INSTITUTIONAL INVESTOR PRESENTATIONFOURTH QUARTER 2020

ContentsCompany Overview 4

Summary of COVID-19 Impact 6

Performance Track Record 11

Our Approach and 2020 Results 20

Portfolio Diversification 21

Defensive Retail Portfolio 26

Asset Management & Real Estate Operations 31

Investment Strategy 35

Capital Structure & Scalability 41

Dependable Dividends 45

Corporate Responsibility 47

Summary 49

Appendix

- Top Industries Overview

50

51

All data as of December 31, 2020 unless otherwise specified 2

Safe Harbor For Forward-Looking Statements

Statements in this investor presentation that are not strictly historical are “forward-looking”statements. Forward-looking statements involve known and unknown risks, which may cause thecompany’s actual future results to differ materially from expected results. These risks include,among others, general economic conditions, domestic and foreign real estate conditions, clientfinancial health, the availability of capital to finance planned growth, volatility and uncertainty inthe credit markets and broader financial markets, changes in foreign currency exchange rates,property acquisitions and the timing of these acquisitions, charges for property impairments, theeffects of the COVID-19 pandemic and the measures taken to limit its impact, the effects ofpandemics or global outbreaks of contagious diseases or fear of such outbreaks, our clients' abilityto adequately manage its properties and fulfill their respective lease obligations to us, and theoutcome of any legal proceedings to which the company is a party, as described in the company’sfilings with the Securities and Exchange Commission. Consequently, forward-looking statementsshould be regarded solely as reflections of the company’s current operating plans and estimates.Actual operating results may differ materially from what is expressed or forecast in this pressrelease. The company undertakes no obligation to publicly release the results of any revisions tothese forward-looking statements that may be made to reflect events or circumstances after thedate these statements were made.

3

Realty Income Company Overview

4

S&P 500 REAL ESTATE COMPANY

DIVERSIFIED, HIGH-QUALITY“NET LEASE” PORTFOLIO

TRACK RECORD OF SAFETY AND CONSISTENCY

$31B enterprise value

1 of only 2 REITs in both categories

Member of S&P 500 Dividend Aristocrats® index

1 of 8 U.S. REITs with at least two A3/A- ratings

6,592commercial real estate properties

84%of rent generated

from retail properties

~600 clients

51 industries

49 U.S. states, Puerto Rico, and the U.K.

A3 / A-

(1) AFFO through most recent calendar year/ Excludes earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations

15.3%TSR since 1994

NYSE listing

$1.7B annualized base

rent

52years of operating

history

credit ratings by Moody’s and S&P

24 OF 25years of positive earnings

per share(1) growth

9.0years weighted

average remaining lease term

0.4beta vs. S&P 500 since 1994 NYSE

listing

5.1%median

earnings per share(1) growth

51%of rent from

investment-grade rated clients

94.0%adjusted EBITDAremargin

Business model has generated above-market returns with below-market volatility since 1994

Annualized ($mm) AFFO/sh Impact(3)

Cash-basis theater rent (4) $34 $0.09

Accrual-basis theater rent $60 $0.17

Non-theater, uncollected rent from Dec $26 $0.07

5

Valuation Considerations Normalizing for Historically Low Treasury YieldsHistorically, O’s equity valuation spread has normalized following periods of economic uncertainty…

420 bps

332 bps357 bps

435 bpsMedian = 327 bps

150 bps

250 bps

350 bps

450 bps

550 bps

650 bps

750 bpsEconomic

slowdown in

China, Fed

tightening

European sovereign

debt crisisFiscal cliff

uncertaintiesCurrent spread is ~1.8x standard

deviations wide of historical

relationship

…More recently, O’s 10-year bond spreads have

tightened significantly

75 bps

230 bps

85 bps

0 bps

50 bps

100 bps

150 bps

200 bps

250 bps

300 bps Current Equity / Bond

Spread Multiple of ~5.1x

compares to ~2.1x

multiple over last 10 years

Considerations

Current bond spreads nearly back to

pre-pandemic lows

Source: Bloomberg | Represents estimated G-spreads on Realty

Income benchmark 10-year unsecured notes outstanding

In order for O’s AFFO yield spread to normalize to 327 bps, annual AFFO would have to decline to

$2.84, a 19% decline from the annualized pre-pandemic run rate.(2)

(2) Assuming 10y UST yield of 1.3%, $62 stock price, and 1Q20 annualized AFFO/sh as “pre-pandemic run rate”(3) Utilizing 361.8 mm outstanding diluted share count as of 4Q20(4) Represents 37 (out of 77) theater assets recognizing revenue on cash basis when received

Realty Income Historical AFFO Yield Spread(1) vs. US 10-Year Treasury Yield

(1) Based on consensus NTM AFFO/sh

Summary of COVID-19 ImpactRent collection results supported by core real estate portfolio the majority of which is open for consumers

6

(1) Collection rates are calculated as the aggregate contractual rent collected for the applicable period from the beginning of that applicable period through January 31, 2021, divided by the

contractual rent charged for the applicable period. Rent collection percentages are calculated based on contractual rents (excluding percentage rents and contractually obligated reimbursements by

our clients). Charged amounts have not been adjusted for any COVID-19 related rent relief granted and include contractual rents from any clients in bankruptcy. Due to differences in applicable

foreign currency conversion rates and rent conventions, the percentages above may differ from percentages calculated utilizing total our portfolio annualized contractual rent. We define top 20

clients as our 20 largest clients based on percentage of total portfolio annualized contractual rental revenue as of the most recent reported period.(2) Investment grade clients are defined as clients with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch). ~51% of our annualized rental

revenue is generated from properties leased to investment grade clients, their subsidiaries or affiliated companies.(3) As of 2/11/2021. Represents percentage of annualized rent for open vs closed locations. Open locations include those operating at reduced capacity or limited to take-out or delivery options.

Contractual rent

collected(1) across:

October

2020

November

2020

December

2020Q4 2020

Total portfolio 93.5% 93.7% 93.6% 93.6%

Top 20 clients 89.8% 90.2% 89.7% 89.9%

Investment grade clients(2) 100% 100% 100% 100%

Retail Portfolio Store Status by Industry(3)

100%

100%

100%

100%

93%

44%

100%

100%

97%

99%

99%

95%

7%

56%

3%

1%

1%

5%

Dollar Stores

C-Stores

Total Retail Portfolio

Quick Service Restaurants

Grocery Stores

Casual Dining Restaurants

Drug Stores

Theaters

Home Improvement

Health & Fitness

General Merchandise

Other Retail Industries

Open Closed

Rent Collections from Top 20 IndustriesClients operating in core industries selling ‘essential goods’ paid almost all rent due

7

100%

100%100%

100%

86%

11%

99% 100%100%

100% 95% 100% 100% 99% 100% 100% 100% 100% 100% 100%

12.1%

9.3%

8.3%7.7%

6.9%

5.7% 5.5%

4.1%4.0%

3.0% 2.9% 2.6%2.5%

2.1% 2.0% 2.0% 1.9% 1.7% 1.6% 1.6%

Q4 2020 Rent Collections(1)

% of Q4 Contractual Rent Collected % of Q4 Contractual Rent Not Collected

Received 93.6% of contractual rent due for Q4 2020

(1) Collection rates are calculated as the aggregate contractual rent collected for the applicable period from the beginning of that applicable period through January 31, 2021, divided by the

contractual rent charged for the applicable period. Rent collection percentages are calculated based on contractual rents (excluding percentage rents and contractually obligated reimbursements

by our clients). Charged amounts have not been adjusted for any COVID-19 related rent relief granted and include contractual rents from any clients in bankruptcy. Due to differences in applicable

foreign currency conversion rates and rent conventions, the percentages above may differ from percentages calculated utilizing total our portfolio annualized contractual rent.

