Attached files
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| EX-99.1 - EXHIBIT 99.1 - REALTY INCOME CORP | realtyincomeexhibit991q320.htm |
| 8-K - 8-K - REALTY INCOME CORP | realtyincome8kq32018.htm |
Exhibit 99.2 an S&P 500 company SUPPLEMENTAL OPERATING S&P High Yield & FINANCIAL DATA Dividend Aristocrats® Q3 2018 index member
Table Of Contents 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 EBITDAre & 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 18 Property Type Composition 19 Same Store Rental Revenue 20 Leasing Data Occupancy 22 Leasing Activity 23 Lease Expirations 24 Earnings Guidance 25 Analyst Coverage 26 This Supplemental Operating & Financial Data should be read in connection with the company's third quarter 2018 earnings press release (included as Exhibit 99.1 of the company's Current Report on Form 8-K, filed on October 31, 2018) as certain disclosures, definitions, and reconciliations in such announcement have not been included in this Supplemental Operating & Financial Data. Q3 2018 Supplemental Operating & Financial Data 2
Corporate Overview Corporate Profile Senior Management Realty Income, The Monthly Dividend Company®, is an S&P 500 company Sumit Roy, President & Chief Executive Officer dedicated to providing stockholders with dependable monthly dividends Paul M. Meurer, Executive VP, Chief Financial Officer and Treasurer that increase over time. The monthly dividends are supported by the cash flow generated from real estate owned under long-term, net lease Michael R. Pfeiffer, Executive VP, General Counsel and Secretary agreements with regional and national commercial tenants. Over the past Neil M. Abraham, Executive VP, Chief Strategy Officer 49 years, Realty Income has been acquiring and managing freestanding Benjamin N. Fox, Executive VP, Portfolio and Asset Management commercial properties that generate rental revenue under long-term, net Mark E. Hagan, Executive VP, Chief Investment Officer lease agreements. Credit Ratings Portfolio Overview Moody’s A3 Stable Outlook At September 30, 2018, we owned a diversified portfolio of 5,694 Standard & Poor’s A- Stable Outlook properties located in 49 states and Puerto Rico, with over 92.7 million square feet of leasable space. Our properties are leased to 260 different Fitch BBB+ Stable Outlook commercial tenants doing business in 48 separate industries. Approximately 81% of our quarterly rental revenues were generated from Dividend Information as of October 2018 retail properties, 12% from industrial properties, and the remaining were ▪ Current annualized dividend of $2.646 per share from other property types. Our physical occupancy rate as of September ▪ Compound average annual dividend growth rate of approximately 4.6% 30, 2018 was 98.8%, with a weighted average remaining lease term of approximately 9.3 years. ▪ 580 consecutive monthly dividends declared ▪ 84 consecutive quarterly dividend increases Common Stock Corporate Headquarters Our Common Stock is traded on the New York Stock Exchange under 11995 El Camino Real the symbol "O“. San Diego, California 92130 September 30, 2018 Phone: (858) 284-5000 Closing price $ 56.89 Website: www.realtyincome.com Shares and units outstanding 295,836,351 Market value of common equity $ 16,830,130,000 Transfer Agent Total market capitalization $ 23,629,804,000 Computershare Phone: (877) 218-2434 Website: www.computershare.com Q3 2018 Supplemental Operating & Financial Data 3
Consolidated Statements Of Income (dollars in thousands, except per share amounts) (unaudited) (unaudited) Three months ended Nine months ended September 30, September 30, 2018 2017 2018 2017 REVENUE Rental $ 324,773 $ 293,455 $ 945,191 $ 867,325 Tenant reimbursements 12,479 11,933 35,174 34,918 Other 829 1,532 4,897 2,872 Total revenue 338,081 306,920 985,262 905,115 EXPENSES Depreciation and amortization 136,967 127,569 402,069 371,755 Interest 69,342 62,951 195,385 185,935 General and administrative 16,332 13,881 49,970 43,227 Property (including reimbursable) 15,806 17,267 48,594 52,828 Income taxes 1,302 1,133 3,733 2,621 Provisions for impairment 6,862 365 25,034 8,072 Total expenses 246,611 223,166 724,785 664,438 Gain of sales of real estate 7,813 4,319 18,818 17,689 Net income 99,283 88,073 279,295 258,366 Net income attributable to noncontrolling interests (284) (133) (753) (420) Net income attributable to the Company 98,999 87,940 278,542 257,946 Preferred stock dividends — — — (3,911) Excess of redemption value over carrying value of preferred shares subject to redemption — — — (13,373) Net income available to common stockholders $ 98,999 $ 87,940 $ 278,542 $ 240,662 Net income available to common stockholders per common share: Basic and diluted $ 0.34 $ 0.32 $ 0.97 $ 0.89 Q3 2018 Supplemental Operating & Financial Data 4
