2,502 1.0 Delaware 18 100 93,000 495 0.2 Florida 329 99 3,976,700 14,693 5.8 Georgia 239 99 3,348,000 10,396 4.1 Hawaii -- -- -- -- -- Idaho 12 100 87,000 739 0.3 Illinois 161 99 4,578,500 13,337 5.3 Indiana 145 100 1,456,700 6,955 2.8 Iowa 38 95 2,936,000 4,004 1.6 Kansas 90 98 1,643,400 4,166 1.6 Kentucky 61 98 1,023,000 3,744 1.5 Louisiana 91 99 1,029,500 3,098 1.2 Maine 10 90 145,300 889 0.4 Maryland 35 100 861,300 4,485 1.8 Massachusetts 82 96 760,400 3,482 1.4 Michigan 148 99 1,537,200 5,797 2.3 Minnesota 155 99 1,376,800 8,215 3.3 Mississippi 132 98 1,608,200 4,116 1.6 Missouri 139 96 2,810,000 8,621 3.4 Montana 4 100 67,100 190 0.1 Nebraska 37 100 780,400 2,815 1.1 Nevada 22 100 413,000 773 0.3 New Hampshire 19 100 315,800 1,475 0.6 New Jersey 70 99 697,400 4,339 1.7 New Mexico 30 100 293,200 883 0.3 New York 90 99 2,422,600 12,310 4.9 North Carolina 155 99 2,120,900 6,778 2.7 North Dakota 7 100 66,000 136 0.1 Ohio 235 97 6,013,000 13,711 5.4 Oklahoma 128 99 1,532,100 4,015 1.6 Oregon 27 100 593,400 2,040 0.8 Pennsylvania 148 99 1,854,500 7,332 2.9 Rhode Island 4 100 157,200 809 0.3 South Carolina 137 99 996,000 4,659 1.8 South Dakota 13 100 152,100 274 0.1 Tennessee 221 96 2,769,700 7,538 3.0 Texas 449 98 8,298,200 23,401 9.1 Utah 17 100 890,500 1,975 0.8 Vermont 5 100 98,000 482 0.2 Virginia 143 98 2,893,300 7,543 3.0 Washington 42 98 690,800 2,882 1.1 West Virginia 13 100 272,500 979 0.4 Wisconsin 53 100 1,598,000 3,635 1.4 Wyoming 4 100 49,600 221 0.1 Puerto Rico 4 100 28,300 149 0.1 Totals\Average 4,538 98 % 76,051,700 $ 252,600 100.0 %

PROPERTY TYPE COMPOSITION (dollars in thousands) 20 Q4 2015 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned by Realty Income at December 31, 2015. Excludes revenue of $63 from properties owned by Crest and $68 from sold properties that were included in continuing operations. (2) Refer to footnote two on page 16 for our definition of investment grade tenants. (3) Includes 14 Industrial properties formerly classified as Manufacturing properties which represent approximately 2% of rental revenue for the quarter ended December 31, 2015. These properties are principally distribution facilities used for light assemblage, processing, and/or storage. We re-classified these properties to our Industrial category to better reflect their use and to clarify the categorization of our properties. 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 (2) Property Type December 31, 2015 (1) December 31, 2015 Retail 4,378 50,592,800 $ 199,518 79.0 % 32.7 % Industrial (3) 101 21,871,200 32,423 12.8 82.6 Office 44 3,403,200 15,329 6.1 91.3 Agriculture 15 184,500 5,330 2.1 100.0 Totals 4,538 76,051,700 $ 252,600 100.0 % Retail 79.0% Industrial 12.8% Office 6.1% Agriculture 2.1%

Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry December 31, 2015 December 31, 2014 Change by Industry Theaters $ 12,059 $ 11,600 $ 459 4.0 % Restaurants – Quick Service 9,146 8,880 266 3.0 % Convenience Stores 21,946 21,735 211 1.0 % Fourth Quarter 2015 SAME STORE RENTAL REVENUE (dollars in thousands) 21 Q4 2015 Supplemental Operating & Financial Data Top 3 Industries Contributing to the Change Year ended Year ended Net % Change Industry December 31, 2015 December 31, 2014 Change by Industry Convenience Stores $ 87,557 $ 86,457 $ 1,100 1.3 % Health and Fitness 52,267 51,407 860 1.7 % Motor Vehicle Dealerships 14,454 13,618 836 6.1 % 2015 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 3,636 Square Footage 58,076,878 Q4 2015 $200,342 Q4 2014 $197,849 Increase (in dollars) $2,493 Increase (percent) 1.3% Same Store Rental Revenue Number of Properties 3,636 Square Footage 58,076,878 YTD Q4 2015 $794,418 YTD Q4 2014 $784,208 Increase (in dollars) $10,210 Increase (percent) 1.3%

Same Store Rental Revenue by Property Type SAME STORE RENTAL REVENUE (CONT’D) (dollars in thousands) 22 Q4 2015 Supplemental Operating & Financial Data Fourth Quarter 2015 Quarter ended Quarter ended Net % Change by Contribution by Property Type December 31, 2015 December 31, 2014 Change Property Type Property Type Retail $ 157,684 $ 155,611 $ 2,073 1.3% 83.2% Industrial 24,585 24,343 242 1.0% 9.7% Office 12,740 12,627 113 0.9% 4.5% Agriculture 5,333 5,267 66 1.3% 2.6% Total $ 200,342 $ 197,848 $ 2,494 1.3% 100% 2015 Year ended Year ended Net % Change by Contribution by Property Type December 31, 2015 December 31, 2014 Change Property Type Property Type Retail $ 624,439 $ 616,311 $ 8,128 1.3% 79.6% Industrial 98,044 96,953 1,091 1.1% 10.7% Office 50,721 49,992 729 1.5% 7.1% Agriculture 21,214 20,952 262 1.3% 2.6% Total $ 794,418 $ 784,208 $ 10,210 1.3% 100%

By Property Occupied Properties 4,467 Total Properties 4,538 Occupancy 98.4% By Square Footage Occupied Square Footage 75,338,687 Total Square Footage 76,051,700 Occupancy 99.1% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 247,579,867 Quarterly Vacant Rental Revenue $ 1,886,400 (1) Occupancy 99.2% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 9/30/2015 74 Expiration Activity (1) + 44 Leasing Activity (2) - 32 Vacant Property Sales Activity (3) - 15 Vacant Properties at 12/31/2015 71 (1) Includes scheduled and unscheduled expirations as well as future expirations resolved in the current quarter. (2) Includes 27 expirations that were re-leased to the same tenants without vacancy, one that was re-leased to a new tenant without vacancy, and four that were re-leased after a period of vacancy. See page 24 for additional detail on re-leasing activity. (3) Includes four properties that were vacant at the beginning of the quarter. OCCUPANCY 23 Q4 2015 Supplemental Operating & Financial Data Occupancy by Number of Properties 98.2% 98.3% 98.3% 98.3% 98.4% 98.0% 98.2% 98.3% 98.4% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Allocation Based on Number of Leases LEASING ACTIVITY (dollars in thousands) 24 Q4 2015 Supplemental Operating & Financial Data Re-leased to New Tenant Q4 2015 Re-leased to Same Tenant Without Vacancy After a Period of Vacancy Re-leasing Totals Prior Cash Rents $ 4,382 $ 44 $ 407 $ 4,833 New Cash Rents* $ 4,258 $ 47 $ 409 $ 4,714 Re-leasing spread 97.2 % 106.1 % 100.7 % 97.5 % Number of Leases 27 1 4 32 Average Months Vacant 0.0 0.0 16.2 2.0 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.5 % Re-leased to New Tenant Q3 2015 Re-leased to Same Tenant Without Vacancy After a Period of Vacancy Re-leasing Totals Prior Cash Rents $ 7,076 $ 470 $ 815 $ 8,361 New Cash Rents* $ 7,260 $ 339 $ 641 $ 8,240 Re-leasing spread 102.6 % 72.1 % 78.7 % 98.6 % Number of Leases 86 3 8 97 Average Months Vacant 0.0 0.0 13.3 1.1 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.8 % Re-leased to New Tenant 2015 Re-leased to Same Tenant Without Vacancy After a Period of Vacancy Re-leasing Totals Prior Cash Rents $ 33,536 $ 942 $ 2,642 $ 37,120 New Cash Rents* $ 34,679 $ 676 $ 2,101 $ 37,456 Re-leasing spread 103.4 % 71.7 % 79.5 % 100.9 % Number of Leases 216 7 30 253 Average Months Vacant 0.0 0.0 11.0 1.3 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 3.7 % 89% 11% Same Tenant New Tenant 84% 16% Same Tenant New Tenant 85% 15% Same Tenant New Tenant

