Realty Income Corporation (Realty Income), The Monthly Dividend Company^® (NYSE: O) today announced operating results for the fourth quarter and year ended December 31, 2009. All per share amounts presented in this press release are on a diluted per common share basis, unless stated otherwise.

COMPANY HIGHLIGHTS:

For the quarter ended December 31, 2009 (as compared to the same quarterly period in 2008):

• Revenue was $81.8 million as compared to $82.2 million
• Funds from Operations (FFO) available to common stockholders increased 3.0% to $48.4 million
• FFO per share increased 2.2% to $0.47
• Net income available to common stockholders per share was $0.28
• Portfolio occupancy remained at 96.8%
• Same store rents increased 0.7% to $74.9 million
• Dividends paid per common share increased 1.2%
• The monthly dividend increased for the 49^th consecutive quarter to an annualized amount of $1.716 per share
• Invested $46.0 million in 13 new properties

For the year ended December 31, 2009 (as compared to 2008):

• Revenue was $327.6 million as compared to $327.8 million
• Funds from Operations (FFO) available to common stockholders increased 2.6% to $190.4 million
• FFO per share increased 0.5% to $1.84 per share
• Net income available to common stockholders per share was $1.03 per share
• Same store rents increased 0.4% to $299.2 million
• Invested $57.9 million in 16 new properties
• Dividends paid per common share increased 2.7%
• Paid the 473^rd consecutive monthly dividend in December 2009

Financial Results

Revenue

Realty Income''s revenue, for the quarter ended December 31, 2009, was $81.8 million as compared to $82.2 million for the same quarter in 2008. Revenue, at the end of 2009, was $327.6 million as compared to $327.8 million in 2008. Overall, comparing 2009 to 2008, revenue has generally been flat as the company now owns 2,339 properties compared to 2,348 properties at the end of 2008.

Net Income Available to Common Stockholders

Net income available to common stockholders, for the quarter ended December 31, 2009, was $29.3 million as compared to $28.3 million for the same quarter in 2008. Net income per share for the quarter was $0.28 as compared to $0.27 for the same quarter in 2008.

Net income available to common stockholders, for 2009, was $106.9 million as compared to $107.6 million for the same period in 2008. Net income per share, for 2009, was $1.03 as compared to $1.06 in 2008.

The calculation to determine net income for a real estate company includes impairments and/or gains from the sales of investment properties. The amount of impairments and/or gains on property sales varies from quarter to quarter. This variance can significantly impact net income.

During the fourth quarter of 2009, income from continuing operations available to common stockholders per share was $0.24 as compared to $0.23 for the same quarter in 2008.

During 2009, income from continuing operations available to common stockholders per share was $0.94 as compared to $0.90 in 2008.

FFO Available to Common Stockholders

FFO, for the quarter ended December 31, 2009, increased 3.0% to $48.4 million as compared to $47.0 million for the same quarter in 2008. FFO per share, for the quarter ended December 31, 2009, increased 2.2% to $0.47 as compared to $0.46 for the same quarter in 2008. FFO per share before Crest''s contribution, for the quarter ended December 31, 2009, was unchanged at $0.46 as compared to the same quarter in 2008. Crest Net Lease, Inc. (Crest) is a wholly-owned subsidiary of Realty Income.

FFO, for 2009, increased 2.6% to $190.4 million as compared to $185.5 million in 2008. FFO per share, for 2009, increased 0.5% to $1.84 as compared to $1.83 in 2008. FFO before Crest''s contribution, for 2009, increased 0.5% to $1.83 per share as compared to $1.82 in 2008. For a calculation of FFO before Crest''s contribution, see pages 6 and 7.

The Company considers FFO to be an appropriate supplemental measure of a Real Estate Investment Trust''s (REIT''s) operating performance as it is based on a net income analysis of property portfolio performance that excludes non-cash items such as depreciation. FFO is an alternative, non-GAAP measure that is also considered to be a good indicator of a company''s ability to generate income to pay dividends. Realty Income defines FFO consistent with the National Association of Real Estate Investment Trust''s (NAREIT''s) definition as net income available to common stockholders plus depreciation and amortization of real estate assets, reduced by gains on sales of investment properties and extraordinary items. See reconciliation of net income available to common stockholders to FFO on pages 6 and 7.

