Realty Income (O) 10-Q 26 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 20, 2017
Document and Entity Information
Entity Registrant Name	REALTY INCOME CORP
Entity Central Index Key	726,728
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
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		273,059,276
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Real estate, at cost:
Land	$ 3,832,452	$ 3,752,204
Buildings and improvements	10,327,309	10,112,212
Total real estate, at cost	14,159,761	13,864,416
Less accumulated depreciation and amortization	(2,075,711)	(1,987,200)
Net real estate held for investment	12,084,050	11,877,216
Real estate held for sale, net	11,790	26,575
Net real estate	12,095,840	11,903,791
Cash and cash equivalents	27,598	9,420
Accounts receivable, net	103,759	104,584
Acquired lease intangible assets, net	1,108,096	1,082,320
Goodwill	15,036	15,067
Other assets, net	71,857	37,689
Total assets	13,422,186	13,152,871
LIABILITIES AND EQUITY
Distributions payable	57,885	55,235
Accounts payable and accrued expenses	86,638	121,156
Acquired lease intangible liabilities, net	268,486	264,206
Other liabilities	122,078	85,616
Preferred shares subject to mandatory redemption	408,750
Line of credit payable		1,120,000
Term loans, net	319,200	319,127
Mortgages payable, net	463,332	466,045
Notes payable, net	4,641,094	3,934,433
Total liabilities	6,367,463	6,365,818
Commitments and contingencies
Stockholders' equity:
Preferred stock and paid in capital, par value $0.01 per share, 69,900,000 shares authorized, no shares issued and outstanding as of March 31, 2017 and 16,350,000 issued and outstanding as of December 31, 2016, liquidation preference $25.00 per share		395,378
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 273,051,486 shares issued and outstanding as of March 31, 2017 and 260,168,259 shares issued and outstanding as of December 31, 2016	8,987,933	8,228,594
Distributions in excess of net income	(1,952,990)	(1,857,168)
Total stockholders' equity	7,034,943	6,766,804
Noncontrolling interests	19,780	20,249
Total equity	7,054,723	6,787,053
Total liabilities and equity	$ 13,422,186	$ 13,152,871

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	0	16,350,000
Preferred stock and paid in capital, shares outstanding	0	16,350,000
Preferred stock liquidation preference (in dollars per share)		$ 25
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	273,051,486	260,168,259
Common stock and paid in capital, shares outstanding	273,051,486	260,168,259

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUE
Rental	$ 285,821	$ 256,801
Tenant reimbursements	11,229	9,105
Other	975	1,210
Total revenue	298,025	267,116
EXPENSES
Depreciation and amortization	121,097	107,933
Interest	59,305	60,678
General and administrative	13,565	12,318
Property (including reimbursable)	19,075	15,105
Income taxes	1,047	964
Provisions for impairment	5,433	1,923
Total expenses	219,522	198,921
Gain on sales of real estate	10,532	2,289
Net income	89,035	70,484
Net income attributable to noncontrolling interests	(165)	(241)
Net income attributable to the Company	88,870	70,243
Preferred stock dividends	(3,911)	(6,770)
Excess of redemption value over carrying value of preferred shares redeemed	(13,373)
Net income available to common stockholders	$ 71,586	$ 63,473
Amounts available to common stockholders per common share:
Net income, basic and diluted (in dollars per share)	$ 0.27	$ 0.25
Weighted average common shares outstanding:
Basic (in shares)	263,340,491	250,173,815
Diluted (in shares)	263,934,304	250,698,023

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 89,035	$ 70,484
Adjustments to net income:
Depreciation and amortization	121,097	107,933
Amortization of share-based compensation	2,753	2,605
Non-cash revenue adjustments	(1,343)	(3,099)
Amortization of net premiums on mortgages payable	(630)	(1,101)
Amortization of deferred financing costs	2,390	2,200
(Gain) loss on interest rate swaps	(1,330)	5,778
Gain on sales of real estate	(10,532)	(2,289)
Provisions for impairment on real estate	5,433	1,923
Change in assets and liabilities
Accounts receivable and other assets	139	5,081
Accounts payable, accrued expenses and other liabilities	6,119	(53,225)
Net cash provided by operating activities	213,131	136,290
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in real estate	(374,573)	(313,169)
Improvements to real estate, including leasing costs	(3,749)	(902)
Proceeds from sale of real estate	31,232	11,038
Collection of loans receivable	30	12,428
Restricted escrow deposits for Section 1031 tax-deferred exchanges and pending acquisitions	(18,252)	(4,088)
Net cash used in investing activities	(365,312)	(294,693)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash distributions to common stockholders	(162,506)	(147,345)
Cash dividends to preferred stockholders	(6,168)	(6,770)
Borrowings on line of credit	79,000	1,209,000
Payments on line of credit	(1,199,000)	(794,000)
Proceeds from notes and bonds payable issued	711,812
Principal payments on mortgages payable	(2,120)	(164,339)
Proceeds from common stock offerings, net	705,012
Proceeds from dividend reinvestment and stock purchase plan	56,991	3,512
Procceds from At-the-Market (ATM) program		30,547
Distributions to noncontrolling interests	(631)	(382)
Debt issuance costs	(6,614)
Other items, including shares withheld upon vesting	(5,417)	(3,419)
Net cash provided by financing activities	170,359	126,804
Net increase (decrease) in cash and cash equivalents	18,178	(31,599)
Cash and cash equivalents, beginning of period	9,420	40,294
Cash and cash equivalents, end of period	$ 27,598	$ 8,695

Management Statement

Management Statement	3 Months Ended
	Mar. 31, 2017
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, 2016, which are included in our 2016 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 March 31, 2017, we owned 4,980 properties, located in 49 states and Puerto Rico, containing over 84.0 million leasable square feet.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
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. 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 taxable 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 and its subsidiaries 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 $2.1 million at March 31, 2017 and $74,000 at December 31, 2016. 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. E. In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, Revenue from Contracts with Customers . This ASU outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers, and will apply to transactions such as the sale of real estate. This ASU is effective for interim and annual periods beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We plan to use the cumulative effect transition method upon adoption of the standard on January 1, 2018, and do not expect this topic to have a material impact on our consolidated financial statements or the related notes. In February 2016, FASB issued Topic 842, Leases , which amended Topic 840, Leases. Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of operating leases should remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term . The amendments included in this topic are effective, on a retrospective or modified retrospective basis, for interim and annual periods beginning after December 15, 2018. We have not yet adopted this topic and are currently evaluating the impact this amendment may have on our consolidated financial statements. In January 2017, FASB issued ASU 2017-01, which amends Topic 805, Business Combinations . FASB issued this ASU to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for interim and annual periods beginning after December 15, 2017. We have not yet adopted this topic and are currently evaluating the impact this amendment may have on our consolidated financial statements.

Supplemental Detail for Certain

Supplemental Detail for Certain Components of Consolidated Balance Sheets	3 Months Ended
	Mar. 31, 2017
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 March 31, December 31, (dollars in thousands) at: Acquired in-place leases $ $ Accumulated amortization of acquired in-place leases ) ) Acquired above-market leases Accumulated amortization of acquired above-market leases ) ) $ $ March 31, December 31, B. Other assets, net, consist of the following (dollars in thousands) at: Restricted escrow deposits Prepaid expenses Insurance proceeds receivable Credit facility origination costs, net Notes receivable issued in connection with property sales Corporate assets, net Impounds related to mortgages payable Other items $ $ C. Distributions payable consist of the following declared March 31, December 31, distributions (dollars in thousands) at: Common stock distributions $ $ Preferred stock dividends - Noncontrolling interests distributions $ $ D. Accounts payable and accrued expenses consist of the March 31, December 31, following (dollars in thousands) at: Notes payable - interest payable $ $ Property taxes payable Accrued costs on properties under development Mortgages, term loans, credit line - interest payable and interest rate swaps Shares subject to mandatory redemption - interest payable - Other items $ $ E. Acquired lease intangible liabilities, net, consist of the March 31, December 31, following (dollars in thousands) at: Acquired below-market leases $ $ Accumulated amortization of acquired below-market leases ) ) $ $ F. Other liabilities consist of the following March 31, December 31, (dollars in thousands) at: Rent received in advance and other deferred revenue (1) $ $ Security deposits Capital lease obligations $ $ (1) In connection with Diageo’s sale of its wine business to Treasury Wine Estates, we agreed to release Diageo from its guarantee of our leases in exchange for Diageo’s payment of $75 million of additional rent to us. The additional rent was paid in two equal installments, one of which was received in August 2016 for $37.5 million and was recorded as prepaid rent. The final payment of $37.5 million was received in January 2017, at which time Treasury Wine Estates became the guarantor of our leases on those properties. We have accounted for this transaction as a lease modification and the additional rent will be recognized on a straight-line basis over the remaining lease terms of approximately 15 years.

