Realty Income (O) 10-Q30 Oct 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2014	Oct. 23, 2014
Document and Entity Information	'	'
Entity Registrant Name	'REALTY INCOME CORP	'
Entity Central Index Key	'0000726728	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	222,686,209
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Real estate, at cost:	'	'
Land	$3,008,036	$2,791,147
Buildings and improvements	7,995,808	7,108,328
Total real estate, at cost	11,003,844	9,899,475
Less accumulated depreciation and amortization	-1,317,760	-1,114,888
Net real estate held for investment	9,686,084	8,784,587
Real estate held for sale, net	15,757	12,022
Net real estate	9,701,841	8,796,609
Cash and cash equivalents	16,936	10,257
Accounts receivable, net	47,852	39,323
Acquired lease intangible assets, net	1,059,879	935,459
Goodwill	15,535	15,660
Other assets, net	97,797	127,133
Total assets	10,939,840	9,924,441
LIABILITIES AND EQUITY	'	'
Distributions payable	43,289	41,452
Accounts payable and accrued expenses	78,271	102,511
Acquired lease intangible liabilities, net	201,245	148,250
Other liabilities	44,410	44,030
Preferred shares subject to mandatory redemption	220,000	'
Line of credit payable	45,000	128,000
Term loan	70,000	70,000
Mortgages payable, net	862,212	783,360
Notes payable, net	3,785,027	3,185,480
Total liabilities	5,349,454	4,503,083
Commitments and contingencies	'	'
Stockholders' equity:	'	'
Preferred stock and paid in capital, par value $0.01 per share, 69,900,000 shares authorized, 16,350,000 shares issued and outstanding as of September 30, 2014 and 25,150,000 shares issued and outstanding as of December 31, 2013	395,377	609,363
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 222,670,846 shares issued and outstanding as of September 30, 2014 and 207,485,073 shares issued and outstanding at December 31, 2013	6,361,400	5,767,878
Distributions in excess of net income	-1,194,987	-991,794
Total stockholders' equity	5,561,790	5,385,447
Noncontrolling interests	28,596	35,911
Total equity	5,590,386	5,421,358
Total liabilities and equity	$10,939,840	$9,924,441

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CONSOLIDATED BALANCE SHEETS	'	'
Preferred stock and paid in capital, par value (in dollars per share)	$0.01	$0.01
Preferred stock and paid in capital, shares authorized	69,900,000	69,900,000
Preferred stock and paid in capital, shares issued	16,350,000	25,150,000
Preferred stock and paid in capital, shares outstanding	16,350,000	25,150,000
Common stock and paid in capital, par value (in dollars per share)	$0.01	$0.01
Common stock and paid in capital, shares authorized	370,100,000	370,100,000
Common stock and paid in capital, shares issued	222,670,846	207,485,073
Common stock and paid in capital, shares outstanding	222,670,846	207,485,073

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
REVENUE	'	'	'	'
Rental	$226,832	$195,332	$662,822	$543,219
Tenant reimbursements	8,275	5,107	20,872	15,619
Other	606	1,642	2,238	5,207
Total revenue	235,713	202,081	685,932	564,045
EXPENSES	'	'	'	'
Depreciation and amortization	95,260	80,822	278,124	221,476
Interest	52,814	49,836	157,246	130,667
General and administrative	11,025	16,640	35,499	40,356
Property (including reimbursable)	12,770	8,466	33,474	25,792
Income taxes	697	569	2,358	1,770
Provisions for impairment	495	'	2,676	290
Merger-related costs	'	240	'	12,875
Total expenses	173,061	156,573	509,377	433,226
Gain on sales of real estate	10,975	'	14,211	'
Income from continuing operations	73,627	45,508	190,766	130,819
Income from discontinued operations	'	6,399	3,097	50,831
Net income	73,627	51,907	193,863	181,650
Net income attributable to noncontrolling interests	-344	-336	-1,016	-422
Net income attributable to the Company	73,283	51,571	192,847	181,228
Preferred stock dividends	-9,327	-10,482	-30,292	-31,447
Excess of redemption value over carrying value of preferred shares subject to redemption	-6,015	'	-6,015	'
Net income available to common stockholders	$57,941	$41,089	$156,540	$149,781
Amounts available to common stockholders per common share:	'	'	'	'
Income from continuing operations, basic and diluted (in dollars per share)	$0.26	$0.18	$0.71	$0.53
Net income, basic and diluted (in dollars per share)	$0.26	$0.21	$0.72	$0.80
Weighted average common shares outstanding:	'	'	'	'
Basic (in shares)	222,061,661	195,768,298	216,804,815	187,805,222
Diluted (in shares)	222,236,071	196,619,866	217,147,035	188,399,848

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net income	$193,863	$181,650
Adjustments to net income:	'	'
Depreciation and amortization	278,124	221,476
Income from discontinued operations	-3,097	-50,831
Amortization of share-based compensation	7,653	14,235
Non-cash rental adjustments	-5,390	-3,862
Amortization of net premiums on mortgages payable	-10,843	-6,959
Amortization of deferred financing costs	8,027	6,682
Gain on sales of real estate	-14,211	'
Provisions for impairment on real estate	2,676	290
Cash provided by discontinued operations:	'	'
Real estate	490	4,809
Proceeds from sale of real estate	820	'
Change in assets and liabilities, other than from the impact of our acquisition of American Realty Capital Trust, Inc., or ARCT	'	'
Accounts receivable and other assets	12,420	1,481
Accounts payable, accrued expenses and other liabilities	-30,451	-23,304
Net cash provided by operating activities	440,081	345,667
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Investment in real estate, net of cash acquired	-1,076,391	-1,286,384
Improvements to real estate, including leasing costs	-4,538	-5,902
Proceeds from sales of real estate:	'	'
Continuing operations	46,644	8
Discontinued operations	6,918	98,768
Collection (issuance) of loans receivable	350	-10,551
Restricted escrow deposits for Section 1031 tax-deferred exchanges and pending acquisitions	-27,340	-7,344
Net cash used in investing activities	-1,054,357	-1,211,405
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Cash distributions to common stockholders	-356,735	-298,544
Cash dividends to preferred stockholders	-31,447	-31,447
Borrowings on line of credit	1,359,121	2,096,300
Payments on line of credit	-1,442,121	-1,785,900
Proceeds from notes and bonds payable issued	598,594	750,000
Principal payment on notes payable	'	-100,000
Principal payments on mortgages payable	-77,619	-16,207
Proceeds from term loan	'	70,000
Repayment of ARCT line of credit	'	-317,207
Repayment of ARCT term loan	'	-235,000
Proceeds from common stock offerings, net	528,615	755,085
Distributions to noncontrolling interests	-1,390	-751
Debt issuance costs	-5,609	-9,150
Proceeds from dividend reinvestment and stock purchase plan, net	56,580	3,827
Other items, including shares withheld upon vesting	-7,034	-10,556
Net cash provided by financing activities	620,955	870,450
Net increase in cash and cash equivalents	6,679	4,712
Cash and cash equivalents, beginning of period	10,257	5,248
Cash and cash equivalents, end of period	$16,936	$9,960

Management_Statement

Management Statement	9 Months Ended
Management Statement	Sep. 30, 2014
Management Statement	'
Management Statement	'
	1. Management Statement

	The consolidated financial statements of Realty Income Corporation (“Realty Income”, the “Company”, “we”, “our” or “us”) were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements for the year ended December 31, 2013, which are included in our 2013 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report.

	At September 30, 2014, we owned 4,284 properties, located in 49 states and Puerto Rico, containing over 69.8 million leasable square feet.

Summary_of_Significant_Account

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	'
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	'
	2. Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements

	A. The accompanying consolidated financial statements include the accounts of Realty Income and other entities for which we make operating and financial decisions (i.e., control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments.

	B. We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income represent amounts paid by Realty Income for city and state income and franchise taxes.

	C. We recognize an allowance for doubtful accounts relating to accounts receivable for amounts deemed uncollectible. We consider tenant specific issues, such as financial stability and ability to pay rent, when determining collectability of accounts receivable and appropriate allowances to record. The allowance for doubtful accounts was $346,000 at September 30, 2014 and $498,000 at December 31, 2013.

	D. We assign a portion of goodwill to our applicable property sales, which results in a reduction of the carrying amount of our goodwill. In order to allocate goodwill to the carrying amount of properties that we sell, we utilize a relative fair value approach based on the original methodology for assigning goodwill. As we sell properties, our goodwill will likely continue to gradually decrease over time. During our tests for impairment of goodwill during the second quarters of 2014 and 2013, we determined that the estimated fair values of our reporting units exceeded their carrying values. We did not have an impairment on our existing goodwill in 2014 and 2013.

	E. In April 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-08, which amends Topic 205, Presentation of Financial Statements, and Topic 360, Property, Plant, and Equipment. The amendments in this ASU changed the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. ASU 2014-08 is effective, on a prospective basis, for all disposals or classifications as held for sale of components of an entity that occur within interim and annual periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals or classifications as held for sale that have not been reported in financial statements previously issued. We chose to early adopt ASU 2014-08 beginning with the three-month period ended March 31, 2014. Starting with the first quarter of 2014, the results of operations for all qualifying disposals and properties classified as held for sale that were not previously reported in discontinued operations in our 2013 Annual Report on Form 10-K will be presented within income from continuing operations on our consolidated statements of income.

	Prior to the date of adoption of Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, we reported, in discontinued operations, the results of operations of properties that had either been disposed of or classified as held for sale in financial statements issued. See footnote 2.E. below for a description of our early adoption of this recent accounting pronouncement and the impact on our presentation of discontinued operations on our consolidated statements of income.

	Certain of the 2013 balances have been revised on our consolidated financial statements as follows:

	- We previously reported certain operating activities of our wholly owned taxable REIT subsidiary, Crest Net Lease, Inc., or Crest, as discontinued operations. We have revised the 2013 amounts to report those activities in continuing operations. Subsequent to the revision, results of operations for Crest properties that were disposed of or classified as held for sale as of December 31, 2013, continue to be reported in discontinued operations.

Supplemental_Detail_for_Certai

Supplemental Detail for Certain Components of Consolidated Balance Sheets	9 Months Ended
	Sep. 30, 2014
Supplemental Detail for Certain Components of Consolidated Balance Sheets	'
Supplemental Detail for Certain Components of Consolidated Balance Sheets	'
	3. Supplemental Detail for Certain Components of Consolidated Balance Sheets

	A. Acquired lease intangible assets, net, consist of the following	September 30,			December 31,
	(dollars in thousands) at:	2014			2013
	Acquired in-place leases	$	994,407		$	843,616
	Accumulated amortization of acquired in-place leases	(156,522		)	(95,084		)
	Acquired above-market leases	257,251			207,641
	Accumulated amortization of acquired above-market leases	(35,257		)	(20,714		)
		$	1,059,879		$	935,459

		September 30,			December 31,
	B. Other assets, net, consist of the following (dollars in thousands) at:	2014			2013
	Restricted escrow deposits	$	27,340		$	10,158
	Deferred financing costs, net	24,381			21,323
	Notes receivable issued in connection with property sales	18,440			19,078
	Prepaid expenses	12,592			11,674
	Impounds related to mortgages payable	5,511			5,555
	Credit facility origination costs, net	4,940			7,146
	Corporate assets, net	1,559			1,259
	Loans receivable	-			48,844
	Other items	3,034			2,096
		$	97,797		$	127,133

	C. Distributions payable consist of the following declared	September 30,			December 31,
	distributions (dollars in thousands) at:	2014			2013
	Common stock distributions	$	40,796		$	37,797
	Preferred stock dividends		2,339			3,494
	Noncontrolling interests distributions		154			161
		$	43,289		$	41,452

	D. Accounts payable and accrued expenses consist of the	September 30,			December 31,
	following (dollars in thousands) at:	2014			2013
	Notes payable - interest payable	$	30,264		$	55,616
	Accrued costs on properties under development	18,889			14,058
	Mortgages payable - interest payable	3,035			2,790
	Other items	26,083			30,047
		$	78,271		$	102,511

	E. Acquired lease intangible liabilities, net, consist of the	September 30,			December 31,
	following (dollars in thousands) at:	2014			2013
	Acquired below-market leases	$	220,329		$	158,703
	Accumulated amortization of acquired below-market leases	(19,084		)	(10,453		)
		$	201,245		$	148,250

	F. Other liabilities consist of the following	September 30,			December 31,
	(dollars in thousands) at:	2014			2013
	Rent received in advance	$	31,718		$	31,144
	Preferred units issued upon acquisition of ARCT	6,750			6,750
	Security deposits	5,942			6,136
		$	44,410		$	44,030

Investments_in_Real_Estate

Investments in Real Estate	9 Months Ended
	Sep. 30, 2014
Investments in Real Estate	'
Investments in Real Estate	'
	4. Investments in Real Estate

	We acquire land, buildings and improvements necessary for the successful operations of commercial tenants.

	A. Acquisitions during the First Nine Months of 2014 and 2013
	During the first nine months of 2014, we invested $1.24 billion in 439 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 7.1%. The 439 new properties and properties under development or expansion, are located in 42 states, will contain over 8.5 million leasable square feet and are 100% leased with a weighted average lease term of 12.6 years. The tenants occupying the new properties operate in 27 industries and the property types consist of 85.6% retail, 7.2% office, 5.8% industrial and distribution, and 1.4% manufacturing, based on rental revenue. None of our investments during the first nine months of 2014 caused any one tenant to be 10% or more of our total assets at September 30, 2014.

