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: October 25, 2017

(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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                                                       o

Item 2.02        Results of Operations and Financial Condition

On October 25, 2017, Realty Income Corporation (the “Company”) issued a press release setting forth its results of operations for the quarter ended September 30, 2017.  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 October 25, 2017, 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 ended September 30, 2017 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 October 25, 2017, 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 ended September 30, 2017 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 October 25, 2017

99.2   Supplemental Operating and Financial Data for the quarter ended September 30, 2017

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release dated October 25, 2017
99.2	Supplemental Operating and Financial Data for the quarter ended September 30, 2017

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: October 25, 2017	REALTY INCOME CORPORATION
	By:	/s/ Michael R. Pfeiffer
		Michael R. Pfeiffer
		Executive Vice President, General Counsel and Secretary

EX-99.1

	EXHIBIT 99.1

REALTY INCOME ANNOUNCES OPERATING RESULTS FOR

THIRD QUARTER AND FIRST NINE MONTHS OF 2017

SAN DIEGO, CALIFORNIA, October 25, 2017....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the third quarter and nine months ended September 30, 2017. 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 September 30, 2017:

·Net income per share was $0.32

·AFFO per share increased 6.9% to $0.77, compared to the quarter ended September 30, 2016

·Invested $265 million in 56 new properties and properties under development or expansion

·Raised $443.7 million from the sale of common stock

·Dividends paid per common share increased 5.7%, compared to the quarter ended September 30, 2016

CEO Comments

“Our operating and financial performance continues to drive favorable risk-adjusted earnings growth for our company,” said John P. Case, Realty Income’s Chief Executive Officer. “We remained selective during the third quarter, completing $265 million in acquisitions at attractive investment spreads relative to our cost of capital. Year-to-date, we have completed $957 million in acquisitions and our pipeline remains robust. We continue to expect to complete approximately $1.5 billion in acquisitions in 2017. Our high-quality real estate portfolio ended the quarter with occupancy of 98.3% as we re-leased 79 properties at a recapture rate of nearly 104%, our fifth-consecutive quarter in excess of 100%.”

“During the third quarter, we issued $444 million in common equity primarily through our ATM program, further fortifying the strength of our balance sheet. Our fixed charge coverage ratio of 4.7x represents the highest level in our company’s history. Our outlook remains positive and we are reiterating our 2017 AFFO per share guidance of $3.03 - $3.07, representing annual growth of 5.2% - 6.6%.”

Financial Results

Revenue

Revenue for the quarter ended September 30, 2017 increased 10.7% to $306.9 million, as compared to $277.2 million for the same quarter in 2016. Revenue for the nine months ended September 30, 2017 increased 11.0% to $905.1 million, as compared to $815.3 million for the same period in 2016.

Net Income Available to Common Stockholders

Net income available to common stockholders for the quarter ended September 30, 2017 was $87.9 million, as compared to $70.3 million for the same quarter in 2016. Net income per share for the quarter ended September 30, 2017 was $0.32, as compared to $0.27 for the same quarter in 2016.

Net income available to common stockholders for the nine months ended September 30, 2017 was $240.7 million, as compared to $202.8 million for the same period in 2016. Net income per share for the nine months ended September 30, 2017 was $0.89, as compared to $0.80 for the same period in 2016.

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 September 30, 2017 increased 12.2% to $211.2 million, as compared to $188.3 million for the same quarter in 2016. FFO per share for the quarter ended September 30, 2017 increased 5.5% to $0.77, as compared to $0.73 for the same quarter in 2016.

FFO for the nine months ended September 30, 2017 increased 12.3% to $601.7 million, as compared to $535.6 million for the same period in 2016. FFO per share for the nine months ended September 30, 2017 increased 5.2% to $2.22, as compared to $2.11 for the same period in 2016.

FFO for the nine months ended September 30, 2017 was impacted by the $13.4 million non-cash redemption charge on the 6.625% Monthly Income Class F Preferred Stock that was redeemed in April 2017, which represents $0.05 per share. This charge is based on the excess of redemption value over the carrying value of the 6.625% Monthly Income Class F Preferred Stock that represents the original issuance cost that was paid in 2012.

Adjusted Funds From Operations Available to Common Stockholders (AFFO)

AFFO for the quarter ended September 30, 2017 increased 14.5% to $213.6 million, as compared to $186.6 million for the same quarter in 2016. AFFO per share for the quarter ended September 30, 2017 increased 6.9% to $0.77, as compared to $0.72 for the same quarter in 2016.

AFFO for the nine months ended September 30, 2017 increased 14.7% to $623.3 million, as compared to $543.4 million for the same period in 2016. AFFO per share for the nine months ended September 30, 2017 increased 7.5% to $2.30, as compared to $2.14 for the same period in 2016.

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, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (NAREIT’s) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, and reduced by gains on property sales. 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 September 2017, Realty Income announced the 80th consecutive quarterly dividend increase, which is the 93rd 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 September 30, 2017 was $2.544 per share. The amount of monthly dividends paid per share increased 5.7% to $0.635 in the third quarter of 2017 from $0.601 in the third quarter of 2016.

Real Estate Portfolio Update

As of September 30, 2017, Realty Income’s portfolio of freestanding, single-tenant properties consisted of 5,062 properties located in 49 states and Puerto Rico, leased to 251 different commercial tenants, and doing business in 47 industries. The properties are leased under long-term, net lease agreements with a weighted average remaining lease term of 9.6 years.

Portfolio Management Activities

The company’s portfolio of commercial real estate, owned primarily under long-term net leases, continues to perform well and provides dependable rental revenue supporting the payment of monthly dividends. As of September 30, 2017, portfolio occupancy was 98.3% with 86 properties available for lease out of a total of 5,062 properties in the portfolio, as compared to 98.5% as of June 30, 2017, and 98.3% as of September 30, 2016. Economic occupancy, or occupancy as measured by rental revenue, was 98.5% as of September 30, 2017, as compared to 99.1% as of June 30, 2017, and 98.8% as of September 30, 2016.

Since June 30, 2017, when the company reported 76 properties available for lease, the company had 99 lease expirations, re-leased 79 properties and sold 10 vacant properties during the quarter ended September 30, 2017.  Of the 79 properties re-leased during the third quarter of 2017, 73 properties were re-leased to the same tenants, four were re-leased to new tenants without vacancy, and two were re-leased to new tenants after a period of vacancy. The annual new rent on these re-leases was $15.39 million, as compared to the previous annual rent of $14.84 million on the same properties, representing a rent recapture rate of 103.7% on the properties re-leased during the quarter ended September 30, 2017.

- 2 -

Rent Increases

During the quarter ended September 30, 2017, same store rents on 4,272 properties under lease increased 1.0% to $244.9 million, as compared to $242.6 million for the same quarter in 2016. For the nine months ended September 30, 2017, same store rents on 4,272 properties under lease increased 1.0% to $734.8 million, as compared to $727.4 million for the same period in 2016.

Investments in Real Estate

During the quarter ended September 30, 2017, Realty Income invested $264.9 million in 56 new properties and properties under development or expansion, located in 16 states. These properties are 100% leased with a weighted average lease term of approximately 15.2 years and an initial average cash lease yield of 7.0%. The tenants occupying the new properties operate in ten industries, and the property types are 100% retail, based on rental revenue. Approximately 10% of the rental revenue generated from acquisitions during the third quarter of 2017 is from investment grade rated tenants.

During the nine months ended September 30, 2017, Realty Income invested approximately $956.9 million in 177 new properties and properties under development or expansion, located in 35 states. These properties are 100% leased with a weighted average lease term of approximately 14.9 years and an initial average lease yield of 6.5%. The tenants occupying the new properties operate in 21 industries, and the property types are 96.6% retail and 3.4% industrial, based on rental revenue.  Approximately 39% of the rental revenue generated from acquisitions during the first nine months of 2017 is from investment grade rated tenants.

Property Dispositions

During the quarter ended September 30, 2017, Realty Income sold 17 properties for $25.5 million, with a gain on sales of $4.3 million, as compared to 24 properties sold for $19.6 million, with a gain on sales of $4.3 million, during the same quarter in 2016.