Funds From Operations (FFO) (dollars in thousands, except per share amounts) 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, 2018 2017 2018 2017 Net income available to common stockholders $ 98,999 $ 87,940 $ 278,542 $ 240,662 Depreciation and amortization 136,967 127,569 402,069 371,755 Depreciation of furniture, fixtures and equipment (166) (133) (493) (440) Provisions for impairment 6,862 365 25,034 8,072 Gain on sales of real estate (7,813) (4,319) (18,818) (17,689) FFO adjustments allocable to noncontrolling interests (299) (230) (820) (683) FFO available to common stockholders $ 234,550 $ 211,192 $ 685,514 $ 601,677 FFO allocable to dilutive noncontrolling interests 217 220 667 659 Diluted FFO $ 234,767 $ 211,412 $ 686,181 $ 602,336 FFO per common share, basic and diluted $ 0.81 $ 0.77 $ 2.39 $ 2.22 Distributions paid to common stockholders $ 191,703 $ 174,607 $ 564,747 $ 509,987 FFO available to common stockholders in excess of distributions paid to common stockholders $ 42,847 $ 36,585 $ 120,767 $ 91,690 Weighted average number of common shares used for FFO per share computations: Basic 290,664,368 275,511,870 286,599,191 270,584,365 Diluted 291,207,186 276,050,671 287,105,285 271,126,114 Q3 2018 Supplemental Operating & Financial Data 5
Adjusted Funds From Operations (AFFO) (dollars in thousands, except per share amounts) 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 Nine months ended September 30, September 30, 2018 2017 2018 2017 Net income available to common stockholders $ 98,999 $ 87,940 $ 278,542 $ 240,662 Cumulative adjustments to calculate FFO (1) 135,551 123,252 406,972 361,015 FFO available to common stockholders 234,550 211,192 685,514 601,677 Excess of redemption value over carrying value of Class F preferred share redemption — — — 13,373 Amortization of share-based compensation 3,870 3,426 12,527 10,641 Amortization of deferred financing costs 1,014 1,329 2,872 4,133 Amortization of net mortgage premiums (354) (341) (1,167) (1,580) Gain on interest rate swaps (265) (368) (3,064) (1,228) Leasing costs and commissions (379) (489) (2,831) (1,248) Recurring capital expenditures (382) (171) (529) (536) Straight-line rent (6,575) (4,778) (18,207) (12,331) Amortization of above and below-market leases 4,655 3,732 12,426 10,213 Other adjustments 61 69 203 213 Total AFFO available to common stockholders $ 236,195 $ 213,601 $ 687,744 $ 623,327 AFFO allocable to dilutive noncontrolling interests 227 299 692 885 Diluted AFFO $ 236,422 $ 213,900 $ 688,436 $ 624,212 AFFO per common share Basic $ 0.81 $ 0.78 $ 2.40 $ 2.30 Diluted $ 0.81 $ 0.77 $ 2.40 $ 2.30 Distributions paid to common stockholders $ 191,703 $ 174,607 $ 564,747 $ 509,987 AFFO available to common stockholders in excess of distributions paid to common stockholders $ 44,492 $ 38,994 $ 122,997 $ 113,340 Weighted average number of common shares used for AFFO per share computations: Basic 290,664,368 275,511,870 286,599,191 270,584,365 Diluted 291,207,186 276,138,853 287,105,285 271,214,296 (1) See reconciling items for FFO presented under "Funds from Operations (FFO).” Q3 2018 Supplemental Operating & Financial Data 6
Consolidated Balance Sheets (dollars in thousands , except per share amounts) September 30, 2018 December 31, 2017 ASSETS (unaudited) Real estate, at cost: Land $ 4,562,343 $ 4,080,400 Buildings and improvements 11,666,564 10,936,069 Total real estate, at cost 16,228,907 15,016,469 Less accumulated depreciation and amortization (2,607,309) (2,346,644) Net real estate held for investment 13,621,598 12,669,825 Real estate held for sale, net 65,376 6,674 Net real estate 13,686,974 12,676,499 Cash and cash equivalents 6,666 6,898 Accounts receivable, net 135,866 119,533 Acquired lease intangible assets, net 1,212,679 1,194,930 Goodwill 14,861 14,970 Other assets, net 38,279 45,336 Total assets $ 15,095,325 $ 14,058,166 LIABILITIES AND EQUITY Distributions payable $ 65,749 $ 60,799 Accounts payable and accrued expenses 119,144 109,523 Acquired lease intangible liabilities, net 309,665 268,796 Other liabilities 109,854 116,869 Line of credit payable 774,000 110,000 Term loans, net 319,571 445,286 Mortgages payable, net 310,206 325,941 Notes payable, net 5,375,882 5,230,244 Total liabilities 7,384,071 6,667,458 Stockholders’ equity: Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 295,145,532 shares issued and outstanding as of September 30, 2018 and 284,213,685 shares issued and outstanding as of December 31, 2017 10,220,092 9,624,264 Distributions in excess of net income (2,543,852) (2,252,763) Total stockholders’ equity 7,676,240 7,371,501 Noncontrolling interests 35,014 19,207 Total equity 7,711,254 7,390,708 Total liabilities and equity $ 15,095,325 $ 14,058,166 Q3 2018 Supplemental Operating & Financial Data 7