Dividend Information

In December 2009, Realty Income announced the 49^th consecutive quarterly increase and the 56^th increase in the amount of the dividend since the Company''s listing on the New York Stock Exchange in 1994. The annualized dividend amount, as of December 31, 2009, was $1.716 per share. The amount of the monthly dividends paid, for 2009, increased 2.7% to $1.707 per share from $1.662 per share in 2008. Through December 31, 2009, the Company has paid 473 consecutive monthly dividends and continues its 40-year history of declaring and paying dividends every month.

Real Estate Portfolio Update

As of December 31, 2009, Realty Income''s portfolio of freestanding, single-tenant, retail properties consisted of 2,339 properties located in 49 states, leased to 118 retail chains doing business in 30 retail industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 11.2 years.

Portfolio Management Activities

The Company''s portfolio of retail real estate, owned primarily under 15- to 20-year net leases, continues to perform well and provide dependable lease revenue supporting the payment of monthly dividends. As of December 31, 2009, portfolio occupancy was 96.8% with 75 properties available for lease out of a total of 2,339 properties in the portfolio.

Rent Increases

During the quarter ended December 31, 2009, same store rents on 2,063 properties under lease increased 0.7%, as compared to the same quarter in 2008. During 2009, same store rents on 2,063 properties under lease increased 0.4%, as compared to 2008.

Property Acquisitions

During the fourth quarter of 2009, Realty Income invested $46.0 million in 13 new properties. The new properties are located in three states and are 100% leased with an initial average lease yield of 9.6%.

During 2009, Realty Income invested $57.9 million in 16 new properties with an initial average lease yield of 9.7%.

Realty Income maintains a $355 million unsecured acquisition credit facility, which is used to fund property acquisitions in the near term. As of December 31, 2009, the outstanding balance on the Company''s acquisition credit facility was $4.6 million, and $350.4 million was available to fund new property acquisitions. In addition, the Company had cash and cash equivalents of $10 million at December 31, 2009.

Property Dispositions

Realty Income continued to successfully execute its asset disposition program in 2009. The objective of this program is to sell assets when the Company believes the reinvestment of the sales proceeds will generate higher returns, enhance the credit quality of the Company''s real estate portfolio, increase the average lease length, or decrease tenant or industry concentration.

During the quarter ended December 31, 2009, Realty Income sold eight properties for $9.5 million, which resulted in a gain on sales of $3.8 million. During 2009, Realty Income sold 25 properties for $20.5 million, which resulted in a gain on sales of $8.1 million.

Other Activities

Crest Net Lease

Crest is focused on acquiring and subsequently marketing net-leased properties for sale. Crest did not acquire any properties during 2009. For the quarter and year ended December 31, 2009, Crest sold two properties for $2.0 million. No gain was reported on these sales. At December 31, 2009, Crest''s property inventory consisted of three properties valued at $3.8 million.

Crest''s contribution to Realty Income''s FFO (and net income) depends on the timing and number of property sales, if any, in a given quarter. Therefore, Crest''s contribution can fluctuate and add volatility to Realty Income''s reported FFO and net income on a comparable quarterly and annualized basis.During the fourth quarter of 2009, Crest contributed $0.01 per share to Realty Income''s FFO per share as compared to $0.00 during the same period in 2008. During the years ended December 31, 2009 and 2008, Crest contributed $0.01 per share to Realty Income''s FFO.

CEO Comments on Operating Results

Commenting on Realty Income''s financial results and real estate operations, Chief Executive Officer Tom A. Lewis said, "We are pleased with our performance in 2009 during a particularly challenging economy and real estate environment. We remained focused throughout the year on maintaining our liquidity and maximizing occupancy and cash flow. At the end of 2009, we had over $10 million in cash on hand and about $350 million available on our acquisition credit facility. In addition, we carry no mortgages on any of our properties and maintain relatively low corporate debt.