During the nine months ended September 30, 2017, Realty Income sold 46 properties for $69.5 million, with a gain on sales of $17.7 million, as compared to 51 properties sold for $55.2 million, with a gain on sales of $15.3 million, during the same period in 2016.

Liquidity and Capital Markets

Capital Raising

During the quarter ended September 30, 2017, Realty Income raised $443.7 million from the sale of common stock at a weighted average price of $57.53 per share. During the nine months ended September 30, 2017, Realty Income raised $1.3 billion from the sale of common stock at a weighted average price of $59.99 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. The credit facility also has a $1.0 billion expansion feature. As of September 30, 2017, Realty Income had a borrowing capacity of $1.34 billion available on its revolving credit facility.

2017 Earnings Guidance

We estimate FFO per share for 2017 of $2.96 to $3.01. FFO per share for 2017 is impacted by a $13.4 million non-cash redemption charge on the Class F preferred shares that were redeemed in April 2017, which represents $0.05 per share. FFO per share for 2017 is based on a net income per share range of $1.15 to $1.20, plus estimated real estate depreciation and impairments of $1.88 per share, and reduced by potential estimated gains on sales of investment properties of $0.07 per share (in accordance with NAREIT’s definition of FFO).

We estimate AFFO per share for 2017 of $3.03 to $3.07. 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 https://www.realtyincome.com/investors/financial-information/quarterly-results/default.aspx.

Conference Call Information

In conjunction with the release of Realty Income’s operating results, the company will host a conference call on October 26, 2017 at 11:30 a.m. PT to discuss the results. To access the conference, dial (888) 352-6803. When prompted, provide the access code: 7635084.

- 3 -

A telephone replay of the conference call can also be accessed by calling (888) 203-1112 and entering the access code: 7635084. The telephone replay will be available through November 9, 2017. 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 November 9, 2017. No access code is required for this replay.

Supplemental Materials

Supplemental materials on the third quarter and year-to-date 2017 operating results are available on Realty Income’s corporate website at https://www.realtyincome.com/investors/financial-information/quarterly-results/default.aspx.

About Realty Income

Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,000 real estate properties owned under long-term lease agreements with regional and national commercial tenants. To date, the company has declared 568 consecutive common stock monthly dividends throughout its 48-year operating history and increased the dividend 93 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			Nine Months			Nine Months
	Ended 9/30/17			Ended 9/30/16			Ended 9/30/17			Ended 9/30/16
REVENUE
Rental	$	293,455		$	265,332		$	867,325		$	782,189
Tenant reimbursements	11,933			11,524			34,918			31,741
Other	1,532			318			2,872			1,399
Total revenue	306,920			277,174			905,115			815,329
EXPENSES
Depreciation and amortization	127,569			113,917			371,755			332,192
Interest	62,951			52,952			185,935			171,039
General and administrative	13,881			12,103			43,227			38,407
Property (including reimbursable)	17,267			15,678			52,828			45,454
Income taxes	1,133			894			2,621			2,812
Provisions for impairment	365			8,763			8,072			16,955
Total expenses	223,166			204,307			664,438			606,859
Gain on sales of real estate	4,319			4,335			17,689			15,283
Net income	88,073			77,202			258,366			223,753
Net income attributable to noncontrolling interests	(133		)	(130		)	(420		)	(623		)
Net income attributable to the Company	87,940			77,072			257,946			223,130
Preferred stock dividends	-			(6,770		)	(3,911		)	(20,310		)
Excess of redemption value over carrying value of preferred shares redeemed	-			-			(13,373		)	-
Net income available to common stockholders	$	87,940		$	70,302		$	240,662		$	202,820
Funds from operations available to common stockholders (FFO)	$	211,192		$	188,286		$	601,677		$	535,563
Adjusted funds from operations available to common stockholders (AFFO)	$	213,601		$	186,575		$	623,327		$	543,367
Per share information for common stockholders:
Net income, basic and diluted	$	0.32		$	0.27		$	0.89		$	0.80
FFO, basic and diluted	$	0.77		$	0.73		$	2.22		$	2.11
AFFO:	$
Basic	$	0.78		$	0.72		$	2.30		$	2.14
Diluted	$	0.77		$	0.72		$	2.30		$	2.14
Cash dividends paid per common share	$	0.635		$	0.601		$	1.891		$	1.786

- 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 real estate sales.

	Three Months			Three Months			Nine Months			Nine Months
	Ended 9/30/17			Ended 9/30/16			Ended 9/30/17			Ended 9/30/16
Net income available to common stockholders	$	87,940		$	70,302		$	240,662		$	202,820
Depreciation and amortization	127,569			113,917			371,755			332,192
Depreciation of furniture, fixtures and equipment	(133		)	(187		)	(440		)	(575		)
Provisions for impairment	365			8,763			8,072			16,955
Gain on sales of real estate	(4,319		)	(4,335		)	(17,689		)	(15,283		)
FFO adjustments allocable to noncontrolling interests	(230		)	(174		)	(683		)	(546		)
FFO available to common stockholders	$	211,192		$	188,286		$	601,677		$	535,563
FFO allocable to dilutive noncontrolling interests	220			-			659			-
Diluted FFO (1)	$	211,412		$	188,286		$	602,336		$	535,563
FFO per common share, basic and diluted	$	0.77		$	0.73		$	2.22		$	2.11
Distributions paid to common stockholders	$	174,607		$	155,194		$	509,987		$	453,774
FFO available to common stockholders in excess of distributions paid to common stockholders	$	36,585		$	33,092		$	91,690		$	81,789
Weighted average number of common shares used for FFO:
Basic	275,511,870			258,085,633			270,584,365			253,953,149
Diluted	276,050,671			258,356,892			271,126,114			254,223,301

(1)Diluted FFO for the three months ended September 30, 2017 and the nine months ended September 30, 2017 include 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			Nine Months			Nine Months
	Ended 9/30/17			Ended 9/30/16			Ended 9/30/17			Ended 9/30/16
Net income available to common stockholders	$	87,940		$	70,302		$	240,662		$	202,820
Cumulative adjustments to calculate FFO (1)	123,252			117,984			361,015			332,743
FFO available to common stockholders	211,192			188,286			601,677			535,563
Excess of redemption value over carrying value of Class F preferred share redemption	-			-			13,373			-
Amortization of share-based compensation	3,426			2,653			10,641			9,204
Amortization of deferred financing costs (2)	1,329			1,261			4,133			3,859
Amortization of net mortgage premiums	(341		)	(814		)	(1,580		)	(2,669		)
(Gain) loss on interest rate swaps	(368		)	(2,051		)	(1,228		)	5,835
Leasing costs and commissions	(489		)	(287		)	(1,248		)	(564		)
Recurring capital expenditures	(171		)	(240		)	(536		)	(486		)
Straight-line rent	(4,778		)	(4,779		)	(12,331		)	(14,253		)
Amortization of above and below-market leases	3,732			2,476			10,213			6,670
Other adjustments (3)	69			70			213			208
AFFO available to common stockholders	$	213,601		$	186,575		$	623,327		$	543,367
AFFO allocable to dilutive noncontrolling interests	299			-			885			500
Diluted AFFO (4)	$	213,900		$	186,575		$	624,212		$	543,867
AFFO per common share
Basic	$	0.78		$	0.72		$	2.30		$	2.14
Diluted	$	0.77		$	0.72		$	2.30		$	2.14
Distributions paid to common stockholders	$	174,607		$	155,194		$	509,987		$	453,774
AFFO available to common stockholders in excess of distributions paid to common stockholders	$	38,994		$	31,381		$	113,340		$	89,593
Weighted average number of common shares used for AFFO:
Basic	275,511,870			258,085,633			270,584,365			253,953,149
Diluted	276,138,853			258,356,892			271,214,296			254,458,747

(1)See FFO calculation on page six 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 three months ended September 30, 2017, and for the nine months ended September 30, 2017 and September 30, 2016 include AFFO allocable to dilutive noncontrolling interests. Noncontrolling interests were anti-dilutive for the three months ended September 30, 2016.