Debt Summary (dollars in thousands) Maturity Date as of Principal Balance as of Interest Rate as of Weighted Average September 30, 2018 September 30, 2018 % of Debt September 30, 2018 Years until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 774,000 11.4% 3.06% 0.7 years Unsecured Term Loans Term Loan - Tau (2) January 21, 2019 70,000 1.0% 3.00% 0.3 years Term Loan - Realty Income (3) June 30, 2020 250,000 3.7% 2.62% 1.7 years (6) Principal amount 320,000 4.7% 2.70% 1.4 years Deferred financing costs (429) Carrying value 319,571 Senior Unsecured Notes and Bonds 5.750% Notes due 2021 January 15, 2021 250,000 3.7% 5.75% 3.250% Notes due 2022 October 15, 2022 950,000 14.0% 3.25% 4.650% Notes due 2023 August 1, 2023 750,000 11.0% 4.65% 3.875% Notes due 2024 July 15, 2024 350,000 5.1% 3.88% 3.875% Notes due 2025 April 15, 2025 500,000 7.3% 3.88% 4.125% Notes due 2026 October 15, 2026 650,000 9.6% 4.13% 3.000% Notes due 2027 January 15, 2027 600,000 8.8% 3.00% 3.650% Notes due 2028 January 15, 2028 550,000 8.1% 3.65% 5.875% Bonds due 2035 March 15, 2035 250,000 3.7% 5.88% 4.650% Notes due 2047 March 15, 2047 550,000 8.1% 4.65% (6) Principal amount 5,400,000 79.4% 4.04% 9.0 years Unamortized net premiums and deferred financing costs (24,118) Carrying value 5,375,882 Mortgages Payable (4) 27 mortgages on 61 properties December 2018 - June 2032 305,674 4.5% 5.10% 3.4 years Unamortized net premiums and deferred financing costs 4,532 Carrying value 310,206 (5) (6) TOTAL DEBT $ 6,799,674 3.91% 7.4 years Fixed Rate $ 5,933,570 87% Variable Rate $ 866,104 13% (1) As of September 30, 2018, we had a $2.0 billion unsecured acquisition credit facility that was scheduled to expire in June 2019. In October 2018, we entered into a new $3.0 billion unsecured acquisition credit facility with an initial term that expires in March 2023. It includes, at our election, two six-month extension options, at a cost of 0.0625% of the facility commitment, or $1.875 million per option. The new credit facility also has a $1.0 billion expansion option. As of October 24, 2018, approximately $2.4 billion was available on the credit facility. (2) Borrowing under the term loan bears interest at the current one month LIBOR plus 0.90%. In January 2018, we entered into a six-month extension of this loan, which included, at our option, two additional six-month extensions. In June 2018, we exercised our first six-month extension option of this loan, which now matures in January 2019. (3) Borrowing under the term loan bears interest at the current one month LIBOR plus 0.90%. We have an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.62%. As part of our new credit facility, we entered into a new $250 million term loan, which matures in March 2024. (4) The mortgages payable are at fixed interest rates, except for mortgages totaling $22.1 million as of September 30, 2018. (5) Excludes non-cash unamortized net original issuance premiums recorded on the senior unsecured notes and bonds, non-cash unamortized net premiums recorded on the mortgages payable, and deferred financing costs on the term loans, notes and bonds, and mortgages payable. (6) The totals are calculated as the weighted average interest rate as of September 30, 2018 for each respective category. Q3 2018 Supplemental Operating & Financial Data 8
Debt Maturities as of September 30, 2018 (dollars in millions) Debt Maturities Year of Credit Term Mortgages Senior Unsecured Weighted Average Maturity Facility (1) Loans (2) Payable Notes and Bonds Total Interest Rate (3) 2018 $ — $ — $ 7.3 $ — $ 7.3 5.00% 2019 774.0 70.0 20.7 — 864.7 3.72% 2020 — 250.0 82.4 — 332.4 4.18% 2021 — — 67.0 250.0 317.0 5.71% 2022 — — 109.7 950.0 1,059.7 3.43% Thereafter — — 18.6 4,200.0 4,218.6 4.12% Totals $ 774.0 $ 320.0 $ 305.7 $ 5,400.0 $ 6,799.7 (1) In October 2018, we entered into a new $3.0 billion unsecured acquisition credit facility with an initial term that expires in March 2023. (2) Excludes the new $250 million term loan maturing in March 2024, which we entered into in October 2018 as part of the new credit facility. (3) 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 2018 $ — $ — $ — $ 7.3 $ 7.3 5.00% 2019 1.2 1.3 17.0 1.2 20.7 4.91% 2020 1.2 1.2 12.6 67.4 82.4 4.99% 2021 18.2 17.7 30.7 0.4 67.0 5.58% 2022 0.4 10.0 61.6 37.7 109.7 4.98% Thereafter — — — — 18.6 5.12% Totals $ 21.0 $ 30.2 $ 121.9 $ 114.0 $ 305.7 Q3 2018 Supplemental Operating & Financial Data 9
