Issuer:

Realty Income Corporation

Security:

6.75% Monthly Income Class E Cumulative Redeemable Preferred Stock

Size:

8,800,000 shares

Over-allotment Option:

None

Price to Public:

$25.00 per share, plus accrued dividends, if any

Net Proceeds to the Company
(after estimated expenses):

$213,976,680

Dividend Rights:

6.75% of the $25.00 liquidation preference per share per annum (equivalent to $1.6875 per share per annum), accruing from the date of original issuance

Dividend Payment Dates:

15th day of each month, commencing January 15, 2007

Redemption:

The shares may not be redeemed prior to December 7, 2011, except to preserve Realty Income’s status as a real estate investment trust. On and after December 7, 2011, Realty Income may, at its option, redeem the Class E preferred stock, in whole or from time to time in part, for cash at a redemption price equal to $25.00 per share, plus, subject to exceptions, any accrued and unpaid dividends to the date of redemption.

Expected Settlement Date:

December 7, 2006

Joint Book-Running Managers:

Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wachovia Capital Markets, LLC

Joint Lead Managers:

A.G. Edwards & Sons, Inc., UBS Securities LLC

Co-Managers:

Banc of America Securities LLC, Credit Suisse Securities (USA) LLC, Raymond James & Associates, Inc., RBC Capital Markets Corporation, Robert W. Baird & Co. Incorporated, BNY Capital Markets, Inc., BB&T Capital Markets, a division of Scott & Stringfellow, Inc., J.P. Morgan Securities Inc., Stifel, Nicolaus & Company, Incorporated and Wells Fargo Securities, LLC