I think the cover of our annual report accurately reflects what we would like Realty Income to be for its shareholders—an investment that gives you peace of mind.

In order for this to happen, we believe we must remain committed to the principles that have made us successful over the last 33 years. "The Monthly Dividend Company" is more than just our brand name or a description of our business. It is who we are as a company and how we view ourselves. We understand that our shareholders invested in this Company to receive reliable monthly dividends over a sustained period of time. We constantly reflect on this as we decide how to allocate capital and manage our assets. As shareholders ourselves, we share these goals with all of you.

Being the income investment of choice for thousands of people who rely on their investment income is a responsibility we take seriously. There are no guaranteed outcomes in the investment world. However, we will remain dedicated to pursuing a conservative strategy and generating reliable dividends for our shareholders.

Thank you for your continued support of Realty Income and for telling many of your friends about the Company. We truly believe our shareholders played a big part in the increased demand for The Monthly Dividend Company this year and we thank you for your efforts.

We look forward to keeping you informed about your Company’s progress during 2002.

Sincerely, Tom A. Lewis Vice Chairman and Chief Executive Officer