SECOND QUARTER 2020 RETAIL INVESTOR PRESENTATION · (2) AFFO through most recent calendar year/...

RETAIL INVESTOR PRESENTATIONSECOND QUARTER 2020

Contents

Investment Thesis 4

Company Overview 5

Summary of COVID-19 Impact 8

Performance Track Record 11

Dependable Dividends 15

Portfolio Diversification 19

Asset Management & Real Estate Operations 26

Investment Strategy 29

Capital Structure and Scalability 32

Corporate Responsibility 36

Business Plan 38

Appendix 39

All data as of June 30, 2020 unless otherwise specified2

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 thecompany’s actual future results to differ materially from expected results. These risks include,among others, general economic conditions, domestic and foreign real estate conditions, tenantfinancial health, the availability of capital to finance planned growth, volatility and uncertainty inthe credit markets and broader financial markets, changes in foreign currency exchange rates,property acquisitions and the timing of these acquisitions, charges for property impairments, theeffects of the COVID-19 pandemic and the measures taken to limit its impact, the effects ofpandemics or global outbreaks of contagious diseases or fear of such outbreaks, the company'stenants' ability to adequately manage its properties and fulfill their respective lease obligations tothe company, and the outcome of any legal proceedings to which the company is a party, asdescribed 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 currentoperating plans and estimates. Actual operating results may differ materially from what isexpressed or forecast in this press release. The company undertakes no obligation to publiclyrelease the results of any revisions to these forward-looking statements that may be made toreflect events or circumstances after the date these statements were made.

3

Investment ThesisBusiness model offers attractive total return with minimal cash flow volatility

4

PROVEN TRACK RECORD OF RETURNS

PREDICTABLE CASH FLOW

POTENTIAL GROWTH OPPORTUNITIES

15.3%

0.4

23 of 24

94.0%

$12 Trillion

$57 Billion

Compound Average Annual Total Return Since

‘94 NYSE Listing

Beta vs. S&P 500

Years with Positive Earnings Per Share

Growth(1)

Adjusted EBITDAre Margin

Corporate-Owned Real Estate in the US

and Europe

Sourced Acquisition Opportunities in 2019

(1) AFFO / Excludes positive earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations

Realty Income Company Overview

5

S&P 500 REAL ESTATE COMPANY

DIVERSIFIED, HIGH-QUALITY“NET LEASE” PORTFOLIO

TRACK RECORD OF SAFETY AND CONSISTENCY

$28B enterprise value

1 of only 2 REITs in both categories

Member of S&P 500 Dividend Aristocrats® index

1 of 8 U.S. REITs with at least two A3/A- ratings

6,541commercial real estate properties

84% of rent generated

from retail properties

~600 tenants(1)

50 industries

49 U.S. states, Puerto Rico, and the U.K.

A3 / A-

(1) Starting Q2 2020, we are consolidating some subsidiaries that we previously accounted for as separate entities into their parent companies(2) 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

15.3%TSR since 1994

NYSE listing

$1.6B annualized base

rent

51years of operating

history

credit ratings by Moody’s and S&P

23 OF 24years of positive earnings

per share(2) growth

9.0years weighted

average remaining lease term

0.4beta vs. S&P 500 since 1994 NYSE

listing

5.1%median

earnings per share(2) growth

48%of rent from

investment-grade rated tenants

94.0%adjusted EBITDAremargin

Business model has generated above-market returns with below-market volatility since 1994

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

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 12k sf / High 150k–850k sf / Low

Target Markets Many Few

External Acquisition Opportunities High Low

Institutional Buyer Competition Modest High

Ample external growth opportunities

Unique “net lease” structure drives lower cash flow volatility Shopping Centers

and Malls

Shopping Centers

and Malls

6

Progression to a Blue-Chip, S&P 500 REIT

1969 1994 1996 2011 2013 2014 2015 2016 2017 2018 2019

Realty

Income

founded by

William and

Joan Clark

Received

investment-

grade credit

ratings from

Moody’s,

S&P, and

Fitch

Began

trading on

the NYSE

under ticker

symbol “O”

Completed

$1 billion in

annual

property

acquisitions

for first time

Closed

acquisition

of American

Realty

Capital Trust

for

$3.2 billion

Surpassed

$3 billion in

common

stock

dividends

paid to

shareholders

Added to

S&P High

Yield

Dividend

Aristocrats®

and S&P 500

Index

Eclipsed

$1 billion in

annual

rental

revenue

Credit

rating

upgraded to

“A3” by

Moody’s

Credit

rating

upgraded to

“A-” by

Standard &

Poor’s

Completed

first

international

acquisition

(Sainsbury’s

in the UK)

7

2020

Added to

S&P 500

Dividend

Aristocrats®

index

Summary of COVID-19 ImpactCollections continue to trend higher; abatements and lease modifications have been immaterial