Investments in Real Estate

Investments in Real Estate	3 Months Ended
	Mar. 31, 2017
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 Three Months of 2017 and 2016 During the first three months of 2017, we invested $370.7 million in 60 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 6.1%. The 60 new properties and properties under development or expansion are located in 18 states, will contain approximately 1.5 million leasable square feet, and are 100% leased with a weighted average lease term of 16.4 years. The tenants occupying the new properties operate in 13 industries and the property types consist of 98.7% retail and 1.3% industrial, based on rental revenue. None of our investments during 2017 caused any one tenant to be 10% or more of our total assets at March 31, 2017. The $370.7 million invested during the first three months of 2017 was allocated as follows: $108.7 million to land, $209.5 million to buildings and improvements, $53.9 million to intangible assets related to leases, and $1.4 million to intangible liabilities related to leases and other assumed liabilities. There was no contingent consideration associated with these acquisitions. The properties acquired during the first three months of 2017 generated total revenues of $688,000 and net income of $217,000. Of the $370.7 million we invested during the first three months of 2017, $365.7 million of the purchase price allocation is based on a preliminary measurement of fair value and is subject to change. Additionally, $351.6 million invested in the fourth quarter of 2016 is based on a preliminary measurement of fair value and is subject to change. The allocation for these properties represents our current best estimate of fair value, and we expect to finalize the valuations and complete the purchase price allocations in 2017. During the first three months of 2017, we finalized the purchase price allocations for $417.9 million invested in the fourth quarter of 2016. There were no material changes to our consolidated balance sheets or income statements as a result of these purchase price allocations being finalized. In comparison, during the first three months of 2016, we invested $352.6 million in 103 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 6.6%. The 103 new properties and properties under development or expansion are located in 31 states, contain approximately 1.7 million leasable square feet, and are 100% leased with a weighted average lease term of 15.8 years. The tenants occupying the new properties operate in 18 industries and the property types consisted of 85.7% retail and 14.3% industrial, based on rental revenue. The $352.6 million invested during the first three months of 2016 was allocated as follows: $102.2 million to land, $243.1 million to buildings and improvements, $10.0 million to intangible assets related to leases, and $2.0 million to intangible liabilities related to leases and other assumed liabilities. We also recorded mortgage premiums of $692,000. There was no contingent consideration associated with these acquisitions. The properties acquired during the first three months of 2016 generated total revenues of $1.1 million and net income of $408,000 for the three months ended March 31, 2016. 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 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 $370.7 million we invested during the first three months of 2017, $5.0 million was invested in nine properties under development or expansion with an estimated initial weighted average contractual lease rate of 7.7%. Of the $352.6 million we invested during the first three months of 2016, $52.1 million was invested in 23 properties under development or expansion with an estimated initial weighted average contractual lease rate of 6.8%. B. Acquisition Transaction Costs Acquisition transaction costs of $131,000 and $24,000 were recorded to general and administrative expense on our consolidated statements of income during the first three months of 2017 and 2016, respectively. C. Investments in Existing Properties During the first three months of 2017, we capitalized costs of $3.4 million on existing properties in our portfolio, consisting of $410,000 for re-leasing costs, $341,000 for recurring capital expenditures and $2.6 million for non-recurring building improvements. In comparison, during the first three months of 2016, we capitalized costs of $1.3 million on existing properties in our portfolio, consisting of $191,000 for re-leasing costs, $72,000 for recurring capital expenditures and $1.0 million for non-recurring building improvements. D. Properties with Existing Leases Of the $370.7 million we invested during the first three months of 2017, approximately $321.7 million was used to acquire 35 properties with existing leases. In comparison, of the $352.6 million we invested during the first three months of 2016, approximately $26.8 million was used to acquire four properties with existing 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 of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases, for the first three months of 2017 and 2016 were $24.8 million and $22.6 million, respectively. The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the first three months of 2017 and 2016 were $2.4 million and $2.1 million, respectively. If a lease was to be 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 estimated impact during the next five years and thereafter related to the amortization of the acquired above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at March 31, 2017 (in thousands): Net increase Increase to (decrease) to amortization rental revenue expense 2017 $ ) $ 2018 ) 2019 ) 2020 ) 2021 ) Thereafter Totals $ ) $

Credit Facility

Credit Facility	3 Months Ended
	Mar. 31, 2017
Credit Facility
Notes Payable
Credit Facility	5. Credit Facility In June 2015, we entered into a $2.0 billion unsecured revolving credit facility, or our credit facility, which replaced our $1.5 billion credit facility that was scheduled to expire in May 2016. The initial term of our credit facility expires in June 2019 and includes, at our option, two six-month extensions. Our credit facility has a $1.0 billion accordion expansion option. Under our credit facility, our investment grade credit ratings as of March 31, 2017 provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 0.90% with a facility commitment fee of 0.15%, for all-in drawn pricing of 1.05% over LIBOR. The borrowing rate is subject to an interest rate floor and may change if our investment grade credit ratings change. We also have other interest rate options available to us under our credit facility. Our credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation. At March 31, 2017, credit facility origination costs of $6.6 million are included in other assets, net on our consolidated balance sheet. These costs are being amortized over the remaining term of our credit facility. At March 31, 2017, we had a borrowing capacity of $2.0 billion available on our credit facility (subject to customary conditions to borrowing) and no outstanding balance, as compared to an outstanding balance of $1.12 billion at December 31, 2016. The weighted average interest rate on outstanding borrowings under our credit facility was 1.7% during the first three months of 2017 and 1.5% during the first three months of 2016. Our credit facility is subject to various leverage and interest coverage ratio limitations, and at March 31, 2017, we were in compliance with the covenants on our credit facility.

Term Loans

Term Loans	3 Months Ended
	Mar. 31, 2017
Term Loans
Term Loans	6. Term Loans In June 2015, in conjunction with entering into our credit facility, we entered into a $250 million senior unsecured term loan maturing on June 30, 2020. Borrowing under this term loan bears interest at the current one-month LIBOR, plus 0.95%. In conjunction with this term loan, we also entered into an interest rate swap which effectively fixes our per annum interest rate on this term loan at 2.67%. In January 2013, in conjunction with our acquisition of American Realty Capital Trust, Inc., or ARCT, we entered into a $70 million senior unsecured term loan maturing January 2018. Borrowing under this term loan bears interest at the current one-month LIBOR, plus 1.20%. In conjunction with this term loan, we also entered into an interest rate swap which effectively fixes our per annum interest rate on this term loan at 2.15%. Deferred financing costs of $1.2 million incurred in conjunction with the $250 million term loan and $303,000 incurred in conjunction with the $70 million term loan are being amortized over the remaining terms of each respective term loan. The net balance of these deferred financing costs, which was $800,000 at March 31, 2017, and $873,000 at December 31, 2016, is included within term loans, net on our consolidated balance sheets.