- 7 -

HISTORICAL FFO AND AFFO

(dollars in thousands, except per share amounts)

For the three months ended September 30,	2017			2016			2015			2014			2013
Net income available to common stockholders	$	87,940		$	70,302		$	60,705		$	57,941		$	41,089
Depreciation and amortization	127,436			113,730			104,154			95,135			81,189
Provisions for impairment	365			8,763			3,864			495			76
Gain on sales of real estate	(4,319		)	(4,335		)	(6,224		)	(10,975		)	(6,163		)
Merger-related costs	-			-			-			-			240
FFO adjustments allocable to noncontrolling interests	(230		)	(174		)	(339		)	(337		)	(285		)
FFO	$	211,192		$	188,286		$	162,160		$	142,259		$	116,146
FFO per diluted share	$	0.77		$	0.73		$	0.69		$	0.64		$	0.59
AFFO	$	213,601		$	186,575		$	165,790		$	142,429		$	117,919
AFFO per diluted share	$	0.77		$	0.72		$	0.70		$	0.64		$	0.60
Cash dividends paid per share	$	0.635		$	0.601		$	0.570		$	0.548		$	0.545
Weighted average diluted shares outstanding - FFO	276,050,671			258,356,892			236,739,942			222,236,071			196,619,866
Weighted average diluted shares outstanding - AFFO	276,138,853			258,356,892			236,739,942			222,236,071			196,619,866
For the nine months ended September 30,	2017			2016			2015			2014			2013
Net income available to common stockholders	$	240,662		$	202,820		$	180,515		$	156,540		$	149,781
Depreciation and amortization	371,315			331,617			302,868			277,804			222,863
Provisions for impairment on investment properties	8,072			16,955			9,182			2,676			3,028
Gain on sales of investment properties	(17,689		)	(15,283		)	(17,117		)	(16,818		)	(50,467		)
Merger-related costs	-			-			-			-			12,875
FFO adjustments allocable to noncontrolling interests	(683		)	(546		)	(918		)	(1,032		)	(680		)
FFO	$	601,677		$	535,563		$	474,530		$	419,170		$	337,400
FFO per diluted share	$	2.22		$	2.11		$	2.05		$	1.93		$	1.79
AFFO	$	623,327		$	543,367		$	477,006		$	416,255		$	337,439
AFFO per diluted share	$	2.30		$	2.14		$	2.06		$	1.92		$	1.79
Cash dividends paid per share	$	1.891		$	1.786		$	1.700		$	1.642		$	1.602
Weighted average diluted shares outstanding - FFO	271,126,114			254,223,301			231,545,745			216,830,013			188,399,848
Weighted average diluted shares outstanding - AFFO	271,214,296			254,458,747			231,545,745			216,830,013			188,399,848

- 8 -

REALTY INCOME CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2017 and December 31, 2016

(dollars in thousands, except per share data)

	2017			2016
ASSETS	(unaudited)
Real estate, at cost:
Land	$	3,974,972		$	3,752,204
Buildings and improvements	10,634,965			10,112,212
Total real estate, at cost	14,609,937			13,864,416
Less accumulated depreciation and amortization	(2,265,035		)	(1,987,200		)
Net real estate held for investment	12,344,902			11,877,216
Real estate held for sale, net	2,874			26,575
Net real estate	12,347,776			11,903,791
Cash and cash equivalents	3,199			9,420
Accounts receivable, net	113,721			104,584
Acquired lease intangible assets, net	1,165,013			1,082,320
Goodwill	14,989			15,067
Other assets, net	56,721			37,689
Total assets	$	13,701,419		$	13,152,871
LIABILITIES AND EQUITY
Distributions payable	$	60,104		$	55,235
Accounts payable and accrued expenses	92,947			121,156
Acquired lease intangible liabilities, net	272,377			264,206
Other liabilities	115,037			85,616
Line of credit payable	658,000			1,120,000
Term loans, net	319,347			319,127
Mortgages payable, net	341,015			466,045
Notes payable, net	4,468,665			3,934,433
Total liabilities	6,327,492			6,365,818
Commitments and contingencies
Stockholders’ equity:
Preferred stock and paid in capital, par value $0.01 per share,
69,900,000 shares authorized, no shares issued and outstanding
as of September 30, 2017 and 16,350,000 issued and outstanding
as of December 31, 2016, liquidation preference $25.00 per share	-			395,378
Common stock and paid in capital, par value $0.01 per share,
370,100,000 shares authorized, 281,778,537 shares issued and
outstanding as of September 30, 2017 and 260,168,259 shares issued
and outstanding as of December 31, 2016	9,488,043			8,228,594
Distributions in excess of net income	(2,133,614		)	(1,857,168		)
Total stockholders’ equity	7,354,429			6,766,804
Noncontrolling interests	19,498			20,249
Total equity	7,373,927			6,787,053
Total liabilities and equity	$	13,701,419		$	13,152,871

- 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%
2016	4.2%	16.0%	4.0%	8.6%	2.5%	16.5%	2.1%	12.0%	1.4%	7.5%
YTD 2017	4.4%	2.8%	3.9%	6.0%	2.4%	15.5%	2.0%	14.2%	1.0%	20.7%
Compound Average Annual Total Return (5)		16.4%		10.8%		10.4%		9.7%		9.8%

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 September 30, 2017, 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

Exhibit 99.2

SUPPLEMENTAL OPERATING & FINANCIAL DATA Q3 2017 an S&P 500 company S&P High Yield Dividend Aristocrats® index member

Table Of Contents 2 Q3 2017 Supplemental Operating & Financial Data This Supplemental Operating & Financial Data should be read in connection with the company's third quarter 2017 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on October 25, 2017) as certain disclosures, definitions, and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data. Corporate Overview 3 Financial Summary Consolidated Statements Of Income 4 Funds From Operations (FFO) 5 Adjusted Funds From Operations (AFFO) 6 Consolidated Balance Sheets 7 Debt Summary 8 Debt Maturities 9 Capitalization & Financial Ratios 10 Adjusted 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

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 October 2017 Current annualized dividend of $2.544 per share Compound average annual dividend growth rate of approximately 4.6% 568 consecutive monthly dividends declared 80 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 company dedicated to providing stockholders with dependable monthly dividends that increase over time. The monthly dividends are supported by the cash flow generated from real estate owned under long-term, net lease agreements with regional and national commercial tenants. The company has in-house acquisition, portfolio management, asset management, real estate research, credit research, legal, finance and accounting, information technology, and capital markets capabilities. Over the past 48 years, Realty Income has been acquiring and managing freestanding commercial properties that generate rental revenue under long-term, net lease agreements. Portfolio Overview At September 30, 2017, we owned a diversified portfolio of 5,062 properties located in 49 states and Puerto Rico, with over 86 million square feet of leasable space. Our properties are leased to 251 different commercial tenants doing business in 47 separate industries. Approximately 80% of our quarterly rental revenues were generated from retail properties, 13% from industrial properties, and the remaining 7% were from other property types. Our physical occupancy rate as of September 30, 2017 was 98.3%, with a weighted average remaining lease term of approximately 9.6 years. Common Stock Our Common Stock is traded on the New York Stock Exchange under the symbol "O" Corporate Overview 3 Q3 2017 Supplemental Operating & Financial Data September 30, 2017 Closing price $ 57.19 Shares and units outstanding 282,183,741 Market value of common equity $ 16,138,088,000 Total market capitalization $ 21,952,572,000

Consolidated Statements Of Income (dollars in thousands, except per share amounts) 4 Q3 2017 Supplemental Operating & Financial Data (unaudited) (unaudited) Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 REVENUE Rental $ 293,455 $ 265,332 $ 867,325 $ 782,189 Tenant reimbursements 11,933 11,524 34,918 31,741 Other 1,532 318 2,872 1,399 Total revenue 306,920 277,174 905,115 815,329 EXPENSES Depreciation and amortization 127,569 113,917 371,755 332,192 Interest 62,951 52,952 185,935 171,039 General and administrative 13,881 12,103 43,227 38,407 Property (including reimbursable) 17,267 15,678 52,828 45,454 Income taxes 1,133 894 2,621 2,812 Provisions for impairment 365 8,763 8,072 16,955 Total expenses 223,166 204,307 664,438 606,859 Gain on sales of real estate 4,319 4,335 17,689 15,283 Net income 88,073 77,202 258,366 223,753 Net income attributable to noncontrolling interests (133 ) (130 ) (420 ) (623 ) Net income attributable to the Company 87,940 77,072 257,946 223,130 Preferred stock dividends - (6,770 ) (3,911 ) (20,310 ) Excess of redemption value over carrying value of preferred shares subject to redemption - - (13,373 ) - Net income available to common stockholders $ 87,940 $ 70,302 $ 240,662 $ 202,820 Net income available to common stockholders per common share: Basic and diluted $ 0.32 $ 0.27 $ 0.89 $ 0.80

