O N E T E A M | S U S TA I N A B L E G R O W T H | E X PA N D E D P L AT F O R M
R E A LT Y I N C O M E 2021 ANNUAL REPORT
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A B O U T
R E A LT Y I N C O M E
Realty Income, The Monthly Dividend
Company®, is an S&P 500 real estate company
dedicated to providing stockholders with dependable
monthly income. The company is a member of the S&P
500 Dividend Aristocrats index for having increased
its dividend for the last 25 consecutive years.
Its monthly dividends are supported by the
cash flow from over 11,100 real estate
properties owned under long-term
net lease agreements with
commercial clients.
In 2021, our portfolio
continued to generate
strong, reliable cash flows
to support our increasing
monthly dividends and
strategic growth
initiatives.
TA B L E
O F C O N TE N T S
Company Performance | 2
Letter to Stockholders | 4
2021 Financial Performance | 11
Real Estate Portfolio | 12
Disciplined Investment Process | 16
Conservative Capital Structure | 20
Dependable Monthly Dividends | 22
Select Financial Data | 24
Total Return Performance | 30
Company Information | 32
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$57B
ENTERPRISE
VALUE1
Over 11,100
PROPERTIES
ACROSS ALL 50 U.S. STATES,
PUERTO RICO, SPAIN AND
THE UNITED KINGDOM
$2.9B
ANNUALIZED
RENT
6TH
LARGEST
U.S. REIT2
ALL DATA INCLUDED IN THE 2021 ANNUAL REPORT IS AS OF 12/31/2021 UNLESS SPECIFIED OTHERWISE
1 ENTERPRISE VALUE IS CALCULATED AS THE TOTAL MARKET CAPITALIZATION LESS CASH AND CASH EQUIVALENTS
2 IN THE MSCI US REIT INDEX
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C O M PA N Y P E R F O R M A N C E
C O M P O U N D AV E R A G E A N N U A L T O TA L S T O C K H O L D E R R E T U R N
S I N C E 1 9 9 4 N Y S E L I S T I N G 1
REALTY INCOME
EQUITY REIT INDEX
DOW JONES INDUSTRIAL AVERAGE
NASDAQ COMPOSITE
S&P 500
15.5%
11.2%
11.1%
11.7%
11.0%
1 REFERENCE PAGE 30 FOR ADDITIONAL INFORMATION ON TOTAL STOCKHOLDER RETURN.
C O M PA R I S O N O F $ 1 0 0 I N V E S T E D I N
R E A LT Y I N C O M E V S . M A J O R S T O C K I N D I C E S ( 1 9 9 4 -2 0 2 1 )
$4,097.5 REALTY INCOME
$100
E A R N I N G S A N D D I V I D E N D S
COMPOUND AVERAGE ANNUAL GROWTH SINCE 1994 NYSE LISTING
5.1% AFFO PER SHARE GROWTH
4.5% DIVIDEND PER SHARE GROWTH
$2,077.1 NASDAQ COMPOSITE
$1,781.8 EQUITY REIT INDEX
$1,758.4 DOW JONES INDUSTRIAL AVERAGE
$1,737.3 S&P 500
$3.59 2021 AFFO PER SHARE
$2.958 2021 ANNUALIZED
DIVIDEND PER SHARE 1
1 ANNUALIZED DIVIDEND AMOUNT REFLECTS THE DECEMBER DECLARED DIVIDEND PER SHARE MULTIPLIED BY 12.
2
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5.9%
AFFO PER
SHARE
GROWTH
4.1%
DIVIDEND YIELD
AT YEAR END
2021
$2.1
BILLION
REVENUE
98.5%
PORTFOLIO
OCCUPANCY
2 0 2 1
P E R F O R M A N C E
H I G H L I G H T S
( GROWTH PERCENTAGES
REPRESENT COMPARISONS
TO 2020)
$6.4
BILLION
INVESTMENT
VOLUME
103.4%
RECAPTURE RATE
ON RELEASING
ACTIVITY
15.5%
TOTAL
STOCKHOLDER
RETURN
0
DIVIDEND
REDUCTIONS
97
CONSECUTIVE
QUARTERLY
DIVIDEND
INCREASES
5.1%
ANNUAL AFFO
PER SHARE
GROWTH
$5.8
BILLION
CAPITAL
RAISED
P E R F O R M A N C E
H I G H L I G H T S S I N C E
1 9 9 4 N Y S E
L I S T I N G
617
CONSECUTIVE
MONTHLY
DIVIDENDS
PAID
4.5%
ANNUAL DIVIDEND
PER SHARE
GROWTH
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D E A R F E L L O W S T O C K H O L D E R S ,
As I reflect on the past year at Realty Income, I am infused with a
deep sense of gratitude and appreciation for our team, our business,
and all that we have accomplished. 2021 marks a significant
milestone in our history, and none of our successes this year
would have been possible without the commitment of our team,
the significant and unwavering support and council by our Board,
and the strength of our partnerships. We are One Team, and as our
business continues to grow, we remain committed to our mission of
investing in people and places to build enduring relationships and
delivering dependable monthly dividends that increase over time.
The year was headlined by completing our strategic merger with
VEREIT, which closed on November 1st. We believe that the transaction
generated benefits for all stakeholders and positioned us favorably to pursue our strategic growth
initiatives going forward. Key benefits of the transaction include driving immediate accretion
to AFFO per share, as well as creating an expanded platform which will create meaningful
opportunities for our business. There are several additional benefits of the transaction, including
three of particular significance:
Enhancing size, scale, and diversification to drive future growth. At year-end, our total
enterprise value1 was approximately $57 billion, positioning us as the sixth largest U.S. REIT,
and our annualized contractual rental income was $2.9 billion, illustrating the expanded size
and scale of our business following the merger. Additionally, the transaction has enhanced
our ability to execute large-scale transactions and limited the creation of any client, industry,
or geographic concentration risk.
Expanding our Realty Income “One Team”. Through the merger, we were excited to welcome
our new colleagues from VEREIT, each of whom brings valuable talent, experience, and diversity
to Realty Income. We have already benefited from their many contributions to our business.
Additionally, we were pleased to welcome Priscilla Almodovar, Mary Hogan Preusse and
Jacqueline Brady to our Board of Directors, all of whom have brought exemplary leadership
and deep industry knowledge to our company.
1 Enterprise value is calculated as the total market capitalization less cash and cash equivalents.
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Offering longer-term debt refinancing synergies. Over time, we expect to generate meaningful
earnings accretion by refinancing the debt assumed from VEREIT as a result of the merger.
We have a significant cost of capital advantage, which affords us opportunities to take
advantage of lower borrowing costs driven by our ‘A3’ and ‘A-’ credit ratings from Moody’s
and S&P, respectively, and a capacity to issue debt in international markets, which may
present additional opportunities for lower yields.
In parallel with our efforts to close the merger with VEREIT, we
expanded our business into Continental Europe in September 2021
through a sale-leaseback transaction in Spain with Carrefour, a
leading global grocery retailer. For 2021, our international platform
consisted of approximately $3.9 billion invested in the United Kingdom
and approximately $368 million invested in Spain. Our strategic
expansion into Spain establishes our presence in Continental Europe
and provides a gateway to additional geographies where we plan to
explore creating new relationships and investment opportunities. We anticipate that the continued
growth of our international platform will create value today and well into the future, including the
following benefits:
Expanding into Continental Europe significantly increases our total addressable market.