Capitalization & Financial Ratios (dollars in thousands, except per share amounts) Capitalization as of September 30, 2018 Capital Structure as of September 30, 2018 Principal Debt Balance Credit Facility $ 774,000 Unsecured Term Loans 320,000 Senior Unsecured Notes and Bonds 5,400,000 Mortgages Payable 305,674 Total Debt $ 6,799,674 Shares / Equity Units Stock Price Market Value Common Stock (NYSE: O) 295,145,532 $ 56.89 $ 16,790,829 Common Units (1) 690,819 $ 56.89 $ 39,301 Total Equity $ 16,830,130 Total Market Capitalization (2) $ 23,629,804 Debt/Total Market Capitalization (2) 28.8% (1) Common units are exchangeable into cash or common stock at our option at a conversion ratio of 1:1, subject to certain exceptions. (2) Our enterprise value was $23,623,138 (total market capitalization less cash on hand). The percentage for Liquidity as of September 30, 2018 debt to enterprise value is materially consistent with that presented for total market capitalization. Cash on Hand $ 6,666 (1) Dividend Data Availability under Credit Facility 1,226,000 $ 1,232,666 Year-over-Year (1) In October 2018, we entered into a new $3.0 billion credit facility. As of YTD 2018 YTD 2017 Growth Rate October 24, 2018, approximately $2.4 billion was available on the Common Dividend Paid per Share $ 1.969 $ 1.891 4.1% credit facility. AFFO per Share (diluted) $ 2.40 $ 2.30 4.3% AFFO Payout Ratio 82.0% 82.2% Q3 2018 Supplemental Operating & Financial Data 10
Adjusted EBITDAre & Coverage Ratios (dollars in thousands) Reconciliation of Net Income to Adjusted EBITDAre (1) Three months ended Debt Service & Fixed Charge Coverage (3) September 30, 2018 Net income $ 99,283 Interest 69,342 Income taxes 1,302 Depreciation and amortization 136,967 Impairment loss 6,862 Gain on sales of real estate (7,813) Quarterly Adjusted EBITDAre $ 305,943 Annualized Adjusted EBITDAre $ 1,223,772 Debt/Adjusted EBITDAre (2) 5.5 (1) The National Association of Real Estate Investment Trust (NAREIT) came to the conclusion that a NAREIT-defined EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) would provide investors with a consistent measure to help make investment decisions among REITs. Although this update has not changed our calculation, we have re-labeled our Adjusted EBITDA to “Adjusted EBITDAre” in order to be consistent with the NAREIT definition. Adjusted EBITDAre, a non-GAAP financial measure, means, for the most recent quarter, 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 of real estate. Our Adjusted EBITDAre is consistent with the National Association of Real Estate Investment Trusts’ definition, but may not be comparable to Adjusted EBITDAre reported by other companies that interpret the definitions of Adjusted EBITDAre differently than we do. Management believes Adjusted EBITDAre 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 EBITDAre 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 EBITDAre is also used to determine vesting of performance share awards granted to our executive officers. Adjusted EBITDAre 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 EBITDAre, which is used by management as a measure of leverage, is calculated by annualizing quarterly Adjusted EBITDAre and then dividing by our total debt per the consolidated balance sheet. (2) Our ratio of debt to adjusted EBITDAre, which is used by management as a measure of leverage, is calculated by annualizing quarterly adjusted EBITDAre and then dividing by our total debt per the consolidated balance sheet. (3) Fixed charge coverage is calculated in exactly the same manner as the debt service coverage, 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. Refer to footnote 1 on page 12 for a detailed description of the calculation of debt service and fixed charge coverage. Q3 2018 Supplemental Operating & Financial Data 11
Debt Covenants As of September 30, 2018 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 41.5% Limitation on incurrence of secured debt ≤ 40% of adjusted undepreciated assets 1.9% Debt service and fixed charge coverage (trailing 12 months) (1) ≥ 1.5x 4.6x Maintenance of total unencumbered assets ≥ 150% of unsecured debt 243.0% (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, 2017, 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, 2017, 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. Q3 2018 Supplemental Operating & Financial Data 12