"At December 31, 2009, portfolio occupancy was 96.8%, with just 75 properties available for lease out of a total of 2,339 properties in the portfolio. Same store rents increased 0.7% during the fourth quarter and 0.4% during 2009, compared to the same periods in 2008. We continue to be pleased with the resilience of our property portfolio, in the face of a challenging year for the consumer.

"During the fourth quarter ended December 31, 2009, we acquired 13 new properties, for $46.0 million, with an initial average lease yield of 9.6%. For all of 2009, we acquired 16 properties for $57.9 million, with an initial average lease yield of 9.7%. During 2008 and 2009, we acquired fewer properties than in previous years because we determined it would be prudent for us to wait on the sidelines, and maintain high levels of liquidity, until property prices adjusted and the economy firmed. In late 2009, we felt that market conditions had become more attractive for acquisitions, and we continue to believe there are many retail chains, with solid operating concepts, that need capital. Since we are in a good financial position, with a strong balance sheet and access to capital, we look to expand our acquisition activities in 2010 and invest in new retail properties that will contribute to our earnings.

"We are also pleased to note that, during 2009, we increased our dividend four times, providing a 2.7% increase in dividend income to our shareholders as compared to 2008. In addition, the price of Realty Income''s shares rose 11.9% to $25.91, at December 31, 2009, from $23.15, at December 31, 2008. The increase in share price, combined with the dividends paid, provided our shareholders with a total return of 19.3%."

FFO Commentary

Realty Income''s FFO per share has historically tended to be stable and fairly predictable because of the long-term leases that are the primary source of the Company''s revenue. There are, however, several factors that can cause FFO per share to vary from levels that have been anticipated by the Company. These factors include, but are not limited to, changes in interest rates and occupancy rates, periodically accessing the capital markets, the level and timing of property acquisitions and dispositions, lease rollovers, the general real estate market, the economy, charges for property impairments, and the operations of Crest.

2010 Estimates

Management estimates that FFO per share for 2010 should range from $1.86 to $1.92, which represents annual FFO per share growth of approximately 1.1% to 4.3%, as compared to 2009 FFO per share of $1.84. FFO for 2010 is based on an estimated net income per share range of $1.02 to $1.08, plus (in accordance with NAREIT''s definition of FFO) estimated real estate depreciation of $0.89 and reduced by potential gain on sales of investment properties of $0.05 per share.

Management notes that, given the volatility in the markets, it is more challenging than usual to estimate a number of factors that will impact the Company''s future results. For example, new property acquisition levels could vary depending on the number of opportunities, capitalization rates and the availability of attractively priced permanent financing.

Management further estimates that Crest could contribute between $0.00 and $0.01 per share to Realty Income''s FFO during 2010. Crest''s primary business is the purchase and sale of properties for a profit. These sales may occur at various times during the course of the year and could cause FFO, in certain quarters, to fluctuate on a comparable quarterly and annualized basis.

About Realty Income

Realty Income is The Monthly Dividend Company^®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. As of December 31, 2009, the Company had paid 473 consecutive monthly dividends throughout its 40-year operating history. The monthly income is supported by the cash flows from 2,339 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is a buyer of net-leased retail properties nationwide.

Forward-Looking Statements

Statements in this press release 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, 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, the outcome of any legal proceedings to which the Company is a party, and the profitability of Crest, the Company''s subsidiary, as described in the Company''s filings with the Securities and Exchange Commission. Consequently, such 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 press release. 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.

Note to Editors: Realty Income press releases are available at no charge by calling our toll-free investor hotline number: 888-811-2001, or via the internet at http://www.realtyincome.com/Investing/News.html.

We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust''s definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets reduced by gains on sales of investment properties and extraordinary items.

Contacts:

Realty Income Corporation
Tere Miller
Vice President, Corporate Communications
760-741-2111 ext. 1177