Sorted by percentage of total contractual rent (combined for the US and UK industries) due for the quarter ended December 31, 2020.

Theater UpdateLess than 6% of contractual base rent, 79% of unpaid base rent in Q4 2020

8

Theater Portfolio at a Glance

% of Total Portfolio Contractual Base Rent (Q4 2020) 5.6%

% of Theater Rent Collected (Q4 2020) 11%

% of Total Portfolio Unpaid Rent Attributed to Theaters (Q4 2020) 79%

# of Regal/Cineworld Properties (2.7% of Rent / #9 Client) 41

# of AMC Properties (2.7% of Rent / #10 Client) 32

# of Cinemark Properties (0.2% of Client) 4

4Q20 and Prospective Credit Considerations

Gross Theater Receivables Outstanding (Dec 31) $64.5 million

# of Properties Converted to Cash Accounting (of 77) 37

Reserve for 37 Assets Converted to Cash Accounting $25.5 million

Dilution to 2020 AFFO/sh $0.07

Annualized Rent for 37 Assets on Cash Accounting $33.8 million

% of Total Portfolio Annualized Base Rent 2.0%

• Realty Income has pre-

pandemic unit-level

financials on 71 of these

properties

• We estimate that over

80% are in the top half

of each operators’

portfolios based on

EBITDAR

Includes 6

properties

that do not

provide unit-

level financial

information

Client ranks as of December 31, 2020

Cyclical Comparison – Entered Current Recession from a Position of Strength

Favorable balance sheet, scale and capital markets backdrop relative to Great Financial Crisis

9

(1) Includes revolver (excluding the accordion feature, which is subject to obtaining lender commitments) and cash at the end of each period. Excludes availability under the

$1 billion commercial paper program.(2) Based on all-in borrowing rate at end of each period. Calculated as LIBOR plus 77.5 bps for YE 2020 due to the full availability on the revolver(3) Represents fiscal stimulus response to the 2008 financial crisis and the 2020 COVID-19 crisis. Source: McKinsey

Net Debt / Adjusted EBITDAre

Total Debt / Total Market Capitalization

Credit Ratings (Moody’s / S&P)

5.3x

28.2%

A3 / A-

5.7x

33.7%

Baa1 / BBB

SCALE AND LIQUIDITY YE 2007 YE 2020

LEVERAGE AND CREDIT RATINGS

CAPITAL MARKETS BACKDROP

Revolver Interest Rate (All-in)(2)

10-Year US Treasury Yield

Fiscal Stimulus as a % of GDP(3)

5.2%

4.02%

~5%

0.92%

0.91%

~13%

Enterprise Value (in billions)

Available Liquidity (in millions)(1)

Fixed Charge Coverage Ratio

$4.3

$593

3.1x

$30.5

$3,824

5.1x

YE 2007 YE 2020

YE 2007 YE 2020

10

Ample Covenant HeadroomStrong coverage metrics, minimal secured debt, healthier overall covenant cushion vs. 2007

257%239%

≥ 150%Total

Unencumbered

Assets

Unsecured Notes Covenant Requirement Q4 2007 Q4 2020

5.1x4.2x

≥ 1.5xDebt Service

Coverage

1.4%

≤ 40%Incurrence of

Secured Debt

39.6%41.9%

≤ 60%Incurrence of

Total Debt

0.0%

(Unencumbered Assets /

Unsecured Debt)

(Pro forma EBITDA /

Interest Expense)

(Secured Debt /

Gross Asset Value)

(Total Debt /

Gross Asset Value)

Refer to page 17 of our Q4 2020 Supplemental Operating & Financial Data for additional details on covenant calculations

PERFORMANCE TRACK RECORD

Consistent Annual Earnings Growth Since NYSE ListingPositive earnings growth(1) in 24 out of 25 years as a public company

5.1%

6.8%6.4%

6.0%

1.6%

3.2%

5.4% 5.1% 4.9%

6.0%

9.4%

3.4%

4.4%

-2.1%

0.5%

8.1%

2.5%

17.0%

6.6% 6.6%

5.1%

6.3%

4.2% 4.1%

2.1%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(1) AFFO / Excludes positive earnings from Crest Net Lease, a subsidiary of Realty Income, as earnings do not reflect recurring business operations(2) FFO / Through 2020 where available / Includes all REITs currently included in MSCI REIT Index with earnings history since 2000 / Source: SNL

Historical Earnings Growth Rates (Median)

Realty Income (1): 5.1%

Current REITs (2): 3.1%

Compares favorably to REIT

median growth rates:

2008: -5.1%

2009: -6.9%

2010: -8.1%

12

13

Low Earnings Volatility Supports Low Share Price VolatilitySince 1994 NYSE listing, “O” annual TSR downside volatility is one of the lowest in the S&P 500

0%

5%

10%

15%

20%

25%

S&P 500

Deciles:

1st Decile 2nd Decile 3rd Decile 4th Decile 5th Decile 6th Decile 7th Decile 8th Decile 9th Decile 10th Decile

Annual Total Shareholder Return Among S&P 500 Companies:

Downside Volatility Since 1994(1)

Source: Bloomberg(1) “Downside volatility” calculated as the standard deviation of annual total shareholder returns where positive values are assigned “0” value(2) n=263 S&P 500 constituents with trading histories dating to Realty Income’s 1994 NYSE listing

Realty Income’s TSR Downside Volatility Since 1994

NYSE Listing is 3.5%, the 6th lowest of all S&P 500

constituents(2)

Track Record of Favorable Returns to Shareholders Since 1994 NYSE listing, Realty Income shares have outperformed benchmark indices

15.3%

11.4%10.7% 10.4% 10.1%

O Nasdaq Composite DJIA S&P 500 Equity REIT Index

Compound Average Annual Total Shareholder Return Since 1994

14

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0.00.30.50.81.01.31.51.82.0

Tota

l R

etu

rn C

AG

R

Beta

Attractive Risk/Reward vs. S&P 500 CompaniesHigher returns and lower volatility than majority of S&P 500 companies since 1994 NYSE listing

Realty Income return per

unit of market risk in the

98th percentile of all S&P

500 companies(1):

Beta: 0.39

Return: 16.4%

(1) n=263 / Excludes companies without trading histories dating to 1994 / Beta measured using monthly frequency

Source: Bloomberg

Realty Income return per unit of market risk is in the 95th

percentile of all S&P 500 companies(1)::

Return: 15.3%Beta: 0.4

15

O

PSA

ESS

WELLFRTSPG

AVB

VTR

EQR

PEAKREG

VNO

KIM

WY

HST

UDR

MAA

0%

5%

10%

15%

20%

0.00.20.40.60.81.01.21.4

Beta

O

JNJ

WMT

BAC

AAPL

PG

HDREITs

MSFT

UNH

S&P 500

JPM

DIS

0%

5%

10%

15%

20%

25%

30%

0.00.20.40.60.81.01.21.4

Attractive Risk/Reward vs. Blue Chip S&P 500 Equities

Excludes companies without trading histories since 10/18/1994 | Constituents plotted include S&P 500 and FTSE NAREIT US Equity REIT Index | Beta

measured using monthly frequency

Source: Bloomberg

Historically, more return per unit of risk vs. the 10 largest S&P 500 constituents and S&P 500 REITs