	The $1.24 billion invested during the first nine months of 2014 was allocated as follows: $240.1 million to land, $861.9 million to buildings and improvements, $202.0 million to intangible assets related to leases, $901,000 to other assets, net, and $60.5 million to intangible liabilities related to leases and other assumed liabilities. We also recorded net mortgage premiums of $604,000 associated with the $166.7 million of mortgages acquired during the first nine months of 2014. There was no contingent consideration associated with these acquisitions.

	The properties acquired during the first nine months of 2014 contributed total revenues of $47.3 million and income from continuing operations of $19.2 million.

	The purchase price allocations for $159.8 million invested by us in the third quarter of 2014 is based on a preliminary measurement of fair value that is subject to change. The allocations for these properties represent our current best estimate of fair value and we expect to finalize the valuations and complete the purchase price allocations in 2014. In the first nine months of 2014, we finalized the purchase price allocations for $120.8 million invested in the fourth quarter of 2013 and $789.8 million invested in the first two quarters of 2014. There were no material changes to our consolidated balance sheets or income statements as a result of these purchase price allocation adjustments.

	In comparison, during the first nine months of 2013, Realty Income invested $1.37 billion in 407 properties and properties under development or expansion (in addition to our acquisition of American Realty Capital Trust, Inc. or ARCT, which is discussed below), with an initial weighted average contractual lease rate of 7.0%. These 407 properties are located in 40 states, contain over 8.0 million leasable square feet and are 100% leased with a weighted average lease term of 14.1 years. The tenants occupying the new properties operate in 21 industries and the property types consist of 84.1% retail, 10.4% office, 3.1% industrial and distribution, and 2.4% manufacturing, based on rental revenue. These investments are in addition to the $3.2 billion acquisition of ARCT, which added 515 properties to our real estate portfolio during the first quarter of 2013.

	The 515 properties added to our real estate portfolio as a result of the ARCT acquisition are located in 44 states and Puerto Rico, contain over 16.0 million leasable square feet, and are 100% leased with a weighted average lease term of 12.2 years. The 69 tenants occupying the 515 properties acquired operate in 28 industries and the property types consist of 54.0% retail, 32.6% industrial and distribution, and 13.4% office, based on rental revenue. We recorded ARCT merger-related transaction costs of $12.9 million in the first nine months of 2013.

	These merger related transaction costs included, but were not limited to, advisor fees, legal fees, accounting fees, printing fees and transfer taxes.

	Our combined total investment in real estate assets, including the ARCT acquisition, during the first nine months of 2013 was $4.5 billion.

	The $4.5 billion invested during the first nine months of 2013 was allocated as follows: $769.4 million to land, $3.10 billion to buildings and improvements, $765.3 million to intangible assets related to leases, $13.5 million to other assets, net, and $115.0 million to intangible liabilities related to leases and other assumed liabilities. We also recorded mortgage premiums of $28.4 million associated with the mortgages acquired. There was no contingent consideration associated with these acquisitions.

	The estimated initial weighted average contractual lease rate for a property is generally computed as estimated contractual net operating income, which, in the case of a net leased property, is equal to the aggregate base rent under the lease for the first full year of each lease, divided by the total cost of the property. Since it is possible that a tenant could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above.

	In the case of a property under development or expansion, the contractual lease rate is generally fixed such that rent varies based on the actual total investment in order to provide a fixed rate of return. When the lease does not provide for a fixed rate of return on a property under development or expansion, the estimated initial weighted average contractual lease rate is computed as follows: estimated net operating income (determined by the lease) for the first full year of each lease, divided by our projected total investment in the property, including land, construction and capitalized interest costs. Of the $1.24 billion we invested during the first nine months of 2014, $69.0 million was invested in 32 properties under development or expansion with an estimated initial weighted average contractual lease rate of 8.5%. Of the $4.5 billion we invested in the first nine months of 2013, $28.8 million was invested in 19 properties under development or expansion with an estimated initial weighted average contractual lease rate of 8.5%

	B. Acquisition Transaction Costs
	Acquisition transaction costs (excluding ARCT merger-related costs) of $589,000 and $1.7 million were recorded to general and administrative expense on our consolidated statement of income for the first nine months of 2014 and 2013, respectively.

	C. Investments in Existing Properties
	During the first nine months of 2014, we capitalized costs of $4.5 million on existing properties in our portfolio, consisting of $655,000 for re-leasing costs and $3.9 million for building and tenant improvements. In comparison, during the first nine months of 2013, we capitalized costs of $5.9 million on existing properties in our portfolio, consisting of $1.1 million for re-leasing costs and $4.8 million for building and tenant improvements.

	D. Properties with Existing In-place Leases
	Of the $1.24 billion we invested in the first nine months of 2014, approximately $949.6 million was used to acquire 180 properties with existing in-place leases. In comparison, of the $4.5 billion invested during the first nine months of 2013, approximately $4.3 billion was used to acquire 756 properties with existing in-place leases. The value of the in-place and above-market leases is recorded to acquired lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to acquired lease intangible liabilities, net on our consolidated balance sheets. The values recorded to all of these intangible values, for properties acquired during the third quarter of 2014, are based on a preliminary measurement of fair value that is subject to change.

	The value of the in-place leases is amortized as depreciation and amortization expense. The amounts amortized to expense for the first nine months of 2014 and 2013 were $62.1 million and $46.4 million, respectively.

	The value of the above-market and below-market leases is amortized as an adjustment to rental revenue on our consolidated statements of income. All of these amounts are amortized over the term of the respective leases. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the first nine months of 2014 and 2013 were $6.4 million and $6.2 million, respectively. If a lease was terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense as appropriate.

	The following table presents the impact during the next five years and thereafter related to the net increase (decrease) to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense from the amortization of the in-place lease intangibles for properties held for investment at September 30, 2014 (in thousands):

		Net increase			Increase to
		(decrease) to			amortization
		rental revenue			expense
	2014	$	(2,066	)	$	21,543
	2015	(8,271		)	84,970
	2016	(8,283		)	84,598
	2017	(8,227		)	83,399
	2018	(7,968		)	80,955
	Thereafter	14,066			481,502
	Totals	$	(20,749	)	$	836,967

Credit_Facility

Credit Facility (Credit Facility)	9 Months Ended
Credit Facility (Credit Facility)	Sep. 30, 2014
Credit Facility	'
Debt instrument	'
Credit Facility	'
	5. Credit Facility

	We have a $1.5 billion unsecured acquisition credit facility with an initial term that expires in May 2016 and includes, at our election, a one-year extension option. Under this credit facility, our current investment grade credit ratings provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 1.075% with a facility commitment fee of 0.175%, for all-in drawn pricing of 1.25% over LIBOR. The borrowing rate is not subject to an interest rate floor or ceiling. We also have other interest rate options available to us under this credit facility. Our credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation.

	At September 30, 2014, credit facility origination costs of $4.9 million are included in other assets, net, on our consolidated balance sheets. These costs are being amortized over the remaining term of our current $1.5 billion credit facility.

	At September 30, 2014, we had a borrowing capacity of $1.46 billion available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $45.0 million, as compared to an outstanding balance of $128.0 million at December 31, 2013.

	The weighted average interest rate on outstanding borrowings under our credit facility was 1.2% during the first nine months of 2014 and 1.3% during the first nine months of 2013. At September 30, 2014, the effective interest rate was 1.2%. Our current credit facility is subject to various leverage and interest coverage ratio limitations, and at September 30, 2014, we remain in compliance with these covenants.

Mortgages_Payable

Mortgages Payable (Mortgages Payable)

9 Months Ended

Sep. 30, 2014

Mortgages Payable

Debt instrument

Mortgages Payable

6. Mortgages Payable

During the first nine months of 2014, we made $77.6 million in principal payments, including the repayment of five mortgages in full for $72.0 million. Additionally, during the first nine months of 2014, we assumed mortgages totaling $166.7 million, excluding net premiums. The mortgages are secured by the properties on which the debt was placed. $152.0 million of mortgages assumed during the first nine months of 2014 are considered non-recourse with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. The remaining $14.7 million, representing two mortgages, has partial recourse to Realty Income in the aggregate amount of $3.2 million; the remaining balance of $11.5 million is non-recourse and includes the same customary exceptions described in the preceding sentence. We expect to pay off the mortgages as soon as prepayment penalties make it economically feasible to do so.

During the first nine months of 2014, aggregate net premiums totaling $604,000 were recorded upon assumption of the mortgages for above-market interest rates, as compared to net premiums totaling $28.4 million recorded in the first nine months of 2013. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective mortgages, using a method that approximates the effective-interest method.

These mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage, without the prior consent of the lender. At September 30, 2014, we remain in compliance with these covenants.

We did not incur any deferred financing costs on our mortgages payable assumed in the first nine months of 2014 and incurred $211,000 in the first nine months of 2013. The balance of our deferred financing costs, which are classified as part of other assets, net, on our consolidated balance sheets, was $937,000 at September 30, 2014, and $1.2 million at December 31, 2013, which is being amortized over the remaining term of each mortgage.

The following is a summary of all our mortgages payable as of September 30, 2014 and December 31, 2013, respectively (dollars in thousands):

Weighted

Average

Stated

Effective

Remaining

Unamortized

Mortgage

Number of

Interest

Years Until

Principal

Premium

Payable

As Of

Properties(1)

Rate(2)

Rate(3)

Maturity

Balance

Balance, net

Balance

9/30/14

243

5.00%

4.00%

$ 843,600

$ 18,612

$ 862,212

12/31/13

227

5.30%

3.90%

4.3

$ 754,508

$ 28,852

$ 783,360

(1) At September 30, 2014, there were 58 mortgages on the 243 properties, while at December 31, 2013, there were 47 mortgages on the 227 properties. The mortgages require monthly payments, with principal payments due at maturity. The mortgages are at fixed interest rates, except for five mortgages on 14 properties totaling $74.4 million at September 30, 2014, including net unamortized discounts. At December 31, 2013, two mortgages totaling $31.1 million, including net unamortized discounts, were at variable interest rates. All of these variable rate mortgages were acquired with arrangements which limit our exposure to interest rate risk.

(2) Stated interest rates ranged from 2.0% to 6.9% at September 30, 2014, while stated interest rates ranged from 2.5% to 6.9% at December 31, 2013.

(3) Effective interest rates range from 2.2% to 9.1% at September 30, 2014, while effective interest rates ranged from 2.4% to 9.2% at December 31, 2013.

The following table summarizes the maturity of mortgages payable, excluding net premiums of $18.6 million, as of September 30, 2014 (dollars in millions):

Year of

Maturity

2014

7.6

2015

119.7

2016

248.4

2017

142.5

2018

15.1

Thereafter

310.3

Totals

843.6

Term_Loan

Term Loan	9 Months Ended
Term Loan	Sep. 30, 2014
Term Loan	'
Term Loan	'
	7. Term Loan

	In January 2013, in conjunction with our acquisition of ARCT, we entered into a $70 million senior unsecured term loan maturing January 21, 2018. Borrowing under the term loan bears interest at the current one month LIBOR, plus 1.2%. In conjunction with this term loan, we also acquired an interest rate swap which essentially fixes our per annum interest rate on the term loan at 2.15%. As a result of entering into our term loan, we incurred deferred financing costs of $303,000 in 2013, which are being amortized over the remaining term of the term loan. The net balance of these deferred financing costs was $202,000 at September 30, 2014, and $248,000 at December 31, 2013, which are included in other assets, net on our consolidated balance sheets.

Notes_Payable

Notes Payable (Notes Payable)	9 Months Ended
	Sep. 30, 2014
Notes Payable	'
Debt instrument	'
Notes Payable	'
	8. Notes Payable

	A. General
	Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions):

		September 30,			December 31,
		2014			2013
	5.5% notes, issued in November 2003 and due in November 2015	$	150		$	150
	5.95% notes, issued in September 2006 and due in September 2016	275			275
	5.375% notes, issued in September 2005 and due in September 2017	175			175
	2.0% notes, issued in October 2012 and due in January 2018	350			350
	6.75% notes, issued in September 2007 and due in August 2019	550			550
	5.75% notes, issued in June 2010 and due in January 2021	250			250
	3.25% notes, issued in October 2012 and due in October 2022	450			450
	4.65% notes, issued in July 2013 and due in August 2023	750			750
	3.875% notes, issued in June 2014 and due in July 2024	350			-
	4.125% notes, issued in September 2014 and due in October 2026	250			-
	5.875% bonds, $100 issued in March 2005 and $150 issued in
	June 2011, both due in March 2035	250			250
	Total principal amount	3,800			3,200
	Unamortized original issuance discounts	(15		)	(15		)
		$	3,785		$	3,185

	The following table summarizes the maturity of our notes and bonds payable as of September 30, 2014, excluding unamortized original issuance discounts (dollars in millions):

		Notes and
	Year of Maturity	Bonds
	2014	$	-
	2015	150
	2016	275
	2017	175
	2018	350
	Thereafter	2,850
	Totals	$		3,800


	As of September 30, 2014, the weighted average interest rate on our notes and bonds payable was 4.8% and the weighted average remaining years until maturity was 7.5 years.