8

(1) Investment grade tenants are defined as tenants with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). ~48% of our annualized rental revenue is generated from properties leased to investment grade tenants, their subsidiaries or affiliated companies.(2) Reflects percentage of revenue (excluding reimbursables) for 2Q20

90.5%95.8% 97.4% 100.0%

Retail Office Industrial Agriculture

July Rent Collections by Property

Type

Received 91.5% of contractual rent across total portfolio

Received 90.7% of contractual rent from Top 20 tenants

Received 100% of contractual rent from Investment Grade tenants(1)

Top four industries sell essential goods and paid 99.7% of rent

• Convenience, Drug, Dollar and Grocery stores represent 37% of rent(2)

Theater industry represents ~59% of uncollected July rent

July 2020 Rent Collection Metrics

2Q 2020 Rent Collection Metrics (Updated as of 7/31/20)

Received 86.5% of contractual rent across total portfolio

Received 82.5% of contractual rent from Top 20 tenants

Received 99.1% of contractual rent from Investment Grade tenants(1)

Top four industries sell essential goods and paid 99.7% of rent

Theater, Health & Fitness, Restaurant and Child Care industries represent ~87% of uncollected 2Q rent

Abatements/Lease Modifications represent ~5bps of contractual rent due

Bad Debt Expense (cash) represents ~1.5% of contractual rent due

84.4%

97.0% 99.0% 100.0%

Retail Office Industrial Agriculture

Q2 2020 Rent Collections by

Property Type

99%

100% 100% 100%

47%3%

85% 100% 85%100% 100% 85% 100% 61% 92% 100% 100% 100% 100% 99%

12.1%

8.7% 8.5% 7.9%7.2%

6.0% 5.7%

4.2%3.1%

2.9% 2.8% 2.5% 2.4% 2.2% 2.1% 2.0% 1.9% 1.6% 1.6% 1.7%

Q2 2020 Rent Collections

% of Q2 Contractual Rent Collected % of Q2 Contractual Rent Not Collected

Rent Collections from Top 20 IndustriesTenants operating in core industries selling ‘essential goods’ paid almost all rent due in July and Q2 2020

9Sorted by percentage of total contractual rent due for July and Q2 2020

As of July 31, 2020

Received 86.5% of contractual rent due for Q2 2020

99%

100% 100% 100% 88%

16%

87% 100% 88%100% 100% 92% 100% 85% 100% 100% 100% 93% 100% 99%

12.2%

8.7% 8.5% 7.9% 7.1%

5.9% 5.7%

4.2%3.1% 2.9% 2.8% 2.5% 2.4% 2.2% 2.0% 2.0% 1.9% 1.6% 1.6% 1.7%

July Rent Collections

% of July Contractual Rent Collected % of July Contractual Rent Not Collected

Received 91.5% of contractual rent due for July 2020

Cyclical Comparison – Entered Current Recession from a Position of Strength

Favorable balance sheet, scale and capital markets backdrop relative to Great Financial Crisis

10

(1) Includes revolver availability (excluding the accordion feature, which is subject to obtaining lender commitments), cash and ST investments at the end of each period(2) Based on all-in drawn borrowing rate at end of each period(3) 2009 American Recovery and Reinvestment Act and 2020 CARES Act (excludes ~$2.3 trillion in Fed facilities) / size estimates as of time of passage

Net Debt / Adjusted EBITDARre

Total Debt / Total Market Capitalization

Credit Ratings (Moody’s / S&P)

5.1x

27.8%

A3 / A-

5.7x

33.7%

Baa1 / BBB

SCALE AND LIQUIDITY YE 2007 Q2 2020

LEVERAGE AND CREDIT RATINGS

CAPITAL MARKETS BACKDROP

Revolver Interest Rate (All-in)(2)

10-Year US Treasury Yield

Amount of Fiscal Stimulus(3)

5.2%

4.02%

~$800 billion

0.94%

0.66%

>$2 trillion

Enterprise Value (in billions)

Available Liquidity (in millions)(1)

Fixed Charge Coverage Ratio

$4.3

$593

3.1x

$28.1

$2,707

5.4x

YE 2007 Q2 2020

YE 2007 Q2 2020

PERFORMANCE TRACK RECORD

Our Approach and 2Q20 Results

12

Acquire well-located commercial properties

✓ ~$154 million in acquisitions1

Remain disciplined in our acquisition underwriting

✓ Acquired ~1% of sourced volume2

Execute long-term net lease agreements

✓ ~12 years weighted average lease term on new acquisitions3

Actively manage portfolio to maximize value

✓ Ended quarter at 98.5% occupancy4

Maintain a conservative balance sheet

✓ Ended quarter with Net Debt/Adjusted EBITDAre ratio of 5.1x5

Grow per share earnings and dividends

✓ AFFO/sh growth: +4.9% | Dividend/sh growth: +3.1%

Track Record of Favorable Returns to Shareholders Since 1994 NYSE listing, Realty Income shares have outperformed benchmark indices

