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:  July 27, 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 2.02Results of Operations and Financial Condition

On July 27, 2016, Realty Income Corporation (the “Company”) issued a press release setting forth its results of operations for the quarter and six months ended June 30, 2016.  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 July 27, 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 six months ended June 30, 2016 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 7.01Regulation FD Disclosure.

On July 27, 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 six months ended June 30, 2016 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 July 27, 2016

99.2   Supplemental Operating and Financial Data for the quarter and six months ended June 30, 2016

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: July 27, 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 July 27, 2016
99.2	Supplemental Operating and Financial Data for the quarter and six months ended June 30, 2016

EX-99.1

Exhibit 99.1

REALTY INCOME ANNOUNCES OPERATING RESULTS FOR

SECOND QUARTER AND FIRST SIX MONTHS OF 2016 AND INCREASES MONTHLY DIVIDEND

SAN DIEGO, CALIFORNIA, July 27, 2016....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the second quarter and six months ended June 30, 2016.  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 June 30, 2016:

·Net income per share was $0.27

·AFFO per share increased 4.4% to $0.71, compared to the quarter ended June 30, 2015

·Invested $310.3 million in 57 new properties and properties under development or expansion

·Increased the monthly dividend in June for the 86th time and for the 75th consecutive quarter

·Dividends paid per common share increased 4.9%, compared to the quarter ended June 30, 2015

·Subsequent to June 30, 2016, increased the monthly dividend by 1.0% to $0.2015 per share, payable on September 15, 2016

CEO Comments

“Our business continues to perform quite well and we are pleased with our year-to-date success and remain optimistic about our prospects for the future,” said John P. Case, Realty Income’s Chief Executive Officer. “In the second quarter, we completed $310 million in acquisitions and through the first half of the year we completed $663 million in acquisitions at record-high investment spreads relative to our weighted average cost of capital. Our distinct sector-leading cost of capital advantage continues to support our investment philosophy of acquiring the highest quality net-lease properties as we grow our portfolio. We continue to see an ample pipeline of investment opportunities.  As a result, we are raising our 2016 acquisitions guidance to approximately $1.25 billion from our prior estimate of $900 million.”

“We have successfully issued approximately a half billion dollars in equity year-to-date to permanently fund the majority of our acquisitions activity this year. We executed our most recent tranche of equity of $55 million during the final week of June at the lowest cost of equity in our company’s history. We continue to fortify our balance sheet as our leverage metrics, financial flexibility and access to capital remain quite outstanding. During the second quarter, Moody’s and Standard & Poor’s recognized the strength of our balance sheet and liquidity profile by raising our credit rating outlook to Baa1 ‘positive’ and BBB+ ‘positive,’ respectively.  We are pleased to be one of the highest rated REITs in the industry and the highest rated company in the net-lease sector.”

“Given the ongoing confidence we have in our business and our financial strength, we have elected to provide our shareholders with an additional increase in the monthly dividend of 1% beginning in September 2016. The payment of this dividend will result in an annual increase of 6.1% over the dividend paid in September 2015.”

Financial Results

Revenue

Revenue for the quarter ended June 30, 2016 increased 6.7% to $271.0 million, as compared to $253.9 million for the same quarter in 2015. Revenue for the six months ended June 30, 2016 increased 7.5% to $538.2 million, as compared to $500.7 million for the same period in 2015.

Net Income Available to Common Stockholders

Net income available to common stockholders for the quarter ended June 30, 2016 was $69.0 million, as compared to $59.3 million for the same quarter in 2015. Net income per share for the quarter ended June 30, 2016 was $0.27, as compared to $0.25 for the same quarter in 2015.

Net income available to common stockholders for the six months ended June 30, 2016 was $132.5 million, as compared to $119.8 million for the same period in 2015. Net income per share for the six months ended June 30, 2016 was $0.53, as compared to $0.52 for the same period in 2015.

The calculation to determine net income for a real estate company includes impairments, gains on property sales and/or fair value adjustments on interest rate swaps. These items can vary from quarter to quarter and can significantly impact net income and period to period comparisons.

Funds From Operations Available to Common Stockholders (FFO)

FFO for the quarter ended June 30, 2016 increased 10.7% to $176.6 million, as compared to $159.5 million for the same quarter in 2015. FFO per share for the quarter ended June 30, 2016 increased 1.4% to $0.70, as compared to $0.69 for the same quarter in 2015. FFO for the quarter ended June 30, 2016 was impacted by a non-cash loss of $2.1 million, or $0.01 per share, resulting from fair value adjustments on our interest rate swaps. Each quarter we adjust the carrying value of our interest rate swaps to fair value. The changes in the fair value of our interest rate swaps are recorded to interest expense.

FFO for the six months ended June 30, 2016 increased 11.2% to $347.3 million, as compared to $312.4 million for the same period in 2015. FFO per share for the six months ended June 30, 2016 increased 1.5% to $1.38, as compared to $1.36 for the same period in 2015. FFO for the six months ended June 30, 2016 was impacted by a non-cash loss of $7.9 million, or $0.03 per share, resulting from fair value adjustments on our interest rate swaps, as described above.

Adjusted Funds From Operations Available to Common Stockholders (AFFO)

AFFO for the quarter ended June 30, 2016 increased 13.7% to $180.9 million, as compared to $159.1 million for the same quarter in 2015. AFFO per share for the quarter ended June 30, 2016 increased 4.4% to $0.71, as compared to $0.68 for the same quarter in 2015.

AFFO for the six months ended June 30, 2016 increased 14.7% to $356.8 million, as compared to $311.2 million for the same period in 2015. AFFO per share for the six months ended June 30, 2016 increased 4.4% to $1.42, as compared to $1.36 for the same period in 2015.

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, and reduced by gains on sales of investment properties. 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. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities.  In addition, FFO and AFFO should not be considered as measures of liquidity, our ability to make cash distributions, or our ability to pay interest payments. See the reconciliations of net income available to common stockholders to FFO and AFFO on pages six and seven of this press release.

Dividend Increases

In June 2016, Realty Income announced the 75th consecutive quarterly dividend increase, which is the 86th increase in the amount of the dividend since the company’s listing on the New York Stock Exchange (NYSE) in 1994. The annualized dividend amount as of June 30, 2016 was $2.394 per share. The amount of monthly dividends paid per share increased 4.9% to $0.597 in the second quarter of 2016 from $0.569 in the same quarter in 2015.

September Dividend Declared

On July 26, 2016, our Board of Directors declared an increase in our common stock monthly cash dividend to $0.2015 per share from $0.1995 per share. The dividend is payable on September 15, 2016 to shareholders of record as of September 1, 2016. This is the 87th dividend increase since our listing on the NYSE in 1994. The ex-dividend date for September’s dividend is August 30, 2016. The new monthly dividend amount represents an annualized dividend amount of $2.418 per share, or a 1.0% increase, as compared to the previous annualized dividend amount of $2.394.

Real Estate Portfolio Update

As of June 30, 2016, Realty Income’s portfolio of freestanding, single-tenant properties consisted of 4,646 properties located in 49 states and Puerto Rico, leased to 246 commercial tenants doing business in 47 industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of 9.8 years.

- 2 -

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 June 30, 2016, portfolio occupancy was 98.0% with 95 properties available for lease out of a total of 4,646 properties in the portfolio, as compared to 97.8% as of March 31, 2016, and 98.2% as of June 30, 2015. Economic occupancy, or occupancy as measured by rental revenue, was 98.9% as of June 30, 2016, as compared to 98.8% as of March 31, 2016, and 99.2% as of June 30, 2015.

Since March 31, 2016, when the company reported 101 properties available for lease, the company had 43 lease expirations, re-leased 37 properties and sold 12 vacant properties.  Of the 37 properties re-leased during the second quarter of 2016, 29 properties were re-leased to the same tenants, three were re-leased to new tenants without vacancy, and five were re-leased to new tenants after a period of vacancy.  The annual new rent on these re-leases was $3,814,000, as compared to the previous annual rent of $4,158,000 on the same properties, representing a rent recapture rate of 91.7% on the properties re-leased for the quarter ended June 30, 2016.