	B. Note Issuance
	In September 2014, we issued $250 million of 4.125% senior unsecured notes due October 2026, or the 2026 Notes. The price to the investors for the 2026 Notes was 99.499% of the principal amount for an effective yield of 4.178% per annum. A portion of the total net proceeds of approximately $246.3 million from these offerings were used to repay all outstanding borrowings under our acquisition credit facility, and the remaining proceeds were used for other general corporate purposes and working capital, including additional property acquisitions. Interest is paid semiannually on the 2026 Notes. In October 2014, we utilized our acquisition credit facility to redeem our 6.75% Monthly Income Class E Preferred Stock.

	In June 2014, we issued $350 million of 3.875% senior unsecured notes due July 2024, or the 2024 Notes. The price to the investors for the 2024 Notes was 99.956% of the principal amount for an effective yield of 3.88% per annum. The total net proceeds of approximately $346.7 million from these offerings were used to repay a portion of the outstanding borrowings under our acquisition credit facility. Interest is paid semiannually on the 2024 Notes.

	In July 2013, we issued $750 million of 4.65% senior unsecured notes due August 2023, or the 2023 Notes. The price to the investors for the 2023 Notes was 99.775% of the principal amount for an effective yield of 4.678% per annum. The total net proceeds of approximately $741.4 million from these offerings were used to repay all outstanding borrowings under our acquisition credit facility, and the remaining proceeds were used for other general corporate purposes and working capital, including additional property acquisitions. Interest is paid semiannually on the 2023 Notes.

	C. Note Repayment
	In March 2013, we repaid $100 million of outstanding 5.375% notes, plus accrued and unpaid interest, using proceeds from our March 2013 common stock offering and our credit facility.

Redemption_of_Preferred_Stock

Redemption of Preferred Stock	9 Months Ended
Redemption of Preferred Stock	Sep. 30, 2014
Redemption of Preferred Stock	'
Redemption of Preferred Stock	'
	9. Redemption of Preferred Stock

	In September 2014, we issued an irrevocable notice of redemption for all 8.8 million shares of our 6.75% Monthly Income Class E Preferred Stock for $25 per share, plus accrued dividends. The redemption occurred in October 2014. The issuance of the redemption notice prior to the end of the quarter required us to reclassify $220.0 million of preferred stock from stockholders’ equity to liabilities on our consolidated balance sheet at September 30, 2014. These shares subject to mandatory redemption are now presented at fair value. We incurred a charge of $6.0 million, representing the Class E preferred stock original issuance costs that we paid in 2006.

Issuance_of_Common_Stock

Issuance of Common Stock	9 Months Ended
Issuance of Common Stock	Sep. 30, 2014
Issuance of Common Stock	'
Issuance of Common Stock	'
	10. Issuance of Common Stock

	In April 2014, we issued 13,800,000 shares of common stock, including 1,800,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. After underwriting discounts and other offering costs of $22.8 million, the net proceeds of $528.6 million were used to repay borrowings under our acquisition credit facility.

	In March 2013, we issued 17,250,000 shares of common stock, including 2,250,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. After underwriting discounts and other offering costs of $36.7 million, the net proceeds of $755.1 million were used to redeem our 5.375% notes in March 2013 and repay borrowings under our acquisition credit facility, which were used to fund property acquisitions, including our acquisition of ARCT.

	In connection with our January 2013 acquisition of ARCT, we issued a total of 45,573,144 shares of our common stock to ARCT shareholders and we received 208,709 shares of our common stock that were previously held by ARCT. The total value of the 45,573,144 common shares was approximately $2 billion.

Noncontrolling_Interests

Noncontrolling Interests	9 Months Ended
	Sep. 30, 2014
Noncontrolling Interests	'
Noncontrolling Interests	'
	11. Noncontrolling Interests

	In January 2013, we completed our acquisition of ARCT. Equity issued as consideration for this transaction included common and preferred partnership units issued by Tau Operating Partnership, L.P., or Tau Operating Partnership, the consolidated subsidiary which owns properties acquired through the ARCT acquisition. Realty Income and its subsidiaries hold a 99.3% interest in Tau Operating Partnership, and consolidate the entity.

	In June 2013, we completed the acquisition of a portfolio of properties by issuing common partnership units in a newly formed entity, Realty Income, L.P. The units were issued as consideration for the acquisition. At September 30, 2014, the remaining units represent a 2.2% ownership in Realty Income, L.P. Realty Income holds the remaining 97.8% interests in this entity, and consolidates the entity.

	A. Neither of the common partnership units has voting rights. Both common partnership units are entitled to monthly distributions equal to the amount paid to common stockholders of Realty Income, and are redeemable in cash or Realty Income common stock, at our option, and at a conversion ratio of one to one, subject to certain exceptions. Noncontrolling interests with redemption provisions that permit the issuer to settle in either cash or common stock, at the option of the issuer, were evaluated to determine whether temporary or permanent equity classification on the balance sheet was appropriate. We evaluated this guidance and determined that the units meet the requirements to qualify for presentation as permanent equity.

	The following table represents the change in the carrying value of all noncontrolling interests through September 30, 2014 (dollars in thousands):

		Tau Operating			Realty Income, L.P.
		Partnership units(1)			units(2)			Total
	Carrying value at December 31, 2013	$	13,489		$	22,422		$	35,911
	Reallocation of equity	-			(6,647		)	(6,647		)
	Redemptions	-			(294		)	(294		)
	Distributions	(521		)	(869		)	(1,390		)
	Allocation of net income	218			798			1,016
	Carrying value at September 30, 2014	$	13,186		$	15,410		$	28,596

		Tau Operating			Realty Income, L.P.
		Partnership units(1)			units(2)			Total
	Fair value of units issued during 2013	$	13,962		$	22,601		$	36,563
	Distributions	(691		)	(680		)	(1,371		)
	Allocation of net income	218			501			719
	Carrying value at December 31, 2013	$	13,489		$	22,422		$	35,911

	(1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remain outstanding as of September 30, 2014.
	(2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 524,546 units remain outstanding as of September 30, 2014.

	During the first nine months of 2014 we recorded an equity reclassification adjustment of $6.6 million between noncontrolling interests and additional paid in capital to adjust the carrying value of the Realty Income, L.P. noncontrolling interests to be in-line with their equity ownership interest in the entity.

	B. The Tau Operating Partnership preferred units were recorded at fair value as of the date of acquisition. Since they are redeemable at a fixed price on a determinable date, we have classified them in other liabilities on our consolidated balance sheets. Payments on these preferred units are made monthly at a rate of 2% per annum and are included in interest expense. As of September 30, 2014, the preferred units have a carrying value of $6.75 million.

Fair_Value_of_Financial_Assets

Fair Value of Financial Assets and Liabilities	9 Months Ended
	Sep. 30, 2014
Fair Value of Financial Assets and Liabilities	'
Fair Value of Financial Assets and Liabilities	'
	12. Fair Value of Financial Assets and Liabilities

	Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The disclosure for assets and liabilities measured at fair value requires allocation to a three-level valuation hierarchy. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

	We believe that the carrying values reflected on our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loan and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our notes receivable issued in connection with property sales, mortgages payable (which includes net mortgage premiums) and our senior notes and bonds payable, which are disclosed below (dollars in millions):

		Carrying value per		Estimated fair
	At September 30, 2014	balance sheet		value
	Notes receivable issued in connection with property sales	$	18.4	$	20.3
	Mortgages payable assumed in connection with acquisitions	862.2		869.2
	Notes and bonds payable, net of unamortized original issuance discounts	3,785.00		4,044.00

		Carrying value per		Estimated fair
	At December 31, 2013	balance sheet		value
	Notes receivable issued in connection with property sales	$	19.1	$	21.1
	Mortgages payable assumed in connection with acquisitions	783.4		780
	Notes and bonds payable, net of unamortized original issuance discounts	3,185.50		3,340.70

	The estimated fair values of our notes receivable issued in connection with property sales and our mortgages payable have been calculated by discounting the future cash flows using an interest rate based upon the relevant Treasury yield curve, plus an applicable credit-adjusted spread. Because this methodology includes unobservable inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values, related to our notes receivable and mortgages payable, is categorized as level three on the three-level valuation hierarchy.

	The estimated fair values of our senior notes and bonds payable are based upon indicative market prices and recent trading activity of our senior notes and bonds payable. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values, related to our senior notes and bonds payable, is categorized as level two on the three-level valuation hierarchy.

Gain_on_Sales_of_Real_Estate

Gain on Sales of Real Estate	9 Months Ended
Gain on Sales of Real Estate	Sep. 30, 2014
Gain on Sales of Real Estate	'
Gain on Sales of Real Estate	'
	13. Gain on Sales of Real Estate

	During the third quarter of 2014, we sold 11 properties for $33.8 million, which resulted in a gain of $11.0 million. During the first nine months of 2014, we sold 28 properties for $53.6 million, which resulted in a gain of $16.8 million. Only the results of operations specifically related to the properties classified as held for sale at December 31, 2013 and sold during the first nine months of 2014 have been reclassified as discontinued operations.

	In comparison, during the third quarter of 2013, Realty Income sold 19 properties for $22.4 million, which resulted in a gain of $6.2 million. During the first nine months of 2013, we sold 53 properties for $106.1 million which resulted in a gain of $50.5 million. The results of operations for the dispositions during 2013 have been reclassified as discontinued operations.

	During the first nine months of 2014, Crest sold one property for $820,000, which resulted in no gain. The results of operations for this property have been reclassified as discontinued operations. During the first nine months of 2013, Crest did not sell any properties.

Impairments

Impairments	9 Months Ended
Impairments	Sep. 30, 2014
Impairments	'
Impairments	'
	14. Impairments

	We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we estimate in this analysis include projected rental rates, estimated holding periods, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases.

	During the third quarter of 2014 we recorded total provisions for impairment of $495,000 on one sold property and three properties classified as held for sale in the following industries: two in the home improvement industry, one in the convenience stores industry, and one in the restaurant-casual dining industry. For the first nine months of 2014, we recorded total provisions for impairment of $2.7 million on six sold properties and three properties classified as held for sale in the following industries: one in the consumer electronics industry, one in the home furnishings industry, one in the convenience stores industry, two in the home improvement industry, and four in the restaurant-casual dining industry. These properties were not previously classified as held for sale in financial statements issued prior to the date of adoption of ASU 2014-08; accordingly, these provisions for impairment are included in income from continuing operations on our consolidated statements of income for the three and nine months ended September 30, 2014.

	In comparison, for the third quarter of 2013, we recorded total provisions for impairment of $76,000 on one sold property in the restaurants-casual dining industry. For the first nine months of 2013, we recorded total provisions for impairment of $3.0 million on eight sold properties and one property classified as held for sale in the following industries: one in the automotive parts industry, two in the automotive service industry, two in the child care industry, one in the grocery store industry, one in the pet supplies and services industry, and two in the restaurant-casual dining industry. Except for a provision for impairment of $290,000 that was recorded in income from continuing operations for one property not previously classified as held for sale as of December 31, 2013, the remaining provisions for impairment are included in income from discontinued operations on our consolidated statement of income for the three and nine months ended September 30, 2013.

Discontinued_Operations

Discontinued Operations	9 Months Ended
	Sep. 30, 2014
Discontinued Operations	'
Discontinued Operations	'
	15. Discontinued Operations

	Operations from 11 properties were classified as held for sale at September 30, 2014. We do not depreciate properties that are classified as held for sale. The results of operations for ten of these properties that have not previously been classified as held for sale are included in income from continuing operations, and the results of operations of the one remaining property that was classified as held for sale as of December 31, 2013 have been reclassified to discontinued operations on our consolidated statement of income for the three and nine months ended September 30, 2014.

	No debt was assumed by buyers of our properties, or repaid as a result of our property sales, and we do not allocate interest expense to discontinued operations related to real estate held for investment.

	The following is a summary of income from discontinued operations on our consolidated statements of income (dollars in thousands):

		Three months ended						Nine months ended
		September 30,						September 30,
	Income from discontinued operations	2014			2013			2014			2013
	Gain on sales of real estate	$	-		$	6,163		$	2,607		$	50,467
	Rental revenue	15			906			111			5,016
	Tenant reimbursements	-			34			-			133
	Other revenue	-			7			13			414
	Depreciation and amortization	-			(426		)	-			(1,536		)
	Property expenses (including reimbursable)	(15		)	(174		)	(132		)	(812		)
	Provisions for impairment	-			(76		)	-			(2,738		)
	Crest’s income (loss) from discontinued operations	-			(35		)	498			(113		)
	Income from discontinued operations	$	-		$	6,399		$	3,097		$	50,831
	Per common share, basic and diluted	$	0.00		$	0.03		$	0.01		$	0.27

Distributions_Paid_and_Payable

Distributions Paid and Payable	9 Months Ended
	Sep. 30, 2014
Distributions Paid and Payable	'
Distributions Paid and Payable	'
	16. Distributions Paid and Payable

	A. Common Stock
	We pay monthly distributions to our common stockholders. The following is a summary of the monthly distributions paid per common share for the first nine months of 2014 and 2013:

	Month	2014		2013
	January	$	0.1821667	$	0.15175
	February	0.1821667		0.1809167
	March	0.1821667		0.1809167
	April	0.1824792		0.1812292
	May	0.1824792		0.1812292
	June	0.1824792		0.1812292
	July	0.1827917		0.1815417
	August	0.1827917		0.1815417
	September	0.1827917		0.1815417

	Total	$	1.6423128	$	1.6018961

	At September 30, 2014, a distribution of $0.1831042 per common share was payable and was paid in October 2014.