Mortgages Payable

Mortgages Payable	3 Months Ended
	Mar. 31, 2017
Mortgages Payable
Debt instrument
Debt	7. Mortgages Payable During the first three months of 2017, we made $2.1 million in principal payments. No mortgages were assumed during the first three months of 2017. During the first three months of 2016, we made $164.3 million in principal payments, including the repayment of seven mortgages in full for $146.7 million. Additionally, we assumed mortgages totaling $32.5 million, excluding net premiums. During the first three months of 2016, aggregate net premiums totaling $692,000 were recorded upon the assumption of a mortgage with an above-market interest rate. Amortization of our 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. Our 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 March 31, 2017, we remain in compliance with these covenants. The balance of our deferred financing costs, which are classified as part of mortgages payable, net, on our consolidated balance sheets, was $286,000 at March 31, 2017 and $324,000 at December 31, 2016. These costs are being amortized over the remaining term of each mortgage. The following is a summary of all our mortgages payable as of March 31, 2017 and December 31, 2016, respectively (dollars in thousands): Weighted Weighted Weighted Unamortized Average Average Average Premium Stated Effective Remaining Remaining and Deferred Mortgage Number of Interest Interest Years Until Principal Finance Costs Payable As Of Properties (1) Rate (2) Rate (3) Maturity Balance Balance, net Balance 3/31/17 $ $ $ 12/31/16 $ $ $ (1) At March 31, 2017 and December 31, 2016, there were 36 mortgages on 127 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for six mortgages on 15 properties totaling $74.0 million at March 31, 2017 and December 31, 2016, including net unamortized discounts. After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totals $38.2 million at March 31, 2017 and December 31, 2016. (2) Stated interest rates ranged from 2.6% to 6.9% at March 31, 2017, while stated interest rates ranged from 2.4% to 6.9% at December 31, 2016. (3) Effective interest rates ranged from 2.8% to 8.7% at March 31, 2017, while effective interest rates ranged from 2.5% to 8.8% at December 31, 2016. The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.7 million and deferred finance costs of $286,000, as of March 31, 2017 (dollars in millions): Year of Maturity Principal 2017 $ 2018 2019 2020 2021 Thereafter Totals $

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2017
Notes Payable
Debt instrument
Debt	8. Notes Payable A. General Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): March 31, December 31, 5.375% notes, issued in September 2005 and due in September 2017 2.000% notes, issued in October 2012 and due in January 2018 6.750% notes, issued in September 2007 and due in August 2019 5.750% notes, issued in June 2010 and due in January 2021 3.250% notes, issued in October 2012 and due in October 2022 4.650% 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, $250 issued in September 2014 and $400 issued in March 2017, all of which are due in October 2026 3.000% notes, issued in October 2016 and due in January 2027 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, all of which are due in March 2035 4.650% notes, issued in March 2017 and due in March 2047 - Total principal amount Unamortized original issuance discounts and deferred financing costs ) ) $ $ The following table summarizes the maturity of our notes and bonds payable as of March 31, 2017, excluding unamortized original issuance discounts and deferred financing costs (dollars in millions): Year of Maturity Principal 2017 $ 2018 2019 2020 - 2021 Thereafter Totals $ As of March 31, 2017, the weighted average interest rate on our notes and bonds payable was 4.4% and the weighted average remaining years until maturity was 8.1 years. B. Note Issuances In March 2017, we issued $300 million of 4.650% senior unsecured notes due 2047, or the 2047 Notes, and $400 million of 4.125% senior unsecured notes due 2026, or the 2026 Notes. The public offering price for the 2047 Notes was 99.97% of the principal amount for an effective yield to maturity of 4.65%. The public offering price for the 2026 Notes was 102.98% of the principal amount for an effective yield to maturity of 3.75%. The 2026 Notes constituted a further issuance of, and formed a single series with, the $250 million aggregate principal amount of senior notes due 2026, issued in September 2014. The net proceeds of approximately $705.2 million from the offerings were used to repay borrowings outstanding under our credit facility to fund investment opportunities, and for other general corporate purposes.

Redemption of Preferred Stock

Redemption of Preferred Stock	3 Months Ended
	Mar. 31, 2017
Redemption of Preferred Stock
Redemption of Preferred Stock	9. Redemption of Preferred Stock In March 2017, we issued an irrevocable notice of redemption for all 16,350,000 shares of our 6.625% Monthly Income Class F Preferred Stock for $25 per share, plus accrued dividends. The redemption occurred in April 2017. The issuance of the redemption notice prior to the end of the quarter required us to reclassify $408.8 million of preferred stock from stockholders’ equity to liabilities on our consolidated balance sheet at March 31, 2017. These shares subject to mandatory redemption are presented at fair value. We incurred a charge of $13.4 million, representing the Class F preferred stock original issuance costs that we paid in 2012.

Equity

Equity	3 Months Ended
	Mar. 31, 2017
Equity
Equity	10. Equity A. Issuance of Common Stock In March 2017, we issued 11,850,000 shares of common stock. After underwriting discounts and other offering costs of $29.7 million, the net proceeds of $705.0 million were used to repay borrowings under our credit facility. B. Dividend Reinvestment and Stock Purchase Plan Our Dividend Reinvestment and Stock Purchase Plan, or the DRSPP, provides our common stockholders, as well as new investors, with a convenient and economical method of purchasing our common stock and reinvesting their distributions. Our 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 26,000,000 common shares to be issued. During the first three months of 2017, we issued 966,557 shares and raised approximately $57.0 million under the DRSPP. During the first three months of 2016, we issued 61,458 shares and raised approximately $3.5 million under the DRSPP. From the inception of the DRSPP through March 31, 2017, we have issued 13,836,446 shares and raised approximately $650.2 million. Our DRSPP includes 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. During the first three months of 2017, we issued 927,695 shares and raised $54.7 million under the waiver approval process. We did not issue shares under the waiver approval process during the first three months of 2016. C. At-the-Market (ATM) Program Through our “at-the-market” equity distribution program, or our ATM program, we can offer and sell up to 12,000,000 shares of common stock. The shares of common stock may be sold to, or through, a consortium of banks acting as our sales agents either by means of ordinary brokers’ transactions on the NYSE at prevailing market prices or at negotiated prices. We did not issue any shares under the ATM program during the first three months of 2017. During the first three months of 2016, we issued 500,000 shares and raised approximately $30.5 million under the ATM program. From the inception of our ATM program through March 31, 2017, we have issued 3,493,441 shares and raised $203.1 million.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2017
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. We and our subsidiaries hold a 99.4% 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 Realty Income, L.P. The units were issued as consideration for the acquisition. At March 31, 2017, the remaining units from this issuance represent a 0.4% ownership in Realty Income, L.P. We hold the remaining 99.6% interests in this entity and consolidate the entity. Neither of the common partnership units have 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 determined that the units meet the requirements to qualify for presentation as permanent equity. In 2016, we completed the acquisition of two properties by acquiring a controlling interest in two separate joint ventures. We are the managing member of each of these joint ventures, and possess the ability to control the business and manage the affairs of these entities. At March 31, 2017, we and our subsidiaries held 92.4% and 74% interests, respectively, and fully consolidated these entities in our consolidated financial statements. The following table represents the change in the carrying value of all noncontrolling interests through March 31, 2017 (dollars in thousands): Tau Operating Realty Income, L.P. Other Noncontrolling Partnership units (1) units (2) Interests Total Carrying value at December 31, 2016 $ $ $ $ Distributions ) ) ) ) Allocation of net income Carrying value at March 31, 2017 $ $ $ (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of March 31, 2017 and December 31, 2016. (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 88,182 remain outstanding as of March 31, 2017 and December 31, 2016. During the first quarter of 2016, we adopted ASU 2015-02, which amends Topic 810, Consolidation . This ASU amended the criteria used to evaluate whether an entity is a variable interest entity, or VIE, resulting in the conclusion that all limited partnerships are considered VIEs, unless substantive kick-out rights or participating rights exist. Accordingly, we determined that both Tau Operating Partnership and Realty Income, L.P. are VIEs. We have also concluded that we are the primary beneficiary of these VIEs, based on our controlling financial interests. We evaluated the minority unitholder rights noting that they do not hold substantive kick-out rights or participating rights. These conclusions did not result in changes to our historical accounting for these partnerships. Below is a summary of selected financial data of consolidated VIEs, including the joint ventures acquired during 2016, for which we are the primary beneficiary included in the consolidated balance sheets at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Net real estate $ $ Total assets Total debt Total liabilities

