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INSTITUTIONAL INVESTOR PRESENTATION Contents SECOND QUARTER 2019 INSTITUTIONAL INVESTOR PRESENTATION Contents Investment Thesis 4 Company Overview 5 Performance Track Record 6 2Q19 Results and Recent Developments 13 Portfolio Diversification 20 Defensive Retail Portfolio 25 Asset Management & Real Estate Operations 30 Investment Strategy 33 Capital Structure & Scalability 40 Dependable Dividends 44 Corporate Responsibility 46 Summary 48 Appendix 49 - Superior Performance During Great Recession 50 - Top Industries Overview 55 2 All data as of June 30, 2019 unless otherwise specified Safe Harbor For Forward-Looking Statements Statements in this investor presentation 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, domestic and foreign 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 investor presentation. 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. 3 Investment Thesis Business model offers attractive total return with minimal cash flow volatility PROVEN TRACK RECORD OF RETURNS 16.4% Compound Average Annual Total Return Since ‘94 NYSE Listing 0.4 Beta vs. S&P 500 PREDICTABLE CASH FLOW Years with Positive Earnings Per Share 22 of 23 Growth(1) 93.7% Adjusted EBITDAre Margin POTENTIAL GROWTH OPPORTUNITIES $12 Trillion Corporate-Owned Real Estate in the US and Europe $30 Billion Average Annual Sourced Acquisition Opportunities Since ‘13 (1) AFFO / Excludes positive earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations 4 Realty Income Company Overview Business model has generated above-market returns with below-market volatility since 1994 S&P 500 DIVERSIFIED, HIGH-QUALITY TRACK RECORD OF SAFETY REAL ESTATE COMPANY “NET LEASE” PORTFOLIO AND CONSISTENCY $29B A3 / A- 5,951 9.4 22 OF 23 enterprise value credit ratings by commercial real years weighted years of positive earnings Moody’s and S&P estate properties average remaining per share(1) growth lease term $1.4B 50 annualized rental years of operating revenue history 83% 49% 5.1% 93.7% of rent generated of rent from median adjusted from retail investment-grade earnings per EBITDAre Member of S&P High-Yield properties rated tenants share(1) growth margin Dividend Aristocrats® index commercial tenants 1 of 8 U.S. REITs with 265 at least two A3/A- ratings 49 industries 16.4% 0.4 TSR since 1994 beta vs. S&P 500 1 of only 2 REITs states, Puerto Rico, NYSE listing since 1994 NYSE in both categories 49 and the U.K. listing (1) AFFO through most recent calendar year/ Excludes earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations 5 Consistent Annual Earnings Growth Since NYSE Listing Positive earnings growth(1) in 22 out of 23 years as a public company Historical Earnings Growth Rates (Median) 17.0% Realty Income (1): 5.1% Current REITs (2): 3.6% 9.4% 8.1% 6.8% 6.4% 6.6% 6.6% 6.0% 6.0% 6.3% 5.4% 5.1% 5.1% 4.9% 5.1% 4.4% 4.2% 3.2% 3.4% 2.5% 1.6% 0.5% Compares favorably to REIT median growth rates: -2.1% 2008: -5.1% 2009: -6.9% 2010: -8.1% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) AFFO / Excludes positive earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations (2) FFO / Through 2018 / Includes all REITs currently included in MSCI REIT Index with earnings history since 2000 / Source: SNL 6 Low Earnings Volatility Supports Low Share Price Volatility Since 1994 NYSE listing, “O” annual TSR downside volatility is one of the lowest in the S&P 500 Annual Total Shareholder Return Among S&P 500 Companies: 25% Downside Volatility Since 1994(1) 20% 15% Realty Income’s TSR Downside Volatility Since 1994 NYSE Listing is 3.0%, the lowest of all S&P 500 constituents(2) other than JNJ and ROST 10% 5% 0% S&P 500 1st Decile 2nd Decile 3rd Decile 4th Decile 5th Decile 6th Decile 7th Decile 8th Decile 9th Decile 10th Decile Deciles: Source: Bloomberg (1) “Downside volatility” calculated as the standard deviation of annual total shareholder returns where positive values are assigned “0” value (2) n=278 S&P 500 constituents with trading histories dating to Realty Income’s 1994 NYSE listing 7 Track Record of Favorable Returns to Shareholders Since 1994 NYSE listing, Realty Income shares have outperformed benchmark indices Compound Average Annual Total Shareholder Return Since 1994 16.4% 10.7% 10.6% 10.0% 9.8% O Equity REIT Index DJIA Nasdaq S&P 500 8 Attractive Risk/Reward vs. S&P 500 Companies Higher returns and lower volatility than majority of S&P 500 companies since 1994 NYSE listing 35% Realty