	B. Class E Preferred Stock
	In 2006, we issued 8.8 million shares of our 6.75% Monthly Income Class E Cumulative Redeemable Preferred Stock, or Class E preferred stock, at a price of $25.00 per share. Since December 7, 2011, the shares of Class E preferred stock were redeemable, at our option, for $25.00 per share. During each of the first nine months of 2014 and 2013, we paid nine monthly dividends to holders of our Class E preferred stock totaling $1.265625 per share, or $11.1 million, and at September 30, 2014, a monthly dividend of $0.140625 per share was payable and was paid in October 2014. As discussed in note 9, during October 2014 we redeemed all 8.8 million shares of our Class E preferred stock for $25 per share, plus accrued dividends. Dividends that accrued subsequent to the September 2014 notice of redemption date for the Class E preferred stock were recorded to interest expense.

	C. Class F Preferred Stock
	In February 2012, we issued 14.95 million shares of 6.625% Monthly Income Class F Cumulative Redeemable Preferred Stock, or Class F preferred stock, at a price of $25.00 per share. In April 2012, we issued an additional 1.4 million shares of our Class F preferred stock at a price of $25.2863 per share. Beginning February 15, 2017, the shares of Class F preferred stock will be redeemable, at our option, for $25.00 per share, plus any accrued and unpaid dividends. During each of the first nine months of 2014 and 2013, we paid nine monthly dividends to holders of our Class F preferred stock totaling $1.242189 per share, or $20.3 million, and at September 30, 2014, a monthly dividend of $0.138021 per share was payable and was paid in October 2014.

	We are current in our obligations to pay dividends on our Class F preferred stock.

Net_Income_Per_Common_Share

Net Income Per Common Share	9 Months Ended
Net Income Per Common Share	Sep. 30, 2014
Net Income Per Common Share	'
Net Income Per Common Share	'
	17. Net Income Per Common Share

	Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to common stockholders for the period by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all potentially dilutive securities outstanding during the reporting period.

	The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation. The numerator has been adjusted for income allocated to convertible common units determined to be dilutive.

		Three months ended		Nine months ended
		September 30,		September 30,
		2014	2013	2014	2013
	Weighted average shares used for the basic net income
	per share computation	222,061,661	195,768,298	216,804,815	187,805,222
	Incremental shares from share-based compensation	174,410	-	25,198	114,018
	Weighted average partnership common units convertible
	to common shares that were dilutive	-	851,568	317,022	480,608
	Weighted average shares used for diluted net
	income per share computation	222,236,071	196,619,866	217,147,035	188,399,848
	Unvested shares from share-based compensation that
	were anti-dilutive	45,654	60,259	58,654	59,749
	Weighted average partnership common units convertible
	to common shares that were anti-dilutive	841,568	-	529,381	-

Supplemental_Disclosures_of_Ca

Supplemental Disclosures of Cash Flow Information	9 Months Ended
Supplemental Disclosures of Cash Flow Information	Sep. 30, 2014
Supplemental Disclosures of Cash Flow Information	'
Supplemental Disclosures of Cash Flow Information	'
	18. Supplemental Disclosures of Cash Flow Information

	Cash paid for interest was $183.1 million in the first nine months of 2014 and $142.4 million in the first nine months of 2013.

	Interest capitalized to properties under development was $383,000 in the first nine months of 2014 and $579,000 in the first nine months of 2013.

	Cash paid for income taxes was $3.5 million in the first nine months of 2014 and $1.5 million in the first nine months of 2013.

	The following non-cash investing and financing activities are included in the accompanying consolidated financial statements:

	A. See note 14 for a discussion of impairments recorded by Realty Income for the first nine months of 2014 and 2013.

	B. See note 9 for a discussion of the $6.0 million excess of redemption value over carrying value of preferred shares subject to redemption charge recorded by Realty Income during the third quarter and first nine months of 2014.

	C. During the first nine months of 2014, we assumed mortgages payable to third-party lenders of $166.7 million, recorded $604,000 of net premiums, and recorded $901,000 of interest rate swap value to other assets, net, related to property acquisitions. During the first nine months of 2013, we assumed mortgages payable (excluding the mortgages payable discussed in items D and E) of $81.3 million to third-party lenders and recorded $6.1 million of net premiums related to property acquisitions.

	D. During the first nine months of 2013, the following components were acquired in connection with our acquisition of ARCT: (1) real estate investments and related intangible assets of $3.2 billion, (2) other assets of $19.5 million, (3) lines of credit payable of $317.2 million, (4) a term loan for $235.0 million, (5) mortgages payable of $539.0 million, (6) intangible liabilities of $79.7 million, (7) other liabilities of $29.0 million, and (8) noncontrolling interests of $14.0 million.

	E. During the first nine months of 2013, we acquired $55.9 million of real estate through the assumption of a $32.4 million mortgage payable, the issuance of 534,546 units by Realty Income, L.P. and cash of $1.0 million.

	F. During the first nine months of 2014, we applied $48.9 million of loans receivable to the purchase price of five properties acquired during the period.

	G. During the first nine months of 2013, we acquired real estate for $7.4 million via exchanges of our properties.

	H. Accrued costs on properties under development resulted in an increase in buildings and improvements and accounts payable of $4.8 million at September 30, 2014, and $3.0 million at September 30, 2013.

Segment_Information

Segment Information	9 Months Ended
Segment Information	Sep. 30, 2014
Segment Information	'
Segment Information	'
	19. Segment Information

	We evaluate performance and make resource allocation decisions on an industry by industry basis. For financial reporting purposes, we have grouped our tenants into 48 activity segments. All of the properties are incorporated into one of the applicable segments. Because almost all of our leases require the tenant to pay operating expenses, rental revenue is the only component of segment profit and loss we measure.

	The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants, as of September 30, 2014 (dollars in thousands):

		September 30,			December 31,
	Assets, as of:	2014			2013
	Segment net real estate:
	Apparel	$	185,946		$	114,126
	Automotive service	112,522			116,190
	Automotive tire services	256,741			258,403
	Beverages	303,070			306,278
	Child care	55,190			56,599
	Convenience stores	761,463			766,472
	Dollar stores	1,171,645			824,274
	Drug stores	1,029,922			943,401
	Financial services	264,045			252,987
	Food processing	134,436			138,000
	Grocery stores	333,903			280,047
	Health and fitness	556,846			493,981
	Health care	228,374			228,491
	Home improvement	213,226			121,575
	Restaurants-casual dining	459,391			475,480
	Restaurants-quick service	297,659			312,474
	Theaters	379,498			367,830
	Transportation services	661,504			623,541
	Wholesale club	468,820			455,875
	29 other non-reportable segments	1,827,640			1,660,585
	Total segment net real estate	9,701,841			8,796,609

	Intangible assets:
	Apparel	54,371			37,553
	Automotive service	2,994			3,248
	Automotive tire services	15,288			15,770
	Beverages	2,861			3,055
	Convenience stores	17,909			13,342
	Dollar stores	59,875			50,209
	Drug stores	194,160			180,506
	Financial services	40,799			40,112
	Food processing	23,516			25,297
	Grocery stores	42,887			22,073
	Health and fitness	69,275			53,703
	Health care	36,284			38,465
	Home improvement	39,262			18,039
	Restaurants-casual dining	10,963			11,906
	Restaurants-quick service	16,905			17,936
	Theaters	22,794			23,600
	Transportation services	104,178			107,296
	Wholesale club	40,580			33,221
	Other non-reportable segments	264,978			240,128

	Goodwill:
	Automotive service	451			454
	Automotive tire services	865			865
	Child care	5,127			5,141
	Convenience stores	2,030			2,031
	Restaurants-casual dining	2,299			2,328
	Restaurants-quick service	1,086			1,131
	Other non-reportable segments	3,677			3,710
	Other corporate assets	162,585			176,713
	Total assets	$	10,939,840		$	9,924,441

		Three months ended					Nine months ended
		September 30,					September 30,
Revenue		2014		2013			2014		2013
Segment rental revenue:
Apparel	$	4,922		$	3,626		$	12,999	$	10,579
Automotive service		4,025		3,900			12,427		11,561
Automotive tire services		6,973		6,866			21,111		20,106
Beverages		6,321		6,246			18,827		18,603
Child care		4,990		5,095			14,974		15,613
Convenience stores		22,592		21,727			67,221		62,178
Dollar stores		21,810		12,185			62,880		31,959
Drug stores		21,269		17,767			62,673		40,690
Financial services		4,248		3,916			12,572		11,026
Food processing		3,004		2,815			9,014		8,299
Grocery stores		7,163		5,553			19,763		16,365
Health and fitness		15,800		11,843			46,114		33,005
Health care		4,017		3,824			12,022		10,645
Home improvement		4,796		2,899			10,650		8,364
Restaurants-casual dining		9,591		9,755			28,996		28,568
Restaurants-quick service		7,933		8,026			24,530		23,639
Theaters		11,899		11,538			34,975		34,584
Transportation services		11,598		10,427			34,383		29,505
Wholesale club		9,250		8,655			27,247		20,696
29 other non-reportable segments		44,631		38,669			129,444		107,234
Total rental revenue		226,832		195,332			662,822		543,219
Tenant reimbursements		8,275		5,107			20,872		15,619
Other revenue		606		1,642			2,238		5,207
Total revenue	$	235,713		$	202,081		$	685,932	$	564,045

Common_Stock_Incentive_Plan

Common Stock Incentive Plan	9 Months Ended
Common Stock Incentive Plan	Sep. 30, 2014
Common Stock Incentive Plan	'
Common Stock Incentive Plan	'
	20. Common Stock Incentive Plan

	In 2012, our Board of Directors adopted and stockholders approved the Realty Income Corporation 2012 Incentive Award Plan, or the 2012 Plan, to enable us to motivate, attract and retain the services of directors, employees and consultants considered essential to our long-term success. The 2012 Plan offers our directors, employees and consultants an opportunity to own stock in Realty Income or rights that will reflect our growth, development and financial success. Under the terms of the 2012 Plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 3,985,734 shares. The 2012 Plan has a term of 10 years from the date it was adopted by the Board of Directors.

	The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income was $2.2 million during the third quarter of 2014, $6.7 million during the third quarter of 2013, $7.7 million during the first nine months of 2014 and $14.2 million during the first nine months of 2013.

	A. Restricted Stock
	The following table summarizes our common stock grant activity under the 2012 Plan. Our common stock grants vest over periods ranging from immediately to five years.

		For the nine months ended			For the year ended
		September 30, 2014			December 31, 2013
				Weighted			Weighted
		Number of		average	Number of		average
		shares		price(1)	shares		price(1)
	Outstanding nonvested
	shares, beginning of year	722,263		$23.37	895,550		$19.94
	Shares granted	251,693		$39.68	484,060		$41.13
	Shares vested	(321,408	)	$36.48	(654,650	)	$30.91
	Shares forfeited	(17,394	)	$39.07	(2,697	)	$37.30
	Outstanding nonvested
	shares, end of each period	635,154		$29.83	722,263		$23.37

	(1) Grant date fair value.

	During the first nine months of 2014, we issued 251,693 shares of common stock under the 2012 Plan. These shares vest over the following service periods: 30,829 vested immediately, 8,000 vest over a service period of two years, 4,000 vest over a service period of three years, 30,535 vest over a service period of four years, and 178,329 vest over a service period of five years. Additionally, during 2013, 51,454 shares of performance-based common stock was granted, of which 12,864 shares vested at the end of 2013 based on the achievement of certain 2013 performance metrics, and of which 12,864 may vest at the end of 2014, 2015 and 2016, if certain performance metrics are reached.

	As of September 30, 2014, the remaining unamortized share-based compensation expense related to restricted stock totaled $18.9 million, which is being amortized on a straight-line basis over the service period of each applicable award.

	Due to a historically low turnover rate, we do not estimate a forfeiture rate for our nonvested shares. Accordingly, unexpected forfeitures will lower share-based compensation expense during the applicable period. Under the terms of our 2012 Plan, we pay non-refundable dividends to the holders of our nonvested shares. Applicable accounting guidance requires that the dividends paid to holders of these nonvested shares be charged as compensation expense to the extent that they relate to nonvested shares that do not or are not expected to vest. However, since we do not estimate forfeitures given our historical trends, we did not record any compensation expense related to dividends paid in the first nine months of 2014 or 2013.

	B. Performance Shares
	During the first nine months of 2014, we granted performance share awards, as well as dividend equivalent rights. Eighty percent (80%) of the total award value is market-based and subject to two Total Shareholder Return (“TSR”) market measures: 60% relative to the MSCI US REIT Index and 20% relative to the NAREIT Freestanding Index. The remaining 20% is performance-based, and will vest based on our debt-to-EBITDA ratio achieved during the performance period. The number of performance shares that vest based on the achievement of the performance goals will vest 50% on January 1, 2017 and 50% on January 1, 2018, subject to continued employment.