Investment Summary (dollars in thousands) Cash Weighted Number of Leasable Capitalization Average Lease First Quarter 2018 Properties Investment Cash Rents Square Feet Rate (1) Term (Years) New Property Acquisitions 168 $ 506,040 $ 31,268 851,528 6.2% 14.0 Properties under Development (2) 6 3,767 254 102,728 6.7% 12.7 Total Real Estate Investments 174 $ 509,807 $ 31,522 954,256 6.2% 14.0 Approximately 85% of the annualized revenue generated by these investments is from investment grade tenants (3) Cash Weighted Number of Leasable Capitalization Average Lease Second Quarter 2018 Properties Investment Cash Rents Square Feet Rate (1) Term (Years) New Property Acquisitions 180 $ 286,473 $ 18,491 989,707 6.5% 14.2 Properties under Development (2) 10 60,551 4,028 894,339 6.7% 10.7 Total Real Estate Investments 190 $ 347,024 $ 22,519 1,884,046 6.5% 13.6 Approximately 52% of the annualized revenue generated by these investments is from investment grade tenants (3) Cash Weighted Number of Leasable Capitalization Average Lease Third Quarter 2018 Properties Investment Cash Rents Square Feet Rate (1) Term (Years) New Property Acquisitions 232 $ 603,141 $ 38,176 1,355,269 6.3% 15.3 Properties under Development (2) 6 5,392 433 86,812 8.0% 12.0 Total Real Estate Investments 238 $ 608,533 $ 38,609 1,442,081 6.3% 15.3 Approximately 62% of the annualized revenue generated by these investments is from investment grade tenants (3) Cash Weighted Number of Leasable Capitalization Average Lease Year-to-Date 2018 Properties Investment Cash Rents Square Feet Rate (1) Term (Years) New Property Acquisitions 580 $ 1,395,654 $ 87,935 3,196,504 6.3% 14.6 Properties under Development (2) 11 69,710 4,715 1,083,879 6.8% 10.9 Total Real Estate Investments 591 $ 1,465,364 $ 92,650 4,280,383 6.3% 14.4 Approximately 67% of the annualized revenue generated by these investments is from investment grade tenants (3) (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) 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. (3) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Q3 2018 Supplemental Operating & Financial Data 13
Disposition Summary (dollars in thousands) Cash Capitalization First Quarter 2018 Number of Properties Original Investment Net Book Value Net Proceeds Rate (1) Occupied 3 $ 6,635 $ 5,651 $ 8,448 6.6% Vacant 11 $ 15,405 $ 4,875 $ 5,331 — Total Real Estate Dispositions 14 $ 22,040 $ 10,526 $ 13,779 The unlevered internal rate of return on properties sold during the first quarter was 7.3% Cash Capitalization Second Quarter 2018 Number of Properties Original Investment Net Book Value Net Proceeds Rate (1) Occupied 10 $ 16,576 $ 14,305 $ 19,522 7.1% Vacant 16 $ 26,936 $ 11,379 $ 14,225 — Total Real Estate Dispositions 26 $ 43,512 $ 25,684 $ 33,747 The unlevered internal rate of return on properties sold during the second quarter was 8.3% Cash Capitalization Third Quarter 2018 Number of Properties Original Investment Net Book Value Net Proceeds Rate (1) Occupied 10 $ 18,899 $ 16,167 $ 23,297 8.3% Vacant 10 $ 29,295 $ 11,438 $ 12,201 — Total Real Estate Dispositions 20 $ 48,194 $ 27,605 $ 35,498 The unlevered internal rate of return on properties sold during the third quarter was 7.8% Cash Capitalization Year-to-Date 2018 Number of Properties Original Investment Net Book Value Net Proceeds Rate (1) Occupied 23 $ 42,110 $ 36,123 $ 51,267 7.6% Vacant 37 $ 71,636 $ 27,692 $ 31,757 — Total Real Estate Dispositions 60 $ 113,746 $ 63,815 $ 83,024 The unlevered internal rate of return on properties sold during the first nine months was 7.9% (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). Q3 2018 Supplemental Operating & Financial Data 14
Development Pipeline (dollars in thousands) Investment Retail Number of Properties to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 2 $ 9,953 $ 7,748 $ 17,701 100% Development of existing properties 1 $ 1,056 $ 1,088 $ 2,144 100% 3 $ 11,009 $ 8,836 $ 19,845 Investment Non-Retail Number of Properties to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) — $ — $ — $ — — Development of existing properties 2 $ 4,363 $ 17,984 $ 22,347 100% 2 $ 4,363 $ 17,984 $ 22,347 Investment Total Number of Properties to Date Remaining Investment Total Commitment Percent Leased (2) New development (1) 2 $ 9,953 $ 7,748 $ 17,701 100% Development of existing properties 3 $ 5,419 $ 19,072 $ 24,491 100% 5 $ 15,372 $ 26,820 $ 42,192 (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 2018 and September 2019. Q3 2018 Supplemental Operating & Financial Data 15
Tenant Diversification Top 20 Tenants Investment Grade Tenants(2): Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at September 30, 2018 include the following: Number of Leases 3,086 Percentage of Annualized Rents 51% Weighted Average Annual Growth Rate on 1.0% Investment Grade (3) Number of Ratings Leases Tenant Leases % of Revenue (S&P/Moody's/Fitch) Walgreens 219 6.4% BBB/Baa2/BBB 7-Eleven 376 5.3% AA-/Baa1/- FedEx 42 4.8% BBB/Baa2/- Dollar General 574 3.9% BBB/Baa2/- LA Fitness 54 3.7% - Dollar Tree / Family Dollar 468 3.4% BBB-/Baa3/- AMC Theatres 32 3.3% - Walmart / Sam’s Club 51 2.8% AA/Aa2/AA Circle K (Couche-Tard) 298 2.3% BBB/Baa2/- BJ’s Wholesale Clubs 15 2.1% - Treasury Wine Estates 17 2.0% - CVS Pharmacy 84 1.9% BBB/Baa1/- Life Time Fitness 11 1.9% - Regal Cinemas 24 1.8% - GPM Investments / Fas Mart 210 1.7% - Super America (Andeavor) 132 1.7% BBB-/Baa3/BBB- TBC Corporation (Sumitomo) 159 1.4% A-/Baa1/- Kroger 17 1.4% BBB/Baa1/BBB Rite Aid 51 1.2% - Home Depot 15 1.2% A/A2/A (2) We define investment grade tenants as tenants with a credit rating of Weighted Average EBITDAR/Rent Ratio on Retail Properties 2.9x (1) Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). 