We estimate the total addressable market for net lease real estate in Europe is approximately
$8 trillion, double the estimated total addressable market for net lease real estate in the U.S.
of approximately $4 trillion. In addition to our robust domestic investment pipeline, our
international pipeline and presence have already proven to provide incremental value
for our business and stockholders.
We believe establishing our presence in Continental Europe expands our access to
well-priced capital. Since our international expansion in 2019, we have capitalized on lower
borrowing costs afforded to us in the U.K. Likewise, with our debut investment activity in
Continental Europe, we expect to pursue more Euro-denominated financing opportunities,
providing improvement to our current cost of capital.
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While 2021 was highlighted by these two important strategic accomplishments, our core business
continued to perform exceedingly well.
2 0 2 1 R E S U L T S
During the year, we grew AFFO2 per share by 5.9% to $3.59. At Realty Income, The Monthly Dividend
Company®, the dividend is sacrosanct, and we are proud to be a member of the S&P 500 Dividend
Aristocrats Index® for having increased our dividend every year for over 25 years. The continued
strength of our operations enabled us to increase dividends paid per share by 1.4% as compared
to 2020 while achieving an AFFO payout ratio of 78.9%, which we believe provides a comfortable
margin of safety for our stockholders. In 2021, the stockholders who owned our common stock for
the full calendar year realized a total return of 24.0%, which is comprised of the change to our stock
price as well as dividends paid throughout the year, assuming reinvestment of dividends. We seek to
deliver favorable long-term risk-adjusted returns for our stockholders and, as of year-end, we have
delivered a compound average annual total shareholder return of 15.5% since our public listing in
1994, which compares favorably to the Nasdaq index (11.7%), the Equity REIT index (11.2%),
the Dow Jones index (11.1%) and the S&P 500 index (11.0%). During 2021, we invested a record
$6.4 billion in high-quality real estate, while maintaining our stringent investment criteria as
we acquired less than 8% of the $84.5 billion in potential real estate transactions sourced and
reviewed. Total international investments during 2021 were approximately $2.6 billion.
In 2021, our portfolio continued to generate strong, reliable cash flows to support our increasing
monthly dividends and growth initiatives. The pandemic showcased the quality, strength, and
resilience of our real estate portfolio. Bolstered by the inherent quality of the assets in our portfolio
and proactive efforts of our talented and experienced asset management team, we maintained high
portfolio occupancy throughout the year, ending 2021 with the portfolio 98.5% occupied. Further,
we achieved a 103.4% rent recapture rate on releasing activity during the year, representing yet
another year of positive releasing spreads. This demonstrates the quality of our portfolio and
our long-tenured asset management team who - since our listing in 1994 - has executed over
4,100 releases or sales on expiring leases, recapturing an average of over 100% of rent on those
released contracts.
2 The definition of AFFO and a reconciliation of net income available to stockholders can be found in our 2021 Form 10-K.
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Throughout 2021, we maintained a strong financial position and remain committed to being one of
only a handful of REITs with at least two credit ratings of A3/A- or better by the major rating
agencies. In July, we are proud to have established our green financing framework and issued our
debut green bond offering. This offering continued our aspirational journey to be a leader in the
REIT industry by partnering with clients to promote environmental sustainability (more information
about our ESG initiatives can be found in our 2021 Sustainability Report). It is important to note that
the net lease business model is inherently scalable, and we are pleased to report that we again
delivered industry leading adjusted EBITDAre3 and G&A margins of approximately
93.6% and 4.9%, respectively, in 2021.
Throughout 2021, we continued to have excellent access to well-priced
capital. During the year we raised approximately $4.5 billion of equity
capital and $1.3 billion of long-term fixed-rate debt. As part of our total
equity capital raised, our size and scale afforded us the opportunity
to raise $3.2 billion through our At-The-Market (ATM) program, which
allowed us to complete the VEREIT merger and finance a record quarter
for acquisitions while finishing the year within our targeted leverage
parameters. As a result, our balance sheet entered 2022 well-positioned with a Net-Debt/Annualized
Pro forma Adjusted EBITDAre4 ratio of 5.3x and ample liquidity, with $2.4 billion available on our
$3.0 billion multi-currency revolving credit facility and $99 million available under our $1.0 billion
commercial paper program.
O N E T E A M
At Realty Income, our team members are our most valuable assets. We were honored to welcome
Christie Kelly and Michelle Bushore as our new Chief Financial Officer and Chief Legal Officer,
respectively, both of whom bring years of pertinent experience, leadership qualities, and diversity to
the senior team. Primarily driven by the addition of our former VEREIT colleagues, in 2021 our team
grew from 210 to 371 team members at year-end. I firmly believe our team is able to excel across
3 Adjusted EBITDAre margin calculated by dividing total revenue, net of property (including reimbursable) and general and
administrative expenses, by total rental revenue, excluding reimbursable rental revenue. The definition of adjusted EBITDAre
and a reconciliation of the net income available to stockholders can be found in our 2021 Form 10-K.
4 Annualized Pro Forma Adjusted EBITDAre is a non-GAAP financial measure. The definition of adjusted EBITDAre
and a reconciliation of the net income available to stockholders can be found in our 2021 Form 10-K.
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many initiatives because we are united as One Team through our shared purpose, mission, vision,
and values, which provide the foundation for our successes and guide our future pursuits. The key
values for our One Team are as follows:
Do the right thing, because how we act is as important as what we accomplish.
Take ownership, because our clients’ success is our success.
Empower each other, so everyone will be inspired to give their best every day.
Celebrate differences, because diversity, equality, and inclusion make us stronger.
Give more than we take, in our community and the environment.
As part of doing the right thing, we remain committed to being a responsible corporate citizen today
and well into the future. Throughout 2021, we continued to advance our environmental, social, and
governance (“ESG”) initiatives. In addition to establishing our green financing framework and issuing
our debut green bond, we continued our charitable contributions and volunteerism including our
annual financial contribution to San Diego Habitat for Humanity, and prioritized Diversity, Equality
and Inclusion values throughout every facet of our business.
We remain resolute in our commitment to environmental stewardship. Alongside this report, we are
proud to issue our second annual Sustainability Report, which details our team’s dedicated efforts
and progress on this important journey. Our 2021 Sustainability Report can be found in the Corporate
Responsibility section of our corporate website, and I encourage everyone to read the report to
understand the emphasis we place on these initiatives. At Realty Income, ESG considerations
continue to be woven into the fabric of our business, permeating throughout every aspect of our
company from day-to-day operations to oversight by our Board of Directors. ESG topics will continue
to be a significant priority to our leadership team and Board of Directors, and I remain focused on
continuing to pursue our ESG goals for the benefit of all those we serve.
L O O K I N G A H E A D
As we look to the future, we celebrate our accomplishments while remaining inspired for the
journey ahead. In the new year, we will continue to pursue our collective goals with an incredibly
talented team, an expanded global platform poised for growth, and access to proprietary data and
technology to drive key business and investment decisions. We remain committed to building on our
53-year track record of success by expanding upon our foundation while staying true to our purpose,
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mission, vision, and values as we thoughtfully continue driving sustainable growth for years to come.