Rent Increases

During the quarter ended June 30, 2016, same store rents on 4,093 properties under lease increased 1.4% to $224.4 million, as compared to $221.4 million for the same quarter in 2015. For the six months ended June 30, 2016, same store rents on 4,093 properties under lease increased 1.3% to $448.5 million, as compared to $442.7 million for the same period in 2015.

Investments in Real Estate

During the quarter ended June 30, 2016, Realty Income invested $310.3 million in 57 new properties and properties under development or expansion, located in 22 states. These properties are 100% leased with a weighted average lease term of approximately 13.5 years and an initial average cash lease yield of 6.3%. The tenants occupying the new properties operate in 14 industries, and the property types are 68.0% retail and 32.0% industrial, based on rental revenue. Approximately 58% of the rental revenue generated from acquisitions during the second quarter of 2016 is from investment grade rated tenants.

During the six months ended June 30, 2016, Realty Income invested approximately $662.9 million in 153 new properties and properties under development or expansion, located in 34 states. These properties are 100% leased with a weighted average lease term of approximately 14.8 years and an initial average lease yield of 6.5%.  The tenants occupying the new properties operate in 23 industries, and the property types are 77.6% retail and 22.4% industrial, based on rental revenue.  Approximately 39% of the rental revenue generated from acquisitions during the first six months of 2016 is from investment grade rated tenants.

Property Dispositions

During the quarter ended June 30, 2016, Realty Income sold 16 properties for $24.5 million, with a gain on sales of $8.7 million, as compared to five properties sold for $8.2 million, with a gain on sales of $3.7 million, during the same quarter in 2015.

During the six months ended June 30, 2016, Realty Income sold 27 properties for $35.5 million, with a gain on sales of $10.9 million, as compared to 14 properties sold for $30.5 million, with a gain on sales of $10.9 million, during the same period in 2015.

Liquidity and Capital Markets

Capital Raising

During the quarter ended June 30, 2016, Realty Income raised $453.2 million from the sale of common stock at a weighted average price of $61.66 per share.  During the six months ended June 30, 2016, Realty Income raised $487.2 million from the sale of common stock at a weighted average price of $61.59 per share.

Credit Facility

Realty Income has 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 June 30, 2016, Realty Income had a borrowing capacity of $1.49 billion available on its 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%, respectively, over 2015 FFO per share of $2.77. FFO per share for 2016 is based on a net income per share range of $1.15 to $1.22, plus estimated real estate depreciation of $1.75 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%, respectively, 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.

Conference Call Information

In conjunction with the release of Realty Income’s operating results, the company will host a conference call on July 28, 2016 at 11:30 a.m. PT to discuss the results. To access the conference, dial (888) 572-7033. When prompted, provide the access code: 2935499.

A telephone replay of the conference call can also be accessed by calling (888) 203-1112 and entering the access code: 2935499. The telephone replay will be available through August 11, 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 August 11, 2016. No access code is required for this replay.

- 3 -

Supplemental Materials

Supplemental materials on the second quarter and year-to-date 2016 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 4,600 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 554 consecutive common stock monthly dividends throughout its 47-year operating history and increased the dividend 87 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

- 4 -

CONSOLIDATED STATEMENTS OF INCOME

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

	Three Months			Three Months			Six Months			Six Months
	Ended 6/30/16			Ended 6/30/15			Ended 6/30/16			Ended 6/30/15
REVENUE
Rental	$	260,056		$	241,431		$	516,857		$	476,554
Tenant reimbursements	11,112			11,607			20,217			21,570
Other	(129		)	822			1,081			2,604
Total revenue	271,039			253,860			538,155			500,728
EXPENSES
Depreciation and amortization	110,342			101,101			218,275			199,138
Interest	57,409			58,680			118,088			117,148
General and administrative	13,985			12,609			26,304			25,471
Property (including reimbursable)	14,671			14,937			29,776			28,914
Income taxes	953			628			1,917			1,702
Provisions for impairment	6,269			3,230			8,192			5,317
Total expenses	203,629			191,185			402,552			377,690
Gain on sales of real estate	8,658			3,675			10,948			10,893
Net income	76,068			66,350			146,551			133,931
Net income attributable to noncontrolling interests	(253		)	(263		)	(493		)	(581		)
Net income attributable to the Company	75,815			66,087			146,058			133,350
Preferred stock dividends	(6,770		)	(6,770		)	(13,540		)	(13,540		)
Net income available to common stockholders	$	69,045		$	59,317		$	132,518		$	119,810
Funds from operations available to common stockholders (FFO)	$	176,648		$	159,470		$	347,276		$	312,370
Adjusted funds from operations available to common stockholders (AFFO)	$	180,876		$	159,060		$	356,793		$	311,184
Per share information for common stockholders:
Net income:
Basic	$	0.27		$	0.26		$	0.53		$	0.52
Diluted	$	0.27		$	0.25		$	0.53		$	0.52
FFO, basic and diluted	$	0.70		$	0.69		$	1.38		$	1.36
AFFO, basic and diluted	$	0.71		$	0.68		$	1.42		$	1.36
Cash dividends paid per common share	$	0.597		$	0.569		$	1.185		$	1.130

- 5 -

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.

	Three Months			Three Months			Six Months			Six Months
	Ended 6/30/16			Ended 6/30/15			Ended 6/30/16			Ended 6/30/15
Net income available to common stockholders	$	69,045		$	59,317		$	132,518		$	119,810
Depreciation and amortization	110,342			101,101			218,275			199,138
Depreciation of furniture, fixtures and equipment	(195		)	(240		)	(388		)	(425		)
Provisions for impairment on investment properties	6,269			3,230			8,192			5,317
Gain on sale of investment properties	(8,658		)	(3,675		)	(10,948		)	(10,893		)
FFO adjustments allocable to noncontrolling interests	(155		)	(263		)	(373		)	(577		)
FFO available to common stockholders (1)	$	176,648		$	159,470		$	347,276		$	312,370
FFO per common share, basic and diluted	$	0.70		$	0.69		$	1.38		$	1.36
Distributions paid to common stockholders	$	151,236		$	131,595		$	298,581		$	258,277
FFO available to common stockholders in excess of distributions paid to common stockholders	$	25,412		$	27,875		$	48,695		$	54,093
Weighted average number of common shares used for FFO:
Basic	253,375,546			232,403,586			251,792,989			228,932,782
Diluted	254,254,243			232,886,185			252,073,685			229,061,762

(1)Diluted FFO for the quarter ended June 30, 2016 includes FFO allocable to dilutive noncontrolling interests.  Noncontrolling interests were anti-dilutive for all other periods presented.

- 6 -

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			Six Months			Six Months
	Ended 6/30/16			Ended 6/30/15			Ended 6/30/16			Ended 6/30/15
Net income available to common stockholders	$	69,045		$	59,317		$	132,518		$	119,810
Cumulative adjustments to calculate FFO (1)	107,603			100,153			214,758			192,560
FFO available to common stockholders	176,648			159,470			347,276			312,370
Amortization of share-based compensation	3,947			2,811			6,552			5,362
Amortization of deferred financing costs (2)	1,299			1,281			2,598			2,575
Amortization of net mortgage premiums	(754		)	(1,862		)	(1,855		)	(3,824		)
Loss on interest rate swaps	2,109			899			7,886			1,958
Leasing costs and commissions	(86		)	(149		)	(277		)	(461		)
Recurring capital expenditures	(174		)	(977		)	(246		)	(2,009		)
Straight-line rent	(4,323		)	(4,444		)	(9,474		)	(8,635		)
Amortization of above and below-market leases	2,143			1,954			4,195			3,696
Other adjustments (3)	67			77			138			152
AFFO available to common stockholders (4)	$	180,876		$	159,060		$	356,793		$	311,184
AFFO per common share, basic and diluted	$	0.71		$	0.68		$	1.42		$	1.36
Distributions paid to common stockholders	$	151,236		$	131,595		$	298,581		$	258,277
AFFO available to common stockholders in excess of distributions paid to common stockholders	$	29,640		$	27,465		$	58,212		$	52,907
Weighted average number of common shares used for AFFO:
Basic	253,375,546			232,403,586			251,792,989			228,932,782
Diluted	253,937,221			232,886,185			252,378,957			229,061,762

(1)See FFO calculation above for reconciling items.