16

Ave

rage

An

nu

al To

tal S

ha

reh

old

er

Re

turn

Top 10 largest S&P 500 constituents

S&P 500 REIT Peers

1.4% 1.5%1.3% 1.2%

1.0% 0.9%

1.6%

-1.7%(1)

2013 2014 2015 2016 2017 2018 2019 2020

Steady Same-Store Rent Growth

✓ Annual same-store rent growth run rate of ~1.0%

✓ Long lease terms limit annual volatility

Consistency: Steady Portfolio, Solid FundamentalsFocus on quality underwriting and real estate supports predictable cash flow generation

Consistent Occupancy Levels, Never Below 96%

˃ Careful underwriting at acquisition

˃ Solid retail store performance

˃ Strong underlying real estate quality

˃ Healthy client industries

˃ Prudent disposition activity

˃ Proactive management of rollovers

Tenets of Consistency:

17

(1) Same store rental income was negatively impacted by reserves recorded as reductions of rental revenue of $39.9 million for the year ended December 31, 2020. Our

calculation of same store rental revenue also includes uncollected rent for which we have not granted a lease concession. If these applicable amounts of rent deferrals and

uncollected rent were excluded from our calculation of same store rental revenue, the decreases for the quarter and year ended December 31, 2020 relative to the

comparable periods for 2019 would have been (3.6)% and (5.1)%, respectively.

Snapshot vs. S&P 500 REIT Peers

Tenets of Consistency:

Superior stability: Favorable occupancy, dividend growth, credit rating and total return metrics

98.3%96.6%

94.0%

91.2%

Historical Median Lowest Year-End

Portfolio Occupancy

O S&P 500 REIT Median

0%

4.4% (2)

12%

2.4%

% of Years w/ Negative

Growth

Dividend CAGR

Dividend Growth(1)

O S&P 500 REIT Median

100%

200%

300%

400%

500%

0 10 20 30

Avg. Credit Rating (S&P/Moody’s)

BBB- / Baa3

BBB / Baa2

BBB+ / Baa1

A- / A3

A / A2

● ● S&P 500 REIT Peer

0

1

2

3

4

5

6

7

8

9

# of Years with TSR < -10%(1)

S&P 500 REIT Peer●●

Sources: SNL, Bloomberg | Excludes specialty REITs (i.e. infrastructure, timber, information services)(1) Since 1995 through 2020 where available. Excludes REITs with fewer years of history than Realty Income(2) As of February 2021

18

19

Superior Relative Volatility Metrics vs. A-Rated REITs During Recession2007 – 2009 relative rankings

0.3% 0.3% 0.4%

7.4%

0.1x 0%

0.2%0.7%

3.1%

3.7%

4.0%

4.2%

9.7%

0.5%

1.1%

1.4%

1.7%

1.7%

9.4%

0.6%

0.6%

3.8%

4.3%

5.7%

9.7%

31.9%

0.8%

1.3%

2.0%

2.2%

20.3%

0.3x

0.5x

2.2x

1.5x

2.2x

3.3x

2.2%

2.0%

1.2%

1.5%

2.8%

4.9%

0.3%

0.3%

0.7%

0.1%

3.4%

N/A(3)

Rental Revenue(1) Gross Margin(1) EBITDA(1) EBITDA Margin(1) Debt/EBITDA(2) Unsecured/Total Debt(1) Occupancy Rate(1)

Mo

re V

ola

tile

L

ess V

ola

tile 1

2

3

4

5

6

7

Realty Income; Other colored ovals represent REITs that currently have at least two A-/A3 credit ratings or better

(1) Downside Volatility calculated as the standard deviation around zero of quarterly percentage changes in each metric shown, where positive changes are replaced with zero(2) Upside Volatility calculated as the standard deviation around zero of quarterly percentage changes, where negative changes are replaced with zero(3) Company did not report consolidated quarterly portfolio occupancy during 2007-2009

Source: SNL

Rank

Our Approach and 2020 Results

20

Acquire well-located commercial properties

✓ ~$2.3 billion in 2020 real estate investments1

Remain disciplined in our acquisition underwriting

✓ Acquired <4% of sourced volume2

Execute long-term net lease agreements

✓ ~13 years weighted average lease term on new acquisitions3

Actively manage portfolio to maximize value

✓ Ended the year at 97.9% occupancy4

Maintain a conservative balance sheet

✓ Ended the year with Net Debt/Adjusted EBITDAre ratio of 5.3x5

Growth per share earnings and dividends

✓ 2020 AFFO/sh growth: +2.1%

✓ 2020 Dividend/sh growth: +3.1%

PORTFOLIO DIVERSIFICATION

Portfolio Diversification: ClientDiverse client roster, investment grade concentration reduces overall portfolio risk

22Orange represents investment grade clients that are defined as clients with a credit rating of Baa3/BBB- or higher from one of the three major rating agencies (Moody’s/S&P/Fitch).

Approximately 51% of our annualized rental revenue is generated from properties leased to investment grade clients, their subsidiaries or affiliated companies.

TOP 20

CLIENTS REPRESENT

52.2%

Of annualized rental revenue

10Different industries

Investment-grade rated clients

5.7%

4.8%

4.3%

3.7%

3.3%

3.1%

3.0%

2.9%

2.7%

2.7%

2.4%

1.8%

1.7%

1.6%

1.5%

1.5%

1.5%

1.4%

1.3%

1.3%

12

Service-Oriented

Non-Discretionary

N/A (Non-Retail Exposure

Portfolio Diversification: IndustryExposure to 51 industries enhances predictability of cash flow (See Appendix for Industry Theses)

Exposure to defensive industries:97% of total portfolio rent is protected against retail e-commerce threats and economic downturns

Non-Discretionary

Service-Oriented

Non-Discretionary, Low Price Point

Low Price Point

❶Convenience Stores: 11.9%Essential, Service-oriented

❸ Drug Stores: 8.2%Essential / Non-discretionary

❹Dollar Stores: 7.6%Essential / Non-discretionary, Low price point

❷ Grocery(1): 9.8%Essential / Non-discretionary

❼ Quick-Service Restaurants: 5.3%Low price point, Service-oriented

❻ Theaters: 5.6%Low price point, Service-oriented

❺ Health & Fitness: 6.7%Non-discretionary, Service-oriented

23

81% of Total Rent:

Retail with at least one of the following components:

Non-Discretionary(Low cash flow volatility)

Low Price-Point(Counter-cyclical)

Service-Oriented(E-commerce resilient)

16%Non-retail

(E-commerce resilient)

3% Other

(1) Includes grocery stores in the U.S. and the U.K., which represent 4.9% and 4.9% of total portfolio annualized contractual rent as of 12/31/2020, respectively

Portfolio Diversification: Property TypeCore exposure in retail and industrial single-client freestanding net lease properties

24

RETAIL (84.4%)

Number of Properties: 6,419

Average Leasable Square Feet: 12,300

Percentage of Rental Revenue

from Investment Grade Clients: 46.4%

OFFICE (3.1%)

Number of Properties: 43

Average Leasable Square Feet: 73,900

Percentage of Rental Revenue

from Investment Grade Clients: 86.2%

INDUSTRIAL (10.9%)

Number of Properties: 115

Average Leasable Square Feet: 245,300

Percentage of Rental Revenue

from Investment Grade Clients: 80.1%

AGRICULTURE (1.6%)