I am encouraged by our outlook for 2022 and beyond as we seek to leverage and expand our
competitive advantages, which are:
Size and Scale – With a total enterprise value over $57 billion, a portfolio of more than 11,100
strategically located properties across all 50 states, Puerto Rico, the United Kingdom and Spain,
and an experienced team who can reliably execute upon our robust global investment pipeline,
we believe we have become the premier capital partner to blue-chip operators
in the net lease industry. We believe our platform is also further
enhanced by our ability to execute large-scale acquisitions
without creating material concentration risks.
A Resilient Business Model Built to Weather a Variety of
Economic Conditions – Recent geopolitical and inflationary concerns
have resulted in meaningful capital markets volatility to begin 2022.
As we have demonstrated throughout our company’s history,
Realty Income is well-positioned to, by design, deliver consistent
operating and financial results regardless of external variables beyond our control. From
a balance sheet perspective, having a well-staggered, predominantly fixed rate debt maturity
schedule with no corporate bond maturities until 2024 limits our debt refinancing risk in a
potentially rising rate environment. Moreover, we believe we may benefit from an inflationary
environment given our proven ability to recapture more than the value of expiring rent upon
releasing. Finally, our business offers investors a durable and recurring income stream which,
in our view, makes Realty Income more attractive during inflationary periods as compared to
other sectors in the marketplace whose value is primarily tied to growth in future years.
Leveraging Technology and a Data-Driven Approach to Key Decision Making – We have the
key competitive advantage of access to best-in-class proprietary information given the size
and track record of our portfolio. This supports our ability to explore opportunities to leverage
predictive analytics and machine learning to drive key business decisions. Harnessing this data
allows us to project industry trends, proactively address asset management decisions, and
inform our investment strategy.
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A Growing International Footprint – Our expansion into Continental Europe significantly
expands our total addressable market and provides access to attractively priced capital. As we
have demonstrated through the growth of our real estate portfolio in the U.K., the portability
of our business model is a competitive advantage which allows us to continue expanding
our potential investment universe.
Prudent Creativity to Fuel Sustainable Growth – We are committed to continuing to explore
new verticals through which the business can sustainably grow. We believe the net lease business
model is transferable across property types and geographies. The investment in vineyards in
Napa Valley, currently leased to Treasury Wine Estates, is a prime example of a transaction
outside of our traditional asset classes that creatively fits our investment criteria while
generating attractive returns as we look back on over a decade of ownership. We remain active
in our pursuit of finding new opportunities that generate value for our stockholders with the
same prudency that has guided our strategy over the last 53 years.
As we enter a new year of possibilities, we remain steadfast in our purpose of building enduring
relationships and brighter financial futures, following our mission, vision, and values to seek to
deliver long-term risk-adjusted returns through the stability and sustainable growth of earnings and
dividends. Above all, we strive to conduct business with the utmost integrity and humility, doing
what is right each day for the long-term benefit of the clients we serve, team members we cultivate,
communities we support, and those who invest in us.
I continue to be excited about our journey together as One Team as we strive to create long-term
value for all stockholders. Thank you for your continued support, and for your participation in our
pursuit to be a trusted capital partner and responsible corporate citizen.
Sincerely,
Sumit Roy,
President &
Chief Executive Officer
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2 0 2 1 F I N A N C I A L P E R F O R M A N C E
(DOLLARS IN MILLIONS UNLESS SPECIFIED)
Total revenue1
Net income available to common stockholders
FFO2
AFFO2
Dividends paid to common stockholders
Real estate at cost3
Number of properties
Gross leaseable square feet (millions)
Properties acquired4
Cost of properties acquired4
Property dispositions
Net proceeds from property dispositions
Number of industries
Number of states
Portfolio occupancy rate
Remaining weighted average lease term
Net income per share (diluted)
FFO per share2
AFFO per share2
Dividends paid per share
Annualized dividend amount per share5
Common shares outstanding6
Closing price on 12/31
Dividend yield7
Total return to stockholders8
$2,080
$359
$1,241
$1,489
$1,169
$35,909
11,136
210.1
911
$6,411
154
$250
60
50
98.5%
9.0 years
$0.87
$2.99
$3.59
$2.833
$2.958
592,322,700
$71.59
4.1%
24.0%
1 Total revenue including reimbursements from clients.
2 FFO and AFFO are non-GAAP financial measures. Refer to Management’s Discussion and Analysis in the Company’s 2021 Form 10-K
for the definitions of FFO and AFFO and a reconciliation of each to net income available to common stockholders.
3 Does not include properties held for sale.
4 Includes new properties acquired by Realty Income and Crest Net Lease and properties under development, redevelopment,
or expansion. Excludes properties assumed on November 1, 2021 in conjunction with our merger with VEREIT.
5 Annualized dividend amount reflects the December declared dividend per share multiplied by 12.
6 Common shares outstanding includes our common stock outstanding of 591,261,991 plus total common units outstanding
of 1,060,709.
7 Dividend yield was calculated by dividing the dividend paid per share during the year, by the closing share price on December 31, 2021.
Dividend yield excludes special dividends.
8Total return is calculated as the difference between the closing stock price as of period end less the closing stock price as of previous
period, plus dividends paid in period, divided by closing stock price as of end of previous period. Includes the reinvestment of
dividends.
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R E A L E S T A T E
P O R T F O L I O
“Because we have
the key competitive advantage of size
and scale, our team can focus on clients’
needs such as operational efficiencies,
budget savings and ESG goals. Our client-centric
approach has resulted in 320 client renewals,
more than $3 million in savings, and over
1.99M pounds of CO2 being eliminated
from the construction process.”
Greg Azar,
Vice President,
Head of Real Estate
Operations
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The strength of Realty Income’s real estate
portfolio makes it possible for us to provide
stockholders with a dependable monthly
income. We curate our portfolio to ever changing
economic cycles and evolving consumer trends
by acquiring high-quality assets leased to
operators in resilient industries diversified
by geography, industry and property type.
Recently, these characteristics have been
tested throughout the global COVID-19
pandemic. Despite these challenges, the cash
flow generating capacity of our portfolio has
persevered, resulting in another year of
dividend and positive earnings growth.
In 2021, we expanded our reach to Continental
Europe, and our portfolio of assets now extends
throughout the U.S., U.K. and Spain. In addition,
the assets acquired through the VEREIT merger
have significantly expanded Realty Income’s
platform. As of December 31, 2021, our real
estate portfolio consisted of more than
11,100 properties, which are primarily
freestanding, net leased, single-client
commercial properties well diversified by:
• CLIENT – Our portfolio is made up of over
1,040 clients including industry leaders like
Walgreens, 7-Eleven, FedEx, Wal-mart,
and Home Depot
• INDUSTRY – Our clients operate across
60 separate industries including grocery
stores, convenience stores, dollar stores
and drug stores
• GEOGRAPHY – Our properties are
located in all 50 U.S. states, Puerto Rico,
the United Kingdom and Spain
• PROPERTY TYPE – Our portfolio is primarily
retail and industrial
“In 2021, we saw a three-fold
year-over-year growth in portfolio
development investment volume, thanks
to the efforts of our team. We focused
on higher yielding construction assets
and value-creation opportunities within
our existing portfolio. Realty Income
remains committed to driving additional
earnings growth by broadening its
investment possibilities through its
in-house development and
construction expertise.”