(2)Includes the amortization of costs incurred and capitalized upon issuance of our notes payable, assumption of our mortgages payable and issuance of our term loans.  The deferred financing costs are being amortized over the lives of the respective mortgages and term loans.  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 quarter and six months ended June 30, 2016 includes AFFO allocable to dilutive noncontrolling interests.  Noncontrolling interests were anti-dilutive for all other periods presented.

- 7 -

HISTORICAL FFO AND AFFO

(dollars in thousands, except per share amounts)

For the three months ended June 30,	2016			2015			2014			2013			2012
Net income available to common stockholders	$	69,045		$	59,317		$	51,420		$	45,957		$	32,950
Depreciation and amortization	110,147			100,861			92,790			74,471			35,571
Provisions for impairment on investment properties	6,269			3,230			499			2,496			-
Gain on sales of investment properties	(8,658		)	(3,675		)	(1,964		)	(5,744		)	(3,354		)
Merger-related costs	-			-			-			605			-
FFO adjustments allocable to noncontrolling interests	(155		)	(263		)	(336		)	(220		)	-
FFO	$	176,648		$	159,470		$	142,409		$	117,565		$	65,167
FFO per diluted share	$	0.70		$	0.69		$	0.64		$	0.60		$	0.49
AFFO	$	180,876		$	159,060		$	141,178		$	115,584		$	66,499
AFFO per diluted share	$	0.71		$	0.68		$	0.64		$	0.59		$	0.50
Cash dividends paid per share	$	0.597		$	0.569		$	0.547		$	0.544		$	0.437
Weighted average diluted shares outstanding - FFO	254,254,243			232,886,185			221,043,619			195,759,091			132,828,540
Weighted average diluted shares outstanding - AFFO	253,937,221			232,886,185			221,043,619			195,759,091			132,828,540
For the six months ended June 30,	2016			2015			2014			2013			2012
Net income available to common stockholders	$	132,518		$	119,810		$	98,599		$	108,692		$	59,022
Depreciation and amortization	217,887			198,713			182,668			141,673			70,806
Provisions for impairment on investment properties	8,192			5,317			2,182			2,952			-
Gain on sales of investment properties	(10,948		)	(10,893		)	(5,843		)	(44,304		)	(3,965		)
Merger-related costs	-			-			-			12,635			-
FFO adjustments allocable to noncontrolling interests	(373		)	(577		)	(696		)	(395		)	-
FFO	$	347,276		$	312,370		$	276,910		$	221,253		$	125,863
FFO per diluted share	$	1.38		$	1.36		$	1.29		$	1.20		$	0.95
AFFO	$	356,793		$	311,184		$	273,822		$	219,547		$	132,793
AFFO per diluted share	$	1.42		$	1.36		$	1.28		$	1.19		$	1.00
Cash dividends paid per share	$	1.185		$	1.130		$	1.094		$	1.057		$	0.874
Weighted average diluted shares outstanding - FFO	252,073,685			229,061,762			214,089,629			183,873,647			132,785,213
Weighted average diluted shares outstanding - AFFO	252,378,957			229,061,762			214,089,629			183,873,647			132,785,213

- 8 -

REALTY INCOME CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2016 and December 31, 2015

(dollars in thousands, except per share data)

	2016			2015(1)
ASSETS	(unaudited)
Real estate, at cost:
Land	$	3,436,504		$	3,286,004
Buildings and improvements	9,403,441			9,010,778
Total real estate, at cost	12,839,945			12,296,782
Less accumulated depreciation and amortization	(1,841,790		)	(1,687,665		)
Net real estate held for investment	10,998,155			10,609,117
Real estate held for sale, net	9,991			9,767
Net real estate	11,008,146			10,618,884
Cash and cash equivalents	20,443			40,294
Accounts receivable, net	87,166			81,678
Acquired lease intangible assets, net	1,063,045			1,034,417
Goodwill	15,220			15,321
Other assets, net	55,411			54,785
Total assets	$	12,249,431		$	11,845,379
LIABILITIES AND EQUITY
Distributions payable	$	54,023		$	50,344
Accounts payable and accrued expenses	130,024			115,826
Acquired lease intangible liabilities, net	256,512			250,916
Other liabilities	41,191			53,965
Line of credit payable	512,000			238,000
Term loans, net	318,981			318,835
Mortgages payable, net	496,348			646,187
Notes payable, net	3,620,275			3,617,973
Total liabilities	5,429,354			5,292,046
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 June 30, 2016 and December 31, 2015, liquidation preference $25.00 per share	395,378			395,378
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 257,954,902 shares issued and outstanding as of June 30, 2016 and 250,416,757 shares issued and outstanding as of December 31, 2015	8,105,229			7,666,428
Distributions in excess of net income	(1,699,966		)	(1,530,210		)
Total stockholders’ equity	6,800,641			6,531,596
Noncontrolling interests	19,436			21,737
Total equity	6,820,077			6,553,333
Total liabilities and equity	$	12,249,431		$	11,845,379

(1)During the first quarter of 2016, we adopted ASU 2015-03, which requires that debt issuance costs be reported on the balance sheet as a direct reduction of the face amount of the debt instrument they relate to.  As a result, we have reclassified certain items on the December 31, 2015 balance sheet within the following financial statement captions: Other assets, net, Term loans, net, Mortgages payable, net, and Notes payable, net.

- 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	%
YTD Q2 2016	3.4	%	36.6	%	3.6	%	13.7	%	2.7	%	4.3	%	2.1	%	3.8	%	1.3	%	(3.3	%)
Compound Average Annual Total Return (5)			18.2	%			11.4	%			9.8	%			9.2	%			8.9	%

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 June 30, 2016, 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

SUPPLEMENTAL OPERATING & FINANCIAL DATA Q2 2016 an S&P 500 company S&P High Yield Dividend Aristocrats® index member Exhibit 99.2

Corporate Overview 3 Financial Summary Consolidated Statements Of Income 4 Funds From Operations (FFO) 5 Adjusted Funds From Operations (AFFO) 6 Consolidated Balance Sheets 7 Debt Summary 8 Debt Maturities 9 Capitalization & Financial Ratios 10 EBITDA & Coverage Ratios 11 Debt Covenants 12 Transaction Summary Investment Summary 13 Disposition Summary 14 Development Pipeline 15 Real Estate Portfolio Summary Tenant Diversification 16 Industry Diversification 17 Geographic Diversification 19 Property Type Composition 20 Same Store Rental Revenue 21 Leasing Data Occupancy 23 Leasing Activity 24 Expirations 25 Earnings Guidance 26 Analyst Coverage 27 Table Of Contents 2 Q2 2016 Supplemental Operating & Financial Data This Supplemental Operating & Financial Data should be read in connection with the company's second quarter 2016 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on July 27, 2016) as certain disclosures, definitions and reconciliations in such announcement have not been included in this 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+ Positive Outlook Moody's Baa1 Positive Outlook Fitch BBB+ Stable Outlook Dividend Information as of July 2016 Current annualized dividend of $2.394 per share Compound average annual dividend growth rate of approximately 4.6% 552 consecutive monthly dividends paid 75 consecutive quarterly dividend increases 1% increase in the monthly dividend beginning in September 2016, resulting in an annualized dividend of $2.418  per share 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 June 30, 2016, we owned a diversified portfolio of 4,646 properties located in 49 states and Puerto Rico, with over 79 million square feet of leasable space. Our properties are leased to 246 different commercial tenants doing business in 47 separate industries. Approximately 79% of our quarterly rental revenues were generated from retail properties, 13% from industrial properties, and the remaining 8% were from other property types. Our physical occupancy rate as of June 30, 2016 was 98%, with a weighted average remaining lease term of 9.8 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O" Corporate Overview 3 Q2 2016 Supplemental Operating & Financial Data June 30, 2016 Closing price $ 69.36 Shares and units outstanding 258,500,106 Market value of common equity $ 17,929,567,000 Total market capitalization $ 23,309,187,000