	During the first nine months of 2014, 71,705 performance shares, with an estimated fair value of $3.0 million and an average grant date fair value of $41.46, were granted to our executive officers. The performance period for these awards began on January 1, 2014 and will end on December 31, 2016. The fair value of the market-based awards was estimated on the date of grant using a Monte Carlo Simulation model.

	As of September 30, 2014, the remaining unamortized share-based compensation expense related to the performance shares totaled $2.6 million. The portion related to the market-based awards is being amortized on a straight-line basis over the service period, and the portion related to the performance-based awards is being amortized on a tranche-by-tranche basis over the service period.

Dividend_Reinvestment_and_Stoc

Dividend Reinvestment and Stock Purchase Plan	9 Months Ended
Dividend Reinvestment and Stock Purchase Plan	Sep. 30, 2014
Dividend Reinvestment and Stock Purchase Plan	'
Dividend Reinvestment and Stock Purchase Plan	'
	21. Dividend Reinvestment and Stock Purchase Plan

	We have a Dividend Reinvestment and Stock Purchase Plan, or the DRSPP, to provide our common stockholders, as well as new investors, with a convenient and economical method of purchasing our common stock and reinvesting their distributions. The DRSPP also allows our current stockholders to buy additional shares of common stock by reinvesting all or a portion of their distributions. The DRSPP authorizes up to 6,000,000 common shares to be issued. During the first nine months of 2014, we issued 1,290,872 shares and raised approximately $56.6 million under the DRSPP. During the first nine months of 2013, we issued 89,975 shares and raised approximately $3.9 million under the DRSPP. From the inception of the DRSPP, in April 2011, through September 30, 2014, we have issued 2,855,214 shares and raised approximately $116.7 million.

	In 2013, we revised our DRSPP to pay for a majority of the plan-related fees, which were previously paid by investors, and to institute a waiver approval process, allowing larger investors or institutions, per a formal approval process, to purchase shares at a small discount, if approved by us. In June 2014, we issued 1,135,897 shares and raised $50.0 million under the waiver approval process.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies.	'
Commitments and Contingencies	'
	22. Commitments and Contingencies

	In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations.

	At September 30, 2014, we have contingent payments of $3.3 million for tenant improvements and leasing costs. In addition, as of September 30, 2014, we had committed $23.0 million under construction contracts, which is expected to be paid in the next twelve months.

Subsequent_Events

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events	'
Subsequent Events	'
	23. Subsequent Events

	In October 2014, we declared the following dividends, which will be paid in November 2014:

	- $0.1831042 per share to our common stockholders; and
	- $0.138021 per share to our Class F preferred stockholders.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	'
Principles of Consolidation	'
Principles of Consolidation	A. The accompanying consolidated financial statements include the accounts of Realty Income and other entities for which we make operating and financial decisions (i.e., control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments.
Federal Income Taxes	'
Federal Income Taxes	B. We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended, or the Code. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income represent amounts paid by Realty Income for city and state income and franchise taxes.
Accounts Receivable and Allowance for Doubtful Accounts	'
Accounts Receivable and Allowance for Doubtful Accounts	C. We recognize an allowance for doubtful accounts relating to accounts receivable for amounts deemed uncollectible. We consider tenant specific issues, such as financial stability and ability to pay rent, when determining collectability of accounts receivable and appropriate allowances to record. The allowance for doubtful accounts was $346,000 at September 30, 2014 and $498,000 at December 31, 2013.
Goodwill	'
Goodwill	D. We assign a portion of goodwill to our applicable property sales, which results in a reduction of the carrying amount of our goodwill. In order to allocate goodwill to the carrying amount of properties that we sell, we utilize a relative fair value approach based on the original methodology for assigning goodwill. As we sell properties, our goodwill will likely continue to gradually decrease over time. During our tests for impairment of goodwill during the second quarters of 2014 and 2013, we determined that the estimated fair values of our reporting units exceeded their carrying values. We did not have an impairment on our existing goodwill in 2014 and 2013.
Recent Accounting Pronouncements	'
	E. In April 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-08, which amends Topic 205, Presentation of Financial Statements, and Topic 360, Property, Plant, and Equipment. The amendments in this ASU changed the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. ASU 2014-08 is effective, on a prospective basis, for all disposals or classifications as held for sale of components of an entity that occur within interim and annual periods beginning after December 15, 2014. Early adoption is permitted, but only for disposals or classifications as held for sale that have not been reported in financial statements previously issued. We chose to early adopt ASU 2014-08 beginning with the three-month period ended March 31, 2014. Starting with the first quarter of 2014, the results of operations for all qualifying disposals and properties classified as held for sale that were not previously reported in discontinued operations in our 2013 Annual Report on Form 10-K will be presented within income from continuing operations on our consolidated statements of income.

	Prior to the date of adoption of Accounting Standards Update 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, or ASU 2014-08, we reported, in discontinued operations, the results of operations of properties that had either been disposed of or classified as held for sale in financial statements issued. See footnote 2.E. below for a description of our early adoption of this recent accounting pronouncement and the impact on our presentation of discontinued operations on our consolidated statements of income.

	Certain of the 2013 balances have been revised on our consolidated financial statements as follows:

	- We previously reported certain operating activities of our wholly owned taxable REIT subsidiary, Crest Net Lease, Inc., or Crest, as discontinued operations. We have revised the 2013 amounts to report those activities in continuing operations. Subsequent to the revision, results of operations for Crest properties that were disposed of or classified as held for sale as of December 31, 2013, continue to be reported in discontinued operations.

Supplemental_Detail_for_Certai1

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables)	9 Months Ended
	Sep. 30, 2014
Supplemental Detail for Certain Components of Consolidated Balance Sheets	'
Schedule of acquired lease intangible assets, net	'


	A. Acquired lease intangible assets, net, consist of the following	September 30,			December 31,
	(dollars in thousands) at:	2014			2013
	Acquired in-place leases	$	994,407		$	843,616
	Accumulated amortization of acquired in-place leases	(156,522		)	(95,084		)
	Acquired above-market leases	257,251			207,641
	Accumulated amortization of acquired above-market leases	(35,257		)	(20,714		)
		$	1,059,879		$	935,459
Other assets, net	'

		September 30,			December 31,
	B. Other assets, net, consist of the following (dollars in thousands) at:	2014			2013
	Restricted escrow deposits	$	27,340		$	10,158
	Deferred financing costs, net	24,381			21,323
	Notes receivable issued in connection with property sales	18,440			19,078
	Prepaid expenses	12,592			11,674
	Impounds related to mortgages payable	5,511			5,555
	Credit facility origination costs, net	4,940			7,146
	Corporate assets, net	1,559			1,259
	Loans receivable	-			48,844
	Other items	3,034			2,096
		$	97,797		$	127,133
Distributions payable	'

	C. Distributions payable consist of the following declared	September 30,			December 31,
	distributions (dollars in thousands) at:	2014			2013
	Common stock distributions	$	40,796		$	37,797
	Preferred stock dividends		2,339			3,494
	Noncontrolling interests distributions		154			161
		$	43,289		$	41,452
Accounts payable and accrued expenses	'

	D. Accounts payable and accrued expenses consist of the	September 30,			December 31,
	following (dollars in thousands) at:	2014			2013
	Notes payable - interest payable	$	30,264		$	55,616
	Accrued costs on properties under development	18,889			14,058
	Mortgages payable - interest payable	3,035			2,790
	Other items	26,083			30,047
		$	78,271		$	102,511
Schedule of acquired lease intangible liabilities, net	'

	E. Acquired lease intangible liabilities, net, consist of the	September 30,			December 31,
	following (dollars in thousands) at:	2014			2013
	Acquired below-market leases	$	220,329		$	158,703
	Accumulated amortization of acquired below-market leases	(19,084		)	(10,453		)
		$	201,245		$	148,250
Other liabilities	'

	F. Other liabilities consist of the following	September 30,			December 31,
	(dollars in thousands) at:	2014			2013
	Rent received in advance	$	31,718		$	31,144
	Preferred units issued upon acquisition of ARCT	6,750			6,750
	Security deposits	5,942			6,136
		$	44,410		$	44,030

Investments_in_Real_Estate_Tab

Investments in Real Estate (Tables)	9 Months Ended
	Sep. 30, 2014
Investments in Real Estate	'
Schedule of future impact of above-market, below-market and in-place lease intangibles	'
	The following table presents the impact during the next five years and thereafter related to the net increase (decrease) to rental revenue from the amortization of the acquired above-market and below-market lease intangibles and the increase to amortization expense from the amortization of the in-place lease intangibles for properties held for investment at September 30, 2014 (in thousands):

		Net increase			Increase to
		(decrease) to			amortization
		rental revenue			expense
	2014	$	(2,066	)	$	21,543
	2015	(8,271		)	84,970
	2016	(8,283		)	84,598
	2017	(8,227		)	83,399
	2018	(7,968		)	80,955
	Thereafter	14,066			481,502
	Totals	$	(20,749	)	$	836,967

Mortgages_Payable_Tables

Mortgages Payable (Tables) (Mortgages)

9 Months Ended

Sep. 30, 2014

Mortgages

Debt instrument

Summary of Mortgages payable

The following is a summary of all our mortgages payable as of September 30, 2014 and December 31, 2013, respectively (dollars in thousands):

Weighted

Average

Stated

Effective

Remaining

Unamortized

Mortgage

Number of

Interest

Years Until

Principal

Premium

Payable

As Of

Properties(1)

Rate(2)

Rate(3)

Maturity

Balance

Balance, net

Balance

9/30/14

243

5.00%

4.00%

$ 843,600

$ 18,612

$ 862,212

12/31/13

227

5.30%

3.90%

4.3

$ 754,508

$ 28,852

$ 783,360

(2) Stated interest rates ranged from 2.0% to 6.9% at September 30, 2014, while stated interest rates ranged from 2.5% to 6.9% at December 31, 2013.

(3) Effective interest rates range from 2.2% to 9.1% at September 30, 2014, while effective interest rates ranged from 2.4% to 9.2% at December 31, 2013.

Schedule of maturity mortgages payable, excluding net premiums

The following table summarizes the maturity of mortgages payable, excluding net premiums of $18.6 million, as of September 30, 2014 (dollars in millions):

Year of

Maturity

2014

7.6

2015

119.7

2016

248.4

2017

142.5

2018

15.1

Thereafter

310.3

Totals

843.6

Notes_Payable_Tables

Notes Payable (Tables) (Senior unsecured notes and bonds)	9 Months Ended
Notes Payable (Tables) (Senior unsecured notes and bonds)	Sep. 30, 2014
Senior unsecured notes and bonds	'
Debt instrument	'
Schedule of Notes payable	'
	Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions):

		September 30,			December 31,
		2014			2013
	5.5% notes, issued in November 2003 and due in November 2015	$	150		$	150
	5.95% notes, issued in September 2006 and due in September 2016	275			275
	5.375% notes, issued in September 2005 and due in September 2017	175			175
	2.0% notes, issued in October 2012 and due in January 2018	350			350
	6.75% notes, issued in September 2007 and due in August 2019	550			550
	5.75% notes, issued in June 2010 and due in January 2021	250			250
	3.25% notes, issued in October 2012 and due in October 2022	450			450
	4.65% notes, issued in July 2013 and due in August 2023	750			750
	3.875% notes, issued in June 2014 and due in July 2024	350			-
	4.125% notes, issued in September 2014 and due in October 2026	250			-
	5.875% bonds, $100 issued in March 2005 and $150 issued in
	June 2011, both due in March 2035	250			250
	Total principal amount	3,800			3,200
	Unamortized original issuance discounts	(15		)	(15		)
		$	3,785		$	3,185
Summary of maturity of notes and bonds payable excluding unamortized original issuance discounts	'
	The following table summarizes the maturity of our notes and bonds payable as of September 30, 2014, excluding unamortized original issuance discounts (dollars in millions):

		Notes and
	Year of Maturity	Bonds
	2014	$	-
	2015	150
	2016	275
	2017	175
	2018	350
	Thereafter	2,850
	Totals	$		3,800

Noncontrolling_Interests_Table

Noncontrolling Interests (Tables)	9 Months Ended
Noncontrolling Interests (Tables)	Sep. 30, 2014
Noncontrolling Interests	'
Schedule of the change in the carrying value of all noncontrolling interests	'
	The following table represents the change in the carrying value of all noncontrolling interests through September 30, 2014 (dollars in thousands):

		Tau Operating			Realty Income, L.P.
		Partnership units(1)			units(2)			Total
	Carrying value at December 31, 2013	$	13,489		$	22,422		$	35,911
	Reallocation of equity	-			(6,647		)	(6,647		)
	Redemptions	-			(294		)	(294		)
	Distributions	(521		)	(869		)	(1,390		)
	Allocation of net income	218			798			1,016
	Carrying value at September 30, 2014	$	13,186		$	15,410		$	28,596

		Tau Operating			Realty Income, L.P.
		Partnership units(1)			units(2)			Total
	Fair value of units issued during 2013	$	13,962		$	22,601		$	36,563
	Distributions	(691		)	(680		)	(1,371		)
	Allocation of net income	218			501			719
	Carrying value at December 31, 2013	$	13,489		$	22,422		$	35,911

	(1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remain outstanding as of September 30, 2014.
	(2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 524,546 units remain outstanding as of September 30, 2014.