25 * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,448 net leased, single-tenant properties as of December 31, 2015. Excludes 19 multi-tenant properties and 71 vacant properties. The lease expirations for properties under construction are based on the estimated completion date of those properties. (2) Excludes revenue of $3,160 from 19 multi-tenant properties and from 71 vacant properties at December 31, 2015, $68 from sold properties included in continuing operations and $63 from properties owned by Crest. (3) Represents leases to the initial tenant of the property that are expiring for the first time. (4) Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-tenanted. Our leased, single-tenant properties have a weighted average remaining lease term of approximately 10 years. EXPIRATIONS (dollars in thousands) Q4 2015 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 Dec 31, Rental of Leases Dec 31, Rental of Leases Dec 31, Rental Year Retail Non-Retail Sq. Feet 2015 (2) Revenue Expiring 2015 Revenue Expiring 2015 Revenue 2016 146 - 913,200 $ 3,315 1.3 % 63 $ 1,295 0.5 % 83 $ 2,020 0.8 % 2017 202 1 2,040,400 5,987 2.4 54 2,559 1.0 149 3,428 1.4 2018 298 9 3,892,100 12,182 4.9 170 8,431 3.4 137 3,751 1.5 2019 248 10 3,878,400 13,359 5.4 174 11,143 4.5 84 2,216 0.9 2020 184 12 4,180,700 13,110 5.3 114 10,709 4.3 82 2,401 1.0 2021 252 13 5,579,900 15,849 6.3 184 13,933 5.6 81 1,916 0.7 2022 233 17 7,456,000 15,104 6.0 220 14,308 5.7 30 796 0.3 2023 353 20 6,458,700 21,920 8.8 358 21,028 8.4 15 892 0.4 2024 193 12 4,168,500 11,504 4.6 195 11,222 4.5 10 282 0.1 2025 322 16 5,556,000 20,347 8.2 311 19,595 7.9 27 752 0.3 2026 243 3 3,141,500 11,469 4.6 234 11,124 4.5 12 345 0.1 2027 491 3 5,443,000 20,453 8.2 460 19,064 7.6 34 1,389 0.6 2028 287 5 5,986,900 16,193 6.5 283 15,930 6.5 9 263 * 2029 396 4 6,488,200 19,469 7.8 371 19,193 7.7 29 276 0.1 2030 80 11 1,703,100 11,474 4.6 80 11,319 4.5 11 155 0.1 2031-2043 361 23 7,467,400 37,706 15.1 342 37,216 14.9 42 490 0.2 Totals 4,289 159 74,354,000 $ 249,441 100 % 3,613 $ 228,069 91.5 % 835 $ 21,372 8.5 %

26 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. Key components of the company’s 2016 earnings guidance are summarized below. EARNINGS GUIDANCE Q4 2015 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 $1.14 to $1.21 Real estate depreciation per share $1.76 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 Approximately 1.3% Occupancy 98% G&A expenses (% of revenues (1)) Approximately 5.0% Property expenses (non-reimbursable) (% of revenues (1)) Approximately 1.5% Acquisition volume Approximately $750 million Disposition volume $50 to $75 million

27 Q4 2015 Supplemental Operating & Financial Data 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 Cowen Michael Gorman michael.gorman@cowen.com (646) 562-1320 D.A. Davidson Barry Oxford boxford@dadco.com (212) 240-9871 Steve Shaw sshaw@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 Ken Suchoski ksuchoski@janney.com (646) 840-3201 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 Morgan Stanley Vikram Malhotra vikram.malhotra@morganstanley.com (212) 761-7064 Landon Park landon.park@morganstanley.com (212) 761-6368 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 Joseph van Bemmelen vanbemmelenj@stifel.com (443) 224-1264 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 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