Number of Properties: 15

Average Leasable Square Feet(1): 12,300

Percentage of Rental Revenue

from Investment Grade Clients: -

(1) Excludes 3,300 acres of leased land categorized as agriculture at December 31, 2020

Portfolio Diversification: GeographyBalanced presence in 49 states, Puerto Rico and the United Kingdom

<1

1.0

<1

<1

<1

<1

<1

1.9

<1

1.4

<1

<1

<1

1.5

1.9

2.7

1.1

2.3

<1

1.5

1.4 1.8 3.6

2.1

3.1

3.0

2.02.6

2.4

1.3

2.7

<12.7

<1

Puerto Rico <1

<1<1<1

1.0

<1

<1

1.8

<1

1.5

8.8

10.5

5.8

4.0

4.2

5.3

Texas 10.5%

California 8.8%

U.K. 6.2%

Illinois 5.8%

Florida 5.3%

New York 4.2%

Ohio 4.0%

Top 7 Geographies

% of Rental Revenue

Figures represent percentage of annualized contractual rental revenue as of December 31, 2020 25

United Kingdom

6.2

DEFENSIVE RETAIL PORTFOLIO

Low Price Point

Service / Experiential

Top 20 Clients Highly Insulated from Changing Consumer BehaviorAll top 20 clients fall into at least one category (Non-Discretionary, Low Price Point, Service Retail or Non-Retail)

Non-Retail

Walmart represented by both Neighborhood Markets and Sam’s Club 27

Non-Discretionary

Total % of Rent - Top 15 Clients 45.2%

Investment Grade % - Top 15 Clients 28.0%

#1 Industry – Convenience Stores 11.9%

#2 Industry – Grocery Stores 9.8%

Total % of Rent - Top 15 Clients 53.0%

Investment Grade % - Top 15 Clients 3.2%

#1 Industry – Restaurants 21.3%

#2 Industry – Convenience Stores 17.0%

Top Client Exposure: 2009 vs. TodayLess cyclicality and superior credit and diversification vs. prior downturn

28

TOP 15 CLIENTS AS OF YE 2009 TOP 15 CLIENTS AS OF YE 2020

Clients Industry % of Rent

Hometown Buffet Casual Dining 6.0%

Kerasotes Showplace

TheatresTheatres 5.3%

L.A. Fitness Health & Fitness 5.3%

The Pantry Convenience Stores 4.3%

Friendly’s Casual Dining 4.1%

Rite Aid Drug Stores 3.4%

La Petite Academy Child Care 3.3%

TBC Corporation Auto Tire Services 3.2%

Boston Market QSR 3.1%

Couche-Tard / Circle K Convenience Stores 3.0%

NPC / Pizza Hut QSR 2.6%

FreedomRoads / Camping

WorldSporting Goods 2.6%

KinderCare Child Care 2.5%

Regal Cinemas Theatres 2.3%

Sports Authority Sporting Goods 2.0%

Clients Industry % of Rent

Walgreens Drug Stores 5.7%

7-Eleven Convenience Stores 4.8%

Dollar General Dollar Stores 4.3%

FedEx (Non-Retail) Transportation 3.7%

Dollar Tree / Family Dollar Dollar Stores 3.3%

LA Fitness Health & Fitness 3.1%

Sainsbury’s Grocery 3.0%

Walmart / Sam’s Club Grocery / Wholesale 2.9%

Regal Cinemas Theaters 2.7%

AMC Theaters 2.7%

LifeTime Fitness Health & Fitness 2.4%

Circle K / Couche-Tard Convenience Stores 1.8%

BJ’s Wholesale Clubs Wholesale Clubs 1.7%

Treasury Wine Estates

(Non-Retail)Beverages 1.6%

CVS Pharmacy Drug Stores 1.5%

Bold clients represent investment-grade rated credit

Differentiated Business Model from “Traditional” Retail REITsLease structure and growth drivers support predictable revenue stream relative to other forms of retail real estate

Initial Length of Lease 15+ Years < 10 Years

Remaining Avg Term ~ 9 Years ~ 5-7 Years

Responsibility for Property Expenses Client Landlord

Gross Margin > 98% ~ 75%

Volatility of Rental Revenue Low Modest / High

Maintenance Capital Expenditures Low Modest / High

Reliance on Anchor Tenant(s) None High

Average Retail Property Size / Fungibility 12k sf / High 150k–850k sf / Low

Target Markets Many Few

External Acquisition Opportunities High Low

Institutional Buyer Competition Modest High

Ample external growth opportunities

Unique “net lease” structure drives lower cash flow volatility Shopping Centers

and Malls

Shopping Centers

and Malls

29

Realty Income Not Materially Impacted by Recent Retailer Bankruptcies

Retail Industry# of

BKRetailer Bankruptcy

RI

Exposure

Apparel 34

True Religion| Wet Seal| BCBG Max Azria| Limited Stores| Rue21| Gymboree| Vanity Shop| Papaya Clothing|

Alfredo Angelo| Styles for Less | A’gaci | David’s Bridal | Full Beauty | Charlotte Russe | Diesel | Dressbarn |

Avenue Stores | Bon Worth | Forever 21 | Destination Maternity | Mosaic Fashions | Bluestem Brands |

Nygard Stores | J.C. Penney | J.Crew | Centric Brands | Ascena |RTW | Lucky Brand | Brooks Brothers |

Tailored Brands | Men’s Wearhouse | Francesca’s | Christopher & Banks

< 1%

Specialty 18Perfumania| Vitamin World | Kiko | Brookstone | Mattress Firm| Beauty Brands | Innovative Mattress

Solutions | Things Remembered| Z Gallerie | Charming Charlie | Barney’s | Sugarfina | Papyrus | Creative

Hairdressers | GNC | The Paper Store | Guitar Center | L’Occitane< 1%

Shoe Stores 8Aerosoles | Charlotte Olympia | The Walking Company | Nine West | Rockport | Aldo | Payless ShoeSource |

LK Bennett < 1%

General Merchandise 15Gordmans | Bon-Ton | Sears | Shopko | Fallas | Fred’s | Pier 1 | Art Van | Stage Stores | Tuesday Morning |

Sur La Table | Lord & Taylor | Stein Mart | Furniture Factory Ultimate | Love’s Furniture < 1%

Sporting Goods 6Eastern Outfitters / Bob’s Stores| Gander Mountain| MC Sports| Remington Outdoor | Advanced Sports |

Modell’s Sporting Goods < 1%

Grocery 8Tops Market | Marsh Supermarkets | Southeastern Grocers | Seasons | Lucky’s | Fairway Group Holdings|

Earth Fare | KB US Holdings < 1%

Restaurants 30

Macaroni Grill | Bertucci’s | RMH Franchise | Taco Bueno| Kona Grill | RUI HLD | Perkins & Marie Callender’s

| Star Chain | Houlihan’s | Capital Rest. Group | Krystal | American Blue Ribbon | BL Rest. HLD | SD Rest.