John Couvillion,
Vice President,
Development
T O P 1 0 I N D U S T R Y
D I V E R S I F I C AT I O N *
INDUSTRY
GROCERY STORES
CONVENIENCE STORES
DOLLAR STORES
DRUG STORES
RESTAURANTS - QUICK SERVICE
RESTAURANTS - CASUAL DINING
HOME IMPROVEMENT
HEALTH AND FITNESS
GENERAL MERCHANDISE
THEATERS
% OF TOTAL
PORTFOLIO
ANNUALIZED
CONTRACTUAL RENT
AS OF 12/31/21
10.2%
9.1%
7.5%
6.6%
6.6%
5.9%
5.1%
4.7%
3.7%
3.4%
*THE PRESENTATION OF TOP 10 INDUSTRIES COMBINES TOTAL PORTFOLIO
CONTRACTURAL RENT FROM U.S. AND EUROPE. EUROPE CONSISTS OF
PROPERTIES IN THE U.K., STARTING IN MAY 2019, AND IN SPAIN, STARTING
IN SEPTEMBER 2021
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REAL ESTATE PORTFOLIO
G E O G R A P H I C
D I V E R S I F I C AT I O N
AS A % OF TOTAL PORTFOLIO ANNUALIZED
CONTRACTUAL RENT AS OF 12/31/21
PUERTO RICO
SPAIN
UNITED KINGDOM
<1%
1–2%
2-3%
3-4%
4-5%
5-6%
6-11%
%
4
.
9
9
P O R T F O L I O O C C U PA N C Y 1
%
5
.
8
9
4
9
9
1
5
9
9
1
6
9
9
1
7
9
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1
8
9
9
1
9
9
9
1
0
0
0
2
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
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1
0
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1
0
2
8
1
0
2
9
1
0
2
0
2
0
2
1
2
0
2
1 BY NUMBER OF PROPERTIES
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As we look to the future, our portfolio strategy will
remain focused on the acquisition and ownership
of well-located assets leased to industry leading
operators with strong credit profiles. Realty Income
will continue to pursue acquisition opportunities in
industries that are proven to perform in a variety of
economic conditions. Doing so allows us to enhance
the portfolio’s stability while also pursuing new
growth verticals that support the generation of
favorable long-term risk adjusted returns.
Throughout our history as a public company,
Realty Income has maintained year-end occupancy
above 96%. In 2021, we recaptured 103.4% of
rent on released contracts, and since 1996, we’ve
achieved a rent recapture rate of over 100%
on releasing activity. Our sustained occupancy
levels and favorable releasing results reflect the
expertise, talent and experience exhibited by our
Asset Management and Real Estate Operations
teams, who we believe excel at maximizing the
value of our existing real estate portfolio. Going
forward, we will continue to utilize our size and
scale to provide full-service real estate operations
CLIENT
D
E
U
N
I
T
N
O
C
“Our proactive asset management
efforts continue to drive strength in
our growing portfolio. We were excited
to welcome new team members from
the merger and further build upon our
successful platform, enhancing the
breadth of our client relationships
and ultimately delivering valuable
internal growth for the company.”
Janeen Drakulich,
Senior Vice President,
Head of Asset Management
C L I E N T
D I V E R S I F I C AT I O N
% OF TOTAL
PORTFOLIO
ANNUALIZED
CONTRACTUAL
RENT AS OF
12/31/21
% OF
PROPERTIES
to our clients. Our comprehensive programs and
solutions will seek to not only strengthen the
existing partnerships with our clients, but also
increase our profitability.
P R O P E R T Y T Y P E
D I V E R S I F I C AT I O N
% OF TOTAL
PORTFOLIO
ANNUALIZED
CONTRACTUAL RENT
AS OF 12/31/21
NUMBER OF
PROPERTIES
RETAIL
10,819
83.4%
INDUSTRIAL
OTHER1
294
23
14.6%
2.0%
1 INCLUDES 7 PROPERTIES CLASSIFIED AS OFFICE AND
16 PROPERTIES CLASSIFIED AS AGRICULTURE
333
WALGREENS*
1,272
DOLLAR GENERAL*
7-ELEVEN*
627
DOLLAR TREE / FAMILY DOLLAR* 1,016
80
FEDEX*
79
LA FITNESS
26
SAINSBURY’S
32
BJ’S WHOLESALE CLUBS
183
CVS PHARMACY*
64
WAL-MART / SAM’S CLUB*
23
B&Q (KINGFISHER)*
35
AMC THEATRES
41
REGAL CINEMAS (CINEWORLD)
201
RED LOBSTER
153
TRACTOR SUPPLY*
15
TESCO*
16
LIFETIME FITNESS
29
HOME DEPOT*
AMAZON*
16
FAS MART (GPM INVESTMENTS) 262
4.1%
4.0%
4.0%
3.6%
3.0%
2.5%
2.3%
2.0%
1.8%
1.8%
1.7%
1.7%
1.6%
1.6%
1.4%
1.4%
1.4%
1.2%
1.1%
1.0%
*DENOTES INVESTMENT GRADE RATED CLIENTS, WHO ARE CLIENTS
WITH A CREDIT RATING, AND OUR CLIENTS THAT ARE SUBSIDIARIES
OR AFFILIATES OF COMPANIES WITH A CREDIT RATING, AS OF 12/31/21,
OF BAA3/BBB- OR HIGHER FROM ONE OF THREE MAJOR RATING
AGENCIES (MOODY’S / S&P / FITCH)
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REAL ESTATE PORTFOLIO
D I S C I P L I N E D
I N V E S T M E N T
P R O C E S S
16
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Realty Income seeks to own a diversified portfolio of
“We worked as One Team again this year
on multiple fronts, including our merger
with VEREIT and organic growth through
high-quality commercial real estate under long-term,
acquisitions. During 2021, we invested
net lease agreements that produce consistent and
$2.6 billion in high quality international assets,
predictable income. We invest in high-quality real
estate that meets our rigorous investment criteria
and that our clients consider important to
the successful operation of their businesses. In
2021, we reviewed approximately $84.5 billion of
investment opportunities, resulting in $6.4 billion of
investments. Of these acquisitions, approximately
$2.6 billion was invested internationally in the U.K.
and Spain, and $3.8 billion in the United States.
We expect international markets to remain a focus
of our acquisition strategy, as new geographies
significantly expand our addressable market and,
therefore, growth opportunities. Our acquisitions
undergo a rigorous, multi-step internal underwriting
and legal diligence process, which begins with
a review of real estate fundamentals. These
including our first investments in Spain. Our
team remains focused on building enduring
relationships as we continue growing in
the U.K. and Continental Europe next year.
We thank our clients, colleagues and
partners for their unflagging support.”
Neil Abraham,
President,
Realty Income International,
Executive Vice President,
Chief Strategy Officer
include property-level attributes such as access
in the future. Next, we carefully review the
and signage, demographic trends relative to the
characteristics, credit, and overall financial
property’s intended use, potential alternative uses,
strength of the clients and their industries.
overall viability of the market, and environmental
Our Research team conducts a thorough
soundness. We also evaluate suitable properties using
financial review and analysis of the client
proprietary insights (including predictive analytics
and their credit. This analysis includes an
based on machine learning and artificial intelligence),
assessment of the store level performance
prioritizing the selection of locations and geographic
and retail operations, when available, to
markets we expect to remain strong or strengthen
identify clients’ highest performing locations.