Funds From Operations (FFO) (dollars in thousands, except per share amounts) 5 Q3 2017 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted FFO per share computations. We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (NAREIT’s) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of depreciable real estate assets, and reduced by gains on property sales. Presentation of the information regarding FFO and AFFO (described on page 6) is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, of our ability to make cash distributions, or of our ability to pay interest payments. Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net income available to common stockholders $ 87,940 $ 70,302 $ 240,662 $ 202,820 Depreciation and amortization 127,569 113,917 371,755 332,192 Depreciation of furniture, fixtures and equipment (133 ) (187 ) (440 ) (575 ) Provisions for impairment 365 8,763 8,072 16,955 Gain on sales of real estate (4,319 ) (4,335 ) (17,689 ) (15,283 ) FFO adjustments allocable to noncontrolling interests (230 ) (174 ) (683 ) (546 ) FFO available to common stockholders $ 211,192 $ 188,286 $ 601,677 $ 535,563 FFO per common share, basic and diluted $ 0.77 $ 0.73 2.22 2.11 Distributions paid to common stockholders $ 174,607 $ 155,194 $ 509,987 $ 453,774 FFO available to common stockholders in excess of distributions paid to common stockholders $ 36,585 $ 33,092 $ 91,690 $ 81,789 Weighted average number of common shares used for FFO per share computations: Basic 275,511,870 258,085,633 270,584,365 253,953,149 Diluted 276,050,671 258,356,892 271,126,114 254,223,301

Adjusted Funds From Operations (AFFO) (dollars in thousands, except per share amounts) 6 Q3 2017 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and the weighted average number of common shares used for the basic and diluted AFFO per share computations. We define AFFO as FFO adjusted for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company’s ongoing operating performance. Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution). (1) See reconciling items for FFO presented under "Funds from Operations (FFO).” Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net income available to common stockholders $ 87,940 $ 70,302 $ 240,662 $ 202,820 Cumulative adjustments to calculate FFO (1) 123,252 117,984 361,015 332,743 FFO available to common stockholders 211,192 188,286 601,677 535,563 Excess of redemption value over carrying value of Class F preferred share redemption - - 13,373 - Amortization of share-based compensation 3,426 2,653 10,641 9,204 Amortization of deferred financing costs 1,329 1,261 4,133 3,859 Amortization of net mortgage premiums (341 ) (814 ) (1,580 ) (2,669 ) Loss (Gain) on interest rate swaps (368 ) (2,051 ) (1,228 ) 5,835 Leasing costs and commissions (489 ) (287 ) (1,248 ) (564 ) Recurring capital expenditures (171 ) (240 ) (536 ) (486 ) Straight-line rent (4,778 ) (4,779 ) (12,331 ) (14,253 ) Amortization of above and below-market leases 3,732 2,476 10,213 6,670 Other adjustments 69 70 213 208 AFFO available to common stockholders $ 213,601 $ 186,575 $ 623,327 $ 543,367 AFFO per common share Basic $ 0.78 $ 0.72 $ 2.30 $ 2.14 Diluted $ 0.77 $ 0.72 $ 2.30 $ 2.14 Distributions paid to common stockholders $ 174,607 $ 155,194 $ 509,987 $ 453,774 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 38,994 $ 31,381 $ 113,340 $ 89,593 Weighted average number of common shares used for AFFO per share computations: Basic 275,511,870 258,085,633 270,584,365 253,953,149 Diluted 276,138,853 258,356,892 271,214,296 254,458,747

Consolidated Balance Sheets (dollars in thousands , except per share amounts) 7 Q3 2017 Supplemental Operating & Financial Data September 30, 2017 December 31, 2016 ASSETS (unaudited) Real estate, at cost: Land $ 3,974,972 $ 3,752,204 Buildings and improvements 10,634,965 10,112,212 Total real estate, at cost 14,609,937 13,864,416 Less accumulated depreciation and amortization (2,265,035 ) (1,987,200 ) Net real estate held for investment 12,344,902 11,877,216 Real estate held for sale, net 2,874 26,575 Net real estate 12,347,776 11,903,791 Cash and cash equivalents 3,199 9,420 Accounts receivable, net 113,721 104,584 Acquired lease intangible assets, net 1,165,013 1,082,320 Goodwill 14,989 15,067 Other assets, net 56,721 37,689 Total assets $ 13,701,419 $ 13,152,871 LIABILITIES AND EQUITY Distributions payable $ 60,104 $ 55,235 Accounts payable and accrued expenses 92,947 121,156 Acquired lease intangible liabilities, net 272,377 264,206 Other liabilities 115,037 85,616 Line of credit payable 658,000 1,120,000 Term loans, net 319,347 319,127 Mortgages payable, net 341,015 466,045 Notes payable, net 4,468,665 3,934,433 Total liabilities $ 6,327,492 $ 6,365,818 Stockholders' equity: Preferred stock and paid in capital, par value $0.01 per share, 69,900,000 shares authorized, no shares issued and outstanding $ - $ 395,378 as of September 30, 2017 and 16,350,000 issued and outstanding as of December 31, 2016, liquidation preference $25.00 per share Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 281,778,537 shares issued and outstanding as of September 30, 2017 and 260,168,259 shares issued and outstanding as of December 31, 2016 9,488,043 8,228,594 Distributions in excess of net income (2,133,614 ) (1,857,168 ) Total stockholders' equity 7,354,429 6,766,804 Noncontrolling interests 19,498 20,249 Total equity 7,373,927 6,787,053 Total liabilities and equity $ 13,701,419 $ 13,152,871

Debt Summary (dollars in thousands) 8 Q3 2017 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date September 30, 2017 % of Debt September 30, 2017 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 658,000 11.3% 2.22% 1.7 years Unsecured Term Loans Term Loan - Tau (2) January 21, 2018 70,000 1.2% 2.44% 0.3 years Term Loan - Realty Income (3) June 30, 2020 250,000 4.3% 2.19% 2.7 years Principal amount 320,000 5.5% 2.24% 2.2 years Deferred financing costs (653) Carrying value 319,347 Senior Unsecured Notes and Bonds 2.000% Notes due 2018 January 31, 2018 350,000 6.0% 2.00% 6.750% Notes due 2019 August 15, 2019 550,000 9.5% 6.75% 5.750% Notes due 2021 January 15, 2021 250,000 4.3% 5.75% 3.250% Notes due 2022 October 15, 2022 450,000 7.7% 3.25% 4.650% Notes due 2023 August 1, 2023 750,000 12.9% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 6.0% 3.88% 4.125% Notes due 2026 October 15, 2026 650,000 11.2% 4.13% 3.000% Notes due 2027 January 15, 2027 600,000 10.3% 3.00% 5.875% Bonds due 2035 March 15, 2035 250,000 4.3% 5.88% 4.650% Notes due 2047 March 15, 2047 300,000 5.2% 4.65% Principal amount 4,500,000 77.4% 4.33% 7.9 years Unamortized discounts and deferred financing costs (31,335) Carrying value 4,468,665 Mortgages Payable 29 mortgages on 63 properties June 2018 - June 2032 336,484 (4) 5.8% 4.93% 4.3 years Unamortized premiums and deferred financing costs 4,531 Carrying value 341,015 TOTAL DEBT $ 5,814,484 (5) 4.01% 6.7 years Fixed Rate $ 5,133,991 88% Variable Rate $ 680,493 12% (1) We have a $2.0 billion unsecured acquisition credit facility with an initial term that expires in June 2019. It includes, at our election, two six-month extension options, at a cost of 0.075% of the facility commitment, or $1.5 million per option. The credit facility also has a $1.0 billion expansion option. As of September 30, 2017, approximately $1.34 billion was available on the credit facility. (2) Borrowing under the term loan bears interest at the current one month LIBOR, plus 1.20%. 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 $22.5 million as of September 30, 2017. (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, and deferred financing costs on the term loans, notes and bonds, and mortgages payable.