51% of our annualized rental revenue is Median EBITDAR/Rent Ratio on Retail Properties 2.7x (1) generated from properties leased to investment grade tenants, including approximately 9% from properties leased to subsidiaries of investment grade companies. Refer to page 19 for investment grade (1) Based on the analysis of the most recently provided information from all retail tenants that provide such information. We do not independently verify the information we receive from our retail tenants. composition by property type. (3) Excludes leases with percentage rent. For leases with increases that are based on the growth of the consumer price index ("CPI"), we assume CPI grows at 1.5% annually. Q3 2018 Supplemental Operating & Financial Data 16
Industry Diversification Percentage of Rental Revenue For the Quarter Ended For the Year Ended September 30, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2018 2017 2016 2015 2014 2013 Aerospace 0.8% 0.9% 1.0% 1.1% 1.2% 1.2% Apparel stores 1.2 1.6 1.9 2.0 2.0 1.9 Automotive collision services 0.9 1.0 1.0 1.0 0.8 0.8 Automotive parts 1.6 1.3 1.3 1.4 1.3 1.2 Automotive service 2.2 2.2 1.9 1.9 1.8 2.1 Automotive tire services 2.3 2.6 2.7 2.9 3.2 3.6 Beverages 2.4 2.7 2.6 2.7 2.8 3.3 Book stores * * * * * * Child care 1.6 1.8 1.9 2.0 2.2 2.8 Consumer appliances 0.5 0.5 0.5 0.6 0.5 0.6 Consumer electronics 0.3 0.3 0.3 0.3 0.3 0.3 Consumer goods 0.7 0.8 0.9 0.9 0.9 1.0 Convenience stores 12.1 9.6 8.7 9.2 10.1 11.2 Crafts and novelties 0.7 0.6 0.6 0.6 0.6 0.6 Diversified industrial 0.8 0.9 0.9 0.8 0.5 0.2 Dollar stores 7.4 7.9 8.6 8.9 9.6 6.2 Drug stores 9.9 10.9 11.2 10.6 9.5 8.1 Education 0.3 0.3 0.3 0.3 0.4 0.4 Electric utilities 0.1 0.1 0.1 0.1 0.1 * Entertainment 0.4 0.4 0.5 0.5 0.5 0.6 Equipment services 0.4 0.4 0.6 0.5 0.6 0.5 Financial services 2.4 2.4 1.8 1.7 1.8 2.0 Food processing 0.4 0.6 1.1 1.2 1.4 1.5 General merchandise 2.2 2.0 1.8 1.7 1.5 1.1 Government services 0.8 1.0 1.1 1.2 1.3 1.4 Grocery stores 5.0 4.4 3.1 3.0 3.0 2.9 Health and beauty 0.3 * * * * * Health and fitness 7.3 7.5 8.1 7.7 7.0 6.3 Health care 1.5 1.4 1.5 1.7 1.8 1.9 Home furnishings 0.8 0.9 0.8 0.9 0.9 1.1 Home improvement 3.0 2.6 2.5 2.4 1.7 1.6 Insurance 0.1 0.1 0.1 0.1 0.1 0.1 Jewelry 0.1 0.1 0.1 0.1 0.1 0.1 Machinery 0.1 0.1 0.1 0.1 0.2 0.2 Motor vehicle dealerships 1.8 2.1 1.9 1.6 1.6 1.6 Office supplies 0.2 0.2 0.3 0.3 0.4 0.5 Other manufacturing 0.7 0.8 0.8 0.7 0.7 0.6 Packaging 1.1 1.0 0.8 0.8 0.8 0.9 Paper 0.1 0.1 0.1 0.1 0.1 0.2 Pet supplies and services 0.5 0.6 0.6 0.7 0.7 0.8 Restaurants - casual dining 3.8 3.8 3.9 3.8 4.3 5.1 Restaurants - quick service 5.7 5.1 4.9 4.2 3.7 4.4 Shoe stores 0.5 0.6 0.7 0.7 0.9 1.0 Sporting goods 1.0 1.4 1.6 1.8 1.6 1.7 Telecommunications 0.6 0.6 0.6 0.7 0.7 0.7 Theaters 5.4 5.0 4.9 5.1 5.3 6.2 Transportation services 5.0 5.4 5.5 5.4 5.2 5.4 Wholesale clubs 2.9 3.3 3.6 3.8 4.1 3.9 Other 0.1 0.1 0.2 0.2 0.2 0.2 Totals 100% 100% 100% 100% 100% 100% * Less than 0.1% Q3 2018 Supplemental Operating & Financial Data 17
Geographic Diversification (dollars in thousands) Approximate Rental Revenue for Percentage of Number of Percent Leasable the Quarter Ended Rental State Properties Leased Square Feet September 30, 2018 (1) Revenue Alabama 168 98% 1,587,400 $ 5,931 1.8% Alaska 3 100 274,600 522 0.2 Arizona 116 100 1,807,100 6,836 2.1 Arkansas 74 100 887,700 2,217 0.7 California 186 100 5,976,100 28,498 8.8 Colorado 85 98 1,467,400 5,179 1.6 Connecticut 22 95 521,100 2,029 0.6 Delaware 18 100 93,000 748 0.2 Florida 396 99 4,185,900 18,117 5.6 Georgia 268 99 4,293,400 13,324 4.1 Idaho 12 100 87,000 416 0.1 Illinois 260 99 5,798,000 19,614 6.0 Indiana 186 98 2,194,100 8,945 2.8 Iowa 40 95 3,034,800 4,291 1.3 Kansas 98 96 1,888,800 4,937 1.5 Kentucky 79 99 1,687,700 4,588 1.4 Louisiana 111 97 1,574,900 5,091 1.6 Maine 19 100 207,900 1,240 0.4 Maryland 37 97 1,017,500 4,872 1.5 Massachusetts 78 94 726,500 3,607 1.1 Michigan 179 99 1,929,600 6,805 2.1 Minnesota 165 99 2,137,800 10,282 3.2 Mississippi 150 97 1,707,800 4,754 1.5 Missouri 155 98 2,710,200 8,569 2.6 Montana 11 100 87,000 574 0.2 Nebraska 42 98 775,100 2,043 0.6 Nevada 24 100 1,196,600 2,181 0.7 New Hampshire 19 100 315,800 1,576 0.5 New Jersey 73 100 995,800 5,800 1.8 New Mexico 34 