T O TA L R E V E N U E 1
( D O L L A R S I N M I L L I O N S )
$2,080
$49
1994
1 SEE PAGE 11, FOOTNOTE ONE FOR DEFINITION OF TOTAL REVENUE
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2021
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DISCIPLINED INVESTMENT PROCESS D I S C I P L I N E D
I N V E S T M E N T
P R O C E S S
18
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Our team stays abreast of industry trends
and frequently meets with specialized experts
“Realty Income made significant strides in
2021. In addition to gaining the vast portfolio
of high-quality retail and industrial assets
through the VEREIT merger, we also acquired
to better understand our clients’ operations.
$6.4 billion in real estate throughout the U.S.
The information gathered on the real estate,
lease characteristics, client, and industry inform
pricing for investments. Our goal is to ensure
the real estate that we acquire is appropriately
priced relative to replacement cost and leased
at rental rates that are in line with current or
expected market rent to support the generation
of strong, long-term investment returns. Our
Investment Committee collectively reviews these
characteristics when making investment decisions.
In addition, investment opportunities above a
certain threshold require approval by our Board
of Directors. We believe this rigorous selection
process maintains the quality of our investment
portfolio and supports the stability
of our cash flow over time.
and Europe. Our team of colleagues has grown
significantly as well. We now have a larger group
implementing best practices to build relationships
across the industry. This size and scale will
continue to support our efforts in providing
investors with dependable monthly
dividends that increase over time.”
Mark Hagan,
Executive Vice President,
Chief Investment Officer
A C Q U I S I T I O N S S E L E C T I V I T Y
( D O L L A R S I N B I L L I O N S )
A M O U N T
S O U R C E D
A M O U N T
A C Q U I R E D
S E L E C T I V I T Y 1
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
2 0 1 6
2 0 1 7
2 0 1 8
2 0 1 9
2 0 2 0
2 0 2 1
$ 5 . 7
$ 1 3 . 3
$ 1 7. 0
$ 3 9 . 4
$ 24 . 3
$ 3 1 . 7
$ 2 8 . 5
$ 3 0 . 4
$ 3 2 . 1
$ 5 7. 4
$ 6 3 . 6
$ 8 4 . 5
$ 0 . 7 1
$ 1 . 0 2
$ 1 . 1 6
$ 4 . 6 7
$ 1 . 4 0
$ 1 . 2 6
$ 1 . 8 6
$ 1 . 5 2
$ 1 . 8 0
$ 3 . 7 2
$ 2 . 3 1
$ 6 . 4 1
1 2 %
8 %
7 %
1 2 %
6 %
4 %
7 %
5 %
6 %
7 %
4 %
8 %
1 SELECTIVITY IS CALCULATED AS THE AMOUNT OF ACQUISITIONS ACQUIRED DIVIDED
BY THE AMOUNT OF ACQUISITIONS SOURCED
19
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D
E
U
N
I
T
N
O
C
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DISCIPLINED INVESTMENT PROCESS
C O N S E R V A T I V E
C A P I T A L
S T R U C T U R E
“We are passionate
about creating long-term stockholder
value. Since our 1994 listing, we have
demonstrated a commitment to a conservative
balance sheet, consistent cash flow generation
and in rewarding our loyal investors through
meaningful dividend growth. Through the continued
evolution of our company, these tenets will
remain at the core of our DNA as we build brighter
financial futures for all of our stakeholders.”
Jonathan Pong,
Senior Vice President,
Head of Corporate
Finance
20
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Realty Income is committed to providing our
stockholders with dependable monthly dividends
through a conservative capital structure and
“Realty Income has a bright outlook
for 2022 and beyond. Through our increased
size and scale, we’re well positioned to execute
on our strategic plans for growth in the year
ahead. We will continue to prioritize maintaining
sustainable platform growth. We will continue to
a conservative balance sheet while delivering a
maintain a balance sheet with high coverage ratios,
competitive cost of capital to achieve our mission
conservative financial leverage and ample liquidity.
At the end of 2021, our total market capitalization
was $57.7 billion, of which $42.4 billion, or
approximately 73.5%, was common equity.
Realty Income’s deployment of debt capital is
utilized to fund growth in a prudent manner.
Currently, 89.8% of our outstanding bonds are
fixed rate and unsecured with a weighted average
remaining term to maturity of 7.7 years.
As of December 31, 2021, our Net Debt/Annualized
Pro forma Adjusted EBITDAre1 ratio was a healthy
5.3x and our fixed charge coverage ratio was 5.6x.
As one of only a handful of REITs with at least two
‘A’ credit ratings, our A3/A- credit ratings provide us
with a low cost of public unsecured debt. In July 2021,
Realty Income issued our debut green bond, a public
offering of £400 million of 1.125% senior unsecured
notes due 2027 and £350 million of 1.750% senior
unsecured notes due 2033. This issuance illustrates
our commitment as a leader among our peers in
prioritizing environmental sustainability.
We believe that a balance sheet with appropriate
leverage and robust access to capital is essential
for financial stability and growth. Through 2021,
Realty Income maintained a $3.0 billion multi-
currency unsecured revolving line of credit,
providing flexibility to close on acquisitions
quickly and opportunistically raise equity and/or
issue long-term debt when capital market dynamics
are most favorable. We also maintain a $1.0 billion
commercial paper program, which further enhances
our financial agility by providing additional access
to alternative low-cost short-term liquidity.
and goals as The Monthly Dividend Company®.
I am appreciative of the partnership our clients
provide, the trust our stockholders afford us
and the dedication demonstrated by
our Realty Income One Team.”
Christie Kelly,
Executive Vice President,
Chief Financial Officer
and Treasurer
C O N S E R VAT I V E
C A P I TA L S T R U C T U R E
( A S O F 1 2 / 3 1 / 2 1 )
26.5%
DEBT
26+
73.5%
COMMON
EQUITY
1 Net Debt/Annualized Pro forma Adjusted EBITDAre is a supplemental operating measure. The definition of adjusted EBITDAre
and a reconciliation of the net income available to stockholders can be found in our 2021 Form 10-K.
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CONSERVATIVE CAPITAL STRUCTURE74
D E P E N D A B L E
M O N T H L Y
D I V I D E N D S
“Our employees have
remained focused on stockholder
value during unprecedented times,
including our new team members from VEREIT.
We have embraced change and are blending
our teams together to form a stronger
One Team. Collectively, we have lived our values
and achieved results while working remotely.
We continue to prioritize employee
engagement as we expand domestically
and internationally.”
Shannon Kehle,
Executive Vice President,
Chief People Officer
22
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As The Monthly Dividend Company®, we remain
committed to operating in a manner that provides
our stockholders with dependable monthly dividends
“We’ve continued to prioritize sound
corporate governance in 2021. As our
platform grows, we’re committed to
maintaining and enhancing the policies,
programs and procedures related to ESG
that increase over time. Realty Income prioritizes
matters of significance to the company.
generating predictable cash flow for investors
through every business decision we make. The
dividend is sacrosanct and our commitment is
evidenced by our track record. Since our company’s
listing on the NYSE in 1994, we have increased the
dividend every year at a compound average annual
growth rate of approximately 4.5% and have never
reduced the dividend. As of year-end, we are proud
to be one of only three REITs and 64 total companies
in the S&P 500 Dividend Aristocrats® index,
which includes S&P 500 constituents that have
increased their dividend every year for the last
25 consecutive years.
