ESCONDIDO, CALIFORNIA, May 4, 2004—Realty Income Corporation (Realty Income), The Monthly Dividend Company®, (NYSE: O) ) today announced that it intends to redeem all 2,745,700 shares outstanding of the Company's 9-3/8% Class B Cumulative Redeemable Preferred stock (NYSE: OprB - CUSIP no. 756109-302). The shares will be redeemed at $25 per share (par), plus accrued and unpaid dividends up through the planned redemption date of June 7, 2004. The redemption agent will be The Bank of New York.

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 405 consecutive common stock monthly dividend payments throughout its 35-year operating history and has increased the monthly dividend for 26 consecutive quarters. The monthly dividend is supported by the cash flow from over 1,500 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.

Note to Editors

Realty Income press releases are available at no charge by calling our toll-free investor hotline number: 888-811-2001, or through the Internet at http://www.realtyincome.com/Investing/News.html.