Income return per unit of market Realty Income return per th 30% unit of riskmarket is riskin the in the 98 98th percentile of allof S&Pall S&P (1): 500500 companies companies(1): : 25% Return: 16.4% Beta:Beta: 0.39 0.37 20% Return: 16.4% 15% 10% 5% 0% Total Return CAGR Return Total -5% -10% 2.3 2.0 1.8 1.5 1.3 1.0 0.8 0.5 0.3 0.0 Beta (1) n=278 / Excludes companies without trading histories dating to 1994 / Beta measured using monthly frequency Source: Bloomberg 9 Attractive Risk/Reward vs. Blue Chip S&P 500 Equities Historically, more return per unit of risk vs. the 10 largest S&P 500 constituents and S&P 500 REITs 25% AAPL 20% O MSFT UNH 15% JNJ JPM DIS PG 10% REITs WMT S&P 500 XOM 5% BAC Top 10 largest S&P 500 constituents 0% 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 20% ESS O PSA 15% AVB SPG FRT VNO AIV EQR MAA WELL MAC UDR 10% REG VTR HST HCP WY KIM 5% Average Annual Total ShareholderReturn Total Annual Average S&P 500 REIT Peers 0% 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Beta Excludes companies without trading histories since 10/18/1994 | Constituents plotted include S&P 500 and FTSE NAREIT US Equity REIT Index | Beta measured using monthly frequency Source: Bloomberg 10 Consistency: Steady Portfolio, Solid Fundamentals Focus on quality underwriting and real estate supports predictable cash flow generation Consistent Occupancy Levels, Never Below 96% Tenets of Consistency: ˃ Careful underwriting at acquisition ˃ Solid retail store performance ˃ Strong underlying real estate quality ˃ Healthy tenant industries Steady Same-Store Rent Growth ˃ Prudent disposition activity ˃ Proactive management of rollovers 1.8% 1.7% 1.5% 1.5% 1.5% 1.6% 1.3% 1.4%1.4% 1.4% 1.3%1.3%1.4% 1.5% 1.4% 1.1% 1.1% 1.1% 1.0%1.0%1.0%1.0%1.0% 0.9% 0.8% ✓ Annual same-store rent growth run rate of ~1.0% 0.4% ✓ Long lease terms limit annual volatility 11 Snapshot vs. S&P 500 REIT Peers Superior stability: Favorable occupancy, dividend growth, credit rating and total return metrics Portfolio Occupancy Dividend Growth(1) 98.3% 96.6% 8% 93.7% 91.2% 4.6% 2.9% 0% Tenets of Consistency: Historical Median Lowest Year-End % of Years w/ Negative Dividend CAGR Growth O S&P 500 REIT Median O S&P 500 REIT Median Avg. Credit Rating (S&P/Moody’s) # of Years with TSR < -10%(1) 500%A / A2 8 7 400%A- / A3 6 5 BBB+ 300%/ Baa1 4 3 BBB 200%/ Baa2 2 1 BBB-100%/ Baa3 0 0 ● ● S&P10 500 REIT Peer20 30 ● ● S&P 500 REIT Peer Sources: SNL, Bloomberg | Excludes specialty REITs (i.e. infrastructure, timber, information services) (1) Since 1995. Excludes REITs with fewer years of history than Realty Income 12 RECENT DEVELOPMENTS Our Approach and 2Q19 Results Acquire well-located commercial properties 1 ✓ ~$1.1 billion in acquisitions Remain disciplined in our acquisition underwriting 2 ✓ Acquired ~6% of sourced volume Execute long-term net lease agreements 3 ✓ Recaptured 100.4% of expiring rent Actively manage portfolio to maximize value 4 ✓ Ended quarter at 98.3% occupancy Maintain a conservative balance sheet 5 ✓ Ended quarter with Net Debt/Adjusted EBITDAre ratio of 5.4x Grow per share earnings and dividends ✓ AFFO/sh growth: +2.5% | Dividend/sh growth: +2.9% 14 International Expansion (May 2019 Closing) Realty Income will expand to international markets starting with strategic sale-leaseback with Sainsbury’s £429 Million Sale-Leaseback Estimated size of the commercial real estate market in with Sainsbury’s(1) ~ Europe is ~$11 trillion, with $30-$35 billion of annual single-tenant transaction volume in our core verticals Structured to preserve simplicity of business model, predictability of cash flow We believe there is demand from high quality tenants in stream, and quality of real estate portfolio ~ Europe for sale-leaseback capital on reasonable terms Realty Income is well-positioned to build an international ~ platform leveraging its scale, size, and sector-leading cost of capital Expanding to Europe is a natural extension of Realty ~ Income’s business model, with a focus on long-term triple net leases with annual growth We intend to establish an office in London, and to ~ judiciously grow our portfolio in Europe over time as we have done in the US First International Transaction: Sainsbury’s SLB ✓ AFFO accretion(2): $0.04/sh | Base-case USD IRR(3): 6.6% (1) Excluding acquisition transaction costs of approximately £4.9 million (2) Annualized leverage-neutral AFFO accretion 15 (3) Unlevered IRR.
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