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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 VEAxbWqzpjo7VLKsjyjxO4QnFahUgP1wRAaiyyXKpThEhXBNw21x4KABptAIoGph
 +X17YemlvMfCPRDaTqtMsg==

<SEC-DOCUMENT>0001181431-04-002777.txt : 20040114
<SEC-HEADER>0001181431-04-002777.hdr.sgml : 20040114
<ACCEPTANCE-DATETIME>20040114195700
ACCESSION NUMBER:		0001181431-04-002777
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040114
FILED AS OF DATE:		20040114

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SMITH WILLARD H JR
		CENTRAL INDEX KEY:			0001181442

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13374
		FILM NUMBER:		04526024

	BUSINESS ADDRESS:	
		STREET 1:		C/O COHEN & STEERS
		STREET 2:		757 THIRD AVENUE 20TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2128323232

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REALTY INCOME CORP
		CENTRAL INDEX KEY:			0000726728
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				330580106
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		220 W CREST ST
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92025-1707
		BUSINESS PHONE:		7607412111

	MAIL ADDRESS:	
		STREET 1:		220 WEST CREST ST
		CITY:			ESCONDIDO
		STATE:			CA
		ZIP:			92025-1707
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd29074.xml
<DESCRIPTION>WILLARD SMITH - FORM 4
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2004-01-14</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000726728</issuerCik>
        <issuerName>REALTY INCOME CORP</issuerName>
        <issuerTradingSymbol>O</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001181442</rptOwnerCik>
            <rptOwnerName>SMITH WILLARD H JR</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>220 WEST CREST STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>ESCONDIDO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92025-1707</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>1</isDirector><isOfficer>0</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Common Stock</value></securityTitle><transactionDate><value>2004-01-14</value></transactionDate><deemedExecutionDate><value>2004-01-14</value></deemedExecutionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>X</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>5000</value></transactionShares><transactionPricePerShare><value>25.375</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>29000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwne
rship></ownershipNature></nonDerivativeTransaction></nonDerivativeTable><derivativeTable><derivativeTransaction><securityTitle><value>Options to purchase common stock</value></securityTitle><conversionOrExercisePrice><value>25.375</value></conversionOrExercisePrice><transactionDate><value>2004-01-14</value></transactionDate><deemedExecutionDate><value>2004-01-14</value></deemedExecutionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>X</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>5000</value></transactionShares><transactionPricePerShare><value>25.375</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>1988-06-12</value></exerciseDate><expirationDate><value>2007-06-12</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common stock</value></underlyingSecurityTitle><u
nderlyingSecurityShares><value>5000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>0</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction><derivativeHolding><securityTitle><value>Options to purchase common stock</value></securityTitle><conversionOrExercisePrice><value>26.0625</value></conversionOrExercisePrice><exerciseDate><value>1999-05-05</value></exerciseDate><expirationDate><value>2008-05-05</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Common stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>5000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>5000</value></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</valu
e></directOrIndirectOwnership></ownershipNature></derivativeHolding></derivativeTable><ownerSignature><signatureName>/s/ Willard H. Smith Jr</signatureName><signatureDate>2004-01-14</signatureDate></ownerSignature></ownershipDocument>



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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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