ESCONDIDO, CALIFORNIA, June 24, 2004—Realty Income Corporation (Realty Income), The Monthly Dividend Company®, (NYSE:O) today announced that it intends to redeem all 1,380,000 shares outstanding of the Company's 9-1/2% Class C Cumulative Redeemable Preferred stock. (NYSE: OprC - CUSIP no. 756109-500) The shares will be redeemed at $25 per share (par), plus accrued and unpaid dividends up through the planned redemption date of July 30, 2004. The redemption agent will be The Bank of New York.

Commenting on the redemption of the Company's Class C Preferred stock, Chief Executive Officer Tom A. Lewis stated,"We are pleased to have been able to redeem the outstanding Preferred C shares using the remaining proceeds from the May 6, 2004 offering of Preferred D shares. Going forward, we will benefit from significant savings as a result of the improved dividend rate on the Preferred D shares. The Preferred D stock pays an annualized dividend per share of $1.84375, in comparison to the annualized dividend per share of $2.375 that was paid on the Preferred C shares that are being redeemed on July 30, 2004."

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 407 consecutive common stock monthly dividend payments throughout its 35-year operating history and has increased the monthly dividend for 27 consecutive quarters. The monthly dividend is supported by the cash flow from over 1,500 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.

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