Consolidated Statements Of Income (dollars in thousands, except per share amounts) 4 Q2 2016 Supplemental Operating & Financial Data (unaudited) (unaudited) Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 REVENUE Rental $ 260,056 $ 241,431 $ 516,857 $ 476,554 Tenant reimbursements 11,112 11,607 20,217 21,570 Other (129 ) 822 1,081 2,604 Total revenue 271,039 253,860 538,155 500,728 EXPENSES Depreciation and amortization 110,342 101,101 218,275 199,138 Interest 57,409 58,680 118,088 117,148 General and administrative 13,985 12,609 26,304 25,471 Property (including reimbursable) 14,671 14,937 29,776 28,914 Income taxes 953 628 1,917 1,702 Provisions for impairment 6,269 3,230 8,192 5,317 Total expenses 203,629 191,185 402,552 377,690 Gain on sales of real estate 8,658 3,675 10,948 10,893 Net income 76,068 66,350 146,551 133,931 Net income attributable to noncontrolling interests (253 ) (263 ) (493 ) (581 ) Net income attributable to the Company 75,815 66,087 146,058 133,350 Preferred stock dividends (6,770 ) (6,770 ) (13,540 ) (13,540 ) Net income available to common stockholders $ 69,045 $ 59,317 $ 132,518 $ 119,810 Net income available to common stockholders per common share: Basic $ 0.27 $ 0.26 $ 0.53 $ 0.52 Diluted $ 0.27 $ 0.25 $ 0.53 $ 0.52

Funds From Operations (FFO) (dollars in thousands, except per share amounts) 5 Q2 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted FFO per share computations. We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (NAREIT) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, and reduced by gains on property sales. Presentation of the information regarding FFO and AFFO (described on page 6) is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments. Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Net income available to common stockholders $ 69,045 $ 59,317 $ 132,518 $ 119,810 Depreciation and amortization 110,342 101,101 218,275 199,138 Depreciation of furniture, fixtures and equipment (195 ) (240 ) (388 ) (425 ) Provisions for impairment on investment properties 6,269 3,230 8,192 5,317 Gain on sale of investment properties (8,658 ) (3,675 ) (10,948 ) (10,893 ) FFO adjustments allocable to noncontrolling interests (155 ) (263 ) (373 ) (577 ) FFO available to common stockholders $ 176,648 $ 159,470 $ 347,276 $ 312,370 FFO per common share, basic and diluted $ 0.70 $ 0.69 $ 1.38 $ 1.36 Distributions paid to common stockholders $ 151,236 $ 131,595 $ 298,581 $ 258,277 FFO available to common stockholders in excess of distributions paid to common stockholders $ 25,412 $ 27,875 $ 48,695 $ 54,093 Weighted average number of common shares used for FFO per share computations: Basic 253,375,546 232,403,586 251,792,989 228,932,782 Diluted 254,254,243 232,886,185 252,073,685 229,061,762

Adjusted Funds From Operations (AFFO) (dollars in thousands, except per share amounts) 6 Q2 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted AFFO per share computations. We define AFFO as FFO adjusted for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company’s ongoing operating performance. Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution). Three months ended Six months ended June 30, June 30, 2016 2015 2016 2015 Net income available to common stockholders $ 69,045 $ 59,317 $ 132,518 $ 119,810 Cumulative adjustments to calculate FFO (1) 107,603 100,153 214,758 192,560 FFO available to common stockholders 176,648 159,470 347,276 312,370 Amortization of share-based compensation 3,947 2,811 6,552 5,362 Amortization of deferred financing costs 1,299 1,281 2,598 2,575 Amortization of net mortgage premiums (754 ) (1,862 ) (1,855 ) (3,824 ) Loss on interest rate swaps 2,109 899 7,886 1,958 Leasing costs and commissions (86 ) (149 ) (277 ) (461 ) Recurring capital expenditures (174 ) (977 ) (246 ) (2,009 ) Straight-line rent (4,323 ) (4,444 ) (9,474 ) (8,635 ) Amortization of above and below-market leases 2,143 1,954 4,195 3,696 Other adjustments 67 77 138 152 AFFO available to common stockholders $ 180,876 $ 159,060 $ 356,793 $ 311,184 AFFO per common share, basic and diluted $ 0.71 $ 0.68 $ 1.42 $ 1.36 Distributions paid to common stockholders $ 151,236 $ 131,595 $ 298,581 $ 258,277 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 29,640 $ 27,465 $ 58,212 $ 52,907 Weighted average number of common shares used for AFFO per share computations: Basic 253,375,546 232,403,586 251,792,989 228,932,782 Diluted 253,937,221 232,886,185 252,378,957 229,061,762 (1) See reconciling items for FFO presented under "Funds from Operations (FFO).”

Consolidated Balance Sheets (dollars in thousands , except per share amounts) 7 Q2 2016 Supplemental Operating & Financial Data June 30, 2016 December 31, 2015 ASSETS (unaudited) Real estate, at cost: Land $ 3,436,504 $ 3,286,004 Buildings and improvements 9,403,441 9,010,778 Total real estate, at cost 12,839,945 12,296,782 Less accumulated depreciation and amortization (1,841,790 ) (1,687,665 ) Net real estate held for investment 10,998,155 10,609,117 Real estate held for sale, net 9,991 9,767 Net real estate 11,008,146 10,618,884 Cash and cash equivalents 20,443 40,294 Accounts receivable, net 87,166 81,678 Acquired lease intangible assets, net 1,063,045 1,034,417 Goodwill 15,220 15,321 Other assets, net 55,411 54,785 Total assets $ 12,249,431 $ 11,845,379 LIABILITIES AND EQUITY Distributions payable $ 54,023 $ 50,344 Accounts payable and accrued expenses 130,024 115,826 Acquired lease intangible liabilities, net 256,512 250,916 Other liabilities 41,191 53,965 Line of credit payable 512,000 238,000 Term loans, net 318,981 318,835 Mortgages payable, net 496,348 646,187 Notes payable, net 3,620,275 3,617,973 Total liabilities $ 5,429,354 $ 5,292,046 Stockholders' equity: Preferred stock and paid in capital, par value $0.01 per share, 69,900,000 shares authorized, 16,350,000 shares issued and $ 395,378 $ 395,378 outstanding as of June 30, 2016 and December 31, 2015, liquidation preference $25.00 per share Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 257,954,902 shares issued and outstanding as of June 30, 2016 and 250,416,757 shares issued and outstanding as of December 31, 2015 8,105,229 7,666,428 Distributions in excess of net income (1,699,966 ) (1,530,210 ) Total stockholders' equity 6,800,641 6,531,596 Noncontrolling interests 19,436 21,737 Total equity 6,820,077 6,553,333 Total liabilities and equity $ 12,249,431 $ 11,845,379

Debt Summary (dollars in thousands) 8 Q2 2016 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date June 30, 2016 % of Debt June 30, 2016 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 512,000 10.3% 1.35% 3.0 years Unsecured Term Loans Term Loan - Tau (2) January 21, 2018 70,000 1.4% 1.66% 1.6 years Term Loan - Realty Income (3) June 30, 2020 250,000 5.0% 1.41% 4.0 years Principal amount 320,000 6.4% 1.46% 3.5 years Deferred financing costs (1,019) Carrying value 318,981 Senior Unsecured Notes and Bonds 5.950% Notes due 2016 September 15, 2016 275,000 5.5% 5.95% 5.375% Notes due 2017 September 15, 2017 175,000 3.5% 5.38% 2.000% Notes due 2018 January 31, 2018 350,000 7.1% 2.00% 6.750% Notes due 2019 August 15, 2019 550,000 11.1% 6.75% 5.750% Notes due 2021 January 15, 2021 250,000 5.0% 5.75% 3.250% Notes due 2022 October 15, 2022 450,000 9.1% 3.25% 4.650% Notes due 2023 August 1, 2023 750,000 15.1% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 7.1% 3.88% 4.125% Notes due 2026 October 15, 2026 250,000 5.0% 4.13% 5.875% Bonds due 2035 March 15, 2035 250,000 5.0% 5.88% Principal amount 3,650,000 73.5% 4.72% 6.0 years Unamortized discounts and deferred financing costs (29,725) Carrying value 3,620,275 Mortgages Payable 38 mortgages on 129 properties January 2017 - June 2032 488,870 (4) 9.8% 4.99% 4.2 years Unamortized premiums and deferred financing costs 7,478 Carrying value 496,348 TOTAL DEBT $ 4,970,870 (5) 4.19% 5.3 years Fixed Rate $ 4,436,250 89% Variable Rate $ 534,620 11% (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 June 30, 2016, approximately $1.49 billion was available on the credit facility. (2) Borrowing under the term loan bears interest at the current one month LIBOR, plus 1.2%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.15%. (3) Borrowing under the term loan bears interest at the current one month LIBOR, plus 0.95%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.67%. (4) The mortgages payable are at fixed interest rates, except for mortgages totaling $22.6 million at June 30, 2016. (5) Excludes non-cash unamortized original issuance discounts recorded on the senior unsecured notes and bonds, non-cash unamortized premiums recorded on the mortgages payable, and deferred financing costs on the term loans, notes and bonds, and mortgages payable.