15.3%

10.5% 10.1% 10.0% 9.7%

O Nasdaq Composite DJIA Equity REIT Index S&P 500

Compound Average Annual Total Shareholder Return Since 1994

13

60%

40%

Stocks and Bonds

14

Track Record of Favorable Risk-Adjusted Returns to Shareholders Adding Realty Income to a balanced portfolio generates higher return with lower risk

50%

40%

10%

0%With 10% REITs

Stocks Bonds REITs Realty Income

50%

40%

10%

With 10% “O”

Return 8.5%

Risk 12.2%

Return 8.5%

Risk 11.6%

Return 9.0%

Risk 11.1%

This is for illustrative purposes only and not indicative of any investment. Past performance is no guarantee of future results.Return (portfolio total return including dividends) and risk (standard deviation of returns) calculated for a period from 1/1/1995 through 6/30/2020. Stocks – S&P 500 Index, Bonds – Bloomberg Barclays US Aggregate Corporate Bond Index, REITs – MSCI US REIT Total Return Index (RMS)Source: Bloomberg

Realty Income’s above-market returns with below-market

volatility improve performance of a balanced portfolio

DEPENDABLE DIVIDENDS

3,706%

644%

Total Return Price Change

989%

563%

Total Return Price Change

16

Dividends Matter to Long-Term Investor Returns

43% of S&P 500 Index

returns from 1994

through Q2 2020 were

attributed to dividends

83% of Realty Income

returns from 1994 NYSE

listing through Q2 2020

were attributed to

dividends

S&P 500 Index Returns: With and Without Dividends (Oct 18, 1994(1) – June 30, 2020)

Realty Income Returns: With and Without Dividends (Oct 18, 1994(1) – June 30, 2020)

(1) October 18, 1994 = Realty Income NYSE Listing

Source: Bloomberg

In a low growth, low-yield environment, consistent dividend growth generates significant value for investors

Dependable Dividends That Grow Over TimeSteady dividend track record supported by inherently stable business model, disciplined execution

$0.90 $0.91 $0.93 $0.95 $0.98 $1.04

$1.09 $1.12 $1.15 $1.18

$1.24

$1.35

$1.44 $1.56

$1.66 $1.71 $1.72

$1.74 $1.77

$2.15 $2.19

$2.27

$2.39

$2.53

$2.65 $2.73

$2.802

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

YTD

Strong Dividend Track Record

91 consecutive quarterly increases

107 total increases since 1994 NYSE listing

81.5% AFFO payout (based on Q2 2020 AFFO/sh annualized)

4.5% compound average annualized growth rate since NYSE listing

One of only three REITs included in S&P 500 Dividend Aristocrats® index

(1) As of July 2020 dividend declaration (annualized) 17

(1)

18

528%

490%

365%335%

307% 306%

359%

289%

237%192%

162%123% 138%

103% 99% 109%91%

64% 57% 45% 43% 29%23% 16% 12% 7% 2%

Reflects percentage of original investment made at each corresponding year-

end period paid back through dividends (as of 6/30/2020)

Dividend Payback

35%33%

25%23%

22% 23%

27%

23%19%

16%14%

11%13%

10% 10%12%

11% 8% 8% 7% 8%6% 5% 5% 5% 4% 4% 5%

Reflects yield on cost assuming shareholder bought shares at end of each

corresponding year (as of 6/30/2020)

Yield on Cost

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

PORTFOLIO DIVERSIFICATION

Portfolio Diversification: TenantDiverse tenant roster, investment grade concentration reduces overall portfolio risk

20

Orange represents investment grade tenants that are defined as tenants with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch).

48% of our annualized rental revenue is generated from properties leased to investment grade tenants, their subsidiaries or affiliated companies.

TOP 20

TENANTS REPRESENT

52.8%

Of annualized rental revenue

11Different industries

Investment-grade rated tenants

6.0%

4.7%

4.5%

3.9%

3.4%

3.4%

2.9%

2.7%

2.5%

2.5%

2.4%

1.9%

1.8%

1.6%

1.6%

1.6%

1.5%

1.4%

1.2%

1.2%

12

Low Price Point

Service / Experiential

Top 20 Tenants Highly Insulated from Changing Consumer BehaviorAll top 20 tenants fall into at least one category (Service, Non-Discretionary, Low Price Point Retail or Non-Retail)

Non-Retail

Walmart represented by Neighborhood Markets and Sam’s Club 21

Non-Discretionary

http://en.wikipedia.org/wiki/File:Dollar_General_logo.png

Total % of Rent - Top 15 Tenants 45.8%

Investment Grade % - Top 15 Tenants 28.5%

#1 Industry – Convenience Stores 12.0%

#2 Industry – Drug Stores 9.1%

Total % of Rent - Top 15 Tenants 53.0%

Investment Grade % - Top 15 Tenants 3.2%

#1 Industry – Restaurants 21.3%

#2 Industry – Convenience Stores 17.0%

Top Tenant Exposure: 2009 vs. TodayLess cyclicality and superior credit and diversification vs. prior downturn

