Slides
Page 1
Power of the Platform: Realty Income Nareit’s REITweek: 2025 Investor Conference
Page 2
Safe Harbor For Forward-Looking Statements 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. When used in this presentation, the words “estimated,” “anticipated,” “expect,” “believe,” “intend,” “continue,” “should,” “may,” “likely,” “plans,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements include discussions of our business and portfolio; growth strategies and intentions to acquire or dispose of properties (including geographies, timing, partners, clients and terms); re-leases, re-development and speculative development of properties and expenditures related thereto; future operations and results; the announcement of operating results, strategy, plans, and the intentions of management; guidance; statements made regarding our share repurchase program; settlement of shares of common stock sold pursuant to forward sale confirmations under our ATM program; dividends, including the amount, timing and payments of dividends; and trends in our business, including trends in the market for long-term leases of freestanding, single-client properties. Forward-looking statements are subject to risks, uncertainties, and assumptions about us, which may cause our actual future results to differ materially from expected results. Some of the factors that could cause actual results to differ materially are, among others, our continued qualification as a real estate investment trust; general domestic and foreign business, economic, or financial conditions; competition; fluctuating interest and currency rates; inflation and its impact on our clients and us; access to debt and equity capital markets and other sources of funding (including the terms and partners of such funding); continued volatility and uncertainty in the credit markets and broader financial markets; other risks inherent in the real estate business including our clients' solvency, client defaults under leases, increased client bankruptcies, potential liability relating to environmental matters, illiquidity of real estate investments, and potential damages from natural disasters; impairments in the value of our real estate assets; volatility and changes in domestic and foreign laws and the application, enforcement or interpretation thereof (including with respect to income tax laws and rates); property ownership through co-investment ventures, funds, joint ventures, partnerships and other arrangements which may transfer or limit our control of the underlying investments; epidemics or pandemics including measures taken to limit their spread, the impacts on us, our business, our clients, and the economy generally; the loss of key personnel; the outcome of any legal proceedings to which we are a party or which may occur in the future; acts of terrorism and war; the anticipated benefits from mergers and acquisitions; and those additional risks and factors discussed in our reports filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements are not guarantees of future plans and performance and speak only as of the date of this presentation. Actual plans and operating results may differ materially from what is expressed or forecasted in this presentation and forecasts made in the forward-looking statements discussed in this presentation might not materialize. We do not undertake any obligation to update forward-looking statements or publicly release the results of any forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. Clients, Trademarks and Logos Realty Income is not affiliated or associated with, is not endorsed by, does not endorse, and is not sponsored by or a sponsor of the clients or of their products or services pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies. All data as of March 31, 2025, including YTD information, unless noted otherwise.
Page 3
Total Operational Return Stability: Proven Performance across Economic Cycles 3 PRODUCED POSITIVE TOTAL OPERATIONAL RETURN EACH YEAR SINCE NYSE LISTING IN 1994 ~6% Historical Avg. Dividend Yield ~5% Historical Avg. AFFO per Share CAGR ~11% Historical Avg. Total Operational Return(1) Higher Rate Environment Lower Rate Environment Realty Income Total Operational Return Average 10-Year US Treasury Yield Average AFFO Per Share Growth 1996-2008: 5.2% Dot-com Bust COVID-19 Regional Bank Crisis DELIVERED CONSISTENT PERFORMANCE EVEN IN INCONSISTENT INTEREST RATE ENVIRONMENT 14.4% 14.7% 14.1% 14.4% 12.2% 12.2% 13.2% 11.9% 11.1% 11.3% 16.0% 9.1% 10.6% 5.3% 7.2% 13.1% 7.6% 22.3% 12.5% 11.4% 9.7% 10.6% 8.9% 8.4% 5.9% 13.8% 13.3% 6.8% 10.2% 8.9% 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 2021 2022 2023 2024 Q1 2025 Housing market crash Rise of e-commerce Great Financial Crisis Average 10-yr Treasury Yield 1996 - 2008: 5.0% Average 10-yr Treasury Yield 2009 - 2022: 2.3% Average AFFO Per Share Growth 2009-2022: 5.4% Source: Bloomberg (1) 11% historical average total operational return consists of 6% average annual dividend yield and 5% compound average annual AFFO per share growth rate from 1996-Q1 2025. 2015-2024 Average Total Operational Return: ~10%