Debt Maturities (dollars in millions) 9 Q2 2016 Supplemental Operating & Financial Data Debt Maturities Year of Credit Term Senior Unsecured Mortgages Weighted Average Maturity Facility Loan Notes and Bonds Payable Total Interest Rate (1) 2016 $ - $ - $ 275.0 $ 4.8 $ 279.8 5.93% 2017 - - 175.0 149.7 324.7 5.38% 2018 - 70.0 350.0 15.5 435.5 2.07% 2019 512.0 - 550.0 26.3 1,088.3 6.57% 2020 - 250.0 - 82.4 332.4 2.30% Thereafter - - 2,300.0 210.2 2,510.2 4.49% Totals $ 512.0 $ 320.0 $ 3,650.0 $ 488.9 $ 4,970.9 (1) Weighted average interest rate for 2019 excludes the credit facility. Mortgages Payable Maturities by Quarter Year of First Second Third Fourth Weighted Average Maturity Quarter Quarter Quarter Quarter Total Interest Rate 2016 $ - $ - $ 2.4 $ 2.4 $ 4.8 5.00% 2017 48.9 36.8 39.4 24.6 149.7 5.40% 2018 1.2 12.0 1.1 1.2 15.5 5.48% 2019 1.2 1.2 1.1 22.8 26.3 2.86% 2020 1.2 1.2 12.6 67.4 82.4 4.98% Thereafter - - - - 210.2 4.93% Totals $ 52.5 $ 51.2 $ 56.6 $ 118.4 $ 488.9

Capital Structure as of June 30, 2016 Capitalization & Financial Ratios (dollars in thousands , except per share amounts) 10 Q2 2016 Supplemental Operating & Financial Data Liquidity as of June 30, 2016 Cash on Hand $ 20,443 Availability under Credit Facility 1,488,000 $ 1,508,443 Capitalization as of June 30, 2016 Carrying Debt Value Credit Facility $ 512,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 3,650,000 Mortgages Payable 488,870 Total Debt $ 4,970,870 Equity Shares / Units Stock Price Redemption Price Market Value Common Stock (NYSE: O) 257,954,902 $ 69.36 $ 17,891,752 Common Units (1) 545,204 $ 69.36 37,815 Common Equity 17,929,567 Class F Preferred Stock 16,350,000 $ 25.00 408,750 Total Equity $ 18,338,317 Total Market Capitalization (2) $ 23,309,187 Debt/Total Market Capitalization (2) 21.3% Debt and Preferred Stock/Total Market Capitalization (2) 23.1% (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 $23,288,744 (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 YTD 2016 YTD 2015 Growth Rate Common Dividend Paid per Share $ 1.185 $ 1.130 4.9% AFFO per Share (diluted) $ 1.42 $ 1.36 4.4% AFFO Payout Ratio 83.5% 83.1% Debt 21% Preferred Stock 2% Common Stock 77%

Debt Service Coverage (2) Fixed Charge Coverage (3) EBITDA & Coverage Ratios (dollars in thousands) 11 Q2 2016 Supplemental Operating & Financial Data Reconciliation of Net Income to EBITDA (1) Three months ended June 30, 2016 Net income $ 76,068 Interest 57,409 Income taxes 953 Depreciation and amortization 110,342 Impairment loss 6,269 Gain on sales (8,658) Quarterly EBITDA $ 242,383 Annualized EBITDA $ 969,532 Debt/EBITDA 5.1 Debt and Preferred Stock/EBITDA 5.5 (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. Our EBITDA may not be comparable to EBITDA reported by other companies that interpret the definitions of EBITDA differently than we do. Management believes EBITDA to be a meaningful measure of a REIT’s performance because it is widely followed by industry analysts, lenders and investors. EBITDA should be considered along with, but not as an alternative to, net income as a measure of our operating performance. Our ratio of debt to EBITDA, which is used by management as a measure of leverage, is calculated by annualizing quarterly EBITDA and then dividing by our total debt (excluding all unamortized deferred financing costs, net mortgage premiums and original issuance discounts). (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. 3.6 3.7 4.0 4.1 4.2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 4.0 4.1 4.5 4.6 4.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Debt Covenants 12 Q2 2016 Supplemental Operating & Financial Data As of June 30, 2016 The following is a summary of the key financial covenants for our senior unsecured notes and bonds, as defined and calculated per their terms. These calculations, which are not based on U.S. GAAP measurements, are presented to investors to show our ability to incur additional debt under the terms of our senior unsecured notes and bonds as well as to disclose our current compliance with such covenants, and are not measures of our liquidity or performance. Required Actuals Limitation on incurrence of total debt < 60% of adjusted undepreciated assets 38.3% Limitation on incurrence of secured debt < 40% of adjusted undepreciated assets 3.9% Debt service coverage (trailing 12 months) (1) > 1.5 x 4.7x Maintenance of total unencumbered assets > 150% of unsecured debt 270.1% (1) This covenant is calculated on a pro forma basis for the preceding four-quarter period on the assumptions that: (i) the incurrence of any Debt (as defined in the covenants) incurred by us since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four quarter period), (ii) the repayment or retirement of any of our Debt since the first day of such four-quarter period, and (iii) any acquisition or disposition by us of any asset or group since the first day of such four quarters had in each case occurred on July 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 July 1, 2015, nor does it purport to reflect our debt service coverage ratio for any future period.

First Quarter 2016 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 80 $ 300,523 $ 19,708 877,997 6.6% 16.3 Properties under Development (3) 23 52,118 3,547 853,273 6.8% 13.1 Total Real Estate Investments 103 $ 352,641 $ 23,255 1,731,270 6.6% 15.8 Approximately 23% of the annualized revenue generated by these investments is from investment grade tenants(4) (1) Cash capitalization rates are computed as contractual cash net operating income for the first twelve months following the acquisition date, divided by the total cost of the property (including all expenses borne by Realty Income). (2) The new property acquisitions were completed through 19 independent transactions during the first quarter of 2016 and 22 independent transactions during the second quarter of 2016, 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 2 on page 16 for our definition of investment grade tenants. Investment Summary (dollars in thousands) 13 Q2 2016 Supplemental Operating & Financial Data Second Quarter 2016 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 46 $ 300,715 $ 18,804 1,662,248 6.3% 13.5 Properties under Development (3) 11 9,574 840 69,508 8.8% 13.4 Total Real Estate Investments 57 $ 310,289 $ 19,644 1,731,756 6.3% 13.5 Approximately 58% of the annualized revenue generated by these investments is from investment grade tenants(4) Year-to-Date 2016 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 126 $ 601,238 $ 38,512 2,540,245 6.4% 15.0 Properties under Development (3) 27 61,692 4,387 922,781 7.1% 13.2 Total Real Estate Investments 153 $ 662,930 $ 42,899 3,463,026 6.5% 14.8 Approximately 39% of the annualized revenue generated by these investments is from investment grade tenants(4)

First Quarter 2016 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 2 $ 3,455 $ 2,535 $ 3,377 6.9% Vacant 9 12,511 6,148 7,661 - Total Real Estate Dispositions 11 $ 15,966 $ 8,683 $ 11,038 The unlevered internal rate of return on properties sold during the first quarter was 6.6% Disposition Summary (dollars in thousands) 14 Q2 2016 Supplemental Operating & Financial Data Second Quarter 2016 Number of Properties Original Investment Net Book Value Net Proceeds (2) Cash Capitalization Rate (1) Occupied 3 $ 9,652 $ 6,929 $ 13,672 7.5% Vacant 12 16,337 8,256 10,310 - Total Real Estate Dispositions 15 $ 25,989 $ 15,185 $ 23,982 The unlevered internal rate of return on properties sold during the second quarter was 10.5% Year-to-Date 2016 Number of Properties Original Investment Net Book Value Net Proceeds (2) Cash Capitalization Rate (1) Occupied 5 $ 13,107 $ 9,464 $ 17,049 7.4% Vacant 21 28,848 14,404 17,971 - Total Real Estate Dispositions 26 $ 41,955 $ 23,868 $ 35,020 The unlevered internal rate of return on properties sold during the first six months was 9.3% (1) Cash capitalization rates are computed as annualized current month contractual cash net operating income, divided by the net proceeds received upon sale of the property (including all expenses paid by us). (2) Data excludes properties sold as a result of eminent domain activities. During the second quarter of 2016 we were awarded net proceeds of $517,000 related to one eminent domain transaction.

