ESCONDIDO, CALIFORNIA, July 19, 2002— Realty Income Corporation (Realty Income), The Monthly Dividend Company™, (NYSE: O) today announced that a public offering of 1,550,000 shares of the Company's common stock has been priced at $33.40 per share and is expected to close on July 24, 2002. All of the shares are being sold by the Company. A copy of the prospectus relating to the offering may be obtained from the following managing underwriters: Merrill Lynch & Co., (book running manager), Salomon Smith Barney, Inc., (co-lead manager), A.G. Edwards & Sons, Inc., and Wachovia Securities.

The proceeds from this offering will be used to repay a portion of the amount outstanding on the Company's $200 million unsecured acquisition credit facility, which was used to fund the acquisition of over $86 million in additional properties during the first six months of 2002.

Commenting on the offering, Tom A. Lewis, Chief Executive Officer stated, "We are pleased to have been able to access the capital markets with this offering of common stock. The additional capital will allow us to continue to increase the size of our real estate portfolio and the revenues supporting the payment of monthly dividends while maintaining one of the most conservative balance sheets in our industry."

The shares of common stock will be issued pursuant to a Registration Statement that has been declared effective by the Securities and Exchange Commission. The shares are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to this offering. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful.

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 384 consecutive monthly dividend payments throughout its 33-year operating history and has increased the monthly dividend for 19 consecutive quarters. The monthly dividend is supported by the cash flow from over 1,100 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.

#1 in paying monthly dividends to shareholders.

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