100 366,400 1,212 0.4 New York 128 100 2,850,300 15,619 4.8 North Carolina 182 99 2,781,600 8,865 2.7 North Dakota 6 100 117,700 211 0.1 Ohio 306 99 6,957,700 17,166 5.3 Oklahoma 137 100 1,672,800 4,769 1.5 Oregon 28 96 593,300 2,319 0.7 Pennsylvania 228 98 2,294,000 10,704 3.3 Rhode Island 4 100 161,600 841 0.3 South Carolina 173 99 1,667,600 7,477 2.3 South Dakota 15 100 195,200 471 0.1 Tennessee 251 98 3,589,800 10,824 3.3 Texas 693 99 10,520,600 36,104 11.1 Utah 22 100 933,000 2,219 0.7 Vermont 5 100 98,000 489 0.2 Virginia 209 98 3,114,000 9,858 3.0 Washington 44 98 737,400 2,861 0.9 West Virginia 25 100 418,100 1,372 0.4 Wisconsin 120 99 2,399,200 7,098 2.2 Wyoming 6 100 54,700 317 0.1 Puerto Rico 4 100 28,300 149 * Totals\Average 5,694 99% 92,717,900 $ 324,531 100% * Less than 0.1% (1) Includes rental revenue for all properties owned at September 30, 2018. Excludes rental revenue of $242 from sold properties. Q3 2018 Supplemental Operating & Financial Data 18
Property Type Composition (dollars in thousands) Percentage of Rental Percentage of Rental Revenue for Revenue for the Annualized Revenue Approximate Leasable the Quarter Ended Quarter Ended from Investment Property Type Number of Properties Square Feet September 30, 2018 (1) September 30, 2018 Grade Tenants (2) Retail 5,520 62,734,600 $ 264,131 81.4% 46.5% Industrial 117 26,694,100 40,127 12.4 79.7 Office 42 3,104,700 13,634 4.2 85.2 Agriculture 15 184,500 6,639 2.0 — Totals 5,694 92,717,900 $ 324,531 100% (1) Includes rental revenue for all properties owned at September 30, 2018. Excludes rental revenue of $242 from sold properties. (2) Refer to footnote 2 on page 16 for our definition of investment grade tenants. Q3 2018 Supplemental Operating & Financial Data 19
Same Store Rental Revenue (dollars in thousands) Third Quarter 2018 Same Store Rental Revenue Top 3 Industries Contributing to the Change Number of Properties 4,707 Quarter ended Quarter ended Net % Change Square Footage 78,503,821 Industry September 30, 2018 September 30, 2017 Change by Industry Q3 2018 $ 272,898 Health and Fitness $ 21,023 $ 20,714 $ 309 1.5% Q3 2017 $ 270,269 Dollar Stores 22,621 22,353 268 1.2% Increase (in dollars) $ 2,629 Restaurants-Quick Service 13,474 13,211 263 2.0% Increase (percent) 1.0% Year-to-Date 2018 Same Store Rental Revenue Top 3 Industries Contributing to the Change Number of Properties 4,707 Nine months ended Nine months ended Net % Change Square Footage 78,503,821 Industry September 30, 2018 September 30, 2017 Change by Industry YTD Q3 2018 $ 819,790 Health and Fitness $ 62,910 $ 61,966 $ 944 1.5% YTD Q3 2017 $ 812,184 Grocery Stores 30,038 29,373 665 2.3% Increase (in dollars) $ 7,606 Convenience Stores 83,570 82,923 647 0.8% Increase (percent) 0.9% 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. Q3 2018 Supplemental Operating & Financial Data 20
Same Store Rental Revenue (dollars in thousands) Same Store Rental Revenue by Property Type Third Quarter 2018 Quarter ended Quarter ended Net % Change by Property Type September 30, 2018 September 30, 2017 Change Property Type Retail $ 218,884 $ 217,076 $ 1,808 0.8% Industrial 35,976 35,571 405 1.1% Office 13,412 13,234 178 1.3% Agriculture 4,626 4,388 238 5.4% Total $ 272,898 $ 270,269 $ 2,629 1.0% Year-to-Date 2018 Nine months ended Nine months ended Net % Change by Property Type September 30, 2018 September 30, 2017 Change Property Type Retail $ 657,236 $ 651,112 $ 6,124 0.9% Industrial 107,731 107,127 604 0.6% Office 40,121 39,776 345 0.9% Agriculture 14,702 14,169 533 3.8% Total $ 819,790 $ 812,184 $ 7,606 0.9% Q3 2018 Supplemental Operating & Financial Data 21
Occupancy By Property Change in Occupancy Occupied Properties 5,623 Vacant Properties at 6/30/18 69 Total Properties 5,694 Occupancy 98.8% Expiration Activity (1) + 76 Leasing Activity (2) - 64 By Square Footage Vacant Property Sales Activity (3) - 10 Occupied Square Footage 91,719,582 Total Square Footage 92,717,855 Vacant Properties at 9/30/18 71 Occupancy 98.9% (1) Includes scheduled and unscheduled expirations (including leases rejected in bankruptcy), as well as future expirations resolved in the current quarter. By Rental Revenue (Economic Occupancy) (2) Includes 63 expirations that were re-leased to the same tenants without Quarterly Rental Revenue $ 322,925,976 vacancy and one that was re-leased to a new tenant after a period of vacancy. See page 23 for additional detail on re-leasing activity. Quarterly Vacant Rental Revenue(1) $ 3,015,185 (3) Includes 9 properties that were vacant at the beginning of the quarter. Occupancy 99.1% (1) Based on contractual monthly rents received immediately preceding the date of vacancy. Occupancy by Number of Properties Q3 2018 Supplemental Operating & Financial Data 22
