2Q 2017 INSTITUTIONAL INVESTOR PRESENTATION

2Q 2017

INSTITUTIONAL INVESTOR PRESENTATION

Contents

Company Overview & Historical Risk/Reward

3

Investment Thesis

8

Portfolio Diversification

14

Defensive Retail Portfolio

19

Asset and Portfolio Management

25

Investment Strategy

28

Capital Structure and Scalability

38

Dependable Dividends

42

Summary

45

All data as of June 30, 2017 unless otherwise specified

1

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, 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.

2

Company Overview

S&P 500 Real Estate Investment Trust with Proven Track Record of Strong Total Returns

Leading real estate company:

Equity market cap of $15.1 billion and EV of $21.2 billion Largest net lease REIT by equity market cap and enterprise value Member of S&P 500 index Member of S&P High-Yield Dividend Aristocrats? index (1)

Strong returns with low volatility:

16.4% compound average annual return since NYSE listing in 1994 4.6% dividend yield, paid monthly 79 consecutive quarters of dividend increases

Conservative capital structure:

Investment grade credit ratings

Moody's: Baa1 / Positive S&P: BBB+ / Positive Fitch: BBB+ / Stable

28.4% debt to total market capitalization 5.6x debt to EBITDA 7.9-year weighted average duration of unsecured notes and bonds

(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.

3

Our Approach as "The Monthly Dividend Company?"

Generate lease revenue to support the payment of growing monthly dividends

Remain disciplined in our acquisition

underwriting

Execute long-term net lease

agreements

Actively manage the portfolio to maintain

high occupancy

Target well-located, Freestanding, single-tenant, commercial properties

Support and grow monthly dividends for shareholders

Maintain a conservative balance sheet

4

Attractive Risk/Reward vs. S&P 500 Companies

Higher returns and lower volatility than majority of S&P 500 companies since 1994 NYSE listing

Total Return CAGR Since 10/18/94 (NYSE Listing)

35%

Lower volatility correlated with higher returns over the long-term

30%

25%

20%

Realty Income return per unit of market risk in the 98th percentile

of all S&P 500 companies(1):

Beta: 0.39 Return: 16.4%

15%

10%

5%

0%

-5%

-10% 2.3

2.0

1.8

1.5

1.3

1.0

0.8

Beta vs. S&P 500 Since 10/18/1994 (NYSE Listing)

0.5

0.3

0.0

Current S&P 500 Companies

(1) n=345 / Excludes companies without trading histories dating to 1994 Beta measured using monthly frequency Source: FactSet

5

Attractive Risk/Reward vs. Blue Chip S&P 500 Equities

Proven long-term investment provides an attractive risk/reward

Total Return CAGR Since 10/18/94

30%

Greater return per unit

of market risk than

25%

each of top 10 largest

S&P constituents(1)

AAPL

since 1994 NYSE listing

O

20%

15% 10%

5%

MSFT JNJ

JPM GE

WFC

XOM

REITs WMT

S&P 500 T

BAC

0%

2.0

1.5

1.0

0.5

0.0

Beta vs. S&P 500 Since 10/18/1994

Average Annual Compound TSR per Unit of Market Risk

OO

42%

JNJ

24%

XOM

19%

AAPL

19%

WMT

18%

WFC

14%

REITs

14%

MSFT T

13% 11%

S&P 500 JPM

10% 9%

GE

6%

BAC

4%

(1) 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: FactSet

6

Attractive Risk/Reward vs. Blue Chip REITs

Proven long-term investment vs. Blue Chip S&P 500 REITs

Total Return CAGR Since 10/18/94

30% Greater return per unit of

market risk than each of the

other 17 REITs in S&P 500

25%

with comparable trading

histories(1)

O

20%

ESS

15% 10%

GGP HST WY

AVB PSA

SPG FRT

VNO EQR

AIV

HCN

REVGTR

KIM

HCP

5%

0%

2.0

1.5

1.0

0.5

0.0

Beta vs. S&P 500 Since 10/18/1994

Average Annual Compound TSR per Unit of Market Risk

OO

PSA ESS HCN FRT AVB SPG VTR HCP EQR REG VNO AIV MAC KIM GGP WY HST

42% 37% 32% 31% 25% 22% 22% 20% 20% 19% 17% 16% 12% 11% 10% 8% 6% 5%

(1) Excludes REITs without trading history since 10/18/1994 Beta measured using monthly frequency Source: FactSet

7

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