Fair_Value_of_Financial_Assets1

Fair Value of Financial Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2014
Fair Value of Financial Assets and Liabilities	'
Schedule of fair value by balance sheet groupings	'
	We believe that the carrying values reflected on our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loan and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our notes receivable issued in connection with property sales, mortgages payable (which includes net mortgage premiums) and our senior notes and bonds payable, which are disclosed below (dollars in millions):

		Carrying value per		Estimated fair
	At September 30, 2014	balance sheet		value
	Notes receivable issued in connection with property sales	$	18.4	$	20.3
	Mortgages payable assumed in connection with acquisitions	862.2		869.2
	Notes and bonds payable, net of unamortized original issuance discounts	3,785.00		4,044.00

		Carrying value per		Estimated fair
	At December 31, 2013	balance sheet		value
	Notes receivable issued in connection with property sales	$	19.1	$	21.1
	Mortgages payable assumed in connection with acquisitions	783.4		780
	Notes and bonds payable, net of unamortized original issuance discounts	3,185.50		3,340.70

Discontinued_Operations_Tables

Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2014
Discontinued Operations	'
Summary of income from discontinued operations on consolidated statements of income	'
	The following is a summary of income from discontinued operations on our consolidated statements of income (dollars in thousands):

		Three months ended						Nine months ended
		September 30,						September 30,
	Income from discontinued operations	2014			2013			2014			2013
	Gain on sales of real estate	$	-		$	6,163		$	2,607		$	50,467
	Rental revenue	15			906			111			5,016
	Tenant reimbursements	-			34			-			133
	Other revenue	-			7			13			414
	Depreciation and amortization	-			(426		)	-			(1,536		)
	Property expenses (including reimbursable)	(15		)	(174		)	(132		)	(812		)
	Provisions for impairment	-			(76		)	-			(2,738		)
	Crest’s income (loss) from discontinued operations	-			(35		)	498			(113		)
	Income from discontinued operations	$	-		$	6,399		$	3,097		$	50,831
	Per common share, basic and diluted	$	0.00		$	0.03		$	0.01		$	0.27

Distributions_Paid_and_Payable1

Distributions Paid and Payable (Tables) (Common stock)	9 Months Ended
	Sep. 30, 2014
Common stock	'
Class of Stock [Line Items]	'
Schedule of Stock by Class and Dividends Paid or Payable	'


	Month	2014		2013
	January	$	0.1821667	$	0.15175
	February	0.1821667		0.1809167
	March	0.1821667		0.1809167
	April	0.1824792		0.1812292
	May	0.1824792		0.1812292
	June	0.1824792		0.1812292
	July	0.1827917		0.1815417
	August	0.1827917		0.1815417
	September	0.1827917		0.1815417

	Total	$	1.6423128	$	1.6018961

Net_Income_Per_Common_Share_Ta

Net Income Per Common Share (Tables)	9 Months Ended
Net Income Per Common Share (Tables)	Sep. 30, 2014
Net Income Per Common Share	'
Schedule of reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation	'


		Three months ended		Nine months ended
		September 30,		September 30,
		2014	2013	2014	2013
	Weighted average shares used for the basic net income
	per share computation	222,061,661	195,768,298	216,804,815	187,805,222
	Incremental shares from share-based compensation	174,410	-	25,198	114,018
	Weighted average partnership common units convertible
	to common shares that were dilutive	-	851,568	317,022	480,608
	Weighted average shares used for diluted net
	income per share computation	222,236,071	196,619,866	217,147,035	188,399,848
	Unvested shares from share-based compensation that
	were anti-dilutive	45,654	60,259	58,654	59,749
	Weighted average partnership common units convertible
	to common shares that were anti-dilutive	841,568	-	529,381	-

Segment_Information_Tables

Segment Information (Tables)	9 Months Ended
Segment Information (Tables)	Sep. 30, 2014
Segment Information	'
Schedule of reconciliation of assets from segment to consolidated	'
	The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants, as of September 30, 2014 (dollars in thousands):

			September 30,		December 31,
	Assets, as of:		2014		2013
	Segment net real estate:
	Apparel		$	185,946	$	114,126
	Automotive service		112,522		116,190
	Automotive tire services		256,741		258,403
	Beverages		303,070		306,278
	Child care		55,190		56,599
	Convenience stores		761,463		766,472
	Dollar stores		1,171,645		824,274
	Drug stores		1,029,922		943,401
	Financial services		264,045		252,987
	Food processing		134,436		138,000
	Grocery stores		333,903		280,047
	Health and fitness		556,846		493,981
	Health care		228,374		228,491
	Home improvement		213,226		121,575
	Restaurants-casual dining		459,391		475,480
	Restaurants-quick service		297,659		312,474
	Theaters		379,498		367,830
	Transportation services		661,504		623,541
	Wholesale club		468,820		455,875
	29 other non-reportable segments		1,827,640		1,660,585
	Total segment net real estate		9,701,841		8,796,609

	Intangible assets:
	Apparel		54,371		37,553
	Automotive service		2,994		3,248
	Automotive tire services		15,288		15,770
	Beverages		2,861		3,055
	Convenience stores		17,909		13,342
	Dollar stores		59,875		50,209
	Drug stores		194,160		180,506
	Financial services		40,799		40,112
	Food processing		23,516		25,297
	Grocery stores		42,887		22,073
	Health and fitness		69,275		53,703
	Health care		36,284		38,465
	Home improvement		39,262		18,039
	Restaurants-casual dining		10,963		11,906
	Restaurants-quick service		16,905		17,936
	Theaters		22,794		23,600
	Transportation services		104,178		107,296
	Wholesale club		40,580		33,221
	Other non-reportable segments		264,978		240,128

	Goodwill:
	Automotive service		451		454
	Automotive tire services		865		865
	Child care		5,127		5,141
	Convenience stores		2,030		2,031
	Restaurants-casual dining		2,299		2,328
	Restaurants-quick service		1,086		1,131
	Other non-reportable segments		3,677		3,710
	Other corporate assets		162,585		176,713
	Total assets		$	10,939,840	$	9,924,441
Schedule of reconciliation of revenue from segments to consolidated	'
	The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants, as of September 30, 2014 (dollars in thousands):
				Three months ended			Nine months ended
				September 30,			September 30,
	Revenue			2014	2013		2014		2013
	Segment rental revenue:
	Apparel	$		4,922	$	3,626	$	12,999	$	10,579
	Automotive service			4,025	3,900		12,427		11,561
	Automotive tire services			6,973	6,866		21,111		20,106
	Beverages			6,321	6,246		18,827		18,603
	Child care			4,990	5,095		14,974		15,613
	Convenience stores			22,592	21,727		67,221		62,178
	Dollar stores			21,810	12,185		62,880		31,959
	Drug stores			21,269	17,767		62,673		40,690
	Financial services			4,248	3,916		12,572		11,026
	Food processing			3,004	2,815		9,014		8,299
	Grocery stores			7,163	5,553		19,763		16,365
	Health and fitness			15,800	11,843		46,114		33,005
	Health care			4,017	3,824		12,022		10,645
	Home improvement			4,796	2,899		10,650		8,364
	Restaurants-casual dining			9,591	9,755		28,996		28,568
	Restaurants-quick service			7,933	8,026		24,530		23,639
	Theaters			11,899	11,538		34,975		34,584
	Transportation services			11,598	10,427		34,383		29,505
	Wholesale club			9,250	8,655		27,247		20,696
	29 other non-reportable segments			44,631	38,669		129,444		107,234
	Total rental revenue			226,832	195,332		662,822		543,219
	Tenant reimbursements			8,275	5,107		20,872		15,619
	Other revenue			606	1,642		2,238		5,207
	Total revenue	$		235,713	$	202,081	$	685,932	$	564,045

Common_Stock_Incentive_Plan_Ta

Common Stock Incentive Plan (Tables)	9 Months Ended
Common Stock Incentive Plan (Tables)	Sep. 30, 2014
Common Stock Incentive Plan	'
Summary of common stock grant activity under the 2012 Plan	'


		For the nine months ended			For the year ended
		September 30, 2014			December 31, 2013
				Weighted			Weighted
		Number of		average	Number of		average
		shares		price(1)	shares		price(1)
	Outstanding nonvested
	shares, beginning of year	722,263		$23.37	895,550		$19.94
	Shares granted	251,693		$39.68	484,060		$41.13
	Shares vested	(321,408	)	$36.48	(654,650	)	$30.91
	Shares forfeited	(17,394	)	$39.07	(2,697	)	$37.30
	Outstanding nonvested
	shares, end of each period	635,154		$29.83	722,263		$23.37

	(1) Grant date fair value.

Management_Statement_Details

Management Statement (Details)	Sep. 30, 2014
	sqft
	item
Management Statement	'
Properties owned	4,284
Number of U.S. states where properties are owned	49
Leasable square feet	69,800,000

Summary_of_Significant_Account2

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	'	'
Allowance for doubtful accounts	$346,000	$498,000

Supplemental_Detail_for_Certai2

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Acquired lease intangible assets, net	'	'
Acquired in-place leases	$994,407	$843,616
Accumulated amortization of acquired in-place leases	-156,522	-95,084
Acquired above-market leases	257,251	207,641
Accumulated amortization of acquired above-market leases	-35,257	-20,714
Acquired lease intangible assets	$1,059,879	$935,459

Supplemental_Detail_for_Certai3

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Details 2) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Other assets, net	'	'
Restricted escrow deposits	$27,340,000	$10,158,000
Deferred financing costs, net	24,381,000	21,323,000
Notes receivable issued in connection with property sales	18,440,000	19,078,000
Prepaid expenses	12,592,000	11,674,000
Impounds related to mortgages payable	5,511,000	5,555,000
Corporate assets, net	1,559,000	1,259,000
Loans receivable	'	48,844,000
Other items	3,034,000	2,096,000
Total other assets	97,797,000	127,133,000
Credit Facility	'	'
Other assets, net	'	'
Deferred financing costs, net	$4,940,000	$7,146,000

Supplemental_Detail_for_Certai4

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Details 3) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Distributions payable	'	'
Declared distributions	$43,289	$41,452
Noncontrolling interests	'	'
Distributions payable	'	'
Declared distributions	154	161
Common stock	'	'
Distributions payable	'	'
Declared distributions	40,796	37,797
Preferred stock	'	'
Distributions payable	'	'
Declared distributions	$2,339	$3,494

Supplemental_Detail_for_Certai5

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Details 4) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Accounts payable and accrued expenses	'	'
Accrued costs on properties under development	$18,889	$14,058
Other items	26,083	30,047
Total accounts payable and accrued expenses	78,271	102,511
Acquired lease intangible liabilities, net	'	'
Acquired below-market leases	220,329	158,703
Accumulated amortization of acquired below-market leases	-19,084	-10,453
Acquired lease intangible liabilities	201,245	148,250
Other liabilities	'	'
Rent received in advance	31,718	31,144
Preferred units issued upon acquisition of ARCT	6,750	6,750
Security deposits	5,942	6,136
Total other liabilities	44,410	44,030
Notes	'	'
Accounts payable and accrued expenses	'	'
Interest payable	30,264	55,616
Mortgages	'	'
Accounts payable and accrued expenses	'	'
Interest payable	$3,035	$2,790

Investments_in_Real_Estate_Det

Investments in Real Estate (Details) (USD $)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2013

Mar. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

sqft

item

ARCT

Maximum

New properties and properties under development or expansion

Properties under development or expansion

Aggregate acquisitions

Investments in Existing Properties

Real estate investments with existing leases

sqft

Retail properties

Office properties

Industrial and distribution properties

item

Retail properties

Office properties

Industrial and distribution properties

Manufacturing properties

item

sqft

Investments in real estate properties

Investments in properties

$69,000,000

$28,800,000

Real estate acquired and developed

3,200,000,000

1,240,000,000

1,370,000,000

4,500,000,000

949,600,000

4,300,000,000

Number of properties

515

439

407

180

756

Initial weighted average contractual lease rate of properties acquired (as a percent)

7.10%

7.00%

8.50%

Number of states in which properties are located

Leasable square feet

69,800,000

16,000,000

8,500,000

8,000,000

Leased area (as a percent)

100.00%

Weighted average lease term

'12 years 2 months 12 days

'12 years 7 months 6 days

'14 years 1 month 6 days

Number of properties in the portfolio

Number of industries in which tenants operate

Property type- percentage of properties acquired

54.00%

13.40%

32.60%

85.60%

84.10%

7.20%

10.40%

5.80%

3.10%

1.40%

2.40%

Net Discounts/(Premiums) recorded upon assumption of mortgages

-604,000

-28,400,000

Acquisition transaction costs

12,900,000

589,000

1,700,000

Number of investments in properties that caused any tenant to be 10% of more of total assets

Investments to any one tenant as a percentage of total assets

10.00%

Land recorded related to acquisition

240,100,000

769,400,000

Buildings and improvements recorded

861,900,000

3,100,000,000

Intangible assets related to leases recorded

202,000,000

765,300,000

Other assets recorded

901,000

13,500,000

Intangible liabilities related to leases and other assumed liabilities recorded

60,500,000

115,000,000

Mortgages acquired

166,700,000

81,300,000

166,700,000

Contingent consideration associated with acquisition

Total revenue

235,713,000

202,081,000

685,932,000

564,045,000

47,300,000

Income from continuing operations

73,627,000

45,508,000

190,766,000

130,819,000

19,200,000

Amount of investment allocated by estimate

159,800,000

Amount of investment previously allocated by estimate in the fourth quarter of 2013 finalized during the period

