1999	1998
ASSETS
Real estate, at cost:
Land	$ 350,517	$ 283,043
Buildings and improvements	711,962	606,792
	1,062,479	889,835
Less accumulated depreciation and amortization	(195,386)	(171,555)
Net real estate	867,093	718,280
Cash and cash equivalents	773	2,533
Accounts receivable	3,407	2,973
Goodwill, net	19,053	19,977
Other assets	15,078	15,471
Total assets	$ 905,404	$ 759,234
LIABILITIES AND STOCKHOLDERS' EQUITY
Distributions payable	$ 4,828	$ 4,559
Accounts payable and accrued expenses	12,792	4,036
Other liabilities	3,753	5,630
Line of credit payable	119,200	84,800
Notes payable	230,000	210,000
Total liabilities	370,573	309,025
Commitments and contingencies
Stockholders’ equity
Preferred stock and paid in capital, par value $1.00 per share, 20,000,000 shares authorized, 4,140,000 shares issued and outstanding	99,679	--
Common stock and paid in capital, par value $1.00 per share, 100,000,000 shares authorized, 26,822,164 and 26,817,103 shares issued and outstanding in 1999 and 1998, respectively	636,611	636,486
Distributions in excess of net income	(201,459)	(186,277)
Total stockholders’ equity	534,831	450,209
Total liabilities and stockholders’ equity	$ 905,404	$ 759,234
The "Notes to the Consolidated Financial Statements" contained in Realty Income's Annual Report on Form 10-K are an integral part of these statements. Please click here to access the company's 1999 Annual Report on Form 10-K. (Note: you will be exiting the Realty Income website when you click here)

REALTY INCOME CORPORATION AND SUBSIDIARIES Consolidated Statements of Income Years Ended December 31, 1999, 1998 and 1997 (dollars in thousands, except per share data)

	1999	1998	1997
REVENUE
Rental	$ 104,270	$ 84,876	$ 67,613
Interest and other	240	256	284
	104,510	85,132	67,897
EXPENSES
Depreciation and amortization	25,952	21,935	18,596
Interest	24,473	13,723	8,226
General and administrative	6,968	6,680	5,437
Property	1,822	1,790	1,785
Provision for impairment losses	--	--	165
	59,215	44,128	34,209
Income from operations	45,295	41,004	33,688
Gain on sales of properties	1,301	526	1,082
Income before extraordinary item and        cumulative effect of change in        accounting principle	46,596	41,530	34,770
Extraordinary item	(355)	--	--
Cumulative effect of change in        accounting principle	--	(226)	--
Net income	46,241	41,304	34,770
Preferred stock dividends	(5,229)	--	--
Net income available to common stockholders	$ 41,012	$ 41,304	$34,770
Basic and diluted amounts per common share:    Income before extraordinary item and       cumulative effect of change in       accounting principle	$ 1.54	$ 1.56	$ 1.48
Extraordinary item	(0.01)	--	--
Cumulative effect of change in       accounting principle	--	(0.01)	--
Net income per share	$ 1.53	$ 1.55	$ 1.48
The "Notes to the Consolidated Financial Statements" contained in Realty Income's Quarterly Report on Form 10-Q are an integral part of these statements. The company's Quarterly Report on Form 10-Q will be available on or near May 12, 2000

REALTY INCOME CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows Years Ended December 31, 1999, 1998 and 1997 (dollars in thousands)

	1999	1998	1997
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 46,241	$ 41,304	$ 34,770
Adjustments to net income:
Depreciation and amortization	25,952	21,935	18,596
Provision for impairment lossses	--	--	165
Gain on sales of properties	(1,301)	(526)	(1,082)
Cumulative effect of change in accounting principle	--	226	--
Change in assets and liabilities:
Accounts receivable and other assets	380	144	(844)
Accounts payable, accrued expenses and other liabilities	882	1,562	1,087
Net cash provided by operating activities	72,154	64,645	52,692
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of properties	9,431	2,770	4,432
Acquisition of and additions to properties	(174,056)	(192,588)	(140,389)
Payment of other liabilities	(1,713)	--	--
Net cash used in investing activities	(166,338)	(189,818)	(135,957)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit	221,200	224,900	117,000
Payments of lines of credit	(186,800)	(162,700)	(164,400)
Distributions to common stockholders	(55,925)	(52,301)	(44,367)
Distributions to preferred stockholders	(5,229)	--	--
Proceeds from notes issued, net of costs in 1999, 1998, and 1997 of $501, $12,764, and $848, respectively	19,499	87,236	109,152
Proceeds from preferred stock offerings,
net of offering costs	99,679	--	--
Proceeds from common stock offerings,
net of offering costs	--	28,379	68,707
Proceeds from other stock issuances	--	69	246
Payments to the defined benefit pension plan	--	--	(2,223)
Increase in other assets	--	--	(286)
Net cash provided by financing activities	92,424	125,583	83,829
Net increase (decrease) in cash and cash equivalents	(1,760)	410	564
Cash and cash equivalents, beginning of year	2,533	2,123	1,559
Cash and cash equivalents, end of of year	$ 773	$ 2,533	$ 2,123
For supplemental disclosures, see note 12.
The "Notes to the Consolidated Financial Statements" contained in Realty Income's Quarterly Report on Form 10-Q are an integral part of these statements. The company's Quarterly Report on Form 10-Q will be available on or near May 12, 2000