Through Board oversight and a leadership
team with the highest of ethical standards,
Realty Income strives to be a market
leader in corporate citizenship.”
Michelle Bushore,
Executive Vice President,
Chief Legal Officer,
General Counsel & Secretary
C O N S I S T E N T D I V I D E N D G R O W T H
A N N U A L I Z E D D I V I D E N D S P E R S H A R E A N D D I V I D E N D I N C R E A S E S 1
4.5% COMPOUND AVERAGE ANNUAL GROWTH RATE
97 CONSECUTIVE QUARTERLY INCREASES
114 DIVIDEND INCREASES SINCE 1994 NYSE LISTING
$0.90
1994
1 ANNUALIZED DIVIDEND AMOUNT REFLECTS THE DECEMBER DECLARED DIVIDEND PER SHARE MULTIPLIED BY 12
$2.96
2021
23
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DEPENDABLE MONTHLY DIVIDENDS S E L E C T
F I N A N C I A L
D A T A 1
25
C O N S O L I D AT E D B A L A N C E S H E E T S
26
27
28
29
C O N S O L I D AT E D S TAT E M E N T S O F I N C O M E
A N D C O M P R E H E N S I V E I N C O M E
C O N S O L I D AT E D S TAT E M E N T S
O F E Q U I T Y
C O N S O L I D AT E D S TAT E M E N T S
O F C A S H F L O W S
R E A LT Y I N C O M E P E R F O R M A N C E V S .
M A J O R S T O C K I N D I C E S
1 THIS FINANCIAL DATA IS DERIVED FROM OUR AUDITED FINANCIAL STATEMENTS FOUND IN THE COMPANY’S 2021 FORM 10-K
EXCEPT FOR DATA FOUND ON PAGE 29, WHICH CAN BE FOUND IN OUR 2021 Q4 EARNINGS RELEASE.
24
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REALTY INCOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
At December 31, 2021 and 2020
(Dollars in thousands, except per share and share count data)
ASSETS
Real estate held for investment, at cost:
Land
Buildings and improvements
Total real estate held for investment, at cost
Less accumulated depreciation and amortization
Real estate held for investment, net
Real estate and lease intangibles held for sale, net
Cash and cash equivalents
Accounts receivable, net
Lease intangible assets, net
Goodwill
Investment in unconsolidated entities
Other assets, net
Total assets
LIABILITIES AND EQUITY
Distributions payable
Accounts payable and accrued expenses
Lease intangible liabilities, net
Other liabilities
Line of credit payable and commercial paper
Term loans, net
Mortgages payable, net
Notes payable, net
Total liabilities
Commitments and contingencies
Stockholders’ equity:
2021
2020
$ 10,753,750
$ 6,318,926
25,155,178
35,908,928
14,696,712
21,015,638
(3,949,798)
(3,549,486)
31,959,130
17,466,152
30,470
258,579
426,768
5,275,304
3,676,705
140,967
1,369,579
19,004
824,476
285,701
1,710,655
14,180
-
420,117
$ 43,137,502
$ 20,740,285
$
146,919
$
85,691
351,128
1,308,221
759,197
1,551,376
249,557
1,141,995
12,499,709
18,008,102
241,336
321,198
256,863
-
249,358
300,360
8,267,749
9,722,555
Common stock and paid in capital, par value $0.01 per share,
740,200,000 shares authorized, 591,261,991 and 361,303,445 shares
issued and outstanding as of December 31, 2021 and December 31, 2020,
respectively
Distributions in excess of net income
Accumulated other comprehensive income (loss)
Total stockholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity
29,578,212
14,700,050
(4,530,571)
(3,659,933)
4,933
(54,634)
25,052,574
10,985,483
76,826
32,247
25,129,400
11,017,730
$ 43,137,502
$ 20,740,285
The accompanying notes to consolidated financial statements are an integral part of these statements and may be found in the company’s 2021 Form 10-K.
73215.indd 25
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REALTY INCOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Years ended December 31, 2021, 2020 and 2019
(Dollars in thousands, except per share data)
REVENUE
Rental (including reimbursable)
$
2,064,958
$
1,639,533
$
1,484,818
2021
2020
2019
Other
Total revenue
EXPENSES
Depreciation and amortization
Interest
Property (including reimbursable)
General and administrative
Provisions for impairment
Merger and integration-related costs
Total expenses
Gain on sales of real estate
Foreign currency and derivative gains, net
Loss on extinguishment of debt
Equity in income of unconsolidated entities
Other income, net
Income before income taxes
Income Taxes
Net income
Net income attributable to noncontrolling interests
15,505
7,554
3,345
2,080,463
1,647,087
1,488,163
897,835
323,644
133,605
96,980
38,967
167,413
677,038
309,336
104,603
73,215
147,232
-
593,961
290,991
88,585
66,483
40,186
-
1,658,444
1,311,424
1,080,206
55,798
710
(97,178)
1,106
9,949
392,404
(31,657)
360,747
(1,291)
76,232
4,585
(9,819)
-
4,538
411,199
(14,693)
396,506
(1,020)
29,996
2,255
-
-
3,428
443,636
(6,158)
437,478
(996)
Net income available to common stockholders
$
359,456
$
395,486
$
436,482
Amounts available to common stockholders per common share:
Net income
Basic
Diluted
Weighted average common shares outstanding:
Basic
Diluted
Other comprehensive income:
$
$
0.87
0.87
$
$
1.15
1.14
$
$
1.38
1.38
414,535,283
345,280,126
315,837,012
414,769,846
345,415,258
316,159,277
Net income available to common stockholders
$
359,456
$
395,486
$
436,482
Foreign currency translation adjustment
Unrealized gain (loss) on derivatives, net
9,119
50,448
(2,606)
(34,926)
186
(9,190)
Comprehensive income available to common stockholders
$
419,023
$
357,954
$
427,478
The accompanying notes to consolidated financial statements are an integral part of these statements and may be found in the company’s 2021 Form 10-K.