Debt Maturities (dollars in millions) 9 Q3 2017 Supplemental Operating & Financial Data Debt Maturities Year of Credit Term Mortgages Senior Unsecured Weighted Average Maturity Facility Loan Payable Notes and Bonds Total Interest Rate (1) 2017 $ - $ - $ 1.3 $ - $ 1.3 5.28% 2018 - 70.0 21.9 350.0 441.9 2.24% 2019 658.0 - 20.7 550.0 1,228.7 6.66% 2020 - 250.0 82.4 - 332.4 3.43% 2021 - - 66.9 250.0 316.9 5.69% Thereafter - - 143.3 3,350.0 3,493.3 4.11% Totals $ 658.0 $ 320.0 $ 336.5 $ 4,500.0 $ 5,814.5 Mortgages Payable Maturities by Quarter Year of First Second Third Fourth Weighted Average Maturity Quarter Quarter Quarter Quarter Total Interest Rate 2017 $ - $ - $ - $ 1.3 $ 1.3 5.28% 2018 1.3 12.1 1.2 7.3 21.9 5.10% 2019 1.2 1.3 17.0 1.2 20.7 4.19% 2020 1.2 1.2 12.6 67.4 82.4 4.99% 2021 18.2 17.7 30.6 0.4 66.9 5.48% Thereafter - - - - 143.3 4.94% Totals $ 21.9 $ 32.3 $ 61.4 $ 77.6 $ 336.5 (1) Weighted average interest rate for 2019 excludes the credit facility.

Capital Structure as of September 30, 2017 Capitalization & Financial Ratios (dollars in thousands , except per share amounts) 10 Q3 2017 Supplemental Operating & Financial Data Liquidity as of September 30, 2017 Cash on Hand $ 3,199 Availability under Credit Facility 1,342,000 $ 1,345,199 Capitalization as of September 30, 2017 Principal Debt Balance Credit Facility $ 658,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 4,500,000 Mortgages Payable 336,484 Total Debt $ 5,814,484 Equity Shares / Units Stock Price Market Value Common Stock (NYSE: O) 281,778,537 $ 57.19 $ 16,114,914 Common Units (1) 405,204 $ 57.19 23,174 Total Equity $ 16,138,088 Total Market Capitalization (2) $ 21,952,572 Debt/Total Market Capitalization (2) 26.5% (1) Common units are exchangeable into cash or common stock at our option at a conversion ratio of 1:1, subject to certain exceptions. (2) Our enterprise value was $21,949,373 (total market capitalization less cash on hand). The percentage for debt to enterprise value is materially consistent with that presented for total market capitalization. Dividend Data Year-over-Year YTD 2017 YTD 2016 Growth Rate Common Dividend Paid per Share $ 1.891 $ 1.786 5.9% AFFO per Share (diluted) $ 2.30 $ 2.14 7.5% AFFO Payout Ratio 82.2% 83.5% Debt 26.5% Common Stock 73.5%

Debt Service Coverage (2) Fixed Charge Coverage (3) Adjusted EBITDA & Coverage Ratios (dollars in thousands) 11 Q3 2017 Supplemental Operating & Financial Data Reconciliation of Net Income to Adjusted EBITDA (1) Three months ended September 30, 2017 Net income $ 88,073 Interest 62,951 Income taxes 1,133 Depreciation and amortization 127,569 Impairment loss 365 Gain on sales of real estate (4,319) Quarterly Adjusted EBITDA $ 275,772 Annualized Adjusted EBITDA $ 1,103,088 Debt/Adjusted EBITDA 5.2 (1) Adjusted 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 adjusted EBITDA may not be comparable to adjusted EBITDA reported by other companies that interpret the definitions of adjusted EBITDA differently than we do. Management believes adjusted EBITDA to be a meaningful measure of a REIT’s performance because it is widely followed by industry analysts, lenders and investors. Management also believes the use of an annualized quarterly adjusted EBITDA metric is meaningful because it represents the Company’s current earnings run rate for the period presented. The ratio of our total debt to our annualized quarterly adjusted EBITDA is also used to determine vesting of performance share awards granted to our executive officers. Adjusted 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 adjusted EBITDA, which is used by management as a measure of leverage, is calculated by annualizing quarterly adjusted EBITDA and then dividing by our total debt per the consolidated balance sheet. (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. Since we redeemed our Class F preferred stock in April 2017, our fixed charge coverage is equivalent to our debt service coverage for the first, second, and third quarters of 2017. 5.0 4.8 4.1 4.4 4.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 4.4 4.2 4.1 4.4 4.7 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Debt Covenants 12 Q3 2017 Supplemental Operating & Financial Data As of September 30, 2017 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 39.5% Limitation on incurrence of secured debt < 40% of adjusted undepreciated assets 2.4% Debt service and fixed charge coverage (trailing 12 months) (1) > 1.5 x 4.7x Maintenance of total unencumbered assets > 150% of unsecured debt 257.3% (1) Our debt service coverage ratio is calculated on a pro forma basis for the preceding four-quarter period on the assumptions that: (i) the incurrence of any Debt (as defined in the covenants) incurred by us since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four quarter period), (ii) the repayment or retirement of any of our Debt since the first day of such four-quarter period, and (iii) any acquisition or disposition by us of any asset or group since the first day of such four quarters had in each case occurred on October 1, 2016, 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 October 1, 2016, nor does it purport to reflect our debt service coverage ratio for any future period. Our fixed charge coverage is calculated in exactly the same manner as our debt service coverage, except that preferred stock dividends are also added to the denominator; since we redeemed our Class F preferred dividends in April 2017, our fixed charge coverage ratio is equivalent to our debt service coverage.

First Quarter 2017 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 51 $ 365,754 $ 22,190 1,026,428 6.1% 16.5 Properties under Development (3) 9 4,982 382 435,298 7.7% 11.3 Total Real Estate Investments 60 $ 370,736 $ 22,572 1,461,726 6.1% 16.4 Approximately 68% 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 11 independent transactions during the first quarter of 2017, 26 independent transactions during the second quarter of 2017, and 13 independent transactions during the third quarter of 2017. (3) Includes investments during the period in new development and development of existing properties. Cash rents noted reflect total cash rents to be received on this investment amount upon completion of the properties under development. (4) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Investment Summary (dollars in thousands) 13 Q3 2017 Supplemental Operating & Financial Data Second Quarter 2017 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 63 $ 316,250 $ 20,714 1,776,722 6.5% 13.1 Properties under Development (3) 10 4,953 398 155,312 8.0% 10.7 Total Real Estate Investments 73 $ 321,203 $ 21,112 1,932,034 6.6% 13.0 Approximately 33% of the annualized revenue generated by these investments is from investment grade tenants (4) Year-to-Date 2017 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 164 $ 940,467 $ 61,136 3,717,183 6.5% 14.9 Properties under Development (3) 13 16,388 1,190 625,783 7.3% 13.8 Total Real Estate Investments 177 $ 956,855 $ 62,326 4,342,966 6.5% 14.9 Approximately 39% of the annualized revenue generated by these investments is from investment grade tenants (4) Third Quarter 2017 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 50 $ 258,463 $ 18,232 914,033 7.1% 15.1 Properties under Development (3) 6 6,453 410 35,173 6.4% 17.1 Total Real Estate Investments 56 $ 264,916 $ 18,642 949,206 7.0% 15.2 Approximately 10% of the annualized revenue generated by these investments is from investment grade tenants (4)