22

TOP 15 TENANTS AS OF YE 2009 TOP 15 TENANTS AS OF Q2 2020

Tenant Industry % of Rent

Hometown Buffet Casual Dining 6.0%

Kerasotes Showplace

TheatresTheatres 5.3%

L.A. Fitness Health & Fitness 5.3%

The Pantry Convenience Stores 4.3%

Friendly’s Casual Dining 4.1%

Rite Aid Drug Stores 3.4%

La Petite Academy Child Care 3.3%

TBC Corporation Auto Tire Services 3.2%

Boston Market QSR 3.1%

Couche-Tard / Circle K Convenience Stores 3.0%

NPC / Pizza Hut QSR 2.6%

FreedomRoads / Camping

WorldSporting Goods 2.6%

KinderCare Child Care 2.5%

Regal Cinemas Theatres 2.3%

Sports Authority Sporting Goods 2.0%

Tenant Industry % of Rent

Walgreens Drug Stores 6.0%

7-Eleven Convenience Stores 4.7%

Dollar General Dollar Stores 4.5%

FedEx (Non-Retail) Transportation 3.9%

Dollar Tree / Family Dollar Dollar Stores 3.4%

LA Fitness Health & Fitness 3.4%

Regal Cinemas Theaters 2.9%

AMC Theaters Theaters 2.7%

Walmart / Sam’s Club Grocery / Wholesale 2.5%

Sainsbury’s Grocery 2.5%

LifeTime Fitness Health & Fitness 2.4%

Circle K / Couche-Tard Convenience Stores 1.9%

BJ’s Wholesale Clubs Wholesale Clubs 1.8%

CVS Pharmacy Drug Stores 1.6%

Treasury Wine Estates

(Non-Retail)Beverages 1.6%

Bold tenants represent investment-grade rated credit

Service-Oriented

Non-Discretionary

N/A (Non-Retail Exposure

Portfolio Diversification: IndustryExposure to 50 industries enhances predictability of cash flow (See Appendix for Industry Theses)

Exposure to defensive industries:96% of total portfolio rent is protected against retail e-commerce threats and economic downturns

Non-Discretionary

Service-Oriented

Non-Discretionary, Low Price Point

Low Price Point

❶Convenience Stores: 12.0%Service-oriented

❷ Drug Stores: 9.1%Non-discretionary

❹Grocery: 8.0%(1)

Non-discretionary

❸ Dollar Stores: 8.1%Non-discretionary, Low price point

❼ Quick-Service Restaurants: 4.8%Low price point, Service-oriented

❻ Theaters: 6.3%Low price point, Service-oriented

❺ Health & Fitness: 7.1%Non-discretionary, Service-oriented

23

80% of Total Rent:

Retail with at least one of the following components:

Non-Discretionary(Low cash flow volatility)

Low Price-Point(Counter-cyclical)

Service-Oriented(E-commerce resilient)

16%Non-retail

(E-commerce resilient)4% Other

(1) Includes grocery stores in the U.S. and the U.K., which represent 5.0% and 3.0% of rental revenue for the quarter ended 6/30/2020, respectively

Portfolio Diversification: GeographyBalanced presence in 49 states, Puerto Rico and the United Kingdom

<1

1.0

<1

<1

<1

<1

<1

2.3

<1

1.5

<1

<1

<1

1.6

2.1

2.9

1.1

2.4

<1

1.6

1.5 2.0 3.7

2.2

2.9

3.1

2.32.4

2.7

1.4

2.3

<12.8

<1

Puerto Rico <1

<1<1<1

1.2

<1

1.0

2.0

<1

1.7

8.8

10.7

5.7

4.4

4.2

5.3

Texas 10.7%

California 8.8%

Illinois 5.7%

Florida 5.3%

Ohio 4.4%

New York 4.2%

Top 6 States

% of Rental Revenue

Figures represent percentage of rental revenue for the quarter ended June 30, 2020 24

United Kingdom 3.1

Portfolio Diversification: Property TypeCore exposure in retail and industrial single-tenant freestanding net lease properties

25

RETAIL (83.9%)

Number of Properties: 6,364

Average Leasable Square Feet: 12,000

Percentage of Rental Revenue

from Investment Grade Tenants: 43.9%

OFFICE (3.5%)

Number of Properties: 43




INDUSTRIAL (10.9%)





AGRICULTURE (1.7%)(1)




from Investment Grade Tenants: -

(1) Excludes 3,300 acres of leased land categorized as agriculture at June 30, 2020

ASSET MANAGEMENT &

REAL ESTATE OPERATIONS

Actively-Managed Real Estate PortfolioProven track record of value creation, cash flow preservation and risk mitigation

