ESCONDIDO, CALIFORNIA, OCTOBER 19, 2001 — Realty Income Corporation (Realty Income), "The Monthly Dividend Company," (NYSE: O) today announced that it has completed a public offering of 2,600,000 shares of the Company's common stock, priced at $28.50 per share. The offering is expected to close on October 23, 2001 and all 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., Salomon Smith Barney, Inc., Credit Suisse First Boston, A.G. Edwards & Sons, Inc., Ferris, Baker, Watts, and First Union Capital Markets.

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.

Commenting on the offering, Tom A. Lewis, Chief Executive Officer stated, "We are pleased with the support shown by the firms underwriting this common stock offering. Demand for our shares was strong, which we attribute to the continued quest for safety and income in today's financial marketplace. The additional capital will allow us to increase the size of our real estate portfolio and the revenues supporting the payment of monthly dividends."

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. The monthly income is supported by the cash flow from 1,079 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.