First Quarter 2017 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 2 $ 12,004 $ 9,264 $ 14,831 8.3% Vacant 12 18,718 11,329 16,401 - Total Real Estate Dispositions 14 $ 30,722 $ 20,593 $ 31,232 The unlevered internal rate of return on properties sold during the first quarter was 9.8% Disposition Summary (dollars in thousands) 14 Q3 2017 Supplemental Operating & Financial Data (1) Cash capitalization rates are computed as annualized current month contractual cash net operating income, divided by the net proceeds received upon sale of the property (including all expenses borne by Realty Income). (2) Data excludes properties sold as a result of eminent domain activities. During the second quarter of 2017 we were awarded net proceeds of $475,000 related to one eminent domain transaction. Second Quarter 2017 Number of Properties Original Investment Net Book Value Net Proceeds (2) Cash Capitalization Rate (1) Occupied 2 $ 3,419 $ 2,805 $ 4,015 6.6% Vacant 12 16,047 6,719 8,284 - Total Real Estate Dispositions 14 $ 19,466 $ 9,524 $ 12,299 The unlevered internal rate of return on properties sold during the second quarter was 9.5% Year-to-Date 2017 Number of Properties Original Investment Net Book Value Net Proceeds (2) Cash Capitalization Rate (1) Occupied 11 $ 32,671 $ 27,587 $ 37,674 7.8% Vacant 34 47,245 23,641 31,337 - Total Real Estate Dispositions 45 $ 79,916 $ 51,228 $ 69,011 The unlevered internal rate of return on properties sold during the first nine months was 10.9% Third Quarter 2017 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 7 $ 17,248 $ 15,518 $ 18,828 7.6% Vacant 10 12,480 5,593 6,652 - Total Real Estate Dispositions 17 $ 29,728 $ 21,111 $ 25,480 The unlevered internal rate of return on properties sold during the third quarter was 13.6%

(1) Includes build-to-suit developments and forward take-out commitments on development properties with leases in place. (2) Estimated rental revenue commencement dates on properties under development are between October 2017 and May 2018. Development Pipeline (dollars in thousands) 15 Q3 2017 Supplemental Operating & Financial Data Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 3 $ 8,919 $ 26,990 $ 35,909 100% Development of existing properties - - - - - 3 $ 8,919 $ 26,990 $ 35,909 Non-Retail Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 1 $ - $ 51,583 $ 51,583 100% Development of existing properties 1 2,433 311 2,744 100% 2 $ 2,433 $ 51,894 $ 54,327 Total Number of Properties Investment to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 4 $ 8,919 $ 78,573 $ 87,492 100% Development of existing properties 1 2,433 311 2,744 100% 5 $ 11,352 $ 78,884 $ 90,236

Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at September 30, 2017 include the following: Investment Grade Tenants (2) : Number of Properties 2,127 Percentage of Annualized Rents 46% Percentage of Leases with Rental Increases, Based on Revenue 70% Weighted Average EBITDAR/Rent Ratio on Retail Properties 2.7x (1) Median EBITDAR/Rent Ratio on Retail Properties 2.7x (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). 46% of our annualized rental revenue is generated from properties leased to investment grade tenants, including approximately 10% from properties leased to subsidiaries of investment grade companies. Refer to page 20 for investment grade composition by property type. Tenant Diversification 16 Q3 2017 Supplemental Operating & Financial Data Tenant Number of Properties % of Revenue Investment Grade Ratings (Moody’s/S&P/Fitch) Walgreens 203 6.6 % Baa2/ BBB/ BBB FedEx 43 5.2 % Baa2/ BBB/ - LA Fitness 53 4.1 % - Dollar General 525 4.0 % Baa2/ BBB/ - Dollar Tree / Family Dollar 456 3.6 % - AMC Theatres 31 3.6 % - Circle K (Couche-Tard) 298 2.5 % Baa2/ BBB/ - Walmart / Sam's Club 40 2.4 % Aa2/ AA/ AA BJ’s Wholesale Clubs 15 2.2 % - Treasury Wine Estates 17 2.1 % - CVS Pharmacy 70 1.9 % Baa1/ BBB+/ - Super America (Tesoro) 134 1.9 % Ba1/ BBB-/ BBB- GPM Investments / Fas Mart 216 1.8 % - Regal Cinemas 22 1.8 % - Rite Aid 69 1.8 % - 7-Eleven 111 1.7 % Baa1/ AA-/ - Life Time Fitness 9 1.7 % - TBC Corporation (Sumitomo) 158 1.6 % Baa1/ A-/ - Kroger 13 1.3 % Baa1/ BBB/ BBB NPC International 188 1.2 % - 31% 49% 15% 5% 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 Q3 2017 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 September 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2017 2016 2015 2014 2013 2012 Retail industries Apparel stores 1.6 % 1.9 % 2.0 % 2.0 % 1.9 % 1.7 % Automotive collision services 0.9 1.0 1.0 0.8 0.8 1.1 Automotive parts 1.2 1.3 1.4 1.3 1.2 1.0 Automotive service 2.2 1.9 1.9 1.8 2.1 3.1 Automotive tire services 2.5 2.7 2.9 3.2 3.6 4.7 Book stores * * * * * 0.1 Child care 1.7 1.9 2.0 2.2 2.8 4.5 Consumer electronics 0.4 0.3 0.3 0.3 0.3 0.5 Convenience stores 9.5 8.7 9.2 10.1 11.2 16.3 Crafts and novelties 0.5 0.5 0.5 0.5 0.5 0.3 Dollar stores 7.8 8.6 8.9 9.6 6.2 2.2 Drug stores 10.8 11.2 10.6 9.5 8.1 3.5 Education 0.3 0.3 0.3 0.4 0.4 0.7 Entertainment 0.4 0.5 0.5 0.5 0.6 0.9 Equipment services * 0.1 0.1 0.1 0.1 0.1 Financial services 2.1 1.4 1.3 1.4 1.5 0.2 General merchandise 1.9 1.5 1.4 1.2 1.1 0.6 Grocery stores 4.6 3.1 3.0 3.0 2.9 3.7 Health and fitness 7.6 8.1 7.7 7.0 6.3 6.8 Health care 0.8 0.9 1.0 1.1 1.1 - Home furnishings 0.8 0.7 0.7 0.7 0.9 1.0 Home improvement 2.7 2.5 2.4 1.7 1.6 1.5 Jewelry 0.1 0.1 0.1 0.1 0.1 - Motor vehicle dealerships 2.0 1.9 1.6 1.6 1.6 2.1 Office supplies 0.2 0.3 0.3 0.4 0.5 0.8 Pet supplies and services 0.6 0.6 0.7 0.7 0.8 0.6 Restaurants - casual dining 3.7 3.9 3.8 4.3 5.1 7.3 Restaurants - quick service 5.0 4.9 4.2 3.7 4.4 5.9 Shoe stores 0.3 0.5 0.5 0.1 0.1 0.1 Sporting goods 1.4 1.6 1.8 1.6 1.7 2.5 Telecommunications * * - - - - Theaters 5.1 4.9 5.1 5.3 6.2 9.4 Transportation services 0.1 0.1 0.1 0.1 0.1 0.2 Wholesale clubs 3.2 3.6 3.8 4.1 3.9 3.2 Other * * * * 0.1 0.1 Retail industries 82.0 % 81.5 % 81.1 % 80.4 % 79.8 % 86.7 %