Group | Cosi | CraftWorks| FoodFirst | Le Pain Quotidien | Garden Fresh Rest. | Sustainable Restaurant HLD |

CFRA HLD | Chuck E. Cheese | NPC | KG IM | CPK | Ruby Tuesday | 1069 Restaurant Group| Rubios |

Friendly’s | CiCi’s Holdings

~ 1%

Entertainment 4 Goodrich Quality Theatres | TZEW Holdco (Apex Parks) | Cinemex | New Vision Cinemas < 1%

Jewelry / Accessories 3 Charming Charlie| Claire’s | Samuels Jewelers 0%

Consumer Electronics 2 RadioShack | hhgregg 0%

Other 8Toys ‘R’ Us | Gold’s Gym | Hertz | 24 Hour Fitness | Town Sports International| Benevis | YouFit Health Club |

In-Shape < 1%

Total Realty Income Exposure (% of Rent) : ~ 3%

100 of 136 U.S. retailer bankruptcies since 2017 associated with companies lacking a non-discretionary, low price point, and / or service-oriented component to their business

Red retailers represent businesses lacking either a non-discretionary, low price point, and / or service-oriented component 30

ASSET MANAGEMENT &

REAL ESTATE OPERATIONS

Active Real Estate Management: Re-leasing ExperienceSince 1996, Realty Income has achieved 100.4% recapture of prior rent on re-leasing activity

Recapture vs. Prior Rent: (All Re-Leasing Activity)

101.8%

95.6%

95.9%

2013 - Present

2006 - 2012

1996 - 2005

3,579Lease Expirations since 1996

3,043Re-Leased at 100.4% rent recapture(1)

536Sold and proceeds reinvested into higher

quality assets

(1) Reflects cash rent recapture inclusive of property improvement spend to accommodate the client’s use (immaterial) 32

Actively-Managed Real Estate PortfolioProven track record of value creation, cash flow preservation and risk mitigation

✓ Largest department in the company

✓ Distinct management verticals

✓ Retail

✓ Non-Retail

✓ Leasing & dispositions

✓ Maximizing value of real estate

✓ Strategic and opportunistic dispositions

✓ Value-creating development

✓ Risk mitigation

Healthy Leasing Results

6.9%7.6% 7.3% 7.1%

11.5%

8.1% 7.8%

11.6%12.1%

8.5%

9.9%

8.1% 8.3%

11.6%

2014 2015 2016 2017 2018 2019 2020

Cap Rate on Occupied Dispositions

Unlevered IRR on All Dispositions 33

5.7%

94.3%

% Re-leased to Existing Tenants

% Re-leased to New Tenants

Blended rent recapture

rate of 100% on expired

leases

2020

Renewal / New Lease Split

Favorable Returns on Dispositions

Asset Management &

Real Estate Operations

0.6%

4.9%

6.7% 6.7%

7.5%

8.3%

O Healthcare Shopping

Center

Office Industrial Mall

Realty Incurs Immaterial Recurring CapEx ObligationsCapital-light portfolio maintenance is a differentiating factor versus other CRE sectors

34

Less than 1% of Realty

Income’s NOI is spent

on recurring capex

Adjusted FFO (AFFO)(Close proxy for recurring cash earnings)

Nareit-Defined Funds from Operations (FFO)(Not intended to measure cash generation or dividend paying capacity)

Generally used as primary valuation multiple for other Real Estate sectors and excludes recurring CapEx associated with

maintaining revenue-generating capacity of portfolio

Generally used as valuation metric for net lease sector

and includes impact of recurring CapEx (defined by

Realty as mandatory and repetitive landlord capex

obligations that have a limited useful life)

2012 – 2020 Recurring Capital Expenditures as % of NOI:

Realty Income vs. Competing Real Estate

Sectors(1)

“Hidden” Cost of Supporting Portfolio Revenue:

Rarely captured in NAREIT-defined FFO multiples….

….but is better reflected in AFFO multiples

(1) Analysis represents simple average of 52 representative companies across five property types | Based on annual data through 2020 (where available)

Source: SNL, Company Filings

INVESTMENT STRATEGY

Investment Strategy: Key ConsiderationsCost of capital advantage, size, track record represent competitive advantage

36

COMPETITIVE ADVANTAGES VS. NET LEASE PEERS

Supports investment selectivity

Drives faster earnings growth (wider margins)

Critical in industry reliant on external growth

Ability to buy “wholesale” (at a discount) without creating client concentration issues

Access to liquidity ($3 billion multi-currency revolver, with $1 billion accordion feature, which is subject to obtaining lender commitments)

Relationships developed since 1969

1

2

3

1

2

3

SIZE AND TRACK RECORDLOW COST OF CAPITAL

Investment Strategy: Aim to Exceed Long-Term WACCWACC viewpoint balances near-term earnings per share growth with long-term value accretion

37Cost of capital information uses illustrative assumptions only (as of 2/16/2021). AFFO yield is based on the 2021 AFFO/sh consensus.

Long-term Weighted Average Cost of Capital “Nominal” 1st-Year Weighted Average Cost of Capital

• Drives investment decision-

making at the property level

• Considers required “growth”

component of equity returns

• Long-term WACC is the

hurdle rate (no spread

required) for acquisitions

• Focus on higher long-term

IRR discourages risk-taking

• Used to measure initial

(year one) earnings

accretion

• Higher stock price (lower

cost) supports faster growth

• Spread on short-term WACC

required to generate

accretion

• Unwilling to sacrifice quality

to generate wider spreads

Key Assumptions & Calculation – Nominal 1st-Year WACC

65% Equity: AFFO Yield 5.7%

35% Debt: 10-year, fixed-rate unsecured 2.0%

Nominal 1st-Year WACC 4.4%

Key Assumptions & Calculation – Long-Term Cost of Equity

Beta vs. S&P 500 (since S&P 500 Index Inclusion on 4/6/15) 0.87

Long-term 10-year U.S. yield (Fitted Instantaneous Forward Rate) 2.5%

Equity market risk premium (S&P 500 Earnings Yield vs 10-Yr UST) 3.9%

Long-Term Cost of Equity (CAPM methodology) 5.9%

Dividend yield 4.6%

Assumed long-term dividend growth rate 4.0%

Long-Term Cost of Equity (Yield + Growth methodology) 8.6%

Long-Term Cost of Equity (Average of two methodologies) 7.3%

Key Assumptions & Calculation – Long-Term WACC

65% Weight: Long-Term cost of equity 7.3%

35% Weight: Cost of debt (10-year, fixed-rate unsecured) 2.0%

Long-Term WACC 5.5%

LOW NOMINAL WACC LONG-TERM WACC

supports ability to spread invest with high-quality

acquisitions

considers growth requirements of equity and supports focus on

residual value of acquisitions

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

4.0

0%

4.2

5%

4.5

0%

4.7

5%

5.0

0%

5.2

5%

5.5

0%

5.7

5%

6.0

0%

6.2

5%

Acq

uis

itio

n C

ap

Ra

te t

o A

ch

ieve

15

0 b

ps S

pre

ad

s

Nominal 1st-Year WACC

“High Quality” Investment Characteristics (lower cap rates):

• At or below-market rents

• Strong credit / proven sponsors & clients

• Above-average rent coverage

• Flexible alternative use

• Long lease terms

• Stable industries

Lower cost of capital allows Realty

Income to invest in higher quality

opportunities to derive the same spread

Investment Strategy: Utilizing Low Cost of Capital AdvantageLow cost of capital allows Realty Income to acquire the highest quality assets in the net lease industry

Cost of capital information uses illustrative assumptions only 38

“High Yield” Investment Characteristics (higher cap rates):

• Above-market rents / financially-engineered cap rates

• Poor credit or limited credit availability and track record

• Thin industry-specific rent coverage

• Poor real estate (low residual value)

• Short lease terms

• Volatile industries

Higher cost of capital forces

companies to invest in riskier

investment opportunities to

derive 150 bps of spread

Investment Strategy: The Importance of Market RentsRealty Income avoids lease structures with above-market rents, which can inflate initial cap rates

39

Illustrative Sale-Leaseback ExampleAssumptions

Annual EBITDAR (000s) $8,500 Replacement cost (psf) $200

Total square footage (000s) 175 Market rent (psf) $15

Assuming identical real estate portfolio, consider two different lease structure scenarios….

