Realty Income Corp (O) SEC Filing 10-K Annual report for the fiscal year ending Saturday, December 31, 2016

Exhibit 99.1

REALTY INCOME ANNOUNCES OPERATING RESULTS FOR

FOURTH QUARTER AND 2016

SAN DIEGO, CALIFORNIA, February 22, 2017....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company

COMPANY HIGHLIGHTS:

For the year ended December 31, 2016:

·                  Net income per share was $1.13

·                  AFFO per share increased 5.1% to $2.88, compared to the year ended December 31, 2015

·                  Invested $1.86 billion in 505 new properties and properties under development or expansion

For the quarter ended December 31, 2016:

·                  Net income per share was $0.33

·                  AFFO per share increased 10.3% to $0.75, compared to the quarter ended December 31, 2015

·                  Invested $785.6 million in 279 new properties and properties under development or expansion

·                  Increased the monthly dividend in December for the 89th time and for the 77th consecutive quarter

·                  Issued $600 million of 3.000% senior unsecured notes due 2027, generating net proceeds of $586.7 million

Event subsequent to December 31, 2016:

·                  In January 2017, increased the amount of the annualized dividend to $2.526 per share, as compared to the February 2016 annualized dividend amount of $2.382 per share, which represents an increase of 6%

CEO Comments

“We are pleased with another year of solid results as our company continues to execute across all areas of the business,” said John P. Case, Realty Income’s Chief Executive Officer. “In 2016, we surpassed $1 billion in rental revenue by completing a record-high volume of property acquisitions and actively managing our portfolio to maximize value. These activities contributed to healthy AFFO per share growth of 5.1% to $2.88, which supported the payment of multiple dividend increases throughout 2016.  Given the strong momentum we are seeing in our business, we increased the dividend at the beginning of 2017 by 6% compared to one year ago. For 2017, we are introducing AFFO per share guidance of $3.00 - $3.06, representing earnings growth of 4.2% - 6.3%.”

“During 2016, we completed $1.86 billion in acquisitions, of which $786 million was completed during the fourth quarter, representing our most active year and quarter for property acquisitions in our company’s history. We achieved this volume while maintaining investment spreads well above our historical average. Our portfolio occupancy at the end of the fourth quarter was 98.3%, unchanged from the end of the prior quarter. We maintained this high level of occupancy while recapturing approximately 105% of expiring rent on 186 properties re-leased to existing or new tenants in 2016.”

“Our balance sheet continues to be in excellent shape with approximately 72% of our market capitalization represented by equity. Additionally, our credit rating remains the highest in the net lease industry, providing us with outstanding financial flexibility and contributing to our distinct cost of capital advantage.”

Financial Results

Revenue

Revenue for the quarter ended December 31, 2016 increased 9.1% to $287.8 million, as compared to $263.7 million for the same quarter in 2015. Revenue for 2016 increased 7.8% to $1.103 billion, as compared to $1.023 billion for 2015.