1Q 2017 RETAIL INVESTOR PRESENTATION Contents Company Overview & Historical Risk/Reward 2 Dependable Dividends 6 Portfolio Diversification 10 Asset and Portfolio Management 16 Investment Strategy 19 Capital Structure & Scalability 23 2017 Guidance & Business Plan 27

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, 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 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.

All data as of March 31, 2017 unless otherwise specified 1 Company Overview: The Monthly Dividend Company®

Leading real estate company: . Largest net lease REIT with 4,980 properties and $22.14 billion enterprise value . Founded in 1969; NYSE listing in 1994 (NYSE ticker “O”) . Member of S&P 500 index . Member of S&P High-Yield Dividend Aristocrats® index (1)

Consistent track record: . 16.9% compound average annual shareholder return since NYSE listing in 1994 . 4.2% dividend yield, paid monthly . 4.7% compound average annual growth in dividend since NYSE listing . 78 consecutive quarters of dividend increases

(1) The S&P High Yield Dividend Aristocrats® index is designed to measure the performance of companies within the S&P Composite 1500® that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years. 2 Our Approach as “The Monthly Dividend Company®” Generate lease revenue to support the payment of growing monthly dividends

Execute long-term net lease agreements Remain disciplined Actively manage the in our acquisition portfolio to maintain underwriting high occupancy

Target well-located, Support and Freestanding, Maintain a grow monthly single-tenant, conservative dividends for commercial balance sheet shareholders properties

3 Differentiated Business Model from “Traditional” Retail REITs Lease structure and growth drivers support predictable revenue stream relative to other forms of retail real estate

Shopping Realty Income leases freestanding properties on a “triple-net” Centers and basis (tenant pays for taxes, insurance and maintenance) Malls

Initial Length of Lease 15+ Years < 10 Years Remaining Avg Term ~ 10 Years ~ 5-7 Years Responsibility for Property Expenses Tenant Landlord Gross Margin > 98% ~ 75% Volatility of Rental Revenue Low Modest / High Maintenance Capital Expenditures Low Modest / High Reliance on Anchor Tenant(s) None High Average Retail Property Size / Fungibility 11k sf / High 150k–850k sf / Low

Shopping Realty Income growth opportunities through acquisitions Centers and Malls

Target Markets Many Few External Acquisition Opportunities High Low Institutional Buyer Competition Modest High

4 Safety: Lowest Volatility, Highest Return Relative to Market Indices Long-term performance exceeds widely followed benchmark indices

Annualized Total Return Since '94 Since 1994 NYSE listing, Realty Income shares have Standard Deviation of Total Returns Since '94 outperformed benchmark indices while exhibiting lower volatility

O Equity REIT Index DJIA S&P 500 Nasdaq

Standard deviation of total returns measures deviation from average annual total returns since 1994 and uses annualized total returns for YTD period

5 DEPENDABLE DIVIDENDS

6 Dividends Matter to Long-Term Investor Returns In a low-growth, low-yield environment, consistent dividend growth generates significant value for investors

S&P 500 Index Returns: With and Without Dividends (Oct 18, 1994(1) – March 31, 2017)

Total Return % Price Change % 679% 40% of S&P 500 Index returns from 1994 through 1Q17 were attributed to dividends

405%

Oct-94 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16

Apr-95 Apr-96 Apr-97 Apr-98 Apr-99 Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17

Realty Income Index Returns: With and Without Dividends 3181% (Oct 18, 1994(1) – March 31, 2017)

Total Return % Price Change % 80% of Realty Income returns from 1994 NYSE listing through 1Q17 were attributed to dividends

644%

Oct-94 Oct-95 Oct-96 Oct-97 Oct-98 Oct-99 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16

Apr-95 Apr-96 Apr-97 Apr-98 Apr-99 Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17

(1) October 18, 1994 = Realty Income NYSE Listing Source: SNL 7 Consistent Dividends That Grow Over Time Steady dividend track record supported by inherently stable business model, disciplined execution

Strong Dividend Track Record 78 consecutive quarterly increases 91 total increases since 1994 NYSE listing $2.532 ~83.5% Annualized AFFO payout (midpoint of 2017 guidance) $2.43 4.7% compound average annualized growth rate since NYSE listing $2.29 $2.19 $2.20 0 dividend cuts since 1994 NYSE listing

® $1.82 One of only five REITs included in S&P High Yield Dividend Aristocrats index $1.75 $1.70 $1.72 $1.73 $1.64 $1.52 $1.40 $1.32 $1.20 $1.14 $1.17 $1.08 $1.11 $1.02 $0.90 $0.93 $0.945 $0.96

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD

As of April 2017 dividend declaration Annualized dividend amount reflects the December declared dividend per share annualized, with the exception of 2017, which reflects the April 2017 declared dividend annualized

