ESCONDIDO, CALIFORNIA, March 5, 2003—Realty Income Corporation (Realty Income), The Monthly Dividend Company®, (NYSE:O) today announced the pricing of $100 million of 5-3/8% senior unsecured notes due 2013. The price to the investor for the notes was 99.509% of the principal amount for an effective yield of 5.439%. These securities have been rated BBB by Fitch Ratings, Baa2 by Moody’s Investors Service and BBB- by Standard & Poor’s Ratings Group. The net proceeds from the offering will be used to repay borrowings under the Company’s $250 million unsecured acquisition credit facility.

The co-lead managers of the offering are Banc of America Securities LLC (sole book running manager) and Salomon Smith Barney, Inc. Senior co-managers include Credit Suisse First Boston and Merrill Lynch & Co. Other co-managers include: A.G. Edwards & Sons, Inc.; AmSouth Bank; Bank of Montreal; Raymond James & Associates, Inc.; and U.S. Bank National Association.

Commenting on the transaction, Chief Executive Officer, Tom A. Lewis said, “We are pleased to have been able to complete this long-term financing at an attractive interest rate. The offering proceeds, combined with other operating cash flow, will allow us to pay down our $250 million credit facility to a zero balance. This will provide us with significant flexibility in executing our plans for property portfolio growth in 2003.”

These securities are offered pursuant to a Registration Statement that has been declared effective by the Securities and Exchange Commission. The notes are only offered by means of the prospectus included in the Registration Statement and the prospectus supplement related to the 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 where the offer, solicitation, or sale of these securities would be unlawful.

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 391 consecutive monthly dividend payments throughout its 33-year operating history. The monthly income is supported by the cash flow from approximately 1,200 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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