26
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REALTY INCOME CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EQUITY
Years ended December 31, 2021, 2020 and 2019
(Dollars in thousands, except per share data)
Shares of
common
stock
Common
stock and
paid in
capital
Distributions
in excess of
net income
Accumulated
other
comprehensive
income (loss)
Total
stockholders’
equity
Noncontrolling
interests
Total equity
Balance, December 31, 2018
303,742,090
$ 10,754,495 $
(2,657,655) $
(8,098) $
8,088,742 $
32,236 $ 8,120,978
Net income
Other comprehensive loss
Distributions paid and payable
—
—
—
—
—
—
Share issuances, net of costs
29,818,978
2,117,983
Contributions by noncontrolling
interests
Redemption of common units
Reallocation of equity
—
-
—
Share-based compensation, net
58,038
—
(6,866)
(653)
8,890
436,482
—
436,482
—
(9,004))
(9,004)
996
—
437,478
(9,004)
(861,118)
—
—
—
—
—
—
—
—
—
—
—
(861,118)
(1,296)
(862,414)
2,117,983
—
2,117,983
—
11,370
11,370
(6,866)
(14,257)
(21,123)
(653)
8,890
653
—
—
8,890
Balance, December 31, 2019
333,619,106
$ 12,873,849 $
(3,082,291) $
(17,102) $
9,774,456 $
29,702 $ 9,804,158
Net income
Other comprehensive loss
Distributions paid and payable
—
—
—
—
—
—
Share issuances, net of costs
27,564,163
1,817,978
Contributions by noncontrolling
interests
Reallocation of equity
—
—
—
47
Share-based compensation, net
120,176
8,176
395,486
—
395,486
1,020
396,506
—
(37,532)
(37,532)
—
(37,532)
(973,128)
—
—
—
—
—
—
—
—
—
(973,128)
(1,596)
(974,724)
1,817,978
—
1,817,978
—
47
8,176
3,168
3,168
(47)
—
—
8,176
Balance, December 31, 2020
361,303,445
$ 14,700,050 $
(3,659,933) $
(54,634) $ 10,985,483 $
32,247 $ 11,017,730
359,456
—
359,456
1,291
360,747
Net income
Other comprehensive income
—
—
—
—
Shares issued in merger
162,043,548
11,556,715
Orion Divestiture
Distributions paid and payable
—
—
(1,140,769)
—
(1,230,094)
Share issuances, net of costs
67,777,279
4,453,953
Contributions by noncontrolling
interests
Reallocation of equity
—
—
—
42
Share-based compensation, net
137,719
8,221
—
—
—
—
—
—
—
59,567
59,567
—
59,567
—
—
—
—
—
—
—
11,556,715
3,160
11,559,875
(1,140,769)
(1,352)
(1,142,121)
(1,230,094)
(1,868)
(1,231,962)
4,453,953
—
4,453,953
—
43,390
43,390
42
8,221
(42)
—
—
8,221
Balance, December 31, 2021
591,261,991
$ 29,578,212 $
(4,530,571) $
4,933
$ 25,052,574 $
76,826
$ 25,129,400
The accompanying notes to consolidated financial statements are an integral part of these statements and may be found in the company’s 2021 Form 10-K.
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REALTY INCOME CORPORATION AND SUBSIDIARIES
CASH FLOWS
CONSOLIDATED STATEMENTS OF
Years ended December 31, 2021, 2020 and 2019
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
Adjustments to net income:
Depreciation and amortization
Loss on extinguishment of debt
Amortization of share-based compensation
Non-cash revenue and expense adjustments
Amortization of net premiums on mortgages payable
Amortization of net premiums on notes payable
Amortization of deferred financing costs
Loss on interest rate swaps
Foreign currency and derivative gains, net
Gain on sales of real estate
Equity income of unconsolidated entities
Distributions from unconsolidated entities
Provisions for impairment on real estate
Change in assets and liabilities
Accounts receivable and other assets
Accounts payable, accrued expenses and other liabilities
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in real estate
Improvements to real estate, including leasing costs
Proceeds from sales of real estate
Non-refundable escrow deposits
Return of investment from unconsolidated entities
Net cash paid in merger
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Cash distributions to common stockholders
Borrowings on line of credit and commercial paper program
Payments on line of credit and commercial paper program
Principal payment on term loan
Proceeds from notes and bonds payable issued
Principal payment on notes payable
Payments upon extinguishment of debt
Principal payments on mortgages payable
Proceeds from common stock offerings, net
Proceeds from dividend reinvestment and stock purchase plan
Proceeds from At-the-Market (ATM) program
Net cash received from Orion Divestiture
Redemption of common units
Distributions to noncontrolling interests
Net receipts on derivative settlements
Debt issuance costs
Other items, including shares withheld upon vesting
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, beginning of year
Cash, cash equivalents and restricted cash, end of year
2021
2020
2019
$ 360,747
$ 396,506
$ 437,478
897,835
97,178
41,773
(23,380)
(3,498)
(10,349)
12,333
2,905
(710)
(55,798)
(1,106)
365
38,967
(38,292)
3,219
1,322,189
(6,313,076)
(19,080)
250,536
(28,390)
38,345
(366,030)
(6,437,695)
(1,169,026)
9,082,206
(7,508,332)
—
1,033,387
(1,700,000)
(96,583)
(66,575)
1,263,235
11,232
3,179,490
593,484
—
(1,707)
3,266
(13,405)
(33,552)
4,577,120
20,076
(518,310)
850,679
$ 332,369
677,038
9,819
16,503
(3,562)
(1,258)
(1,754)
11,003
4,353
(4,585)
(76,232)
—
—
147,232
(79,240)
19,720
1,115,543
(2,283,130)
(8,708)
259,459
—
—
—
(2,032,379)
(964,167)
3,528,042
(4,246,755)
(250,000)
2,200,488
(250,000)
(9,445)
(108,789)
728,883
9,109
1,094,938
—
—
(1,596)
4,106
(19,456)
(23,279)
1,692,079
4,431
779,674
71,005
$ 850,679
593,961
—
13,662
(9,338)
(1,415)
(995)
9,795
2,752
(2,255)
(29,996)
-
-
40,186
(8,954)
24,056
1,068,937
(3,572,581)
(23,536)
108,911
(14, 603)
—
—
(3,501,809)
(852,134)
2,816,632
(2,365,368)
(70,000)
897,664
—
—
(20,723)
845,061
8,437
1,264,518
-
(21,123)
(1,342)
4,881
(9,129)
(4,772)
2,492,602
(9,796)
49,934
21,071
$ 71,005
The accompanying notes to consolidated financial statements are an integral part of these statements and may be found in the company’s 2021 Form 10-K.