8 The “Magic” of Rising Dividends: Yield on Cost, Dividend Payback Long-term, yield-oriented investors have been rewarded with consistent income

31.7% Yield on Cost 29.6% Reflects yield on cost as of 3/31/2017 assuming shareholder bought shares 24.6% 22.5% at end of each corresponding year 21.2% 19.9% 20.4% 20.4% 17.2% 14.5% 12.7% 11.7% 10.9% 10.0% 9.1% 9.4% 9.8% 7.4% 7.2% 6.3% 6.8% 5.3% 4.9% 4.4%

420% 389% Dividend Payback Reflects percentage of original investment made at each corresponding 288% year-end period paid back through dividends (as of 3/31/2017) 262% 275% 239% 236% 219% 178% 143% 119% 89% 98% 71% 67% 72% 57% 38% 33% 24% 20% 11% 6% 1%

9 PORTFOLIO DIVERSIFICATION

10 Portfolio Diversification: Tenant Diverse tenant roster, investment grade concentration reduces overall portfolio risk

6.8% Top 20 Tenants represent: 5.4% 4.1% 3.8% 53% 3.7% of annualized rental 2.6% revenue 2.6% 2.3% 2.3% 2.2% 11 1.9% Investment different industries 1.9% grade rated (1) 1.9%

1.9% (1) Investment grade tenants are defined as tenants with a credit rating of Baa3/BBB- or 1.8% higher from one of the three major rating agencies (Moody’s/S&P/Fitch). 45% of our annualized rental revenue is generated Nine 1.8% from properties leased to investment grade tenants, including approximately 8% from Investment grade rated 1.8% properties leased to subsidiaries of investment grade companies. tenants 1.6% 1.2% 1.2%

11 Top Tenant Exposure: 2009 vs. Today Top 15 tenants represent higher quality credit, less cyclical industries and greater diversification vs. 2009

Top 15 Tenants as of YE 2009 Top 15 Tenants as of 1Q 2017

Tenant Industry % of Rent Tenant Industry % of Rent Hometown Buffet Casual Dining 6.0% Drug Stores 6.8% Kerasotes Showplace Theatres Theatres 5.3% FedEx Transportation 5.4% L.A. Fitness Health & Fitness 5.3% Dollar Stores 4.1% The Pantry Convenience Stores 4.3% L.A. Fitness Health & Fitness 3.8% Friendly’s Casual Dining 4.1% / Family Dollar Dollar Stores 3.7% Rite Aid Drug Stores 3.4% AMC Theatres Theatres 2.6% La Petite Academy Child Care 3.3% Circle K / The Pantry Convenience Stores 2.6% TBC Corporation Auto Tire Services 3.2% / Sam’s Club Grocery / Wholesale 2.3% Boston Market QSR 3.1% BJ’s Wholesale Club Wholesale Clubs 2.3% Couche-Tard / Circle K Convenience Stores 3.0% Treasury Wine Estates Beverages 2.2% NPC / Pizza Hut QSR 2.6% Super America / Western Refining Convenience Stores 1.9% FreedomRoads / Camping World Sporting Goods 2.6% CVS Pharmacy Drug Stores 1.9% KinderCare Child Care 2.5% GPM Investments / Fas Mart Convenience Stores 1.9% Theatres 2.3% Regal Cinemas Theatres 1.9% Sports Authority Sporting Goods 2.0% Rite Aid Drug Stores 1.8% Total % of Rent - Top 15 Tenants 53.0% Total % of Rent - Top 15 Tenants 45.2% Investment Grade % - Top 15 Tenants 3.2% Investment Grade % - Top 15 Tenants 23.1% #1 Industry – Restaurants 21.3% #1 Industry – Drug Stores 11.1% #2 Industry – Convenience Stores 17.0% #2 Industry – Convenience Stores 9.9%

Bold tenants represent investment-grade rated credit 12 Portfolio Diversification: Industry No industry represents more than 11.1% of rent Exposure to defensive industries: Top 10 industries represent strong diversification, significant exposure to non-discretionary, low price-point, service-oriented industries

Industry Retail Characteristics

Drug Stores Non-Discretionary 11.1%

Convenience Stores Service-Oriented 9.9%

Dollar Stores Non-Discretionary, Low Price Point 8.0%

Health and Fitness Non-Discretionary, Service-Oriented 7.5%

Transportation Services N/A (Non-Retail Exposure) 5.4%

Quick-Service Restaurants Low Price Point, Service-Oriented 5.0%

Theaters Low Price Point, Service-Oriented 4.6%

Casual Dining Restaurants Service-Oriented 3.8%

Grocery Stores Low Price Point 3.6%

Wholesale Clubs Non-Discretionary 3.3%

13 Portfolio Diversification: Geography Balanced presence in 49 states and Puerto Rico

1.0 <1 <1 <1 <1 <1 <1 3.5 1.4 <1 <1 2.3 2.2 4.4 <1 <1 <1 1.4 <1 <1 2.6 1.7 5.5 3.0 5.2 <1 <1 9.4 1.6 <1 1.7 3.1 2.8 1.4 1.4 2.8 3.1 % of Rental Revenue 1.6 <1 2.3 <1 2.1 Texas 9.7% 1.6 1.9 4.5 1.4 9.7 California 9.4% Florida 5.9% <1 5.9 Illinois 5.5% <1 Ohio 5.2% PUERTO RICO Georgia 4.5% Represents percentage of rental revenue %