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
Fair Value of Financial Instruments
Fair Value of Financial Instruments	12. Fair Value of Financial Instruments 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 in 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 loans 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 and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): Carrying value per Estimated fair At March 31, 2017 balance sheet value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions, net Notes and bonds payable, net Carrying value per Estimated fair At December 31, 2016 balance sheet value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions, net Notes and bonds payable, net 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 notes and bonds payable, is categorized as level two on the three-level valuation hierarchy. We record interest rate swaps on the consolidated balance sheet at fair value. At March 31, 2017, interest rate swaps in a liability position valued at $1.0 million were included in accounts payable and accrued expenses and interest rate swaps in an asset position valued at $210,000 were included in other assets, net on the consolidated balance sheet. The fair value of our interest rate swaps are based on valuation techniques including discounted cash flow analysis on the expected cash flows of each swap, using both observable and unobservable market-based inputs, including interest rate curves. Because this methodology uses observable and unobservable inputs, and the unobservable inputs are not significant to the fair value measurement, the measurement of interest rate swaps is categorized as level two on the three-level valuation hierarchy.

Gain on Sales of Real Estate

Gain on Sales of Real Estate	3 Months Ended
	Mar. 31, 2017
Gain on Sales of Real Estate
Gain on Sales of Real Estate	13. Gain on Sales of Real Estate During the first three months of 2017, we sold 14 properties for $31.2 million, which resulted in a gain of $10.5 million. During the first three months of 2016, we sold 11 properties for $11.0 million, which resulted in a gain of $2.3 million.

Impairments

Impairments	3 Months Ended
	Mar. 31, 2017
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 utilize in this analysis include projected rental rates, estimated holding periods, historical sales and releases, 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. For the first three months of 2017, we recorded total provisions for impairment of $5.4 million on five properties classified as held for sale, three properties classified as held for investment, and one sold property in a total of five industries. For the first three months of 2016, we recorded total provisions for impairment of $1.9 million on eight sold properties in a total of seven industries.

Distributions Paid and Payable

Distributions Paid and Payable	3 Months Ended
	Mar. 31, 2017
Distributions Paid and Payable
Distributions Paid and Payable	15. Distributions Paid and Payable A. Common Stock We pay monthly distributions to our common stockholders. The following is a summary of monthly distributions paid per common share for the first three months of 2017 and 2016: Month January $ $ February March Total $ $ At March 31, 2017, a distribution of $0.211 per common share was payable and was paid in April 2017. B. Class F Preferred Stock Prior to the notice of redemption of the Class F preferred stock in March 2017, dividends of $0.101215 per share were paid monthly in arrears on the Class F preferred stock. During each of the first three months of 2017 and 2016, we paid three monthly dividends to holders of our Class F preferred stock totaling $0.414063 per share, or $3.9 million, and $6.8 million, respectively, and at March 31, 2017, a final monthly dividend of $0.101215 per share was payable and was paid in April 2017. As discussed in note 9, during April 2017 we redeemed all 16,350,000 shares for $25 per share, plus accrued dividends. Dividends that accrued subsequent to the March 2017 notice of redemption date for the Class F preferred stock were recorded to interest expense.

Net Income per Common Share

Net Income per Common Share	3 Months Ended
	Mar. 31, 2017
Net Income per Common Share
Net Income per Common Share	16. 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, plus income attributable to dilutive shares and convertible common units, 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 common shares 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. Three months ended March 31, Weighted average shares used for the basic net income per share computation Incremental shares from share-based compensation Weighted average partnership common units convertible to common shares that were dilutive Weighted average shares used for diluted net income per share computation Unvested shares from share-based compensation that were anti-dilutive Weighted average partnership common units convertible to common shares that were anti-dilutive

Supplemental Disclosures of Cas

Supplemental Disclosures of Cash Flow Information	3 Months Ended
	Mar. 31, 2017
Supplemental Disclosures of Cash Flow Information
Supplemental Disclosures of Cash Flow Information	17. Supplemental Disclosures of Cash Flow Information Cash paid for interest was $75.6 million in the first three months of 2017 and $84.1 million in the first three months of 2016. Interest capitalized to properties under development was $190,000 in the first three months of 2017 and $126,000 the first three months of 2016. Cash paid for income taxes was $2.5 million in the first three months of 2017 and $1.6 million the first three months of 2016. The following non-cash activities are included in the accompanying consolidated financial statements: A. During the first three months of 2017, we removed the net book value of two damaged buildings from our consolidated balance sheet, and recorded net receivables of $10.6 million in anticipation of receiving insurance proceeds for these properties. B. During the first three months of 2016, we assumed mortgages payable to third-party lenders of $32.5 million, and recorded $692,000 of net premiums.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Information
Segment Information	18. 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 47 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 (dollars in thousands): March 31, December 31, Assets, as of: Segment net real estate: Apparel $ 173,999 $ 175,418 Automotive service Automotive tire services Beverages Child care Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club 28 other non-reportable segments Total segment net real estate Intangible assets: Apparel Automotive service Automotive tire services Beverages Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club Other non-reportable segments Goodwill: Automotive service Automotive tire services Child care Convenience stores Restaurants-casual dining Restaurants-quick service Other non-reportable segments Other corporate assets Total assets $ $ 13,152,871 Revenue for the three months ended March 31, Segment rental revenue: Apparel $ 4,966 $ 4,875 Automotive service Automotive tire services Beverages Child care Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club 28 other non-reportable segments Total rental revenue Tenant reimbursements Other revenue Total revenue $ 298,025 $ 267,116

Common Stock Incentive Plan

Common Stock Incentive Plan	3 Months Ended
	Mar. 31, 2017
Common Stock Incentive Plan
Common Stock Incentive Plan	19. 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 and employees considered essential to our long-term success. The 2012 Plan offers our directors and employees an opportunity to own our stock 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 ten years from the date it was adopted by our Board of Directors. The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income was $2.8 million during the first three months of 2017 and $2.6 million during the first three months of 2016. A. Restricted Stock During the first three months of 2017, we granted 114,118 shares of common stock under the 2012 Plan. 72,626 of these shares vest over a four-year service period, and the remaining 41,492 shares vest over a five-year service period. As of March 31, 2017, the remaining unamortized share-based compensation expense related to restricted stock totaled $23.8 million, which is being amortized on a straight-line basis over the service period of each applicable award. The amount of share-based compensation is based on the fair value of the stock at the grant date. We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and condition of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares. B. Performance Shares and Restricted Stock Units During the first three months of 2017, we granted 111,637 performance shares, as well as dividend equivalent rights, to our executive officers. The performance shares are earned based on our TSR performance relative to select industry indices and peer groups as well as achievement of certain operating metrics, and vest 50% on the first and second January 1 after the end of the three year performance period, subject to continued service. During the first three months of 2017, we also granted 10,191 restricted stock units of which 6,161 vest over a four-year service period, and the remaining 4,030 vest over a five-year service period. These restricted stock units have the same economic rights as shares of restricted stock. As of March 31, 2017, the remaining share-based compensation expense related to the performance shares and restricted stock units totaled $12.5 million. The fair value of the performance share was estimated on the date of grant using a Monte Carlo Simulation model. The performance shares are being recognized on a tranche-by-tranche basis over the service period. The amount of share-based compensation for the restricted stock units is based on the fair value of our common stock at the grant date. The restricted stock units are being recognized on a straight-line basis over the service period.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies
Commitments and Contingencies	20. 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 March 31, 2017, we had commitments of $5.0 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of March 31, 2017, we had committed $67.1 million under construction contracts, which is expected to be paid in the next twelve months.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events
Subsequent Events	21. Subsequent Events In April 2017, we declared a dividend of $0.211 per share to our common stockholders, which will be paid in May 2017.

