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Realty Income Announces Pricing of 5.39 Million Share Common Stock Offering to Fund Property Acquisitions

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^{Published in Business and Finance on Thursday, September 23rd 2010 at 5:50 GMT by Market Wire}  

ESCONDIDO, Calif.--([ BUSINESS WIRE ])--Realty Income Corporation (Realty Income), The Monthly Dividend Company^®, (NYSE: O), today announced that a public offering of 5,390,000 shares of the Companya™s common stock has been priced at $33.40 per share and is expected to close on September 28, 2010. Net proceeds from the offering, after underwriting discounts and offering expenses payable by the Company, will be approximately $171.2million. The offering was upsized from an original amount of 3,700,000 shares to the final offering size of 5,390,000 shares. The Company has also granted the underwriters a 30-day option to purchase up to 808,500 additional shares of common stock to cover overallotments, if any.

The net proceeds from this offering are expected to be used to fund a substantial portion of planned property acquisitions aggregating approximately $150million during the third and fourth quarters of 2010. These acquisitions, which are subject to customary closing conditions, include approximately 29 properties leased to 16 tenants in 9 states and all are in industries in which the Company has previously invested. Net proceeds will also be used to pay off borrowings under our acquisition credit facility.

All of the shares are being sold by the Company. The underwriters for the offering are: BofA Merrill Lynch and Wells Fargo Securities (joint book-running managers), Morgan Stanley, Raymond James, RBC Capital Markets, UBS Investment Bank (co-lead managers), and Baird, Citi, Credit Suisse, J.P. Morgan, Morgan Keegan & Company, Inc., Stifel Nicolaus Weisel, and Janney Montgomery Scott (senior co-managers). A copy of the prospectus supplement and the related prospectus pertaining to the offering may be obtained, when available, from BofA Merrill Lynch, 4World Financial Center, New York, New York 10080, Attn: Prospectus Department or email [ dg.prospectus_requests@baml.com ] or Wells Fargo Securities, Attn: Equity Syndicate Department, 375 Park Avenue, New York, New York 10152, telephone: 1.800.326.5897 or email: [ equity.syndicate@wellsfargo.com ].

These securities are offered pursuant to a Registration Statement that has become effective under the Securities Act of 1933. The common stock is only offered by means of the prospectus included in the registration statement and the prospectus supplement related to the offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.

Forward-Looking Statement

Statements in this press release that are not strictly historical are aforward-lookinga statements. Forward-looking statements involve known and unknown risks, which may cause the Companya™s actual future results to differ materially from expected results. These risks include, among others, whether the announced pending acquisitions are completed, general economic conditions, local real estate conditions, the availability of capital to finance planned growth, 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 operating results of the Companya™s subsidiary, Crest Net Lease, as described in the Companya™s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the Companya™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 through the Internet at [ http://www.realtyincome.com/Investing/News.html ].