Industry Diversification (Cont’d) 18 Q3 2017 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 September 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2017 2016 2015 2014 2013 2012 Non-retail industries Aerospace 0.9 % 1.0 % 1.1 % 1.2 % 1.2 % 0.9 % Beverages 2.7 2.6 2.7 2.8 3.3 5.1 Consumer appliances 0.6 0.5 0.6 0.5 0.6 0.1 Consumer goods 0.7 0.9 0.9 0.9 1.0 0.1 Crafts and novelties 0.2 0.1 0.1 0.1 0.1 - Diversified industrial 0.8 0.9 0.8 0.5 0.2 0.1 Electric utilities 0.1 0.1 0.1 0.1 * - Equipment services 0.4 0.5 0.4 0.5 0.4 0.3 Financial services 0.3 0.4 0.4 0.4 0.5 0.4 Food processing 1.0 1.1 1.2 1.4 1.5 1.3 General merchandise 0.2 0.3 0.3 0.3 - - Government services 1.0 1.1 1.2 1.3 1.4 0.1 Health care 0.6 0.6 0.7 0.7 0.8 * Home furnishings 0.1 0.1 0.2 0.2 0.2 - Insurance 0.1 0.1 0.1 0.1 0.1 * Machinery 0.1 0.1 0.1 0.2 0.2 0.1 Other manufacturing 0.8 0.8 0.7 0.7 0.6 - Packaging 1.1 0.8 0.8 0.8 0.9 0.7 Paper 0.1 0.1 0.1 0.1 0.2 0.1 Shoe stores 0.2 0.2 0.2 0.8 0.9 - Telecommunications 0.6 0.6 0.7 0.7 0.7 0.8 Transportation services 5.3 5.4 5.3 5.1 5.3 2.2 Other 0.1 0.2 0.2 0.2 0.1 1.0 Non-retail industries 18.0 % 18.5 % 18.9 % 19.6 % 20.2 % 13.3 % 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 September 30, 2017. Excludes rental revenue of $258 from sold properties. Geographic Diversification (dollars in thousands) 19 Q3 2017 Supplemental Operating & Financial Data Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet September 30, 2017 (1) Revenue Alabama 160 98 % 1,505,800 $ 5,492 1.9 % Alaska 3 67 275,900 572 0.2 Arizona 110 99 1,766,200 6,460 2.2 Arkansas 57 100 843,800 1,830 0.6 California 186 99 5,378,600 28,063 9.6 Colorado 80 100 1,231,600 4,661 1.6 Connecticut 22 91 521,000 2,006 0.7 Delaware 18 100 93,000 718 0.2 Florida 373 99 4,073,400 17,217 5.9 Georgia 254 99 4,216,100 12,893 4.4 Idaho 12 100 87,000 407 0.1 Illinois 249 98 5,682,900 18,124 6.2 Indiana 173 98 2,154,600 8,499 2.9 Iowa 42 88 2,978,500 3,815 1.3 Kansas 94 96 1,857,100 4,811 1.6 Kentucky 63 98 1,469,400 4,038 1.4 Louisiana 97 97 1,340,800 4,132 1.4 Maine 15 100 174,700 1,121 0.4 Maryland 34 97 816,200 4,367 1.5 Massachusetts 80 98 734,100 3,583 1.2 Michigan 163 98 1,689,000 6,323 2.1 Minnesota 158 100 1,934,200 9,851 3.4 Mississippi 141 95 1,627,500 4,675 1.6 Missouri 146 97 2,891,900 9,089 3.1 Montana 11 100 87,000 469 0.2 Nebraska 38 100 806,500 2,270 0.8 Nevada 22 95 413,000 1,295 0.4 New Hampshire 19 100 315,800 1,491 0.5 New Jersey 73 99 909,600 4,882 1.7 New Mexico 31 100 348,500 1,017 0.3 New York 99 100 2,753,500 13,475 4.6 North Carolina 178 98 2,396,100 8,002 2.7 North Dakota 6 100 117,700 211 0.1 Ohio 248 98 6,579,900 15,637 5.3 Oklahoma 132 99 1,648,500 4,618 1.6 Oregon 28 100 593,300 2,290 0.8 Pennsylvania 166 99 1,944,000 8,382 2.9 Rhode Island 4 100 161,600 841 0.3 South Carolina 157 99 1,419,200 6,420 2.2 South Dakota 15 100 195,200 468 0.2 Tennessee 229 97 3,346,100 8,922 3.0 Texas 495 99 9,334,500 27,300 9.3 Utah 22 100 970,600 2,270 0.8 Vermont 5 100 98,000 486 0.2 Virginia 169 96 3,114,700 8,308 2.8 Washington 43 98 733,400 2,761 0.9 West Virginia 16 100 381,200 1,226 0.4 Wisconsin 116 100 2,381,800 6,964 2.4 Wyoming 6 100 54,700 296 0.1 Puerto Rico 4 100 28,300 149 * Totals\Average 5,062 98 % 86,476,000 $ 293,197 100.0 %

Property Type Composition (dollars in thousands) 20 Q3 2017 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at September 30, 2017. Excludes rental revenue of $258 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 September 30, 2017 (1) September 30, 2017 (2) Retail 4,890 57,896,500 $ 234,181 79.9 % 38.7 % Industrial 113 24,991,800 37,443 12.8 79.8 Office 44 3,403,200 15,002 5.1 88.3 Agriculture 15 184,500 6,571 2.2 - Totals 5,062 86,476,000 $ 293,197 100.0 % Retail 79.9% Industrial 12.8% Office 5.1% Agriculture 2.2%

Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry September 30, 2017 September 30, 2016 Change by Industry Health and Fitness $ 20,355 $ 20,046 $ 309 13.3 % Child Care 4,881 4,619 262 11.3 % Convenience Stores 22,812 22,623 189 8.1 % Third Quarter 2017 Same Store Rental Revenue (dollars in thousands) 21 Q3 2017 Supplemental Operating & Financial Data Same Store Pool Defined For purposes of determining the properties used to calculate our same store rental revenue pool, we include all properties that we owned for the entire year-to-date period, for both the current and prior year except for properties during the current or prior year that were: (i) vacant at any time, (ii) under development or redevelopment, or (iii) involved in eminent domain and rent was reduced. Rental revenue amounts presented in our same store rent calculation exclude straight-line rent and the amortization of above and below-market leases. Same Store Rental Revenue Number of Properties 4,272 Square Footage 71,665,212 Q3 2017 $244,874 Q3 2016 $242,559 Increase (in dollars) $2,315 Increase (percent) 1.0% Same Store Rental Revenue Number of Properties 4,272 Square Footage 71,665,212 YTD Q3 2017 $734,830 YTD Q3 2016 $727,387 Increase (in dollars) $7,443 Increase (percent) 1.0% Top 3 Industries Contributing to the Change Nine months ended Nine months ended Net % Change Industry September 30, 2017 September 30, 2016 Change by Industry Health and Fitness $ 60,888 $ 60,041 $ 847 11.4 % Child Care 14,804 14,065 739 9.9 % Grocery Stores 22,316 21,792 524 7.0 % Year-to-Date 2017

Same Store Rental Revenue (Cont’d)(dollars in thousands) 22 Q3 2017 Supplemental Operating & Financial Data Same Store Rental Revenue by Property Type Third Quarter 2017 Quarter ended Quarter ended Net % Change by Contribution by Property Type September 30, 2017 September 30, 2016 Change Property Type Property Type Retail $ 193,280 $ 191,375 $ 1,905 1.0% 82.3% Industrial 31,617 31,333 284 0.9% 12.3% Agriculture 5,467 5,399 68 1.2% 2.9% Office 14,510 14,452 58 0.4% 2.5% Total $ 244,874 $ 242,559 $ 2,315 1.0% 100% Year-to-Date 2017 Nine months ended Nine months ended Net % Change by Contribution by Property Type September 30, 2017 September 30, 2016 Change Property Type Property Type Retail $ 579,896 $ 574,253 $ 5,643 1.0% 75.8% Industrial 95,078 93,813 1,265 1.3% 17.0% Agriculture 43,576 43,242 334 0.8% 4.5% Office 16,280 16,079 201 1.2% 2.7% Total $ 734,830 $ 727,387 $ 7,443 1.0% 100%

By Property Occupied Properties 4,976 Total Properties 5,062 Occupancy 98.3% By Square Footage Occupied Square Footage 84,730,996 Total Square Footage 86,476,001 Occupancy 98.0% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 289,905,738 Quarterly Vacant Rental Revenue $ 4,489,039 (1) Occupancy 98.5% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Change in Occupancy Vacant Properties at 6/30/17 76 Expiration Activity (1) + 99 Leasing Activity (2) - 79 Vacant Property Sales Activity (3) - 10 Vacant Properties at 9/30/17 86 (1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current quarter. (2) Includes 73 expirations that were re-leased to the same tenants without vacancy, four that were re-leased to a new tenant without vacancy, and two that were re-leased to a new tenant after a period of vacancy. See page 24 for additional detail on re-leasing activity. (3) Includes nine properties that were vacant at the beginning of the quarter. Occupancy 23 Q3 2017 Supplemental Operating & Financial Data Occupancy by Number of Properties 98.3% 98.4% 97.8% 98.0% 98.3% 98.3% 98.3% 98.5% 98.3% 90.0% 91.0% 92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