Summary of Significant Accoun27

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
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	B. We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended. 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 taxable 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 and its subsidiaries for city and state income and franchise taxes.
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 $2.1 million at March 31, 2017 and $74,000 at December 31, 2016.
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.
Recent Accounting Pronouncements	E. In May 2014, the Financial Accounting Standards Board, or FASB, issued ASU 2014-09, Revenue from Contracts with Customers . This ASU outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers, and will apply to transactions such as the sale of real estate. This ASU is effective for interim and annual periods beginning after December 15, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. We plan to use the cumulative effect transition method upon adoption of the standard on January 1, 2018, and do not expect this topic to have a material impact on our consolidated financial statements or the related notes. In February 2016, FASB issued Topic 842, Leases , which amended Topic 840, Leases. Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of operating leases should remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term . The amendments included in this topic are effective, on a retrospective or modified retrospective basis, for interim and annual periods beginning after December 15, 2018. We have not yet adopted this topic and are currently evaluating the impact this amendment may have on our consolidated financial statements. In January 2017, FASB issued ASU 2017-01, which amends Topic 805, Business Combinations . FASB issued this ASU to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The ASU is effective for interim and annual periods beginning after December 15, 2017. We have not yet adopted this topic and are currently evaluating the impact this amendment may have on our consolidated financial statements.

Supplemental Detail for Certa28

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, December 31, (dollars in thousands) at: Acquired in-place leases $ $ Accumulated amortization of acquired in-place leases ) ) Acquired above-market leases Accumulated amortization of acquired above-market leases ) ) $ $
Other assets, net	March 31, December 31, B. Other assets, net, consist of the following (dollars in thousands) at: Restricted escrow deposits Prepaid expenses Insurance proceeds receivable Credit facility origination costs, net Notes receivable issued in connection with property sales Corporate assets, net Impounds related to mortgages payable Other items $ $
Distributions payable	C. Distributions payable consist of the following declared March 31, December 31, distributions (dollars in thousands) at: Common stock distributions $ $ Preferred stock dividends - Noncontrolling interests distributions $ $
Accounts payable and accrued expenses	D. Accounts payable and accrued expenses consist of the March 31, December 31, following (dollars in thousands) at: Notes payable - interest payable $ $ Property taxes payable Accrued costs on properties under development Mortgages, term loans, credit line - interest payable and interest rate swaps Shares subject to mandatory redemption - interest payable - Other items $ $
Schedule of acquired lease intangible liabilities, net	E. Acquired lease intangible liabilities, net, consist of the March 31, December 31, following (dollars in thousands) at: Acquired below-market leases $ $ Accumulated amortization of acquired below-market leases ) ) $ $
Other liabilities	F. Other liabilities consist of the following March 31, December 31, (dollars in thousands) at: Rent received in advance and other deferred revenue (1) $ $ Security deposits Capital lease obligations $ $ (1) In connection with Diageo’s sale of its wine business to Treasury Wine Estates, we agreed to release Diageo from its guarantee of our leases in exchange for Diageo’s payment of $75 million of additional rent to us. The additional rent was paid in two equal installments, one of which was received in August 2016 for $37.5 million and was recorded as prepaid rent. The final payment of $37.5 million was received in January 2017, at which time Treasury Wine Estates became the guarantor of our leases on those properties. We have accounted for this transaction as a lease modification and the additional rent will be recognized on a straight-line basis over the remaining lease terms of approximately 15 years.

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	3 Months Ended
	Mar. 31, 2017
Investments in Real Estate
Schedule of future impact of above-market, below-market and in-place lease intangibles	The following table presents the estimated impact during the next five years and thereafter related to the amortization of the acquired above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at March 31, 2017 (in thousands): Net increase Increase to (decrease) to amortization rental revenue expense 2017 $ ) $ 2018 ) 2019 ) 2020 ) 2021 ) Thereafter Totals $ ) $

Mortgages Payable (Tables)

Mortgages Payable (Tables) - Mortgages Payable	3 Months Ended
	Mar. 31, 2017
Notes Payable
Summary of Mortgages payable	The following is a summary of all our mortgages payable as of March 31, 2017 and December 31, 2016, respectively (dollars in thousands): Weighted Weighted Weighted Unamortized Average Average Average Premium Stated Effective Remaining Remaining and Deferred Mortgage Number of Interest Interest Years Until Principal Finance Costs Payable As Of Properties (1) Rate (2) Rate (3) Maturity Balance Balance, net Balance 3/31/17 $ $ $ 12/31/16 $ $ $ (1) At March 31, 2017 and December 31, 2016, there were 36 mortgages on 127 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for six mortgages on 15 properties totaling $74.0 million at March 31, 2017 and December 31, 2016, including net unamortized discounts. After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totals $38.2 million at March 31, 2017 and December 31, 2016. (2) Stated interest rates ranged from 2.6% to 6.9% at March 31, 2017, while stated interest rates ranged from 2.4% to 6.9% at December 31, 2016. (3) Effective interest rates ranged from 2.8% to 8.7% at March 31, 2017, while effective interest rates ranged from 2.5% to 8.8% at December 31, 2016.
Schedule of maturity mortgages payable, excluding net premiums	The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.7 million and deferred finance costs of $286,000, as of March 31, 2017 (dollars in millions): Year of Maturity Principal 2017 $ 2018 2019 2020 2021 Thereafter Totals $

Notes Payable (Tables)

Notes Payable (Tables) - Note payable	3 Months Ended
	Mar. 31, 2017
Debt instrument
Schedule of Notes payable	Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): March 31, December 31, 5.375% notes, issued in September 2005 and due in September 2017 2.000% notes, issued in October 2012 and due in January 2018 6.750% notes, issued in September 2007 and due in August 2019 5.750% notes, issued in June 2010 and due in January 2021 3.250% notes, issued in October 2012 and due in October 2022 4.650% 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, $250 issued in September 2014 and $400 issued in March 2017, all of which are due in October 2026 3.000% notes, issued in October 2016 and due in January 2027 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, all of which are due in March 2035 4.650% notes, issued in March 2017 and due in March 2047 - Total principal amount Unamortized original issuance discounts and deferred financing costs ) ) $ $
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 March 31, 2017, excluding unamortized original issuance discounts and deferred financing costs (dollars in millions): Year of Maturity Principal 2017 $ 2018 2019 2020 - 2021 Thereafter Totals $

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 (dollars in thousands): Tau Operating Realty Income, L.P. Other Noncontrolling Partnership units (1) units (2) Interests Total Carrying value at December 31, 2016 $ $ $ $ Distributions ) ) ) ) Allocation of net income Carrying value at March 31, 2017 $ $ $ (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of March 31, 2017 and December 31, 2016. (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 88,182 remain outstanding as of March 31, 2017 and December 31, 2016.
Summary selected financial data of consolidated VIEs	Below is a summary of selected financial data of consolidated VIEs, including the joint ventures acquired during 2016, for which we are the primary beneficiary included in the consolidated balance sheets at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Net real estate $ $ Total assets Total debt Total liabilities

Fair Value of Financial Instr33

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value of Financial Instruments
Schedule of fair value by balance sheet groupings	We believe that the carrying values reflected in 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 loans 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 and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): Carrying value per Estimated fair At March 31, 2017 balance sheet value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions, net Notes and bonds payable, net Carrying value per Estimated fair At December 31, 2016 balance sheet value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions, net Notes and bonds payable, net

