ESCONDIDO, CALIFORNIA, July 22, 2002— Realty Income Corporation (Realty Income), The Monthly Dividend Company™, (NYSE:O) today announced that Funds from Operations (FFO) for the second quarter ended June 30, 2002 increased 26.4% to $23.0 million as compared to $18.2 million for the same quarter in 2001. For the quarter ended June 30, 2002, net income available to common stockholders increased to $16.0 million as compared to $11.0 million for the same period in 2001. The weighted average number of fully-diluted common shares outstanding for the quarters ended June 30, 2002 and 2001 were 33,368,359 and 28,468,992, respectively.

The preceding information was included in a prospectus supplement filed with the Securities and Exchange Commission on July 22, 2002, in conjunction with an offering of the Company's common stock, and discloses certain information made available in the offering prospectus. The Company will provide complete operating results in a press release to be issued on Thursday, July 25, 2002 prior to the open of the stock exchanges.

Realty Income is The Monthly Dividend Company™, 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. The monthly income 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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