Leasing Activity (dollars in thousands) Re-leased to New Tenant Allocation Based on Number of Leases Re-leased to Without After a Period Re-leasing Q3 2018 Same Tenant Vacancy of Vacancy Totals Prior Cash Rents $ 9,037 $ — $ 1,058 $ 10,095 New Cash Rents* $ 10,364 $ — $ 530 $ 10,894 Recapture Rate 114.7% — 50.1% 107.9% Number of Leases 63 — 1 64 Average Months Vacant — — 14.9 0.2 Lease Incentives(1) $ — $ — $ 175 $ 175 *Percentage of Total Annualized Portfolio Rental Revenue: 0.8% Re-leased to New Tenant Re-leased to Without After a Period Re-leasing Year-to-Date 2018 Same Tenant Vacancy of Vacancy Totals Prior Cash Rents $ 31,650 $ 160 $ 4,305 $ 36,115 New Cash Rents* $ 34,196 $ 187 $ 3,762 $ 38,145 Recapture Rate 108.0% 116.6% 87.4% 105.6% Number of Leases 155 3 8 166 Average Months Vacant — — 18.4 0.9 Lease Incentives(1) $ — $ — $ 175 $ 175 *Percentage of Total Annualized Portfolio Rental Revenue: 2.9% (1) Lease incentives are defined as capital outlays made on behalf of a tenant which are specific to the tenant’s use and benefit, and are not capitalized as improvements to the property. Q3 2018 Supplemental Operating & Financial Data 23
Lease Expirations (dollars in thousands) Our leases have a weighted average remaining lease term of approximately 9.3 years. Total Portfolio (1) Approx. % of Expiring Leases Leasable Rental Rental Year Retail Non-Retail Sq. Feet Revenue Revenue 2018 75 4 464,400 $ 2,184 0.7% 2019 234 9 3,178,300 11,468 3.5 2020 224 14 4,207,500 12,889 4.0 2021 347 15 5,575,400 15,705 4.9 2022 403 21 9,923,200 21,429 6.6 2023 545 23 9,538,400 29,250 9.0 2024 259 12 4,951,500 14,689 4.5 2025 338 13 5,242,500 20,277 6.3 2026 314 3 4,627,100 15,613 4.8 2027 544 5 6,252,000 22,318 6.9 2028 335 13 8,836,600 21,956 6.8 2029 411 7 7,572,700 22,068 6.8 2030 113 14 3,007,800 16,493 5.1 2031 304 25 5,968,300 27,308 8.4 2032 86 4 3,089,400 11,821 3.6 2033 - 2043 977 4 9,207,800 58,647 18.1 Totals 5,509 186 91,642,900 $ 324,115 100.0% (1) This table sets forth the timing of remaining lease term expirations in our portfolio and their contribution to rental revenue for the quarter ended September 30, 2018. The lease expirations for leases under construction are based on the estimated date of completion of those projects. Excludes revenue of $416 from 91 expired leases, and $242 from sold properties at September 30, 2018. Leases on our multi-tenant properties are counted separately in the table above. Q3 2018 Supplemental Operating & Financial Data 24
Earnings Guidance We estimate FFO per share for 2018 of $3.11 to $3.14. We estimate AFFO per share for 2018 of $3.18 to $3.21, an increase of 4% to 5% over 2017 AFFO per share of $3.06. Summarized below are approximate estimates of the key components of the company’s 2018 earnings guidance: 2018 Guidance Net income per share $1.21 to $1.24 Real estate depreciation and impairments per share $1.98 Gains on sales of properties per share ($0.08) FFO per share $3.11 to $3.14 AFFO per share $3.18 to $3.21 Same store rent growth 1.0% Occupancy 98% G&A expenses (1) (% of revenues) (2) 5.0% Property expenses (non-reimbursable) (% of revenues) (2) 1.5% to 2.0% Acquisition volume $1.75 billion Disposition volume $150 million (1) Excludes the impact from the severance payments payable to our former CEO in October 2018. (2) Excludes tenant reimbursement revenue. 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. Q3 2018 Supplemental Operating & Financial Data 25
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 Christy McElroy nicholas.joseph@citi.com (212) 816-1909 D.A. Davidson Barry Oxford boxford@dadco.com (212) 240-9871 Edward Jones Matt Kopsky matt.kopsky@edwardjones.com (314) 515-5319 Goldman Sachs Andrew Rosivach andrew.rosivach@gs.com (212) 902-2796 Caitlin Burrows caitlin.burrows@gs.com (212) 902-4736 Green Street Spenser Allaway sallaway@greenstreetadvisors.com (949) 640-8780 Janney Montgomery Scott Robert Stevenson robstevenson@janney.com (646) 840-3217 J.P. Morgan Anthony Paolone anthony.paolone@jpmorgan.com (212) 622-6682 Nikita Bely nikita.bely@jpmorgan.com (212) 622-0695 Ladenburg Thalmann John Massocca jmassocca@ladenburg.com (212) 409-2543 Mitsubishi UFG Securities (USA), Inc. Karin Ford karin.ford@mufgsecurities.com (212) 405-7249 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 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 Marnie Georges marnie.georges@raymondjames.com (727) 567-2638 RBC Capital Markets Wes Golladay wes.golladay@rbccm.com (440) 715-2650 Stifel Simon Yarmak yarmaks@stifel.com (443) 224-1345 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 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. Q3 2018 Supplemental Operating & Financial Data 26