Distributions Paid and Payable

Distributions Paid and Payable (Tables)	3 Months Ended
	Mar. 31, 2017
Common stock
Issuance of common stock
Schedule of Stock by Class and Dividends Paid or Payable	Month January $ $ February March Total $ $

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, Weighted average shares used for the basic net income per share computation Incremental shares from share-based compensation Weighted average partnership common units convertible to common shares that were dilutive Weighted average shares used for diluted net income per share computation Unvested shares from share-based compensation that were anti-dilutive Weighted average partnership common units convertible to common shares that were anti-dilutive

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
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 (dollars in thousands): March 31, December 31, Assets, as of: Segment net real estate: Apparel $ 173,999 $ 175,418 Automotive service Automotive tire services Beverages Child care Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club 28 other non-reportable segments Total segment net real estate Intangible assets: Apparel Automotive service Automotive tire services Beverages Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club Other non-reportable segments Goodwill: Automotive service Automotive tire services Child care Convenience stores Restaurants-casual dining Restaurants-quick service Other non-reportable segments Other corporate assets Total assets $ $ 13,152,871
Schedule of reconciliation of revenue from segments to consolidated	Revenue for the three months ended March 31, Segment rental revenue: Apparel $ 4,966 $ 4,875 Automotive service Automotive tire services Beverages Child care Convenience stores Dollar stores Drug stores Financial services General merchandise Grocery stores Health and fitness Home improvement Motor vehicle dealerships Restaurants-casual dining Restaurants-quick service Theaters Transportation services Wholesale club 28 other non-reportable segments Total rental revenue Tenant reimbursements Other revenue Total revenue $ 298,025 $ 267,116

Management Statement (Details)

Management Statement (Details) ft² in Millions	Mar. 31, 2017ft²propertystate
Management Statement
Properties owned | property	4,980
Number of U.S. states where properties are owned | state	49
Leasable square feet | ft²	84

Summary of Significant Accoun38

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Allowance for doubtful accounts	$ 2,100,000	$ 74,000

Supplemental Detail for Certa39

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Acquired Lease Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Acquired lease intangible assets, net
Acquired in-place leases	$ 1,210,506	$ 1,164,075
Accumulated amortization of acquired in-place leases	(382,307)	(358,040)
Acquired above-market leases	375,724	365,005
Accumulated amortization of acquired above-market leases	(95,827)	(88,720)
Acquired lease intangible assets	$ 1,108,096	$ 1,082,320

Supplemental Detail for Certa40

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Other assets, net
Restricted escrow deposits	$ 25,327	$ 4,246
Prepaid expenses	16,910	14,406
Insurance proceeds receivable	10,641	300
Notes receivable issued in connection with property sales	5,360	5,390
Corporate assets, net	4,864	3,585
Impounds related to mortgages payable	2,074	2,015
Other items	118	444
Total other assets	71,857	37,689
Credit Facility
Other assets, net
Credit facility origination costs, net	$ 6,563	$ 7,303

Supplemental Detail for Certa41

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Distributions Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Distributions payable
Declared distributions	$ 57,885	$ 55,235
Noncontrolling interests
Distributions payable
Declared distributions	86	82
Common stock
Distributions payable
Declared distributions	$ 57,799	52,896
Preferred stock
Distributions payable
Declared distributions		$ 2,257

Supplemental Detail for Certa42

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Payable, Acquired Lease Intangibles, and Other Liabilities (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)item	Jan. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Aug. 31, 2016USD ($)
Accounts payable and accrued expenses
Property taxes payable	$ 13,352		$ 16,949
Accrued costs on properties under development	5,163		9,049
Other items	21,063		29,058
Total accounts payable and accrued expenses	86,638		121,156
Acquired lease intangible liabilities, net
Acquired below-market leases	327,697		318,926
Accumulated amortization of acquired below-market leases	(59,211)		(54,720)
Total acquired lease intangible liabilities	268,486		264,206
Other liabilities
Rent received in advance and other deferred revenue	110,468		74,098
Security deposits	6,516		6,502
Capital lease obligations	5,094		5,016
Total other liabilities	122,078		85,616
Additional rent	$ 75,000
Number of installments | item	2
Deferred revenue relating to lease modification				$ 37,500
Additional rent receivable		$ 37,500
Remaining lease term	15 years
Shares subject to mandatory redemption
Accounts payable and accrued expenses
Interest payable	$ 1,655
Note payable
Accounts payable and accrued expenses
Interest payable	42,223		60,668
Mortgages, term loans, credit line - interest payable and interest rate swaps
Accounts payable and accrued expenses
Interest payable	$ 3,182		$ 5,432

Investments in Real Estate (Det

Investments in Real Estate (Details) ft² in Millions	3 Months Ended
	Mar. 31, 2017USD ($)ft²propertyitemstate	Dec. 31, 2016USD ($)	Mar. 31, 2016USD ($)ft²propertyitemstate
Real estate properties
Leasable square feet | ft²	84
Number of investments in properties that caused any tenant to be 10% of more of total assets | item	0
Total revenue	$ 298,025,000		$ 267,116,000
Net income	89,035,000		70,484,000
In-place lease, depreciation and amortization to expense	24,800,000		22,600,000
Net Decrease to Rental Income for Capitalized above Market and below Market Leases	2,400,000		2,100,000
Net increase (decrease) to rental revenue
2,017	(7,724,000)
2,018	(10,063,000)
2,019	(9,084,000)
2,020	(8,315,000)
2,021	(7,038,000)
Thereafter	30,813,000
Totals	(11,411,000)
Increase to amortization expense
2,017	75,038,000
2,018	97,739,000
2,019	87,481,000
2,020	81,997,000
2,021	73,768,000
Thereafter	412,176,000
Totals	$ 828,199,000
Maximum
Real estate properties
Investments to any one tenant as a percentage of total assets	10.00%
New properties and properties under development
Real estate properties
Real estate acquired	$ 370,700,000		$ 352,600,000
Number of properties | property	60		103
Initial weighted average contractual lease rate of properties acquired (as a percent)	6.10%		6.60%
Number of states in which properties are located | state	18		31
Leasable square feet | ft²	1.5		1.7
Leased area (as a percent)	100.00%		100.00%
Weighted average lease term	16 years 4 months 24 days		15 years 9 months 18 days
Number of industries in which tenants operate | item	13		18
Acquisition transaction costs	$ 131,000		$ 24,000
New properties and properties under development | Retail properties
Real estate properties
Property type- percentage of properties acquired	98.70%		85.70%
New properties and properties under development | Industrial and distribution properties
Real estate properties
Property type- percentage of properties acquired	1.30%		14.30%
Properties under development or expansion
Real estate properties
Number of properties | item	9		23
Initial weighted average contractual lease rate of properties acquired (as a percent)	7.70%		6.80%
Investments in properties	$ 5,000,000		$ 52,100,000
Aggregate acquisitions
Real estate properties
Real estate acquired	370,700,000		352,600,000
Land recorded related to acquisition	108,700,000		102,200,000
Buildings and improvements recorded	209,500,000		243,100,000
Intangible assets related to leases recorded	53,900,000		10,000,000
Intangible liabilities related to leases and other assumed liabilities recorded	1,400,000		2,000,000
Premiums recorded upon acquisition of mortgages			692,000
Contingent consideration associated with acquisition	0		0
Total revenue	688,000		1,100,000
Net income	217,000		408,000
Amount of investment allocated by estimate	365,700,000	$ 351,600,000
Amount of investment previously allocated by estimate finalized during the period	417,900,000
Investments in Existing Properties
Real estate properties
Total capitalized costs on existing properties	3,400,000		1,300,000
Re-leasing costs and real estate improvements included in capitalized costs on existing properties	410,000		191,000
Recurring Capital Expenditures Real Estate Improvements	341,000		72,000
Nonrecurring Building Real Estate Improvements	2,600,000		1,000,000
Real estate investments with existing leases
Real estate properties
Real estate acquired	$ 321,700,000		$ 26,800,000
Number of properties | item	35		4

