ESCONDIDO, CALIFORNIA, January 14, 2004—Realty Income Corporation (Realty Income), The Monthly Dividend Company®, (NYSE:O) today announced that its Board of Directors declared a common stock dividend of $0.20 per share, payable on February 16, 2004 to shareholders of record as of February 2, 2004. The dividend represents an annualized amount of $2.40 per share.

The Board of Directors also declared dividends on the Company's Class B and Class C preferred stock. The quarterly dividend on the Class B preferred stock is payable on March 31, 2004 to shareholders of record as of March 15, 2004. The quarterly dividend amount on the Class B preferred stock is $0.5859375 per share, for an annualized rate of $2.34375 per share. The monthly dividends on the Class C preferred stock are payable on February 2, and March 1, 2004 to shareholders of record as of January 15, and February 15, 2004, respectively. The monthly dividend amount on the Class C preferred stock is $0.1979167 per share, for an annualized rate of $2.375 per share.

Realty Income also announced the dividend tax status for common stock dividends paid in 2003. A portion of the common dividend is considered return of capital and is therefore not taxed as ordinary income. There are no capital gains associated with these common stock dividend distributions. (see table below)

Total Common Dividends Paid in 2003:	$2.36250
Ordinary Income Portion of Dividend:	$2.21058	(93.57%)
Return of Capital:	$0.15192	(6.43%)
Capital Gain:	$0.00000

 
The Company also announced that the preferred stock dividends paid during 2003 are 100% taxable ordinary dividends with no return of capital.

In addition, under the new 2003 Jobs and Growth Tax Relief Reconciliation Act, qualifying dividend income will be taxed at a minimum rate of 15% for most taxpayers. Of Realty Income's 2003 ordinary dividends to common shareholders, $0.07776 per share are considered qualifying dividends. Of the Class B preferred stock ordinary dividends, $0.08241 per share are qualifying dividends and of the Class C preferred stock dividends, $0.08351 are qualifying dividends.

Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of any Realty Income dividends received.

Realty Income, The Monthly Dividend Company®, is a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. To date the Company has paid 401 consecutive monthly dividends throughout its 35-year operating history. The monthly income is supported by the cash flow from over 1,400 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is an active buyer of net-leased retail properties nationwide.

Note to Editors:

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