Buyer and Seller Motivations:

Higher Risk & Cap Rate Lower Risk & Cap Rate

1. Maximize proceeds for seller 1. Maximize EBITDAR rent coverage

2. Maximize cap rate for buyer 2. Match purchase price w/ replacement cost

Implied Sale Price (000s) $42,000 $35,000

Implied Cap Rate 7.5% 6.5%

Implied Rent (000s) $3,150 $2,267

Implied Rent (psf) $18.00 $12.95

Premium/(Discount) to Market Rent 20% (14%)

Implied EBITDAR rent coverage 2.7x 3.75x

Implied premium to replacement cost 20% 0%

Lower cap rates often imply:

✓ Lower purchase price

✓ Lower risk

✓ Higher residual value

✓ Higher IRR

• Above-market rents

• Lower rent coverage

• Lower residual value

• Higher default risk

• Below-market rents

• Higher rent coverage

• Higher residual value

• Lower default risk

ResultsLower long-

term IRR

Higher long-

term IRR

$18.3 billionin property-level acquisition volume

86%of volume associated with

retail properties

53%of volume leased to

Investment grade clients

Investment Strategy: Disciplined ExecutionConsistent, selective underwriting philosophy on strong sourced volume

2010 2011 20122013

(Ex-ARCT)2014 2015 2016 2017 2018 2019 2020

Investment Volume $714 mil $1.02 bil $1.16 bil $1.51 bil $1.40 bil $1.26 bil $1.86 bil $1.52 bil $1.80 bil $3.72 bil $2.31 bil

# of Properties 186 164 423 459 507 286 505 303 764 789 244

Initial Avg. Cap Rate 7.9% 7.8% 7.2% 7.1% 7.1% 6.6% 6.3% 6.4% 6.4% 6.4% 5.9%

Initial Avg. Lease

Term (yrs)15.7 13.4 14.6 14.0 12.8 16.5 14.7 14.4 14.8 13.5 13.2

% Investment Grade 46% 40% 64% 65% 66% 46% 64% 48% 59% 36% 61%

% Retail 57% 60% 78% 84% 86% 87% 86% 95% 96% 95% 87%

Sourced Volume $6 bil $13 bil $17 bil $39 bil $24 bil $32 bil $28 bil $30 bil $32 bil $57 bil $64 bil

Selectivity 12% 8% 7% 4% 6% 4% 7% 5% 6% 7% 4%

Relationship Driven 76% 96% 78% 66% 86% 94% 81% 88% 89% 89% 80%

Key Metrics Since 2010 (Excluding $3.2 billion ARCT transaction):

40Low selectivity metrics reflect robust opportunity set, disciplined investment parameters, and cost

of capital advantage

CAPITAL STRUCTURE &SCALABILITY

25%

1%

1%

Common Stock,

72%

Debt,

28%

Unsecured Notes: $8.30 billion

Revolving Credit Facility: $0 balance

Mortgages: $300 million

Unsecured Term Loan: $250 million

Equity Market Cap: $22.5 billion

Conservative Capital StructureModest leverage, low cost of capital, ample liquidity provides financial flexibility

Unsecured Debt Ratings: Moody’s A3 | S&P A-

42

Debt amounts reflect principal value / Numbers may not foot due to rounding(1) Includes the principal balance (in U.S. dollars) of the Sterling-denominated note offering and Sterling-denominated private placement of £400 million and £315 million, respectively, which approximates $546.8 million and $430.6 million, respectively, converted at the applicable exchange rates as of 12/31/2020.(2) In January 2021, we completed the early redemption on all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022, plus accrued and unpaid interest.(3) The revolver has a $1 billion accordion feature, which is subject to obtaining lender commitments.

Total Enterprise Value: $30.5 billion

(3)

(1)(2)

$44

$1,062

$771 $712

$501

$976

$601 $551 $501 $548

$2,585

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031+

Unsecured Notes Mortgages Revolver

Term Loan GBP Denominated Notes Commercial Paper

7.8 Years

Weighted Average Years Until Maturity

3.5%Weighted Average

Interest Rate(1)

Debt Profile

Laddered, Largely Fixed-Rate, Unsecured Debt StackLimited re-financing and variable interest rate risk throughout debt maturity schedule

All amounts are in millions unless stated otherwise(1) Weighted average interest rate includes variable-to-fixed interest rate swap on the term loan as of 12/31/2020.(2) In January 2021, we completed the early redemption on all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022, plus accrued and unpaid

interest.(3) As of December 31, 2020, there was no outstanding revolver balance.(4) £315 million of 2.73% GBP denominated private placement due 2034 approximates $430.6 million using the applicable conversion rate at quarter end. In October 2020, we

issued £400 million of 1.625% Sterling-denominated senior unsecured notes due December 2030, which approximates $546.8 million using the applicable conversion rate at

quarter end.(5) The revolver has a $1 billion accordion feature, which is subject to obtaining lender commitments.

43

Unsecured

Secured

Fixed Rate

Variable

Rate

Revolver

Availability

Revolver

Balance

97%Unsecured

100%Fixed

$3.0BAvailable on Revolver(5)

(3)

(4)

(2)

Scalability as a Competitive AdvantageLeaders in the net lease industry in efficiency and ability to buy in bulk

5.8%

4.4%

G&A as % of Rental Revenue(1)

(1) 2018 G&A excludes $18.7 million severance to former CEO paid in 4Q18 | 2020 G&A excludes $3.5 million severance to former CFO paid in 1Q20 | percentage of rental

revenue calculation excludes contractually obligated reimbursements by our clients(2) Assumes 6.0% cap rate

64 bps

33 bps

G&A as % of Gross RE Book Value (bps)

92.4%94.0%

Adjusted EBITDAre Margin

Larger Size Drives Superior Overhead Efficiency

44

Larger Size Provides Growth Optionality

$100 $200 $300 $400 $500 $1,000

$200 3% 6% 8% 11% 13% 23%

$400 1% 3% 4% 6% 7% 13%

$600 1% 2% 3% 4% 5% 9%

$800 1% 1% 2% 3% 4% 7%

$1,000 1% 1% 2% 2% 3% 6%

$1,700 <1% <1% 1% <2% <2% 3%

Transaction Size & Impact(2) to Rent Concentration

Current

Rent

Size allows Realty Income to pursue large sale-

leaseback transactions without compromising prudent

client and industry diversification metrics

in millions

Current Net Lease Peer Median: 8.4%

Current Net Lease Peer Median: 88.4%

Current Net Lease Peer Median: 67 bps

DEPENDABLE DIVIDENDS

Dependable Dividends That Grow Over TimeSteady dividend track record supported by inherently stable business model, disciplined execution

$0.90 $0.91 $0.93 $0.95 $0.98 $1.04

$1.09 $1.12 $1.15 $1.18

$1.24

$1.35

$1.44 $1.56

$1.66 $1.71 $1.72

$1.74 $1.77

$2.15 $2.19

$2.27

$2.39

$2.53

$2.65 $2.73

$2.814

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Strong Dividend Track Record