(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 July 2016 and March 2017. Development Pipeline (dollars in thousands) 15 Q2 2016 Supplemental Operating & Financial Data Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 1 $ 1,762 $ 4,488 $ 6,250 100% Expansion of existing properties - - - - - Redevelopment of existing properties 5 3,942 8,192 12,134 100% 6 $ 5,704 $ 12,680 $ 18,384 Non-Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 2 $ 6,553 $ 19,540 $ 26,093 100% Expansion of existing properties - - - - - Redevelopment of existing properties - - - - - 2 $ 6,553 $ 19,540 $ 26,093 Total Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New Development (1) 3 $ 8,315 $ 24,028 $ 32,343 100% Expansion of existing properties - - - - - Redevelopment of existing properties 5 3,942 8,192 12,134 100% 8 $ 12,257 $ 32,220 $ 44,477

Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at June 30, 2016 include the following: Investment Grade Tenants (2) : Number of Properties 1,737 Percentage of Annualized Rents 44% Percentage of Leases with Rental Increases, Based on Revenue 73% Average EBITDAR/Rent Ratio on Retail Properties 2.7x (1) Median EBITDAR/Rent Ratio on Retail Properties 2.6x (1) (1) Based on the analysis of the most recently provided information from retail tenants that provide such information. We do not independently verify the information we receive from our retail tenants. (2) We define investment grade tenants as tenants with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). 44% of our annualized rental revenue is generated from properties leased to investment grade tenants, including approximately 8% from properties leased to subsidiaries of investment grade companies. Refer to page 20 for investment grade composition by property type. Tenant Diversification 16 Q2 2016 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P/Fitch) Walgreens 176 6.6 % Baa2/ BBB/ BBB FedEx 42 5.7 % Baa2/ BBB/ - Dollar General 524 4.5 % Baa2/ BBB/ - LA Fitness 46 4.1 % - Dollar Tree / Family Dollar 457 4.0 % - Circle K / The Pantry 300 2.8 % Baa2/ BBB/ - AMC Theatres 22 2.8 % - BJ's Wholesale Club 15 2.5 % - Diageo 17 2.4 % A3/ A-/ A- CVS Pharmacy 68 2.1 % Baa1/ BBB+/ - SuperAmerica / Western Refining 134 2.1 % - GPM Investments / Fas Mart 216 2.0 % - Regal Cinemas 22 2.0 % - Rite Aid 69 2.0 % - Life Time Fitness 9 1.9 % - TBC Corporation 149 1.7 % Baa1/ A-/ - Walmart / Sam's Club 23 1.5 % Aa2/AA/AA FreedomRoads / Camping World 18 1.2 % - NPC International 191 1.2 % - Smart & Final 36 1.1 % - 26% 53% 18% 3% Investment Grade, Retail Non-Investment Grade or Non-Rated, Retail Investment Grade, Non-Retail Non-Investment Grade or Non-Rated, Non-Retail

* Less than 0.1% Industry Diversification 17 Q2 2016 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations. Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended June 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2016 2015 2014 2013 2012 2011 Retail industries Apparel stores 1.9 % 2.0 % 2.0 % 1.9 % 1.7 % 1.4 % Automotive collision services 1.0 1.0 0.8 0.8 1.1 0.9 Automotive parts 1.3 1.4 1.3 1.2 1.0 1.2 Automotive service 1.8 1.9 1.8 2.1 3.1 3.7 Automotive tire services 2.8 2.9 3.2 3.6 4.7 5.6 Book stores * * * * 0.1 0.1 Child care 1.9 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 0.4 0.5 0.5 0.5 0.3 0.2 Dollar stores 8.7 8.9 9.6 6.2 2.2 - Drug stores 11.0 10.6 9.5 8.1 3.5 3.8 Education 0.3 0.3 0.4 0.4 0.7 0.7 Entertainment 0.5 0.5 0.5 0.6 0.9 1.0 Equipment services * 0.1 0.1 0.1 0.1 0.2 Financial services 1.2 1.3 1.4 1.5 0.2 0.2 General merchandise 1.4 1.4 1.2 1.1 0.6 0.6 Grocery stores 2.9 3.0 3.0 2.9 3.7 1.6 Health and fitness 8.2 7.7 7.0 6.3 6.8 6.4 Health care 0.9 1.0 1.1 1.1 - - Home furnishings 0.8 0.7 0.7 0.9 1.0 1.1 Home improvement 2.3 2.4 1.7 1.6 1.5 1.7 Jewelry 0.1 0.1 0.1 0.1 - - Motor vehicle dealerships 2.2 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 4.1 3.8 4.3 5.1 7.3 10.9 Restaurants - quick service 4.8 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 2.0 1.8 1.6 1.7 2.5 2.7 Theaters 4.9 5.1 5.3 6.2 9.4 8.8 Transportation services 0.1 0.1 0.1 0.1 0.2 0.2 Wholesale clubs 3.6 3.8 4.1 3.9 3.2 0.7 Other * * * 0.1 0.1 0.1 Retail industries 81.7 % 81.1 % 80.4 % 79.8 % 86.7 % 88.6 %

Industry Diversification (Cont’d) 18 Q2 2016 Supplemental Operating & Financial Data * Less than 0.1% (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations. Percentage of Rental Revenue (1) For the Quarter Ended For the Year Ended June 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2016 2015 2014 2013 2012 2011 Non-retail industries Aerospace 1.0 1.1 1.2 1.2 0.9 0.5 Beverages 2.5 2.7 2.8 3.3 5.1 5.6 Consumer appliances 0.5 0.6 0.5 0.6 0.1 - Consumer goods 0.9 0.9 0.9 1.0 0.1 - Crafts and novelties 0.1 0.1 0.1 0.1 - - Diversified industrial 0.9 0.8 0.5 0.2 0.1 - Electric utilities 0.1 0.1 0.1 * - - Equipment services 0.5 0.4 0.5 0.4 0.3 0.2 Financial services 0.4 0.4 0.4 0.5 0.4 0.3 Food processing 1.2 1.2 1.4 1.5 1.3 0.7 General merchandise 0.3 0.3 0.3 - - - Government services 1.1 1.2 1.3 1.4 0.1 0.1 Health care 0.6 0.7 0.7 0.8 * * Home furnishings 0.1 0.2 0.2 0.2 - - Insurance 0.1 0.1 0.1 0.1 * - Machinery 0.1 0.1 0.2 0.2 0.1 - Other manufacturing 0.8 0.7 0.7 0.6 - - Packaging 0.8 0.8 0.8 0.9 0.7 0.4 Paper 0.1 0.1 0.1 0.2 0.1 0.1 Shoe stores 0.2 0.2 0.8 0.9 - - Telecommunications 0.6 0.7 0.7 0.7 0.8 0.7 Transportation services 5.2 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 18.3 % 18.9 % 19.6 % 20.2 % 13.3 % 11.4 % Totals 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %

* Less than 0.1% (1) Includes rental revenue for all properties owned at June 30, 2016. Excludes rental revenue of $253 from sold properties. Geographic Diversification (dollars in thousands) 19 Q2 2016 Supplemental Operating & Financial Data Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet June 30, 2016 (1) Revenue Alabama 164 98 % 1,262,500 $ 5,216 2.0 % Alaska 3 100 275,900 422 0.2 Arizona 110 99 1,617,100 6,374 2.5 Arkansas 55 100 816,500 1,817 0.7 California 166 100 5,267,900 24,459 9.4 Colorado 72 99 1,015,800 3,989 1.5 Connecticut 24 92 534,900 2,531 1.0 Delaware 18 100 93,000 694 0.3 Florida 332 99 4,047,700 15,166 5.8 Georgia 247 98 3,779,400 11,344 4.4 Hawaii -- -- -- -- -- Idaho 12 100 87,000 417 0.2 Illinois 167 98 4,661,100 13,500 5.2 Indiana 154 100 1,551,000 6,959 2.7 Iowa 39 90 2,943,200 3,991 1.5 Kansas 94 97 1,845,900 4,505 1.7 Kentucky 63 94 1,035,500 3,586 1.4 Louisiana 98 97 1,196,500 3,367 1.3 Maine 10 90 145,300 889 0.3 Maryland 35 100 861,300 4,509 1.7 Massachusetts 81 98 757,600 3,455 1.3 Michigan 156 97 1,568,900 5,944 2.3 Minnesota 158 99 1,947,500 8,683 3.3 Mississippi 137 95 1,630,600 4,649 1.8 Missouri 139 96 2,825,200 8,459 3.3 Montana 8 100 79,000 191 0.1 Nebraska 37 100 780,400 2,097 0.8 Nevada 22 100 413,000 1,307 0.5 New Hampshire 19 100 315,800 1,477 0.6 New Jersey 70 99 697,400 4,382 1.7 New Mexico 30 100 293,200 858 0.3 New York 91 100 2,434,200 12,507 4.8 North Carolina 163 98 2,224,100 7,250 2.8 North Dakota 7 86 66,000 130 * Ohio 239 98 6,156,800 14,432 5.6 Oklahoma 130 99 1,553,400 4,226 1.6 Oregon 27 100 590,900 2,091 0.8 Pennsylvania 147 99 1,848,100 7,482 2.9 Rhode Island 4 100 157,200 809 0.3 South Carolina 145 99 1,047,000 5,548 2.1 South Dakota 13 100 156,500 336 0.1 Tennessee 220 96 3,050,500 8,362 3.2 Texas 451 98 8,796,500 23,291 9.0 Utah 18 100 933,400 2,090 0.8 Vermont 5 100 98,000 482 0.2 Virginia 146 97 2,925,700 7,540 2.9 Washington 42 98 690,800 2,711 1.0 West Virginia 14 100 279,100 1,082 0.4 Wisconsin 54 100 1,604,500 3,826 1.5 Wyoming 6 100 54,700 222 0.1 Puerto Rico 4 100 28,300 149 0.1 Totals\Average 4,646 98 % 79,041,800 $ 259,803 100.0 %

Property Type Composition (dollars in thousands) 20 Q2 2016 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at June 30, 2016. Excludes rental revenue of $253 from sold properties. (2) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Number of Properties Approximate Leasable Square Feet Rental Revenue for the Quarter Ended Percentage of Rental Revenue for the Quarter Ended Percentage of Annualized Revenue from Investment Grade Tenants Property Type June 30, 2016 (1) June 30, 2016 (2) Retail 4,481 52,074,500 $ 206,086 79.3 % 32.7 % Industrial 106 23,379,600 33,332 12.8 82.4 Office 44 3,403,200 15,045 5.8 91.3 Agriculture 15 184,500 5,340 2.1 100.0 Totals 4,646 79,041,800 $ 259,803 100.0 % Retail 79.3% Industrial 12.8% Office 5.8% Agriculture 2.1%

Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry June 30, 2016 June 30, 2015 Change by Industry Motor Vehicle Dealerships $ 4,522 $ 3,893 $ 629 16.2 % Convenience Stores 22,784 22,195 589 2.7 % Theaters 12,299 11,871 428 3.6 % Second Quarter 2016 Same Store Rental Revenue (dollars in thousands) 21 Q2 2016 Supplemental Operating & Financial Data Same Store Pool Defined For purposes of determining the properties used to calculate our same store rental revenue pool, we include all properties that we owned for the entire year-to-date period, for both the current and prior year except for properties during the current or prior year that were: (i) vacant at any time, (ii) under development or redevelopment, or (iii) involved in eminent domain and rent was reduced. Same Store Rental Revenue Number of Properties 4,093 Square Footage 67,132,403 Q2 2016 $224,392 Q2 2015 $221,354 Increase (in dollars) $3,038 Increase (percent) 1.4% Top 3 Industries Contributing to the Change Six months ended Six months ended Net % Change Industry June 30, 2016 June, 2015 Change by Industry Convenience Stores $ 45,650 $ 44,341 $ 1,309 3.0 % Theaters 24,800 23,682 1,118 4.7 % Restaurants – Casual Dining 15,930 15,453 477 3.1 % Year-to-Date 2016 Same Store Rental Revenue Number of Properties 4,093 Square Footage 67,132,403 YTD Q2 2016 $448,483 YTD Q2 2015 $442,673 Increase (in dollars) $5,810 Increase (percent) 1.3%

Same Store Rental Revenue (Cont’d)(dollars in thousands) 22 Q2 2016 Supplemental Operating & Financial Data Same Store Rental Revenue by Property Type Second Quarter 2016 Quarter ended Quarter ended Net % Change by Contribution by Property Type June 30, 2016 June 30, 2015 Change Property Type Property Type Retail $ 177,991 $ 175,377 $ 2,614 1.5% 86.0% Industrial 26,670 26,388 282 1.1% 9.3% Office 14,391 14,315 76 0.5% 2.5% Agriculture 5,340 5,274 66 1.2% 2.2% Total $ 224,392 $ 221,354 $ 3,038 1.4% 100% Year-to-Date 2016 Six months ended Six months ended Net % Change by Contribution by Property Type June 30, 2016 June 30, 2015 Change Property Type Property Type Retail $ 355,563 $ 350,784 $ 4,779 1.4% 82.2% Industrial 53,450 52,720 730 1.4% 12.6% Office 28,790 28,621 169 0.6% 2.9% Agriculture 10,680 10,548 132 1.2% 2.3% Total $ 448,483 $ 442,673 $ 5,810 1.3% 100%

By Property Occupied Properties 4,551 Total Properties 4,646 Occupancy 98.0% By Square Footage Occupied Square Footage 78,147,510 Total Square Footage 79,041,790 Occupancy 98.9% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 255,078,557 Quarterly Vacant Rental Revenue $ 2,727,343 (1) Occupancy 98.9% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 3/31/16 101 Expiration Activity (1) + 43 Leasing Activity (2) - 37 Vacant Property Sales Activity (3) - 12 Vacant Properties at 6/30/16 95 (1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current quarter. (2) Includes 29 expirations that were re-leased to the same tenants without vacancy, three that were re-leased to new tenants without vacancy, and five that were re-leased after a period of vacancy. See page 24 for additional detail on re-leasing activity. (3) Includes 10 properties that were vacant at the beginning of the quarter. Occupancy 23 Q2 2016 Supplemental Operating & Financial Data Occupancy by Number of Properties 98.3% 98.3% 98.4% 98.0% 98.2% 98.3% 98.4% 97.8% 98.0% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016