14 Portfolio Diversification: Property Type Roots in retail with growing exposure to mission-critical industrial properties RETAIL INDUSTRIAL OFFICE AGRICULTURE

Percentage of Rental Revenue

79.5% 12.9% 5.3% 2.3% Number of Properties

4,810 111 44 15

Average Leasable Square Feet

11,614 221,918 77,345 12,300 Percentage of Rental Revenue from Investment Grade Tenants 37.2% 79.6% 90.9% -

15 ASSET AND PORTFOLIO MANAGEMENT

16 Active Management: Leasing and Dispositions Proven track record of value creation, cash flow preservation and risk mitigation

Healthy Leasing Results Portfolio Management 99% recapture of expiring rents since 1996  Largest department in the company • Over 2,300 rollovers • Includes renewals and re-leases to new tenants  Distinct management verticals YTD 2017 lease rollover activity  Retail • Re-leased 49 properties with expiring leases  Non-Retail – 46 re-leased to same tenant (94%)  Leasing & dispositions – 3 re-leased to new tenant (6%) – Recaptured 104% of expiring rent

Asset Management Favorable Returns, Lower Portfolio Risk  Maximizing value of real estate $531 million of dispositions since 2010  Strategic and opportunistic dispositions • 2014: 6.9% cap rate / 11.6% unlevered IRR  Value-creating development • 2015: 7.6% cap rate / 12.1% unlevered IRR  Risk mitigation • 2016: 7.3% cap rate / 8.5% unlevered IRR • YTD 2017: 8.3% cap rate / 9.8% unlevered IRR

17 Consistency: Steady Portfolio, Solid Fundamentals Consistent occupancy, same-store rent growth reflect limited operational volatility

Consistent Occupancy Levels, Never Below 96%

99.1% 99.2% 99.5% 98.4% 97.7% 98.2% 97.7% 98.1% 97.9% 98.5% 98.7% 97.9% 97.0% 96.8% 96.6% 96.7% 97.2% 98.2% 98.4% 98.4% 98.3% 98.3%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q17 Based on % of properties occupied

Sustained High Occupancy Rates Steady Same-Store Rent Growth • Careful underwriting at acquisition 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% 1.1% 1.1% 1.1% • Solid retail store performance 0.9% • Strong underlying real estate quality • Favorable tenant industries • Prudent disposition activity  Annual same-store rent growth run rate of 1.0% - 1.2% • Proactive management of rollover  Long lease terms limit annual volatility

18 INVESTMENT STRATEGY

19 Investment Strategy: Underwriting Approach Real estate focused / Motivated to exceed long-term cost of capital

Retail Non-Retail (principally Industrial)  Strong unit-level cash flow  Significant markets (generally MSAs coverage (specific to each industry) of ≥350,000 people) and/or mission critical locations  Tenants with service, non- discretionary, and/or low price  Primarily industrial and distribution point component to their business properties leased to Fortune 1000, investment grade rated tenants  Favorable sales and demographic  Long lease duration trends

• Property attributes – Quality of real estate, age, size, fungibility • Market review – Strategic locations critical to generating revenue • Demographic analysis – Five-mile population density, household income, unemployment trends REAL ESTATE • Valuation – Replacement cost, market rents, initial cash yield, IRR over initial lease term ANALYSIS • Property due diligence – Site visits, vehicle traffic, industry, property type, title, environmental, etc.

• Financial review and analysis • Tenant research – Reliable, sustainable cash flow CREDIT • Industry research – Defensive, resilient to macroeconomic volatility ANALYSIS • Discussion with key management representatives

20 Investment Strategy: Results of Conservative Underwriting Industry exposure reflects defensive, cycle-resilient business models

Over 90% of retail portfolio: Top non-retail tenants: Has service, non-discretionary and/or low price Comprised primarily of investment grade tenants point component such as FedEx, Boeing, GE, Diageo, Walgreens

Service-Oriented Non-Discretionary Low Price Point E-COMMERCE RESILIENT DEFENSIVE CONSUMER RESILIENT

• Health & Fitness • Drug Stores • Dollar Stores • Theaters • Grocery Stores • Wholesale Clubs • Convenience Stores • Automotive Services • Quick Service Restaurants