93 consecutive quarterly increases

109 total increases since 1994 NYSE listing

82.4% AFFO payout (based on 2020 AFFO/sh)

4.4% compound average annualized growth rate since NYSE listing

One of only three REITs included in S&P 500 Dividend Aristocrats® index

46

CORPORATE RESPONSIBILITY

VALUES

Environmental

Responsibility

SocialResponsibility

Corporate

Governance

• We remain committed to sustainable

business practices in our day-to-day

activities by encouraging a culture of

environmental responsibility by regularly

engaging our employees and our local

community

• As a leader in the net lease sector, we work

with our clients to promote environmental

responsibility at the properties we own

• HQ energy efficiency, waste diversion, and water efficiency programs

• Client engagement with top 20 clients (~51% of revenue) to discuss sustainable operations

• Internal “Green Team" led sustainability initiatives and education to engage employees and community

S• We are committed to providing a positive

and engaging work environment for our

team members, with best-in-class training,

development, and opportunities for growth

• Dedication to employee well-being and

satisfaction

• We believe that giving back to our

community is an extension of our mission to

improve the lives of our shareholders, our

employees, and their families

• Comprehensive employee

health and retirement benefits

• Employee engagement and

“O”verall wellbeing programs

• “Dollars for Doers” and

employee matching gift

program

• Dedicated San Diego Habitat

for Humanity volunteer day

• We believe nothing is more important than a

company’s reputation for integrity and

serving as a responsible fiduciary for its

shareholders

• We are committed to managing the

company for the benefit of our shareholders

and are focused on maintaining good

corporate governance

• Shareholder Engagement

• Board refreshment process

focusing on diversity and

expertise

• Board oversight of

environmental, social, and

governance matters

• Enterprise Risk Management

Overview Focus

Corporate ResponsibilityRealty Income strives to lead the net lease industry in Environmental, Social, and Governance initiatives

To learn more, visit https://www.realtyincome.com/corporate-responsibility 48

Summary

˃ Long term-focused business strategy

˃ Diversified and actively managed portfolio

˃ Proven and disciplined relationship-driven acquisition strategy

˃ Conservative capital structure able to withstand economic volatility

˃ Precedent of outperforming S&P 500 and REITs since 1994 listing

˃ Attractive risk/reward vs. other REITs and blue chip equities

˃ Dependable monthly dividends with long track record of growth

49

APPENDIX

50

TOP INDUSTRIES OVERVIEW

Convenience Stores (11.9% of Rent)Strong store-level performance is supported by the essential nature of the business

Industry Considerations

(I) Strong performance independent of gas sales: ~70% of

gross profit generated from inside sales which is generally not

impacted by gasoline demand(1); and ~70% of inside sales are

generated by customers not buying gas(2)

(II) C-stores to grow faster than other offline channels:

Consumer focus on expediency and proximity to homes,

amplified by the desire to avoid large crowds will continue to

drive c-store industry growth

(III) Larger-format stores provide stability: Larger format stores

(average size ~3,200 sf) allow for increased fresh food options

which carry higher margins

(1) Source: National Association of Convenience Stores(2) Realty Income estimates based on industry component data(3) Ex. cigarettes | Source: The Nielsen Company(4) Company Filings

52

3.8%

8.2%

13.2%

5.8%6.4%

3.2%

4.9%

3.6%3.2%

2.2% 2.5%

4.5%

6.7%

3.4%

1.7%2.3% 2.4%

In-Store Same Store Sales: 17 Consecutive

Years of Positive Same-Store Sales Growth(4)

Recession

Total C-Store Sales YoY Growth

(12 week basis)(3)

0%

2%

4%

6%

8%

10%

C-Store sales have accelerated during the pandemic

Grocery (9.8% of Rent)

Exposure to top operators in an essential, e-commerce resistant industry

Industry Considerations

(I) Stable, necessity-based industry supported by near-term

and long-term tailwinds: Restaurant capacity limitations and

major shift in consumer behavior due to increased WFH

arrangements and realization of cost benefits from eating at

home could increase grocery industry market size by ~6-7%(2)

(II) Resiliency to economic downturns: Flat Food At Home

expenditure during Great Recession (2009) and sharp

increase during the pandemic

(III) Partnership with top operators:

• Top four clients (Walmart Neighborhood Markets, Kroger,

Sainsbury’s and Tesco) are leading operators with

differentiated business models and omni-channel platforms

26%

14%

7%

3% 2% 2%

46%

Walmart Kroger Costco UNFI Dollar

General

Amazon Other

U.S. Grocery Market Share(3)

Realty Income’s top two U.S.

grocery clients control 40% of

U.S. grocery market share

(1) Source: The Nielsen Company(2) Technomic and RBC Research(3) Barclays research, 2020

53

Retail food sales have remained robust

through duration of pandemic

3%1%

4% 5%

33%

40%

17%19%

22%

18%

15% 14%14%

13% 12%11% 10% 10%

11%10%

11%

10%12%

9-A

ug

12

-Ja

n

26

-Ja

n

19

-Ap

r

22

-Ma

r

9-F

eb

23

-Fe

b

8-M

ar

28

-No

v

5-A

pr

3-M

ay

17

-Ma

y

31

-Ma

y

14

-Ju

n

28

-Ju

n

23

-Au

g

12

-Ju

l

26

-Ju

l

6-S

ep

31

-Ja

n

20

-Se

p

4-O

ct

0%

31

-Oct

26

-De

c

2020–2021 Grocery Sales(1)

(YoY growth for 4 weeks ended)

68%(3)

16%9%

5% 2%

U.K. Grocery Market Share(2)

Big 4 Discounters Convenience Premium "Pure play" online

Grocery: Overview of the U.K. Grocery IndustryTraditional grocery retailers remain the core distribution channel and dominate online sales

Industry Considerations

(I) Defensive, non-discretionary industry: U.K. grocery store sales

have been growing consistently over the past 15 years

(~3% CAGR) and are expected to grow by 10% by 2022(1)

(II) Partnership with top operators:

• Sainsbury’s and Tesco are the top two grocery operators in the

UK with strong balance sheets and omni-channel platforms

• Quality product, excellent locations and differentiated

assortment continue to drive consumer loyalty

(III) Threat from discounters and e-commerce is mitigated:

• Discounters have less margin to maneuver on lowering prices,

while Tesco and Sainsbury’s have significant financial flexibility

to continue to focus on price investment and expanding their

omni-channel capabilities

(1) Source: IGD estimates(2) Source: Kantar World Panel | Market share for 12 weeks ending 1/24/2021(3) Big 4 market share includes all formats (supermarkets, hypermarkets, c-stores and online)

54

0.8% 1.5%

20.6%

5.6%

17.1%18.9%

14.6%

9.7%8.0%

10.6%9.4%

13.9%

11.4% 12.2%

17

-Ma

y

26

-Ja

n

23

-Fe

b

14

-Ju

n

19

-Ap

r

22

-Ma

r

9-A

ug

12

-Ju

l

29

-No

v

6-S

ep

4-O

ct

1-N

ov

27

-De

c

24

-Ja

n

2020–2021 UK Grocery Sales(2)

(YoY growth for 4 weeks ended)

Drug Stores (8.2% of Rent)Industry tailwinds, high barriers to entry, and key real estate presence support the evolution of a retail pharmacy

Industry Considerations

(I) Retail pharmacies to play a key role in the distribution of a

coronavirus vaccine: Both CVS and Walgreens have a broad

presence and two of the most recognizable healthcare brands

that would fit well into a national campaign for broader vaccines

(II) Real estate presence matters: Estimated 80% of U.S.

