What Is Our Business?
			What is Our Market Focus?
			What is Realty Income's Financial Position?
			What Do We Own?

Important demographic changes, known as "the aging of America," are taking place. We believe these changes could have an impact on the type of investments people will need over the next 10 to 20 years. History and experience have shown that the market for certain kinds of investments have been directly correlated to demographic trends.

Our focus on providing dependable monthly income is further validated by census statistics that show the majority of retired people receive more than 70% of their income from investments. Currently more than 34 million people are of retirement age and rely on some type of investment income. When we include the 76 million members of the Baby Boomer generation, who are projected to join the ranks of the retired over the next twenty years, we have a market that is anticipated to grow substantially.

While we cannot know for certain the number of people that will exit the workplace and need to replace salaries with investment income, if the past is prologue to the future, we can anticipate that dependable income will be important to maintaining an existing lifestyle.

For this reason, our dedication to paying monthly dividends is fundamental to how we will conduct our business now and in the future. Our goal is to be positioned at the forefront as the march toward income intensifies over the next few years.

The freestanding retail real estate market is vast. According to F.W. Dodge, an independent real estate consultant, there is more than 5.6 billion square feet of this type of real estate in the United States. The ownership of these freestanding properties varies depending on the size and type of retail property. There are companies that specialize in owning small convenience stores or restaurants and there are those that only want to own the "big box" properties.

With the tremendous amount of freestanding retail real estate that exists, our competitive advantage is derived from the fact that we have elected to specialize. Our acquisition and ownership focus is on the highly specific freestanding retail market niche of middle and upper market retailers who provide goods and services that consumers use every day. Typically, many middle market retail chains have limited access to the public capital markets so executing a sale/leaseback transaction with Realty Income provides them with immediate access to capital. These are often the retailers who could benefit the most from outsourcing the ownership of their real estate, generating capital to fuel their business growth and enhance their credit profile or borrowing capacities.

Some of the retail chains who have used this type of capital include: Advance Auto (parts and service), Children's World (child daycare center), Hollywood Video (video rental centers), Pier 1 Imports (home furnishings and accessories), and Taco Bell (fast food restaurants).