120,800,000

Amount of investment previously allocated by estimate in the first two quarters of 2014 finalized during the period

789,800,000

Total capitalized costs on existing properties

4,500,000

5,900,000

Re-leasing costs included in capitalized costs on existing properties

655,000

1,100,000

Building and tenant improvements included in capitalized costs on existing properties

3,900,000

4,800,000

In-place lease, depreciation and amortization to expense

62,100,000

46,400,000

Net (increase) decrease to rental income for capitalized above market and below market leases

6,400,000

6,200,000

Net increase (decrease) to rental revenue

2014

-2,066,000

2015

-8,271,000

2016

-8,283,000

2017

-8,227,000

2018

-7,968,000

Thereafter

14,066,000

Totals

-20,749,000

Increase to amortization expense

2014

21,543,000

2015

84,970,000

2016

84,598,000

2017

83,399,000

2018

80,955,000

Thereafter

481,502,000

Totals

$836,967,000

Credit_Facility_Details

Credit Facility (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2013
Credit Facility (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013	Unsecured revolving credit facility	Unsecured revolving credit facility
Credit facility	'	'	'	'
Maximum borrowing capacity	'	'	$1,500,000,000	'
Term of extension option	'	'	'1 year	'
Variable reference rate	'	'	'LIBOR	'
Variable interest rate, basis points spread over variable reference rate (as a percent)	'	'	1.08%	'
Line of credit facility, commitment fee basis points (as a percent)	'	'	0.18%	'
Line of credit facility, all-in drawn variable interest rate (as a percent)	'	'	1.25%	'
Unamortized debt issuance costs	'	'	4,900,000	'
Current borrowing capacity available	'	'	1,460,000,000	'
Outstanding balance	$45,000,000	$128,000,000	'	'
Average borrowing rate during the period (as a percent)	'	'	1.20%	1.30%
Effective interest rate (as a percent)	'	'	1.20%	'

Mortgages_Payable_Details

Mortgages Payable (Details) (USD $)	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
	item	Sep. 30, 2013	item
Debt instrument	'	'	'
Assumed mortgages payable	$166,700,000	$81,300,000	'
Remaining balance of deferred financing costs at period end	24,381,000	'	21,323,000
Unamortized Premium Balance, net	-18,600,000	'	'
Mortgage Payable Balance	862,212,000	'	783,360,000
Maturity mortgages payable, excluding net premiums	'	'	'
2015	150,000,000	'	'
2016	275,000,000	'	'
2017	175,000,000	'	'
2018	350,000,000	'	'
Thereafter	2,850,000,000	'	'
Totals	3,800,000,000	'	'
Minimum	'	'	'
Debt instrument	'	'	'
Weighted Average Stated Interest Rate (as a percent)	2.00%	'	2.50%
Weighted Average Effective Interest Rate (as a percent)	2.20%	'	2.40%
Maximum	'	'	'
Debt instrument	'	'	'
Weighted Average Stated Interest Rate (as a percent)	6.90%	'	6.90%
Weighted Average Effective Interest Rate (as a percent)	9.10%	'	9.20%
Mortgages Payable	'	'	'
Debt instrument	'	'	'
Amount repaid	77,600,000	'	'
Assumed mortgages payable	166,700,000	'	'
Assumed mortgages payable, non-recourse	152,000,000	'	'
Net discount (premiums) recorded upon assumption of mortgages	-604,000	-28,400,000	'
Remaining balance of deferred financing costs at period end	937,000	'	1,200,000
Deferred financing costs incurred	'	211,000	'
Number of Properties	243	'	227
Weighted Average Stated Interest Rate (as a percent)	5.00%	'	5.30%
Weighted Average Effective Interest Rate (as a percent)	4.00%	'	3.90%
Weighted Average Remaining Years Until Maturity	'4 years	'	'4 years 3 months 18 days
Remaining Principal Balance	843,600,000	'	754,508,000
Unamortized Premium Balance, net	18,612,000	'	28,852,000
Mortgage Payable Balance	862,212,000	'	783,360,000
Number of mortgages	58	'	47
Number of properties with mortgages	243	'	227
Maturity mortgages payable, excluding net premiums	'	'	'
2014	7,600,000	'	'
2015	119,700,000	'	'
2016	248,400,000	'	'
2017	142,500,000	'	'
2018	15,100,000	'	'
Thereafter	310,300,000	'	'
Totals	843,600,000	'	'
Mortgages repaid in full	'	'	'
Debt instrument	'	'	'
Amount repaid	72,000,000	'	'
Number of mortgages repaid	5	'	'
Mortgages, partial recourse	'	'	'
Debt instrument	'	'	'
Assumed mortgages payable	14,700,000	'	'
Assumed mortgages payable, non-recourse	11,500,000	'	'
Number of mortgages subject to partial recourse to Realty Income	2	'	'
Amount of principal subject to recourse to Realty Income	3,200,000	'	'
Variable rate mortgages	'	'	'
Debt instrument	'	'	'
Mortgage Payable Balance	$74,400,000	'	$31,100,000
Number of mortgages	5	'	2
Number of properties with mortgages	14	'	'

Term_Loan_Details

Term Loan (Details) (USD $)	0 Months Ended	1 Months Ended	12 Months Ended
Term Loan (Details) (USD $)	Jan. 31, 2013	Jan. 31, 2013	Dec. 31, 2013	Sep. 30, 2014
Debt instrument	'	'	'	'
Term loan	'	'	$70,000,000	$70,000,000
Senior unsecured term loan	'	'	'	'
Debt instrument	'	'	'	'
Term loan	70,000,000	70,000,000	'	'
Variable reference rate	'	'one month LIBOR	'	'
Variable interest rate, basis points spread over variable reference rate (as a percent)	1.20%	'	'	'
Maximum interest rate (as a percent)	'	2.15%	'	'
Deferred financing costs incurred	'	'	303,000	'
Deferred finance costs	'	'	$248,000	$202,000

Notes_Payable_Details

Notes Payable (Details) (USD $)

9 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2006

Oct. 31, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Jul. 31, 2013

Sep. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Jun. 30, 2011

Mar. 31, 2005

Sep. 30, 2014

Mar. 31, 2013

Class E Cumulative Redeemable Preferred Stock

5.5% notes, issued in November 2003 and due in November 2015

5.95% notes, issued in September 2006 and due in September 2016

5.375% notes, issued in September 2005 and due in September 2017

2.0% notes, issued in October 2012 and due in January 2018

6.75% notes, issued in September 2007 and due in August 2019

5.75% notes, issued in June 2010 and due in January 2021

3.25% notes, issued in October 2012 and due in October 2022

4.65% notes, issued in July 2013 and due in August 2023

3.875% notes, issued in June 2014 and due in July 2024

4.125% notes, issued in September 2014 and due in October 2026

5.875% bonds due in March 2035

5.875% bonds, issued in June 2011 and due in March 2035

5.875% bonds, issued in March 2005 and due in March 2035

Notes and bonds payable

5.375% notes, issued in March 2003 and repaid in March 2013

Subsequent event

Debt instrument

Total principal amount

$3,800,000,000

$3,200,000,000

$150,000,000

$275,000,000

$175,000,000

$350,000,000

$550,000,000

$250,000,000

$450,000,000

$750,000,000

$350,000,000

$250,000,000

Unamortized original issuance discounts

-15,000,000

Notes payable, net

3,785,027,000

3,185,480,000

Interest rate (as a percent)

5.50%

5.95%

5.38%

2.00%

6.75%

5.75%

3.25%

4.65%

3.88%

4.13%

5.88%

5.38%

Issuance of Debt

150,000,000

100,000,000

Weighted average interest rate

4.80%

Weighted average remaining years until maturity

'7 years 6 months

Repayments of Notes Payable

100,000,000

Percentage price paid to the investor

99.78%

99.96%

99.50%

Effective yield (as a percent)

4.68%

3.88%

4.18%

Preferred stock, dividend rate (as a percent)

6.75%

Proceeds from issuance of debt

70,000,000

741,400,000

346,700,000

246,300,000

Maturity of notes and bonds payable

2015

150,000,000

2016

275,000,000

2017

175,000,000

2018

350,000,000

Thereafter

2,850,000,000

Totals

$3,800,000,000

Redemption_of_Preferred_Stock_

Redemption of Preferred Stock (Details) (USD $)	3 Months Ended	9 Months Ended	1 Months Ended	9 Months Ended	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2006	Dec. 07, 2011
	Sep. 30, 2014	Sep. 30, 2014	Class E preferred stockholders	Class E preferred stockholders	Class E preferred stockholders	Class E preferred stockholders
Distributions paid and payable	'	'	'	'	'	'
Preferred stock redeemed (in shares)	'	'	8,800,000	'	'	'
Preferred stock, dividend rate (as a percent)	'	'	6.75%	'	6.75%	'
Preferred stock, redemption price per share (in dollars per share)	'	'	$25	$25	'	$25
Preferred shares subject to mandatory redemption	$220,000	$220,000	$220,000	$220,000	'	'
Excess of redemption value over carrying value of preferred shares subject to redemption	$6,015	$6,015	'	$6,000	'	'

Issuance_of_Common_Stock_Detai

Issuance of Common Stock (Details) (USD $)	9 Months Ended				0 Months Ended	1 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Mar. 31, 2013	Jan. 22, 2013	Apr. 30, 2014	Mar. 31, 2013
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	5.375% notes, issued in March 2003 and repaid in March 2013	ARCT	Common stock	Common stock
Issuance of common stock	'	'	'	'	'	'	'
Common stock issued to shareholders	222,670,846	'	207,485,073	'	45,573,144	'	'
Shares issued	'	'	'	'	'	13,800,000	17,250,000
Common stock purchased by the underwriters (in shares)	'	'	'	'	'	1,800,000	2,250,000
Underwriting discounts and offering costs	'	'	'	'	'	$22,800,000	$36,700,000
Weighted Average Stated Interest Rate (as a percent)	'	'	'	5.38%	'	'	'
Total value of common shares issued	'	'	'	'	2,000,000,000	'	'
Net proceeds from issuance of common shares	$528,615,000	$755,085,000	'	'	'	$528,600,000	$755,100,000
Common stock redeemed (in shares)	'	'	'	'	208,709	'	'

Noncontrolling_Interests_Detai

Noncontrolling Interests (Details) (USD $)

3 Months Ended

9 Months Ended

11 Months Ended

12 Months Ended

0 Months Ended

9 Months Ended

12 Months Ended

0 Months Ended

6 Months Ended

9 Months Ended

In Thousands, except Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Jan. 22, 2013

Sep. 30, 2014

Dec. 31, 2013

Jun. 27, 2013

Dec. 31, 2013

Sep. 30, 2014

Tau Operating Partnership, L.P.

Realty Income, L.P.

Noncontrolling interests

Third party partnership units, ownership interest (as a percent)

2.20%

Realty Income partnership units, ownership interest (as a percent)

99.30%

97.80%

Conversion ratio

Change in the carrying value of all noncontrolling interests

Fair value of units issued at beginning of the period

$36,563

$13,962

$22,601

Reallocation of equity

-6,647

Redemptions

-294

Distributions

-1,390

-1,371

-521

-691

-680

-869

Allocation of net income

344

336

1,016

422

719

218

501

798

Carrying value at end of the period

28,596

35,911

13,186

13,489

22,422

15,410

Units held by third party

317,022

534,546

524,546

Payment rate per annum (as a percent)

2.00%

Carrying value of preferred units

$6,750

Fair_Value_of_Financial_Assets2

Fair Value of Financial Assets and Liabilities (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Millions, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Carrying value per balance sheet	'	'
Fair value of financial assets and liabilities	'	'
Notes receivable issued in connection with property sales	$18.40	$19.10
Mortgages payable assumed in connection with acquisitions	862.2	783.4
Notes and bonds payable, net of unamortized original issuance discounts	3,785	3,185.50
Estimated fair value	'	'
Fair value of financial assets and liabilities	'	'
Notes receivable issued in connection with property sales	20.3	21.1
Mortgages payable assumed in connection with acquisitions	869.2	780
Notes and bonds payable, net of unamortized original issuance discounts	$4,044	$3,340.70

Gain_on_Sales_of_Real_Estate_D

Gain on Sales of Real Estate (Details) (New properties and properties under development, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	item	item	item	item
Gain on sales of real estate	'	'	'	'
Number of properties sold	11	19	28	53
Sales proceeds	$33,800,000	$22,400,000	$53,600,000	$106,100,000
Gain on sales of real estate	11,000,000	6,200,000	16,800,000	50,500,000
Crest	'	'	'	'
Gain on sales of real estate	'	'	'	'
Number of properties sold	'	'	1	'
Sales proceeds	'	'	820,000	'
Gain on sales of real estate	'	'	$0	'