✓ Largest department in the company

✓ Distinct management verticals

✓ Retail

✓ Non-Retail

✓ Leasing & dispositions

✓ Maximizing value of real estate

✓ Strategic and opportunistic dispositions

✓ Value-creating development

✓ Risk mitigation

Healthy Leasing Results

6.9%7.6% 7.3% 7.1%

11.5%

8.1%

6.2%

11.6%12.1%

8.5%

9.9%

8.1% 8.3%

10.5%

2014 2015 2016 2017 2018 2019 YTD

2020Cap Rate on Occupied Dispositions

Unlevered IRR on All Dispositions 27

94.9%

% Re-leased to Existing Tenants

% Re-leased to New Tenants

Blended rent recapture

rate of 100.1% on expired

leases

YTD 2020

Renewal / New Lease Split

Favorable Returns on Dispositions

Asset Management &

Real Estate Operations

1.4%1.5%

1.3%1.2%

1.0%0.9%

1.6%

-0.2%(1)

2013 2014 2015 2016 2017 2018 2019 YTD 2020

Steady Same-Store Rent Growth

✓ Annual same-store rent growth run rate of ~1.0%

✓ Long lease terms limit annual volatility

Consistency: Steady Portfolio, Solid FundamentalsFocus on quality underwriting and real estate supports predictable cash flow generation

Consistent Occupancy Levels, Never Below 96%

˃ Careful underwriting at acquisition

˃ Solid retail store performance

˃ Strong underlying real estate quality

˃ Healthy tenant industries

˃ Prudent disposition activity

˃ Proactive management of rollovers

Tenets of Consistency:

28(1) Includes $12.9 million of deferred rent we granted as a result of COVID-19, and $35.9 million of uncollected Q2 rent where we have not granted a lease concession. As of June 30, 2020, we deemed collection of $48.8 million of unpaid rent as probable over the existing lease term. Excluding rent deferrals and uncollected rent amounts, 2Q20 and 1H20 same-store rent would have been (14.1%) and (6.5%), respectively.

INVESTMENT STRATEGY

Investment Strategy: Key ConsiderationsCost of capital advantage, size, track record represent competitive advantage

30

COMPETITIVE ADVANTAGES VS. NET LEASE PEERS

Supports investment selectivity

Drives faster earnings growth (wider margins)

Critical in industry reliant on external growth

Ability to buy “wholesale” (at a discount) without creating tenant concentration issues

Access to liquidity ($3 billion multi-currency revolver, with $1 billion accordion feature, which is subject to obtaining lender commitments)

Relationships developed since 1969

1

2

3

1

2

3

SIZE AND TRACK RECORDLOW COST OF CAPITAL

$16.6 billionin property-level acquisition volume

87%of volume associated with

retail properties

51%of volume leased to

Investment grade tenants

Investment Strategy: Disciplined ExecutionConsistent, selective underwriting philosophy on strong sourced volume

2010 2011 20122013

(Ex-ARCT)2014 2015 2016 2017 2018 2019

YTD

2020

Investment Volume $714 mil $1.02 bil $1.16 bil $1.51 bil $1.40 bil $1.26 bil $1.86 bil $1.52 bil $1.80 bil $3.72 bil $640 mil

# of Properties 186 164 423 459 507 286 505 303 764 789 94

Initial Avg. Cap Rate 7.9% 7.8% 7.2% 7.1% 7.1% 6.6% 6.3% 6.4% 6.4% 6.4% 6.1%

Initial Avg. Lease

Term (yrs)15.7 13.4 14.6 14.0 12.8 16.5 14.7 14.4 14.8 13.5 13.6

% Investment Grade 46% 40% 64% 65% 66% 46% 64% 48% 59% 36% 37%

% Retail 57% 60% 78% 84% 86% 87% 86% 95% 96% 95% 97%

Sourced Volume $6 bil $13 bil $17 bil $39 bil $24 bil $32 bil $28 bil $30 bil $32 bil $57 bil $33 bil

Selectivity 12% 8% 7% 4% 6% 4% 7% 5% 6% 7% 2%

Relationship Driven 76% 96% 78% 66% 86% 94% 81% 88% 89% 89% 88%

Key Metrics Since 2010 (Excluding $3.2 billion ARCT transaction):

31Low selectivity metrics reflect robust opportunity set, disciplined investment parameters, and cost

of capital advantage

CAPITAL STRUCTURE AND SCALABILITY

24%

2%1%1%

Common Stock,

72%

Net Debt,

28%

Unsecured Notes: $6.64 billion

Revolving Credit Facility: $629 million

Unsecured Term Loans: $250 million

Mortgages: $394 million

Equity Market Cap: $20.6 billion

Conservative Capital StructureModest leverage, low cost of capital, ample liquidity provides financial flexibility

Unsecured Debt Ratings: Moody’s A3 | S&P A- | Fitch BBB+

33Debt amounts reflect principal value / Numbers may not foot due to rounding(1) The revolver has a $1 billion accordion feature, which is subject to obtaining lender commitments.