Allocation Based on Number of Leases Leasing Activity (dollars in thousands) 24 Q3 2017 Supplemental Operating & Financial Data (1) Incremental yield reflects the yield generated by capital commitments made at the time of re-lease, and is calculated as the incremental cash rents divided by additional invested capital. Incremental cash rents are calculated by subtracting prior rents, or management’s estimate of rents to be paid for unimproved space, from the contractual cash rents for the first twelve months following rent commencement. Q3 2017 Re-leased to New Tenant Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 13,152 $ 428 $ 1,259 $ 14,839 New Cash Rents* $ 13,659 $ 382 $ 1,345 $ 15,386 Recapture Rate 103.9 % 89.2 % 106.8 % 103.7 % Number of Leases 73 4 2 79 Average Months Vacant - - 11.1 0.3 Additional Invested Capital $ 5,530 $ 345 $ - $ 5,875 Incremental Yield(1) 6.7 % 10.5 % - 6.9 % *Percentage of Total Annualized Portfolio Rental Revenue: 1.3 % Year-to-Date 2017 Re-leased to New Tenant Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 28,011 $ 910 $ 3,097 $ 32,018 New Cash Rents* $ 30,576 $ 893 $ 2,616 $ 34,085 Recapture Rate 109.2 % 98.2 % 84.5 % 106.5 % Number of Leases 164 6 11 181 Average Months Vacant - - 12.1 0.7 Additional Invested Capital $ 24,489 $ 920 $ 2,743 $ 28,152 Incremental Yield(1) 7.6 % 7.1 % 7.3 % 7.6 % *Percentage of Total Annualized Portfolio Rental Revenue: 2.9 % 91% 9% Same Tenant New Tenant 92% 8% Same Tenant New Tenant

25 * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,949 net leased, single-tenant properties as of September 30, 2017 and their contribution to rental revenue for the quarter ended September 30, 2017. Excludes 28 multi-tenant properties and 86 vacant properties, including one property that is both vacant and multi-tenant. The lease expirations for properties under construction are based on the estimated completion date of those properties. (2) Excludes revenue of $5,378 from 28 multi-tenant properties and from 86 vacant properties at September 30, 2017, and $258 from sold properties. Our leased, single-tenant properties have a weighted average remaining lease term of approximately 9.6 years. Expirations (dollars in thousands) Q3 2017 Supplemental Operating & Financial Data Total Portfolio (1) Approx. % of Expiring Leases Leasable Rental Rental Year Retail Non-Retail Sq. Feet Revenue (2) Revenue 2017 33 1 403,500 $ 989 0.3 % 2018 233 5 2,616,200 9,227 3.2 2019 259 10 3,853,400 13,313 4.6 2020 208 10 4,147,800 12,175 4.2 2021 294 12 5,274,000 14,945 5.2 2022 347 18 9,302,400 19,415 6.7 2023 429 21 7,001,400 23,546 8.2 2024 202 11 3,684,000 11,415 4.0 2025 327 14 5,277,400 20,612 7.2 2026 315 5 4,562,000 15,741 5.5 2027 531 4 6,149,900 21,078 7.3 2028 296 9 7,078,000 18,308 6.4 2029 398 7 7,375,700 21,707 7.5 2030 82 13 2,437,900 14,542 5.1 2031 275 25 5,337,500 25,125 8.7 2032-2043 550 5 8,911,900 45,681 15.9 Totals 4,779 170 83,413,000 $ 287,819 100 %

26 We estimate FFO per share for 2017 of $2.96 to $3.01. We estimate AFFO per share for 2017 of $3.03 to $3.07, an increase of 5.2% to 6.6% over 2016 AFFO per share of $2.88. Summarized below are approximate estimates of the key components of the company’s 2017 earnings guidance: Earnings Guidance Q3 2017 Supplemental Operating & Financial Data Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, and the outcome of any legal proceedings to which the company is a party, as described in the company’s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this Supplemental Operating & Financial Data. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. (1) Excludes tenant reimbursement revenue. 2017 Guidance Net income per share $1.15 to $1.20 Real estate depreciation and impairments per share $1.88 Gains on sales of properties per share ($0.07) FFO per share $2.96 to $3.01 AFFO per share $3.03 to $3.07 Same store rent growth 1.0% Occupancy 98% G&A expenses (% of revenues) (1) 5.0% Property expenses (non-reimbursable) (% of revenues) (1) 1.5% to 2.0% Acquisition volume $1.5 billion Disposition volume $125 to $175 million

27 Q3 2017 Supplemental Operating & Financial Data Realty Income Corporation is covered by the analysts at the firms listed above. This list may not be complete and is subject to change. Please note that any opinions, estimates or forecasts regarding Realty Income Corporation's performance made by these analysts are theirs alone and do not represent opinions, estimates or forecasts of Realty Income Corporation or its management. Realty Income Corporation does not by its reference above or distribution imply, and expressly disclaims, any endorsement of or concurrence with any information, estimates, forecasts, opinions, conclusions or recommendations provided by analysts. Analyst Coverage Equity Research Baird RJ Milligan rjmilligan@rwbaird.com (813) 273-8252 William Harman wharman@rwbaird.com (414) 298-2337 Bank of America Merrill Lynch Joshua Dennerlein joshua.dennerlein@baml.com (646) 855-1681 BTIG Michael Gorman mgorman@btig.com (212) 738-6138 James Sullivan jsullivan@btig.com (212) 738-6139 Capital One Chris Lucas christopher.lucas@capitalone.com (571) 633-8151 Citigroup Michael Bilerman michael.bilerman@citi.com (212) 816-1383 Nicholas Joseph nicholas.joseph@citi.com (212) 816-1909 John Ellwanger john.ellwanger@citi.com (212) 816-5871 D.A. Davidson Barry Oxford boxford@dadco.com (212) 240-9871 James O. Lykins jlykins@dadco.com (212) 576-1845 Edward Jones Matt Kopsky matt.kopsky@edwardjones.com (314) 515-5319 FBR David Corak dcorak@fbr.com (703) 312-1610 Matt Boone mboone@fbr.com (703) 312-1848 Goldman Sachs Andrew Rosivach andrew.rosivach@gs.com (212) 902-2796 Caitlin Burrows caitlin.burrows@gs.com (212) 902-4736 Green Street Michael Knott mknott@greenstreetadvisors.com (949) 640-8780 Andrew Suh asuh@greenstreetadvisors.com (949) 640-8780 Janney Montgomery Scott Robert Stevenson robstevenson@janney.com (646) 840-3217 Venkat Kommineni vkommineni@janney.com (646) 840-3219 Hersh Shintre hshintre@janney.com (646) 840-3201 J.P. Morgan Anthony Paolone anthony.paolone@jpmorgan.com (212) 622-6682 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 Ryan Cybart ryan.cybart@mufgsecurities.com (212) 405-6591 Mizuho Securities USA, Inc. Haendel St. Juste haendel.st.juste@us.mizuho-sc.com (212) 205-7860 Jieren Huang jieren.huang@us.mizuho-sc.com (212) 205-7862 Morgan Stanley Vikram Malhotra vikram.malhotra@morganstanley.com (212) 761-7064 Kevin Egan kevin.egan@morganstanley.com (212) 761-5028 Raymond James Collin Mings collin.mings@raymondjames.com (727) 567-2585 Paul Puryear paul.puryear@raymondjames.com (727) 567-2253 Daniel Mannix daniel.mannix@raymondjames.com (727) 567-2619 RBC Capital Markets Michael Carroll michael.carroll@rbccm.com (440) 715-2649 Stifel Simon Yarmak yarmaks@stifel.com (443) 224-1345 Alexander Fraser frasera@stifel.com (443) 224-1264 UBS Nick Yulico nick.yulico@ubs.com (212) 713-3402 Frank Lee frank-a.lee@ubs.com (415) 352-5679 Wells Fargo Todd Stender todd.stender@wellsfargo.com (562) 637-1371 Philip DeFelice philip.defelice@wellsfargo.com (443) 263-6442 Jason Belcher jason.belcher@wellsfargo.com (443) 462-7354