Allocation Based on Number of Leases Leasing Activity (dollars in thousands) 24 Q2 2016 Supplemental Operating & Financial Data Re-leased to New Tenant (1) Q1 2016 Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 4,256 $ 902 $ 263 $ 5,421 New Cash Rents* $ 4,468 $ 1,253 $ 354 $ 6,075 Recapture Rate 105.0 % 138.9 % 134.6 % 112.1 % Number of Leases 29 5 4 38 Average Months Vacant - - 11.5 1.2 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.6 % Year-to-date figures include six existing properties under redevelopment, where approximately $8.6 million of capital has been committed. Excluding these properties, the rent recapture rate for the first quarter of 2016 was of 102.1%, for the second quarter of 2016 was 92.0%, and for the first six months of 2016 was 97.3%. Re-leased to New Tenant (1) Q2 2016 Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 3,192 $ 234 $ 732 $ 4,158 New Cash Rents* $ 3,185 $ 245 $ 384 $ 3,814 Recapture Rate 99.8 % 104.7 % 52.5 % 91.7 % Number of Leases 29 3 5 37 Average Months Vacant - - 9.3 1.3 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.4 % Year-to-Date 2016 Re-leased to New Tenant (1) Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 7,448 $ 1,136 $ 995 $ 9,579 New Cash Rents* $ 7,653 $ 1,498 $ 738 $ 9,889 Recapture Rate 102.8 % 131.9 % 74.2 % 103.2 % Number of Leases 58 8 9 75 Average Months Vacant - - 10.3 1.2 Tenant Improvements $ - $ - $ - $ - *Percentage of Total Annualized Portfolio Rental Revenue: 0.9 % 76% 24% Same Tenant New Tenant 78% 22% Same Tenant New Tenant 77% 23% Same Tenant New Tenant

25 * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,530 net leased, single-tenant properties as of June 30, 2016 and their contribution to rental revenue for the quarter ended June 30, 2016. Excludes 22 multi-tenant properties and 95 vacant properties, one of which is a vacant, multi-tenant property. The lease expirations for properties under construction are based on the estimated completion date of those properties. (2) Excludes revenue of $4,310 from 22 multi-tenant properties and from 95 vacant properties at June 30, 2016, and $253 from sold properties. (3) Represents leases to the initial tenant of the property that are expiring for the first time. (4) Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-leased. Our leased, single-tenant properties have a weighted average remaining lease term of 9.8 years. Expirations (dollars in thousands) Q2 2016 Supplemental Operating & Financial Data Total Portfolio (1) Initial Expirations (3) Subsequent Expirations (4) Expiring Approx. % of % of % of Leases Leasable Rental Rental Expiring Rental Rental Expiring Rental Rental Year Retail Non-Retail Sq. Feet Revenue (2) Revenue Leases Revenue Revenue Leases Revenue Revenue 2016 69 - 441,200 $ 1,585 0.6 % 36 $ 856 0.3 % 33 $ 729 0.3 % 2017 195 1 1,892,700 5,172 2.0 52 1,491 0.6 144 3,681 1.4 2018 280 9 3,689,000 10,817 4.2 153 7,299 2.8 136 3,518 1.4 2019 259 10 3,934,200 13,318 5.2 176 11,073 4.3 93 2,245 0.9 2020 192 12 4,318,500 12,202 4.8 114 9,776 3.9 90 2,426 0.9 2021 279 13 5,669,200 15,978 6.3 178 12,161 4.8 114 3,817 1.5 2022 239 17 7,587,700 15,894 6.2 212 12,606 4.9 44 3,288 1.3 2023 354 20 6,463,500 21,957 8.6 358 21,058 8.2 16 899 0.4 2024 198 12 4,360,000 12,535 4.9 202 12,135 4.7 8 400 0.2 2025 326 15 5,574,700 21,695 8.5 310 20,303 8.0 31 1,392 0.5 2026 256 5 3,776,800 12,798 5.0 242 12,300 4.8 19 498 0.2 2027 494 3 5,581,900 19,840 7.8 472 18,953 7.5 25 887 0.3 2028 288 5 5,989,200 16,422 6.4 286 16,222 6.3 7 200 0.1 2029 398 4 6,531,600 19,919 7.8 360 16,397 6.4 42 3,522 1.4 2030 81 12 2,062,900 12,037 4.7 90 11,933 4.7 3 104 * 2031-2043 458 26 9,127,000 43,324 17.0 462 39,666 15.6 22 3,658 1.4 Totals 4,366 164 77,000,100 $ 255,493 100 % 3,703 $ 224,229 87.8 % 827 $ 31,264 12.2 %

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. Summarized below are approximate estimates of the key components of the company’s 2016 earnings guidance: Earnings Guidance Q2 2016 Supplemental Operating & Financial Data Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, and the outcome of any legal proceedings to which the company is a party, as described in the company’s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. (1) Excludes tenant reimbursement revenue. 2016 Guidance Net income per share $1.15 to $1.22 Real estate depreciation per share $1.75 Gains on sales of properties per share ($0.08) FFO per share $2.82 to $2.89 AFFO per share $2.85 to $2.90 Same store rent growth 1.3% Occupancy 98% G&A expenses (% of revenues) (1) 5.0% Property expenses (non-reimbursable) (% of revenues) (1) 1.5% Acquisition volume $1.25 billion Disposition volume $50 to $75 million

27 Q2 2016 Supplemental Operating & Financial Data Realty Income Corporation is covered by the analysts at the firms listed above. This list may not be complete and is subject to change. Please note that any opinions, estimates or forecasts regarding Realty Income Corporation's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts of Realty Income Corporation or its management. Realty Income Corporation does not by its reference above or distribution imply, and expressly disclaims, any endorsement of or concurrence with any information, estimates, forecasts, opinions, conclusions or recommendations provided by analysts. Analyst Coverage Equity Research Baird RJ Milligan rjmilligan@rwbaird.com (813) 273-8252 William Harman wharman@rwbaird.com (414) 298-2337 Bank of America Merrill Lynch Juan Sanabria juan.sanabria@baml.com (646) 855-1589 Camille Tan camille.tan@baml.com (646) 556-2095 Capital One Chris Lucas christopher.lucas@capitalone.com (571) 633-8151 Vineet Khanna vineet.khanna@capitalone.com (571) 835-7013 Citigroup Michael Bilerman michael.bilerman@citi.com (212) 816-1383 Nicholas Joseph nicholas.joseph@citi.com (212) 816-1909 John Ellwanger john.ellwanger@citi.com (212) 816-5871 D.A. Davidson Barry Oxford boxford@dadco.com (212) 240-9871 James O. Lykins jlykins@dadco.com (212) 576-1845 Edward Jones Roy Shepard royal.shepard@edwardjones.com (314) 515-3510 Goldman Sachs Andrew Rosivach andrew.rosivach@gs.com (212) 902-2796 Caitlin Burrows caitlin.burrows@gs.com (212) 902-4736 Brad Burke brad.burke@gs.com (917) 343-2082 Jeffrey Pehl jeffrey.pehl@gs.com (212) 357-4474 Green Street Cedrik Lachance clachance@greenstreetadvisors.com (949) 640-8780 Tyler Grant tgrant@greenstreetadvisors.com (949) 640-8780 Janney Montgomery Scott Robert Stevenson robstevenson@janney.com (646) 840-3217 Venkat Kommineni vkommineni@janney.com (646) 840-3219 Hersh Shintre hshintre@janney.com (646) 840-3201 J.P. Morgan Anthony Paolone anthony.paolone@jpmorgan.com (212) 622-6682 Gene Nusinzon gene.nusinzon@jpmorgan.com (212) 622-1041 Ladenburg Thalmann Daniel Donlan ddonlan@ladenburg.com (212) 409-2056 John Massocca jmassocca@ladenburg.com (212) 409-2543 Mitsubishi UFJ Securities (USA), Inc. Karin Ford kford@us.sc.mufg.jp (212) 405-7349 Morgan Stanley Vikram Malhotra vikram.malhotra@morganstanley.com (212) 761-7064 Landon Park landon.park@morganstanley.com (212) 761-6368 Morningstar Edward Mui edward.mui@morningstar.com (312) 348-2379 Oppenheimer Steve Manaker stephen.manaker@opco.com (212) 667-5950 Amit Nihalani amit.nihalani@opco.com (212) 667-8204 Raymond James Collin Mings collin.mings@raymondjames.com (727) 567-2585 Paul Puryear paul.puryear@raymondjames.com (727) 567-2253 Daniel Mannix daniel.mannix@raymondjames.com (727) 567-2619 RBC Capital Markets Rich Moore rich.moore@rbccm.com (440) 715-2646 James Bambrick james.bambrick@rbccm.com (440) 715-2654 Stifel Simon Yarmak yarmaks@stifel.com (443) 224-1345 UBS Jeremy Metz jeremy-metz@ubs.com (212) 713-2429 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