Total Enterprise Value: $28.1 billion

(1)

$70 $69

$1,062

$1,399

$712

$501

$651$601

$551$501

$1,798

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

Unsecured Notes Mortgages Revolver Term Loan GBP Denominated Notes

7.4 Years

Weighted Average Years Until Maturity

3.6%Weighted Average

Interest Rate(1)

Debt Profile

Laddered, Largely Fixed-Rate, Unsecured Debt StackLimited re-financing and variable interest rate risk throughout debt maturity schedule

All amounts are in millions unless stated otherwise(1) Weighted average interest rates reflect variable-to-fixed interest rate swap on the term loan as of 6/30/2020(2) GBP denominated private placement of £315 million, which approximates $390.6 million using relevant conversion rate at quarter end(3) As of June 30, 2020, the outstanding revolver balance was $628.6 million, including £329.5 million(4) The revolver has a $1 billion accordion feature, which is subject to obtaining lender commitments(5) In July 2020, we issued $350 million of 3.25% senior unsecured notes due in January 2031

34

Unsecured

Secured

Fixed Rate

Variable

Rate

Revolver

Availability

Revolver

Balance

95%Unsecured

92%Fixed

$2.4BAvailable on Revolver(4)

£(2)

(3)

(5)

Scalability as a Competitive AdvantageLeaders in the net lease industry in efficiency and ability to buy in bulk

5.8%

4.6%

G&A as % of Rental Revenue(1)

(1) 2018 G&A excludes $18.7 million severance to former CEO paid in 4Q18 | 2020 G&A excludes $3.5 million severance to former CFO paid in 1Q20 | percentage of rental

revenue calculation excludes tenant reimbursements(2) Assumes 6.5% cap rate

64 bps

35 bps

G&A as % of Gross RE Book Value (bps)

92.4% 94.0%

Adjusted EBITDAre Margin

Larger Size Drives Superior Overhead Efficiency

35

Larger Size Provides Growth Optionality

$100 $200 $300 $400 $500 $1,000

$200 3% 6% 9% 12% 14% 25%

$400 2% 3% 5% 6% 8% 14%

$600 1% 2% 3% 4% 5% 10%

$800 1% 2% 2% 3% 4% 8%

$1,000 1% 1% 2% 3% 3% 6%

$1,600 <1% <1% 1% <2% 2% 4%

Transaction Size & Impact(2) to Rent Concentration

Current

Rent

Size allows Realty Income to pursue large sale-

leaseback transactions without compromising prudent

tenant and industry diversification metrics

in millions

Current Net Lease Peer Median: 8.9%

Current Net Lease Peer Median: 90.1%

Current Net Lease Peer Median: 71 bps

CORPORATE RESPONSIBILITY

VALUES

Environmental

Responsibility

SocialResponsibility

Corporate

Governance

• We remain committed to sustainable

business practices in our day-to-day

activities by encouraging a culture of

environmental responsibility by regularly

engaging our employees and our local

community

• As a leader in the net lease sector, we work

with our tenants to promote environmental

responsibility at the properties we own

• HQ energy efficiency, waste diversion, and water efficiency programs

• Tenant engagement with top 20 tenants (~50% of revenue) to discuss sustainable operations

• Internal “Green Team" led sustainability initiatives and education to engage employees and community

S• We are committed to providing a positive

and engaging work environment for our

team members, with best-in-class training,

development, and opportunities for growth

• Dedication to employee well-being and

satisfaction

• We believe that giving back to our

community is an extension of our mission to

improve the lives of our shareholders, our

employees, and their families

• Comprehensive employee

health and retirement benefits

• Employee engagement and

“O”verall wellbeing programs

• “Dollars for Doers” and

employee matching gift

program

• Dedicated San Diego Habitat

for Humanity volunteer day

• We believe nothing is more important than a

company’s reputation for integrity and

serving as a responsible fiduciary for its

shareholders

• We are committed to managing the

company for the benefit of our shareholders

and are focused on maintaining good

corporate governance

• Shareholder Engagement

• Board refreshment process

focusing on diversity and

expertise

• Board oversight of

environmental, social, and

governance matters

• Enterprise Risk Management

Overview Focus

Corporate ResponsibilityRealty Income strives to lead the net lease industry in Environmental, Social, and Governance initiatives

To learn more, visit https://www.realtyincome.com/corporate-responsibility 37

https://www.realtyincome.com/corporate-responsibility

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”

APPENDIX

39

Convenience Stores (12.0% of Rent)Strong store-level performance is supported by the essential nature of the business

Industry Considerations

(I) Strong performance independent of gas sales: ~70% of

gross profit generated from inside sales which is generally not

impacted by gasoline demand(1); and ~70% of inside sales are

generated by customers not buying gas(2)