28
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REALTY INCOME PERFORMANCE VS. MAJOR STOCK INDICES
Realty Income
Equity REIT Index1
Dow Jones
Industrial Average
S&P 500
NASDAQ Composite
D I V I D E N D
Y I E L D
TOTA L
R E T U R N 2
D I V I D E N D
Y I E L D
TOTA L
R E T U R N 3
D I V I D E N D
Y I E L D
TOTA L
R E T U R N 3
D I V I D E N D
Y I E L D
TOTA L
R E T U R N 3
D I V I D E N D
Y I E L D
TOTA L
R E T U R N 4
10.5%
8.3%
10.8%
42.0%
7.7%
7.4%
0.0%
15.3%
2.9%
2.4%
(1.6%)
36.9%
2.9%
2.3%
(1.2%)
37.6%
0.5%
0.6%
(1.7%)
39.9%
7.9%
15.4%
6.1%
35.3%
2.2%
28.9%
2.0%
23.0%
0.2%
22.7%
7.5%
14.5%
5.5%
20.3%
1.8%
24.9%
1.6%
33.4%
0.5%
21.6%
8.2%
5.5%
7.5%
(17.5%)
1.7%
18.1%
1.3%
28.6%
0.3%
39.6%
10.5%
(8.7%)
8.7%
(4.6%)
1.3%
27.2%
1.1%
21.0%
0.2%
85.6%
8.9%
31.2%
7.5%
26.4%
1.5%
(4.7%)
1.2%
(9.1%)
0.3%
(39.3%)
7.8%
27.2%
7.1%
13.9%
1.9%
(5.5%)
1.4%
(11.9%)
0.3%
(21.1%)
6.7%
26.9%
7.1%
3.8%
2.6%
(15.0%)
1.9%
(22.1%)
0.5%
(31.5%)
6.0%
21.0%
5.5%
37.1%
2.3%
28.3%
1.8%
28.7%
0.6%
50.0%
5.2%
32.7%
4.7%
31.6%
2.2%
5.6%
1.8%
10.9%
0.6%
8.6%
6.5%
(9.2%)
4.6%
12.2%
2.6%
1.7%
1.9%
4.9%
0.9%
1.4%
5.5%
34.8%
3.7%
35.1%
2.5%
19.0%
1.9%
15.8%
0.8%
9.5%
6.1%
3.2%
4.9%
(15.7%)
2.7%
8.8%
2.1%
5.5%
0.8%
9.8%
7.3%
(8.2%)
7.6%
(37.7%)
3.6%
(31.8%)
3.2%
(37.0%)
1.3%
(40.5%)
6.6%
19.3%
3.7%
28.0%
2.6%
22.6%
2.0%
26.5%
1.0%
43.9%
5.1%
38.6%
3.5%
27.9%
2.6%
14.0%
1.9%
15.1%
1.2%
16.9%
5.0%
7.3%
3.8%
8.3%
2.8%
8.3%
2.3%
2.1%
1.3%
(1.8%)
4.5%
20.1%
3.5%
19.7%
3.0%
10.2%
2.5%
16.0%
2.6%
15.9%
5.8%
(1.8%)
3.9%
2.9%
2.3%
29.6%
2.0%
32.4%
1.4%
38.3%
4.6%
33.7%
3.6%
28.0%
2.3%
10.0%
2.0%
13.7%
1.3%
13.4%
4.4%
13.0%
3.9%
2.8%
2.6%
0.2%
2.2%
1.4%
1.4%
5.7%
4.2%
16.0%
4.0%
8.6%
2.5%
16.5%
2.1%
12.0%
1.4%
7.5%
4.5%
3.6%
3.9%
8.7%
2.2%
28.1%
1.9%
21.8%
1.1%
28.2%
4.2%
15.2%
4.4%
(4.0%)
2.5%
(3.5%)
2.2%
(4.4%)
1.4%
(3.9%)
3.7%
21.1%
3.7%
28.7
2.4%
4.5%
(11.8%)
3.6%
(5.1%)
1.9%
25.3
9.7%
1.9%
1.5%
31.5
1.1%
35.2%
18.4%
0.9%
43.6%
4.1%
23.0%
2.6%
41.3%
1.8%
20.9%
1.3%
28.7%
0.7%
21.4%
10/18–12/31
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
2021
COMPOUND
AVERAGE ANNUAL
TOTAL RETURN5
15.5%
11.2%
11.1%
11.0%
11.7%
Note: All of these dividend yields are calculated as annualized dividends based on the last dividend paid in applicable time period divided by the closing price as of period end.
Dividend yield sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream / Thomson Financial.
1 FTSE NAREIT US Equity REIT Index, as per NAREIT website.
2 Calculated as the difference between the closing stock price as of period end less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price
as of end of previous period. Does not include reinvestment of dividends for the annual percentages.
3 Includes reinvestment of dividends. Source: NAREIT website and Factset.
4 Price only index, does not include dividends as NASDAQ did not report total return metrics for the entirety of the measurement period. Source: Factset.
5 All of these Compound Average Annual Total Return rates are calculated in the same manner: from Realty Income’s NYSE listing on October 18, 1994 through December 31, 2021,
and (except for NASDAQ) assuming reinvestment of dividends. Past performance does not guarantee future performance. Realty Income presents this data for informational purposes only
and makes no representation about its future performance or how it will compare in performance to other indices in the future.
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T O TA L R E T U R N P E R F O R M A N C E
REALTY INCOME CORPORATION
RUSSELL 2000
S&P 500
REALTY INCOME PEER GROUP INDEX*
E
U
L
A
V
X
E
D
N
I
280
260
240
220
200
180
160
140
120
100
80
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
12/31/21
30
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INDEX
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
12/31/21
P E R I O D E N D I N G
REALTY INCOME CORPORATION
115.78
120.04
139.16
168.74
149.23
185.10
RUSSELL 2000
S&P 500
REALTY INCOME PEER GROUP INDEX*
121.31
111.96
101.82
139.08
136.40
103.88
123.77
130.40
104.07
155.35
171.50
121.83
186.36
203.05
104.98
213.95
261.49
148.13
*REALTY INCOME PEER GROUP INDEX CONSISTS OF 18 COMPANIES WITH AN IMPLIED MARKET CAPITALIZATION BETWEEN $8.0 BILLION AND $52.5 BILLION
AS OF DECEMBER 31, 2021.
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C O M PA N Y I N F O R M AT I O N
B O A R D O F D I R E C T O R S
Michael D. McKee
Non-Executive Chairman
Principal, The Contrarian
Group
Kathleen R. Allen, Ph.D.
Founding Director,
Center for Technology
Commercialization,
University of Southern California
Priscilla Almodovar
President and
Chief Executive Officer,
Enterprise Community Partners
Jacqueline Brady
Managing Director,
Head of Global Debt Solutions,
PGIM Real Estate
A. Larry Chapman
Retired Executive Vice President,
Head of Commercial Real Estate,
Wells Fargo Bank
Mary Hogan Preusse
Senior Advisor, Fifth Wall
Priya Cherian Huskins
Senior Vice President and
Partner,
Woodruff-Sawyer & Co.
Gerardo I. Lopez
Operating Partner
and Head of the Operating Group,
SoftBank Investment Advisers
Gregory T. McLaughlin
Chief Executive Officer,
PGA TOUR First Tee Foundation
Ronald L. Merriman
Retired Vice Chair and Partner,
KPMG LLP
Reginald H. Gilyard
Senior Advisor,
Boston Consulting Group, Inc
Sumit Roy
President
& Chief Executive Officer
E X E C U T I V E & S E N I O R O F F I C E R S
Neil Abraham
President, Realty Income
International,
Executive Vice President,
Chief Strategy Officer
Michelle Bushore
Executive Vice President,
Chief Legal Officer,
General Counsel
and Secretary
Mark Hagan
Executive Vice President,
Chief Investment Officer
Shannon Kehle
Executive Vice President,
Chief People Officer
Christie Kelly
Executive Vice President,
Chief Financial Officer
and Treasurer
Sumit Roy
President
& Chief Executive Officer
T R A N S F E R A G E N T
For shareholder administration and account
information, please visit Computershare’s
website at www.computershare.com or
call toll-free at 1-877-218-2434.
I N D E P E N D E N T R E G I S T E R E D
P U B L I C A C C O U N T I N G F I R M
KPMG LLP
San Diego, CA
F O R A D D I T I O N A L
C O R P O R AT E I N F O R M AT I O N
Visit the Realty Income corporate
website at www.realtyincome.com
Contact your financial advisor,
or Realty Income at:
877-924-6266
ir@realtyincome.com
Copies of Realty Income’s Annual Report
are available upon written request to:
REALTY INCOME CORPORATION
Attention: Investor Relations
11995 El Camino Real
San Diego, CA 92130
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R E A L T Y I N C O M E
1 1 9 9 5 E L C A M I N O R E A L
S A N D I E G O , C A 9 2 1 3 0
W W W. R E A LT Y I N C O M E . C O M
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