21 Investment Strategy: Disciplined Execution Consistent, selective underwriting philosophy on strong sourced volume

Key Metrics Since 2010 (Excluding $3.2 billion ARCT transaction): $3.6 billion 80% 60% in non-investment grade of volume associated with of volume leased to $9.3 billion retail acquisitions retail properties Investment grade tenants in property-level acquisition volume Broad blend Relationship-driven of one-off, portfolio and entity-level deals >80% of closed volume since 2010 2013 (Ex- 2010 2011 2012 2014 2015 2016 2017 YTD ARCT)

Investment Volume $714 mil $1.02 bil $1.16 bil $1.51 bil $1.40 bil $1.26 bil $1.86 bil $371 mil

# of Properties 186 164 423 459 507 286 505 60

Initial Avg. Cap Rate 7.9% 7.8% 7.2% 7.1% 7.1% 6.6% 6.3% 6.1%

Initial Avg. Lease Term 15.7 13.4 14.6 14.0 12.8 16.5 14.7 16.4 (yrs)

% Investment Grade 46% 40% 64% 65% 66% 46% 64% 68%

% Retail 57% 60% 78% 84% 86% 87% 86% 99%

Sourced Volume $6 bil $13 bil $17 bil $39 bil $24 bil $32 bil $28 bil $11 bil

Selectivity 12% 8% 7% 4% 6% 4% 7% 3%

Relationship Driven 76% 96% 78% 66% 86% 94% 81% 85%

22 CAPITAL STRUCTURE AND SCALABILITY

23 Conservative Capital Structure Modest leverage, low cost of capital, ample liquidity provides financial flexibility

Common Stock: $16.28 billion – 73.5%

• Shares/Units outstanding – 273.5 million Debt 26.5% Debt: $5.86 billion – 26.5%

• Unsecured Notes/Bonds - $4.7 billion Common • Unsecured Term Loans - $320 million Stock • Unsecured Ratings - BBB+/Baa1/BBB+ • Mortgages - $458 million 73.5% • Revolving Credit Facility - $0 • Class F Preferred Shares - $409 million 1 (Subject to Mandatory Redemption) Total Capitalization: $22.14 billion

1 Redeemed with borrowings on our revolving credit facility in April 2017

24 Well-Laddered Debt Maturity Schedule Limited re-financing and variable interest rate risk throughout debt maturity schedule Laddered Maturity Schedule with Primarily Unsecured Investment Grade Rated Debt Key Metrics (2) $1,400 Weighted average interest rate (1) • 93% fixed rate debt $1,200 4.1% • Weighted average rate $1,000 4.7% of 4.15%(1) on debt

$800 4.6% • Staggered, 8.1-year weighted 4.1% average term for notes/bonds $600 3.6%

2.2% • Ample liquidity with >$1.6B Debt MaturitiesDebt ($mm) 3.9% available on revolver (L+90bps) $400 3.2% 5.7% 5.4% • Free cash flow of ~$120mm/yr $200

5.8% $0 (1) Weighted average interest rates reflect variable-to- 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027+ fixed interest rate swaps on term loans

(2) As of April 7, 2017 (pro forma for Series F Preferred Unsecured Notes Mortgages Revolver Term Loan Stock redemption in April 2017 with borrowings on revolving line of credit)

25 Efficient Business Model with Economies of Scale Lease structure and scalability of business model contributes to high margins

• Lowest G&A expenses (as % of rental revenue) in the net lease industry

• G&A efficiency and EBITDA margins have improved as company has grown larger

• Current EBITDA margin of 93%; never lower than 90% since 1998

G&A as % of Rental Revenue1

5.8% 4.7%

Adjusted EBITDA per Employee ($000s) $7,124

$2,211

1 G&A includes acquisition transaction costs; percentage of rental revenue calculation excludes tenant reimbursements from denominator YTD figures represent MRQ annualized, where applicable 26 2017 Guidance Consistent earnings growth while maintaining conservative leverage metrics

Earnings

$3.00 - $3.06 FFO/sh (4.2% - 6.3% growth) $3.00 - $3.06 AFFO/sh (proxy for cash earnings) (4.2% - 6.3% growth)

Key Assumptions

Acquisitions $1.0 billion Dispositions $75 million - $100 million Occupancy 98% Same-store revenue growth 1.0% - 1.2%

65% common equity Target capital structure 35% debt & preferred equity

27 Business Plan

• Pay 12 monthly dividends • Raise the dividend • Remain disciplined in our acquisitions underwriting approach • Acquire additional properties according to our selective investment strategy • Maintain high occupancy through active portfolio management • Maintain a conservative balance sheet • Continue to grow investor interest in The Monthly Dividend Company®

NYSE: “O”

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