(II) C-stores to grow faster than other offline channels:

Consumer focus on expediency and proximity to homes,

amplified by the desire to avoid large crowds will continue to

drive c-store industry growth(2)

(III) Larger-format stores provide stability: Larger format stores

(average size ~3,200 sf) allow for increased fresh food options

which carry higher margins

(1) Source: National Association of Convenience Stores(2) Realty Income estimates based on industry component data(3) The Nielsen Company(4) Company Reports

40

3.8%

8.2%

13.2%

5.8%6.4%

3.2%

4.9%

3.6%3.2%

2.2% 2.5%

4.5%

6.7%

3.4%

1.7%2.3% 2.4%

In-Store Same Store Sales: 17 Consecutive

Years of Positive Same-Store Sales Growth(4)

Recession

Total C-Store Sales YoY Growth

(12 week basis)(3)

0%

2%

3%

5%

6%

8%

9%

C-Store sales have remained resilient through the pandemic

Drug Stores (9.1% of Rent)Industry tailwinds, high barriers to entry, and key real estate presence support the evolution of a retail pharmacy


(I) More than a pharmacy: Both, Walgreens (VillageMD) and CVS

(HealthHUB), are becoming epicenters of healthcare delivery;

providing primary care services

(II) Real estate presence matters: Estimated 80% of U.S.

population lives within 5-mile radius of Walgreens or CVS(1)

(III) Positive brick-and-mortar fundamentals: 28 of 29 quarters

of positive pharmacy SS sales growth for Walgreens(1)

(IV) Bundled service partnerships and vertical integration

among incumbents insulates industry from outside threats

(V) High barriers to entry: Difficult for new entrants to achieve

necessary scale and PBM partnerships to compete on price

(1) Source: Company Filings | Latest reported quarter(2) Source: Drug Channel Institute

2.0%

6.4%

7.2%

5.8%

6.3%

7.8%

8.1%

9.7%

9.1% 9.3%

9.3%

3.7%

6.0%

5.0%

2.0%

4.2%

5.8%

5.6%

7.4%

5.1%

0.0%

1.3%

2.8%1.9%

6.0%

5.4%

2.5%

2.7%

3.5%

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

Walgreens: 28 of 29 Quarters of Positive

Same-Store Pharmacy Sales Growth(1)

41

~240K COVID-19 tests administered(1)

Testing capacity per month across ~1,000 drive-thru locations

COVID-19 tests administered (1)

1 in 3 people get their flu vaccines at retail pharmacies(2)

~1.5M

>300K

Physical locations matter: Drug stores as COVID neighborhood testing hubs foreshadows malleability of

physical space

0.9%

7.3%

2.0%

9.5%

4.9%

0.9%

3.2%

3.9%

5.7%

0.1%

-0.8%

4.6%

7.2%

2.4%

4.3%

1.7%

1.8%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

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20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Dollar General and Dollar Tree: Counter-Cyclical

Same-Store Sales Growth(2)

Dollar Stores (8.1% of Rent)Counter-cyclical protection due to a trade down effect and e-commerce resiliency


(I) Supportive customer demographics: Supported by the

government stimulus programs, spending for low income

households recovered quickly and is back to pre-COVID level(1)

(II) Consistent long-term performance: 30 and 14 consecutive

years of positive same-store sales growth for Dollar General and

Dollar Tree / Family Dollar, respectively

(III) E-commerce resilient:

• 75% of US population lives within 5 miles of a Dollar General

• Average basket size is $11 - $12

• Dollar store consumers primarily pay with cash

(IV) Well-performing locations: Average CFC of dollar store

portfolio is above total portfolio average

Counter-cyclical sales growth

trends supports portfolio

during recessionary periods

(1) Daily percentage change in consumer spending | Source: Affinity Solutions, Opportunity Insights Economic Tracker(2) Company Filings

42

-36.2%

-29.8%

Spending for Low Income Households

Almost Fully-Recovered(1)

Top Income Quartile

Bottom Income Quartile

-1.9%

-10.8%

0%

3/13: National

Emergency

Declared

8%14%

95%

41%

30%37%

17%

32% 29% 28%24% 22% 19% 19% 17% 20% 17%

Grocery (8.0% of Rent)

Exposure to top operators in an essential, e-commerce resistant industry


(I) Stable, necessity-based industry: Total food expenditure

accounts for ~12% of U.S. average spending and has been

growing at ~3.6% annually for the past decade(1)

(II) Resiliency to economic downturns: Flat Food At Home

expenditure during Great Recession (2009)(1) and sharp

increase during the pandemic

(III) Partnership with top operators:

• Top three tenants (Walmart Neighborhood Markets,

Sainsbury’s and Kroger) are leading operators with

differentiated business models and omni-channel platforms

26%

14%

7%

3% 2% 2%

46%

Walmart Kroger Costco UNFI Dollar

General

Amazon Other

U.S. Grocery Market Share(3)