Credit Facility (Details)

Credit Facility (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)item	Mar. 31, 2016	Dec. 31, 2016USD ($)	Jun. 30, 2015USD ($)	May 31, 2015USD ($)
Credit facility
Outstanding balance			$ 1,120,000
Credit Facility
Credit facility
Maximum borrowing capacity					$ 1,500,000
Variable reference rate	LIBOR
Variable interest rate, basis points spread over variable reference rate (as a percent)	0.90%
Line of credit facility, commitment fee basis points (as a percent)	0.15%
Line of credit facility, all-in drawn variable interest rate (as a percent)	1.05%
Unamortized debt issuance costs	$ 6,600
Current borrowing capacity available	2,000,000
Outstanding balance	$ 0		$ 1,120,000
Average borrowing rate during the period (as a percent)	1.70%	1.50%
Credit Facility | Unsecured debt
Credit facility
Maximum borrowing capacity				$ 2,000,000
Line Of Credit Facility Number Of Extensions | item	2
Term of extension option	6 months
Increase in the maximum borrowing capacity after amendment	$ 1,000,000

Term Loans (Details)

Term Loans (Details) - USD ($)	1 Months Ended		3 Months Ended
	Jun. 30, 2015	Jan. 31, 2013	Mar. 31, 2017	Dec. 31, 2016
Notes Payable
Term loans, net			$ 319,200,000	$ 319,127,000
Unsecured debt
Notes Payable
Term loans, net	$ 250,000,000	$ 70,000,000
Variable reference rate	one-month LIBOR	one-month LIBOR
Variable interest rate, basis points spread over variable reference rate (as a percent)	0.95%	1.20%
Effective yield (as a percent)	2.67%	2.15%
Deferred finance costs			800,000	$ 873,000
$250 million senior unsecured term loan
Notes Payable
Deferred financing costs incurred			1,200,000
$70 million senior unsecured term loan
Notes Payable
Deferred financing costs incurred			$ 303,000

Mortgages Payable (Details)

Mortgages Payable (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)item	Mar. 31, 2016USD ($)item	Dec. 31, 2016USD ($)item
Debt instrument
Assumed mortgages payable	$ 0	$ 32,500,000
Mortgage Payable Balance	463,332,000		$ 466,045,000
Maturity mortgages payable, excluding net premiums
2,017	175,000,000
2,018	350,000,000
2,019	550,000,000
2,021	250,000,000
Thereafter	3,350,000,000
Totals	$ 4,675,000,000
Minimum
Debt instrument
Weighted Average Stated Interest Rate (as a percent)	2.60%		2.40%
Weighted Average Effective Interest Rate (as a percent)	2.80%		2.50%
Maximum
Debt instrument
Weighted Average Stated Interest Rate (as a percent)	6.90%		6.90%
Weighted Average Effective Interest Rate (as a percent)	8.70%		8.80%
Mortgages Payable
Debt instrument
Amount repaid	$ 2,100,000	164,300,000
Net premiums recorded upon acquisition of mortgages		692,000
Remaining balance of deferred financing costs at period end	$ 286,000		$ 324,000
Number of Properties | item	127		127
Weighted Average Stated Interest Rate (as a percent)	4.90%		4.90%
Weighted Average Effective Interest Rate (as a percent)	4.30%		4.30%
Weighted Average Remaining Years Until Maturity	3 years 8 months 12 days		4 years
Remaining Principal Balance	$ 457,888,000		$ 460,008,000
Unamortized Premium and Deferred Finance Costs Balance, net	5,444,000		6,037,000
Mortgage Payable Balance	$ 463,332,000		$ 466,045,000
Number of mortgages | item	36		36
Number of properties with mortgages | item	127		127
Unamortized Premium Balance	$ 5,700,000
Maturity mortgages payable, excluding net premiums
2,017	101,100,000
2,018	21,900,000
2,019	42,300,000
2,020	82,400,000
2,021	66,900,000
Thereafter	143,300,000
Totals	457,900,000
Mortgages repaid in full
Debt instrument
Amount repaid		$ 146,700,000
Number of mortgages repaid | item		7
Variable rate mortgages
Debt instrument
Remaining Principal Balance	$ 74,000,000		$ 74,000,000
Number of mortgages | item	6		6
Number of properties with mortgages | item	15		15
Variable rate mortgages after interest rate arrangements
Debt instrument
Remaining Principal Balance	$ 38,200,000

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2014
Debt instrument
Total principal amount	$ 4,675,000	$ 4,675,000	$ 3,975,000
Unamortized original issuance discounts and deferred financing costs	(34,000)	(34,000)	(41,000)
Notes payable, net	4,641,094	4,641,094	3,934,433
Maturity of notes and bonds payable
2,017	175,000	175,000
2,018	350,000	350,000
2,019	550,000	550,000
2,021	250,000	250,000
Thereafter	3,350,000	3,350,000
Totals	4,675,000	4,675,000
5.375% notes, issued in September 2005 and due in September 2017
Debt instrument
Total principal amount	$ 175,000	$ 175,000	$ 175,000
Interest rate (as a percent)	5.375%	5.375%	5.375%
2.000% notes, issued in October 2012 and due in January 2018
Debt instrument
Total principal amount	$ 350,000	$ 350,000	$ 350,000
Interest rate (as a percent)	2.00%	2.00%	2.00%
6.750% notes, issued in September 2007 and due in August 2019
Debt instrument
Total principal amount	$ 550,000	$ 550,000	$ 550,000
Interest rate (as a percent)	6.75%	6.75%	6.75%
5.750% notes, issued in June 2010 and due in January 2021
Debt instrument
Total principal amount	$ 250,000	$ 250,000	$ 250,000
Interest rate (as a percent)	5.75%	5.75%	5.75%
3.250% notes, issued in October 2012 and due in October 2022
Debt instrument
Total principal amount	$ 450,000	$ 450,000	$ 450,000
Interest rate (as a percent)	3.25%	3.25%	3.25%
4.650% notes, issued in July 2013 and due in August 2023
Debt instrument
Total principal amount	$ 750,000	$ 750,000	$ 750,000
Interest rate (as a percent)	4.65%	4.65%	4.65%
3.875% notes, issued in June 2014 and due in July 2024
Debt instrument
Total principal amount	$ 350,000	$ 350,000	$ 350,000
Interest rate (as a percent)	3.875%	3.875%	3.875%
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, all of which are due in October 2026
Debt instrument
Total principal amount	$ 650,000	$ 650,000	$ 250,000
Interest rate (as a percent)	4.125%	4.125%	4.125%
4.125% notes, issued in September 2014 and due in October 2026
Debt instrument
Issuance of Debt		$ 250,000	$ 250,000
4.125% notes, issued in March 2017 and due in October 2026
Debt instrument
Issuance of Debt		400,000
3.000% notes, issued in October 2016 and due in January 2027
Debt instrument
Total principal amount	$ 600,000	$ 600,000	$ 600,000
Interest rate (as a percent)	3.00%	3.00%	3.00%
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, all of which are due in March 2035
Debt instrument
Total principal amount	$ 250,000	$ 250,000	$ 250,000
Interest rate (as a percent)	5.875%	5.875%	5.875%
5.875% bonds, issued in March 2005 and due in March 2035
Debt instrument
Issuance of Debt		$ 100,000	$ 100,000
5.875% bonds, issued in June 2011 and due in March 2035
Debt instrument
Issuance of Debt		$ 150,000	$ 150,000
Notes and bonds payable
Debt instrument
Weighted average interest rate	4.40%	4.40%
Weighted average remaining years until maturity		8 years 1 month 6 days
4.650% senior unsecured notes due 2047
Debt instrument
Total principal amount	$ 300,000	$ 300,000
Interest rate (as a percent)	4.65%	4.65%	4.65%
Percentage price paid to the investor	99.97%	99.97%
Effective yield (as a percent)	4.65%	4.65%
4.125% senior unsecured notes due 2026
Debt instrument
Total principal amount	$ 400,000	$ 400,000		$ 250,000
Interest rate (as a percent)	4.125%	4.125%
Percentage price paid to the investor	102.98%	102.98%
Effective yield (as a percent)	3.75%	3.75%
Proceeds from issuance of debt	$ 705,200