population lives within 5-mile radius of Walgreens or CVS(1)

(III) Positive brick-and-mortar fundamentals: 30 of 31 quarters

of positive pharmacy SS sales growth for Walgreens(1)

(IV) Bundled service partnerships and vertical integration

among incumbents insulates industry from outside threats

(V) High barriers to entry: Difficult for new entrants to achieve

necessary scale and PBM partnerships to compete on price

(1) Source: Company Filings | Latest reported quarter(2) Source: Drug Channel Institute

2.0%

6.4%

7.2%

5.8%

6.3%

7.8%

8.1%

9.7%

9.1% 9.3%

9.3%

3.7%

6.0%

5.0%

2.0%

4.2%

5.8%

5.6%

7.4%

5.1%

0.0%

1.3%

2.8%1.9%

6.0%

5.4%

2.5%

2.7%

3.5%

3.2%

5.0%

3Q

13

4Q

13

1Q

14

2Q

14

3Q

14

4Q

14

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20

2Q

20

3Q

20

4Q

20

1Q

21

Walgreens: 30 of 31 Quarters of Positive

Same-Store Pharmacy Sales Growth(1)

55

650+ HealthHUB locations(1)

COVID-19 vaccinations administered at

LTC facilities(1)

VillageMD Clinics in the next five

years(1)

CVS and Walgreens are the two largest retail providers of

COVID-19 vaccines

>3M

600+

Physical locations matter: CVS and Walgreens are becoming epicenters of healthcare delivery providing

primary care services

0.9%

7.3%

2.0%

9.5%

4.9%

0.9%

3.2%

3.9%

5.7%

0.1%

-0.8%

4.6%

7.2%

2.4%

4.3%

1.7%

1.8%

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Dollar General and Dollar Tree: Counter-Cyclical

Same-Store Sales Growth(3)

Dollar Stores (7.6% of Rent)Counter-cyclical protection due to a trade down effect and e-commerce resiliency

Industry Considerations

(I) Growing industry: Discount store market is expected to grow

at a CAGR of ~6% through 2024 due to the continued shift

towards ‘value’, as 89% of all shoppers across geographies,

income levels, and demographics shop at discount retailers(1)

(II) E-commerce resilient:

• Typical dollar store customer does not prioritize e-commerce

• 75% of US population lives within 5 miles of a Dollar General

• Average basket size is $11 - $12

(III) Leading operators with consistent long-term performance:

Dollar General and Dollar Tree control ~65% of the discount

store market share, and have delivered 30 and 14 consecutive

years of positive same-store sales growth, respectively

Counter-cyclical sales growth trends supports

portfolio during recessionary periods

(1) Source: National Retail Federation(2) Source: Euromonitor(3) Company Filings

56

$0

$20

$40

$60

$80

$100

$120

20

09

20

15

20

06

20

08

20

07

20

10

20

11

20

12

20

13

20

24

E

20

14

20

16

20

17

20

18

20

19

20

20

E

20

21

E

20

22

E

20

23

E

+5%

+6%

US Discount Store Market Size (in billions)(1)

Health & Fitness (6.7% of Rent)E-commerce resilient supported by favorable demographic trends

Industry Considerations

(I) Favorable consumer trends and demographic tailwinds:

• Growing market as consumers increasingly value health

• Consumer surveys indicate that members are returning to

gyms as they reopen (75% of Life Time members are willing

to come back as clubs reopen, and 20% would like to come

back at a later date(1))

(II) E-commerce resilient:

• Health clubs offer unique experiences to their members

(i.e. socializing, amenities) that cannot be replicated online

• Service-oriented business model makes the core real estate

essential to operations

(III) Attractive margin of safety, top operators:

• Average CFC of portfolio(2) allows for 40% sales drop to

breakeven

• Top exposure is with #1 operator (L.A. Fitness, a low-cost

provider) and premium provider that performed well during

prior economic downturn (Life Time Fitness)

(IV) Top operators to benefit from industry consolidation: Both

Life Time Fitness and L.A. Fitness have significant scale and

balance sheet capability to take advantage of industry

consolidation as many weaker and highly-leveraged operators

are expected to permanently close

(V) Capacity limitations do not pose a threat: Health clubs

typically operate at lower capacity (~40%) and COVID-related

restrictions do not have major impact on operations

Illustrative Gym Rent Coverage Sensitivity

57(1) According to a Life Time Fitness survey cited by Bahram Akradi, Life Time CEO, in a CNBC interview on 6/25/2020(2) Average CFC of portfolio based on locations that report sales

Theaters (5.6% of Rent)Short-term disruptions do not obstruct long-term industry viability

Industry Considerations

(I) Theatrical releases are significant revenue generators for

studios: Hollywood studios receive 55%-60% of theater ticket

sales, incentivizing them to distribute through the theater

channel

(II) Direct-to-consumer platform revenue is limited:

• Consumers are only willing to spend ~$6 for a title on

streaming platforms, which is insufficient to cover costs of

production of major blockbusters

• Disney’s Mulan generated an estimated ~$34 million

during its opening weekend(1), well below its ~$200 million

production budget

• A blockbuster film that generated $750 million in box

office revenue would need to have 30 million PVOD buys to

generate the same profit via a streaming platform(2)

(III) Content-driven industry: Studios pushed major

blockbuster releases into 2021, creating pent-up demand

(IV) Premium video on demand (PVOD) threat is mitigated:

• 75%-90% of box office revenue generated within 17 days

(first three weekends) of a theatrical release(3)

• Studios have been postponing major blockbuster releases

(James Bond, Black Widow) rather than releasing them

direct-to-consider, underlying the importance of the theater

circuit as a distribution channel

• PVOD offering lacks experiential component of theaters

(1) Source: SambaTV (2) Source: Morgan Stanley Research(3) Based on top 20 movies in 2019(4) Source: Screen Engine Survey, Wall Street Research

58

Theatrical Releases are Significant Revenue Generators for Studios

Opening Weekend

Box Office

Est. Disney’s Profit $100M+

~$191M ~$34M

~$34M

In 2020, 71% of PVOD

viewers would have

preferred to see the

movie in the theater when

it is safe/normal(4)

Quick-Service Restaurants (5.3% of Rent)Resilient business model, high-quality real estate

Industry Considerations

(I) Resilient business model: QSRs are less dependent on “dine-in”

traffic as their revenue model is based on an “off-premise” and

drive-thru (historically 65%+ of sales) offerings

(II) Strong value proposition: In a recessionary environment,

consumers tend to be more value-centric and QSR operators

benefit from a “trade down” effect from casual dining consumers

(III) Fungibility of real estate: Positive re-leasing results on QSR

assets due to convenience of real estate location and modest

space footprint

2020 Same-Store Sales Trends: QSR’s resilience through the pandemic underscored its position as

the most stable performer in the restaurant industry(1)

(1) Source: Miller Pulse(2) Source: KnappTrack

59

4.8% 4.4%

-11.0%

-21.8%

-6.2%

-1.4%

3.0% 3.7%5.8% 5.2%

1.1% 1.1%

Jul-2020-Jan Aug-20 Oct-2020-Feb Mar-20 Apr-20 May-20 Jun-20 Sep-20 Nov-20 Dec-20

QSR industry SSR bottomed at ~(22%) in the midst of the pandemic, significantly outperforming casual dining SSR at ~(60%)(2)