Impairments_Details

Impairments (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	item	item	item	item
Impairments	'	'	'	'
Provisions for impairment	'	$76,000	'	$3,000,000
Number of impaired properties sold	1	1	6	8
Number of impaired properties held-for-sale	3	'	3	1
Provision for impairment, amount included in income from continuing operations	$495,000	'	$2,700,000	$290,000
Number of properties not held for sale and included in income from discontinued operations	'	'	'	1
Consumer electronics industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	1	'
Home furnishings industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	1	'
Convenience stores	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	1	'	1	'
Home improvement	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	2	'	2	'
Restaurant - casual dining industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties sold	'	1	'	'
Number of impaired properties	1	1	4	2
Automotive service industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	'	2
Grocery store industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	'	1
Automotive parts industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	'	1
Child care industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	'	2
Pet supplies and services industry	'	'	'	'
Impairments	'	'	'	'
Number of impaired properties	'	'	'	1

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
	Sep. 30, 2014	Sep. 30, 2013	item	Sep. 30, 2013
Discontinued Operations	'	'	'	'
Number of properties held-for-sale	'	'	11	'
Number of properties not previously classified as held for sale and included in income from continuing operations	'	'	10	'
Number of properties previously held for sale and included in income from discontinued operations	'	'	1	'
Amount of debt assumed by buyers of investment properties, or repaid as a result of investment property sales	'	'	$0	'
Income from discontinued operations	'	'	'	'
Gain on sales of real estate	'	6,163	2,607	50,467
Rental revenue	15	906	111	5,016
Tenant reimbursements	'	34	'	133
Other revenue	'	7	13	414
Depreciation and amortization	'	-426	'	-1,536
Property expenses (including reimbursable)	-15	-174	-132	-812
Provisions for impairment	'	-76	'	-2,738
Crest's income (loss) from discontinued operations	'	-35	498	-113
Income from discontinued operations	'	$6,399	$3,097	$50,831
Per common share, basic and diluted (in dollars per share)	$0	$0.03	$0.01	$0.27

Distributions_Paid_and_Payable2

Distributions Paid and Payable (Details) (USD $)

Sep. 30, 2014

Dec. 31, 2013

Jan. 22, 2013

Sep. 30, 2014

Aug. 31, 2014

Jul. 31, 2014

Jun. 30, 2014

31-May-14

Apr. 30, 2014

Mar. 31, 2014

Feb. 28, 2014

Jan. 31, 2014

Sep. 30, 2013

Aug. 31, 2013

Jul. 31, 2013

Jun. 30, 2013

31-May-13

Apr. 30, 2013

Mar. 31, 2013

Feb. 28, 2013

Jan. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2006

Dec. 07, 2011

Oct. 31, 2014

Feb. 29, 2012

Sep. 30, 2014

Sep. 30, 2013

Apr. 30, 2012

In Millions, except Share data, unless otherwise specified

ARCT

Common stock

Class E Cumulative Redeemable Preferred Stock

Class F Cumulative Redeemable Preferred Stock

Subsequent event

Class of Stock [Line Items]

Dividends paid per common share (in dollars per share)

$0.18

$0.15

$1.64

$1.60

Monthly distributions payable (in dollars per share)

$0.18

$0.14

Preferred stock redeemed (in shares)

208,709

8,800,000

Preferred stock, shares issued

16,350,000

25,150,000

8,800,000

14,950,000

1,400,000

Preferred stock, dividend rate (as a percent)

6.75%

6.63%

Preferred stock, issuance price per share (in dollars per share)

$25

$25.29

Preferred stock, redemption price per share (in dollars per share)

$25

Period for which dividends are paid

Dividends paid per preferred share (in dollars per share)

$1.27

$1.24

Preferred stock dividends paid

$11.10

$20.30

Net_Income_Per_Common_Share_De

Net Income Per Common Share (Details)	3 Months Ended		9 Months Ended
Net Income Per Common Share (Details)	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net Income Per Common Share	'	'	'	'
Weighted average shares used for the basic net income per share computation	222,061,661	195,768,298	216,804,815	187,805,222
Incremental shares from share-based compensation	174,410	'	25,198	114,018
Weighted average shares used for diluted net income per share computation	222,236,071	196,619,866	217,147,035	188,399,848
Unvested Shares	'	'	'	'
Net Income Per Common Share	'	'	'	'
Unvested shares from share-based compensation that were anti-dilutive	45,654	60,259	58,564	59,749
Convertible Partnership Units	'	'	'	'
Net Income Per Common Share	'	'	'	'
Weighted average partnership common units convertible to common shares that were dilutive	'	851,568	317,022	480,608
Weighted average partnership common units convertible to common shares that were anti-dilutive	841,568	'	529,381	'

Supplemental_Disclosures_of_Ca1

Supplemental Disclosures of Cash Flow Information (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
	Sep. 30, 2014	item	Sep. 30, 2013
Business acquisitions	'	'	'
Cash paid for interest	'	$183,100,000	$142,400,000
Interest capitalized to properties under development	'	383,000	579,000
Cash paid for income taxes	'	3,500,000	1,500,000
Non-cash investing and financing activities	'	'	'
Excess of redemption value over carrying value	6,015,000	6,015,000	'
Mortgages assumed	'	166,700,000	81,300,000
Interest rate swap agreement acquired	'	901,000	'
Net premiums recorded on mortgages assumed	'	604,000	6,100,000
Loans receivable	'	48,900,000	'
Number of acquired properties by applying loans receivable to the purchase price	'	5	'
Real estate acquired in exchange of properties	'	'	7,400,000
Increase in buildings and improvements and accounts payable	'	4,800,000	3,000,000
Realty Income, L.P.	'	'	'
Business acquisitions	'	'	'
Mortgage notes payable	'	'	32,400,000
Real estate acquired	'	'	55,900,000
Number of units issued	'	'	534,546
Cash	'	'	1,000,000
ARCT	'	'	'
Business acquisitions	'	'	'
Real estate investments and related intangible assets	'	'	3,200,000,000
Other assets	'	'	19,500,000
Lines of credit payable	'	'	317,200,000
Term loan	'	'	235,000,000
Mortgage notes payable	'	'	539,000,000
Acquired lease intangible liabilities	'	'	79,700,000
Other liabilities	'	'	29,000,000
Noncontrolling interests	'	'	14,000,000
Class E preferred stockholders	'	'	'
Non-cash investing and financing activities	'	'	'
Excess of redemption value over carrying value	'	$6,000,000	'

Segment_Information_Details

Segment Information (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
	segment	Dec. 31, 2013
Segment Information	'	'
Number of activity segments	48	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	$9,701,841	$8,796,609
Goodwill	15,535	15,660
Other corporate assets	162,585	176,713
Total assets	10,939,840	9,924,441
Apparel	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	185,946	114,126
Intangible assets	54,371	37,553
Automotive service	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	112,522	116,190
Intangible assets	2,994	3,248
Goodwill	451	454
Automotive tire services	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	256,741	258,403
Intangible assets	15,288	15,770
Goodwill	865	865
Beverages	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	303,070	306,278
Intangible assets	2,861	3,055
Child care	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	55,190	56,599
Goodwill	5,127	5,141
Convenience stores	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	761,463	766,472
Intangible assets	17,909	13,342
Goodwill	2,030	2,031
Dollar stores	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	1,171,645	824,274
Intangible assets	59,875	50,209
Drug stores	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	1,029,922	943,401
Intangible assets	194,160	180,506
Financial services	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	264,045	252,987
Intangible assets	40,799	40,112
Food processing	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	134,436	138,000
Intangible assets	23,516	25,297
Grocery stores	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	333,903	280,047
Intangible assets	42,887	22,073
Health and fitness	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	556,846	493,981
Intangible assets	69,275	53,703
Health care	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	228,374	228,491
Intangible assets	36,284	38,465
Home improvement	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	213,226	121,575
Intangible assets	39,262	18,039
Restaurants-casual dining	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	459,391	475,480
Intangible assets	10,963	11,906
Goodwill	2,299	2,328
Restaurants-quick service	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	297,659	312,474
Intangible assets	16,905	17,936
Goodwill	1,086	1,131
Theaters	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	379,498	367,830
Intangible assets	22,794	23,600
Transportation services	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	661,504	623,541
Intangible assets	104,178	107,296
Wholesale clubs	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	468,820	455,875
Intangible assets	40,580	33,221
Other non-reportable segments	'	'
Reconciliation of assets from segment to consolidated	'	'
Net real estate	1,827,640	1,660,585
Intangible assets	264,978	240,128
Goodwill	$3,677	$3,710
Number of non-reportable segments	29	29

Segment_Information_Details_2

Segment Information (Details 2) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment revenue information	'	'	'	'
Rental revenue	$226,832	$195,332	$662,822	$543,219
Tenant reimbursements	8,275	5,107	20,872	15,619
Other revenue	606	1,642	2,238	5,207
Total revenue	235,713	202,081	685,932	564,045
Apparel	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,922	3,626	12,999	10,579
Automotive service	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,025	3,900	12,427	11,561
Automotive tire services	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	6,973	6,866	21,111	20,106
Beverages	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	6,321	6,246	18,827	18,603
Child care	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,990	5,095	14,974	15,613
Convenience stores	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	22,592	21,727	67,221	62,178
Dollar stores	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	21,810	12,185	62,880	31,959
Drug stores	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	21,269	17,767	62,673	40,690
Financial services	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,248	3,916	12,572	11,026
Food processing	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	3,004	2,815	9,014	8,299
Grocery stores	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	7,163	5,553	19,763	16,365
Health and fitness	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	15,800	11,843	46,114	33,005
Health care	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,017	3,824	12,022	10,645
Home improvement	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	4,796	2,899	10,650	8,364
Restaurants-casual dining	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	9,591	9,755	28,996	28,568
Restaurants-quick service	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	7,933	8,026	24,530	23,639
Theaters	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	11,899	11,538	34,975	34,584
Transportation services	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	11,598	10,427	34,383	29,505
Wholesale clubs	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	9,250	8,655	27,247	20,696
Other non-reportable segments	'	'	'	'
Segment revenue information	'	'	'	'
Rental revenue	$44,631	$38,669	$129,444	$107,234

Common_Stock_Incentive_Plan_De

Common Stock Incentive Plan (Details) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

In Millions, except Share data, unless otherwise specified

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Incentive Award Plans

Performance share awards

2012 Plan

Performance-based vesting

Market-based vesting

Executive officers

Plan disclosures

Authorized shares

3,985,734

Plan term from the date of adoption

'10 years

Share-based compensation costs recognized

$2.20

$6.70

$7.70

$14.20

Number of shares

Outstanding nonvested shares, beginning of year

722,263

895,550

Shares granted

251,693

484,060

51,454

71,705

Shares vested

-321,408

-654,650

Shares forfeited

-17,394

-2,697

Outstanding nonvested shares, end of each period

635,154

722,263

Weighted average price

Outstanding nonvested shares, beginning of year (in dollars per share)

$23.37

$19.94

Shares granted (in dollars per share)

$39.68

$41.13

$41.46

Shares vested (in dollars per share)

$36.48

$30.91

Shares forfeited (in dollars per share)

$39.07

$37.30

Outstanding nonvested shares, end of each period (in dollars per share)

$29.83

$23.37

Additional disclosures

Granted shares that vest immediately

30,829

Granted shares that vest over two year service period

8,000

Granted shares that vest over three year service period

4,000

Shares granted

251,693

484,060

51,454

71,705

Granted shares that vest over four year service period

30,535

Granted shares that vest over five year service period

178,329

Remaining unamortized share-based compensation expense

18.9

2.6

Granted shares vested in 2013 based on achievement of certain performance metrics

12,864

Granted shares which may vest at the end of 2014, if certain performance metrics are reached

12,864

Granted shares which may vest at the end of 2015, if certain performance metrics are reached

12,864

Granted shares which may vest at the end of 2016, if certain performance metrics are reached

12,864

Total award value (as a percent)

20.00%

80.00%

Total award value relative to the MSCI US REIT Index (as a percent)

60.00%

Total award value relative to the NAREIT Freestanding Index (as a percent)

20.00%

Awards vesting on January 1, 2017 (as a percent)

50.00%

Awards vesting on January 1, 2018 (as a percent)

50.00%

Shares granted, estimated fair value

Shares granted (in dollars per share)

$39.68

$41.13

$41.46

Dividend_Reinvestment_and_Stoc1

Dividend Reinvestment and Stock Purchase Plan (Details) (USD $)	1 Months Ended	9 Months Ended		42 Months Ended
In Millions, except Share data, unless otherwise specified	Jun. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Dividend Reinvestment and Stock Purchase Plan	'	'	'	'
Authorized common shares to be issued	'	6,000,000	'	'
Number of common shares issued	1,135,897	1,290,872	89,975	2,855,214
Amount raised from shares issued	$50	$56.60	$3.90	$116.70

Commitments_and_Contingencies_

Commitments and Contingencies (Details) (USD $)	Sep. 30, 2014
In Millions, unless otherwise specified	Sep. 30, 2014
Commitments and Contingencies.	'
Amount of contingent obligations for tenant improvements and leasing costs	$3.30
Amount of commitments for construction contracts, which is expected to be paid in next twelve months	$23

Subsequent_Events_Details

Subsequent Events (Details) (Subsequent event, USD $)	1 Months Ended
Subsequent Events (Details) (Subsequent event, USD $)	Oct. 31, 2014
Common stock	'
Subsequent events	'
Common stock, dividends declared (in dollars per share)	$0.18
Class F preferred stockholders	'
Subsequent events	'
Preferred stock, dividends declared (in dollars per share)	$0.14