Realty Income’s top two U.S.

grocery tenants control 40% of

U.S. grocery market share

(1) BEA and U.S. Census Bureau | Total retail sales exclude gasoline(2) The Nielsen Company(3) Barclays research, 2020

43

Weekly Food Retail Sales: Y/Y Growth{2)

Retail food sales have remained robust

through duration of pandemic

66%(3)

16%9%

5%2%

U.K. Grocery Market Share(2)

Big 4 Discounters Convenience Premium "Pure play" online

Grocery: Overview of the U.K. Grocery IndustryTraditional grocery retailers remain the core distribution channel and dominate online sales


(I) Defensive, non-discretionary industry: U.K. grocery store

sales have been growing consistently over the past 15 years

(~3%% CAGR) and currently account for 43% of total retail

sales)(4)

(II) Resiliency to e-commerce: U.K. online grocery currently

accounts for just 6% of the market and is expected to plateau

at around 8%(1)

(III) Partnership with top operator:

• Sainsbury’s is a “Blue Chip” grocery operator

• Quality product, excellent locations and differentiated

assortment are hallmarks of the Sainsbury's brand

(1) Source: IGD estimates(2) Source: Kantar World Panel | Market share for 12 weeks ending 7/12/2020(3) Big 4 market share includes all formats (supermarkets, hypermarkets, c-stores and online)(4) Office for National Statistics

44

35%

24%

18%

11%8%

5%

Supermarkets

&

hypermarkets

Convenience Small

supermarkets

Discounters Online Other

2019 U.K. Grocery Sales by Channel(1)

Traditional grocery retail formats

(supermarkets & hypermarkets)

account for ~53% of sales

Health & Fitness (7.1% of Rent)E-commerce resilient supported by favorable demographic trends


(I) Favorable consumer trends and demographic tailwinds:

Growing market as consumers increasingly value health /

Consumer surveys indicate that members are returning to

gyms as they reopen (75% of Life Time members are willing to

come back as clubs reopen, and 20% would like to come back

at a later date(1))

(II) E-commerce resilient: Service-oriented business model

makes the core real estate essential to operations

(III) Attractive margin of safety, top operators: Average CFC of

portfolio(2) allows for 40% sales drop to breakeven. Top

exposure is with #1 operator (L.A. Fitness, a low cost provider)

and premium provider that performed well during GFC (Life

Time Fitness)

Illustrative Gym Rent Coverage Sensitivity Life Time Fitness: Same-Center Revenue Growth Thru Downturn(3)

7.7% 7.3%6.1%

2.8%

(3.1%)

5.0% 5.1%4.3% 4.0%

2005 2006 2007 2008 2009 2010 2011 2012 2013

For stores open 13 months or longer

Modest revenue volatility during

economic downturns provides

ample margin of safety to landlord

45(1) According to a Life Time Fitness survey cited by Bahram Akradi, Life Time CEO, in a CNBC interview on 6/25/2020(2) Average CFC of portfolio based on locations that report sales(3) Life Time Fitness 10-K

Theaters (6.3% of Rent)Stability throughout economic cycles / Experiential component supports e-commerce resiliency


(I) Theatrical releases are significant revenue generators for

studios: Hollywood studios receive 55%-60% of theater ticket

sales, incentivizing them to distribute through the theater channel

(II) Direct-to-consumer platform revenue is limited: Consumers are

only willing to spend ~$6 for a title on streaming platforms, which

is insufficient to cover costs of production of major blockbusters

(III) Content-driven industry: Studios pushed major blockbuster

releases into late 2020 and 2021, creating a pent-up demand

(IV) Premium video on demand (PVOD) threat is mitigated:

• 75%-80% of box office revenue generated within 17 days (first

three weekends) of release(1)

• PVOD offering lacks experiential component of theaters

(1) Based on top 20 movies in 2019 46

Illustrative Theater Rent Coverage Sensitivity

2021 Film Slate is Strong

Quick-Service Restaurants (4.8% of Rent)High-quality real estate, reliable sales growth


(I) Resilient business model: QSRs are less dependent on “dine-

in” traffic as their revenue model is based on an “off-premise”

and drive-thru (historically 65%+ of sales) offerings

(II) Strong value proposition: In a recessionary environment,

consumers tend to be more value-centric and QSR operators

benefit from a “trade down” effect from casual dining consumers

(III) Fungibility of real estate: Positive re-leasing results on QSR

assets due to convenience of real estate location and modest

space footprint

Same-Store Sales Trends: QSR’s resilience through the pandemic underscored its position as the most stable

performer in the restaurant industry(1)

(1) Represents average same-store sales growth for constituents in each group | Source: Technomic, Inc. 47

-0.9%

2.0%2.6%

Q1 2020 5-Year Avg. 10-Year Avg.

QSR

-8.8%

0.0%1.1%

Q1 2020 5-Year Avg. 10-Year Avg.

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