Page 4
Delivering Durable Income at Global Scale Multiple Avenues for Growth 01 Real Estate Expertise at Scale 02 Reliable, Growing Dividend Income 03 4
Page 5
Multiple Avenues for Growth Scalable, Accretive, and Diversifying: The Power of Net Lease Breadth (1) All data as of 3/31/2025. U.S. Industrial, United Kingdom, and Europe based on purchase price of properties. Gaming includes $1.7B sale leaseback of Wynn Encore Boston Harbor (February 2022) and $300M equity investment in Bellagio Las Vegas (August 2023). Data Centers includes $200M investment to acquire an 80% equity interest in a JV with Digital Realty (November 2023) and a pro rata share of the remaining $150M of development costs at the time of the deal. Credit Investments includes $824M of Senior Secured Notes Receivable, $33M of Mortgage Loans, $211M of Unsecured and Other Loans, and $650M Preferred Equity Investment. (2) Gaming excludes $650M preferred equity interest in the Bellagio Las Vegas, which is accounted for in the ‘Credit Investments’ bucket. Includes $300M common equity investment in Bellagio. (3) Adjusted EBITDA Margin, a non-GAAP financial measure, is defined as Adjusted EBITDAre before (i) our proportionate share of adjustments and equity in earnings from unconsolidated entities, (ii) gains and losses on extinguishment of debt, and (iii) other income, net, expressed as a percentage of total revenue (excluding reimbursements). We believe Adjusted EBITDA Margin provides useful information to investors on the effectiveness of our operations and underlying business trends. 5 Proven Execution of New Initiatives has Enhanced Margins, Reduced Risk, and Bolstered Growth Year 2011 2019 2021 2022 2023 2023 Vertical Size Based on Purchase Price(1) $9.7B $9.6B $2.0B $2.0B $0.3B $1.7B 91% 95% U.S. Industrial United Kingdom Europe Gaming Data Centers Credit Investments Volume (USD) EBITDA Margin Improved EBITDA margin(3) reflects economies of scale as the platform expands and diversifies Includes $4.8B of Retail Multi-Tenant Net Lease Assets Includes $0.4B of Retail Multi-Tenant Net Lease Assets (2) 1 (2)
Page 6
66 Significant Runway Ahead Across Europe $0.8B $1.7B $3.7B $5.8B $8.0B $9.0B $9.6B $0.3B $0.7B $1.5B $1.8B $2.0B Year 0 Year 1 - Entry Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 UK Balance of Europe UK vs. Balance of Europe Portfolio Size Distinctive Advantages Opportunity to leverage established UK foundation across Europe Significant $8.5T addressable market in Europe Limited public European competition, with only two European- listed public net lease peers Attractive unsecured borrowing costs: EUR unsecured debt ~135bps inside USD (2) Multiple Avenues for Growth1 (1) As of 3/31/2025. (1) (1) (2) As of 5/28/2025. Based on Cumulative Purchase Price
Page 7
Full-Service Capital Provider in the UK 7 Sale Leaseback • Acquired 25 Asda properties for £650M in 2023 Credit Investments • Partnered with Asda on a £300M secured note in 2024 and £142M floating rate loan in 2023 Multi-Tenant Net Lease • Re-leasing vacancies to leading grocers across the UK with minimal capital expenditures and triple digit recapture rates Real Estate Expertise at Scale2
Page 8
Full-Service Capital Provider: Tidal Wave in the US 8 Sale Leasebacks • Two transactions in 2023 totaling $206M Credit Investment • $33.5M fixed rate loan in 2023 Strong Recapture Rates • Adjusted recapture rates of 143% on two leases(1) Real Estate Expertise at Scale2 (1) Recapture rate is calculated on a net effective basis including the amortization of leasing costs.
Page 9
Our Total Operational Return Comes with Low Volatility and High Consistency 9 10Y Total Operational Return Volatility Less volatility 10Y Average Total Operational Return Higher returns O has produced the lowest total operational return volatility compared to multiple broader market indices over the last 10 years with total operational return >6% for 10 of the last 10 years, >8% for 8 of the last 10 years, and >10% for 6 of the last 10 years RMZ Index Bloomberg Large Cap ex-Magnificent 7 Index S&P 500 Index 0% 5% 10% 15% 20% 6% 7% 8% 9% 10% 11% 12% S&P 500 Equal Weight Index Median 10Y Total Operational Return = 9.8% Median 10Y Total Operational Return Volatility = 13.0% O has produced ~10% average total operational return with only ~2% volatility Reliable, Growing Dividend Income3 Note: As of 12/31/2024. Source: CapitalIQ.
Page 10
Realty Income has Consistently Provided a Leading Total Operational Return 10 Total Operational Return (Dividend Yield + AFFO per Share Growth) Consistently Above Average… 8.5% 11.0% 9.7% 6.9% 10.8% 7.7% 1Y Trailing 3Y Trailing 5Y Trailing S&P 500 REITs S&P 500 REITs S&P 500 REITs …With a Multiple Well Below Average NTM Multiple(1) 13x 18x S&P 500 REIT Peer Median (1) As of 5/28/2025. Reliable, Growing Dividend Income3