Redemption of Preferred Stock (

Redemption of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended
	Apr. 30, 2017	Mar. 31, 2017	Mar. 31, 2017
Excess of redemption value over carrying value of preferred shares subject to redemption			$ 13,373
Class F Preferred Stock
Preferred stock redeemed (in shares)	16,350,000	16,350,000
Preferred stock, dividend rate (as a percent)		6.625%
Preferred stock, redemption price per share (in dollars per share)	$ 25	$ 25	$ 25
Preferred stock, redemption amount		$ 408,800	$ 408,800
Excess of redemption value over carrying value of preferred shares subject to redemption		$ 13,400

Equity - Issuance of Common Sto

Equity - Issuance of Common Stock (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2017
Issuance of common stock
Net proceeds from issuance of common shares		$ 705,012
Common stock
Issuance of common stock
Shares issued	11,850,000
Underwriting discounts and offering costs	$ 29,700
Net proceeds from issuance of common shares	$ 705,000

Equity - Dividend Reinvestment

Equity - Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) $ in Millions	3 Months Ended		73 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017
Equity
Authorized common shares to be issued	26,000,000
Number of common shares issued	966,557	61,458	13,836,446
Amount raised from shares issued	$ 57	$ 3.5	$ 650.2
Number of common shares issued under the waiver approval process	927,695
Amount raised from share issued under the waiver approval process	$ 54.7

Equity - At-the-Market (ATM) Pr

Equity - At-the-Market (ATM) Program (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	19 Months Ended
	Sep. 30, 2015	Mar. 31, 2016	Mar. 31, 2017
Procceds from At-the-Market (ATM) program		$ 30,547
ATM
Shares authorized	12,000,000
Share issuances, net of costs (in shares)		500,000	3,493,441
Procceds from At-the-Market (ATM) program		$ 30,500	$ 203,100

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)shares	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)propertyitemshares	Jun. 27, 2013shares	Jan. 22, 2013shares
Noncontrolling interests
Conversion ratio	1
Number of properties acquired | property			2
Number of joint ventures controlling interest acquired | item			2
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 20,249
Distributions	(634)
Allocation of net income	165	$ 241
Carrying value at end of the period	$ 19,780		$ 20,249
Joint Venture One
Noncontrolling interests
Ownership interest (as a percent)	92.40%
Joint Venture Two
Noncontrolling interests
Ownership interest (as a percent)	74.00%
Tau Operating Partnership, L.P.
Noncontrolling interests
Realty Income partnership units, ownership interest (as a percent)	99.40%
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 13,405
Distributions	(200)
Allocation of net income	65
Carrying value at end of the period	$ 13,270		$ 13,405
Units held by third party | shares	317,022		317,022		317,022
Realty Income, L.P.
Noncontrolling interests
Third party partnership units, ownership interest (as a percent)	0.40%
Realty Income partnership units, ownership interest (as a percent)	99.60%
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 2,216
Distributions	(56)
Allocation of net income	64
Carrying value at end of the period	$ 2,224		$ 2,216
Units held by third party | shares	88,182		88,182	534,546
Other Noncontrolling Interests
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 4,628
Distributions	(378)
Allocation of net income	36
Carrying value at end of the period	$ 4,286		$ 4,628

Noncontrolling Interests - Vari

Noncontrolling Interests - Variable interest entity (Details) - Accounting Standards Update ("ASU") 2015-02 - Consolidation (Topic 810): Amendments to the Consolidation Analysis - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Variable interest entity
Net real estate	$ 2,996,473	$ 3,040,903
Total assets	3,464,114	3,499,481
Total debt	250,002	251,047
Total liabilities	$ 355,600	$ 364,797

Fair Value of Financial Instr54

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Level 2 | Accounts payable and accrued expenses | Interest rate swaps
Fair value of financial assets and liabilities
Fair value of interest rate swaps	$ 1,000,000
Level 2 | Other assets, net | Interest rate swaps
Fair value of financial assets and liabilities
Fair value of interest rate swaps	210,000
Carrying value per balance sheet
Fair value of financial assets and liabilities
Notes receivable issued in connection with property sales	5,400,000	$ 5,400,000
Mortgages payable assumed in connection with acquisitions, net	463,300,000	466,000,000
Notes and bonds payable, net	4,641,100,000	3,934,400,000
Estimated fair value
Fair value of financial assets and liabilities
Notes receivable issued in connection with property sales	5,500,000	5,500,000
Mortgages payable assumed in connection with acquisitions, net	465,900,000	468,700,000
Notes and bonds payable, net	$ 4,845,800,000	$ 4,143,300,000

Gain on Sales of Real Estate (D

Gain on Sales of Real Estate (Details) - New properties and properties under development $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)property	Mar. 31, 2016USD ($)property
Sales of properties
Number of properties sold | property	14	11
Sales proceeds	$ 31.2	$ 11
Gain on sales of properties	$ 10.5	$ 2.3

Impairments (Details)

Impairments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)propertyitem	Mar. 31, 2016USD ($)propertyitem
Impairments
Total Provisions for impairment | $	$ 5.4	$ 1.9
Number of impaired properties held-for-sale	5
Number of impaired properties held-for-investment	3
Number of impaired properties sold	1	8
Number of industries | item	5	7

Distributions Paid and Payabl57

Distributions Paid and Payable (Details) $ / shares in Units, $ in Millions	1 Months Ended							3 Months Ended
	Apr. 30, 2017$ / sharesshares	Mar. 31, 2017$ / sharesshares	Feb. 28, 2017$ / shares	Jan. 31, 2017$ / shares	Mar. 31, 2016$ / shares	Feb. 29, 2016$ / shares	Jan. 31, 2016$ / shares	Mar. 31, 2017USD ($)item$ / shares	Mar. 31, 2016USD ($)item$ / shares
Common stock
Issuance of common stock
Dividends paid per common share (in dollars per share)		$ 0.2105000	$ 0.2105000	$ 0.2025000	$ 0.1985000	$ 0.1985000	$ 0.1910000	$ 0.6235000	$ 0.5880000
Monthly distributions payable (in dollars per share)		0.211						0.211
Class F Preferred Stock
Issuance of common stock
Monthly distributions payable (in dollars per share)		$ 0.101215						$ 0.101215
Period for which dividends are paid | item								3	3
Dividends paid per preferred share (in dollars per share)								$ 0.414063	$ 0.414063
Preferred stock dividends paid | $								$ 3.9	$ 6.8
Preferred stock redeemed (in shares) | shares	16,350,000	16,350,000
Preferred stock, redemption price per share (in dollars per share)	$ 25	$ 25						$ 25

Net Income per Common Share (De

Net Income per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net Income per Common Share
Weighted average shares used for the basic net income per share computation	263,340,491	250,173,815
Incremental shares from share-based compensation	276,791	207,186
Weighted average shares used for diluted net income per share computation	263,934,304	250,698,023
Unvested Shares
Net Income per Common Share
Unvested shares from share-based compensation that were anti-dilutive	58,887	400
Convertible Partnership Units
Net Income per Common Share
Weighted average partnership common units convertible to common shares that were dilutive	317,022	317,022
Unvested shares from share-based compensation that were anti-dilutive	88,182	330,045

Supplemental Disclosures of C59

Supplemental Disclosures of Cash Flow Information (Details)	3 Months Ended
	Mar. 31, 2017USD ($)building	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Supplemental Disclosures of Cash Flow Information
Cash paid for interest	$ 75,600,000	$ 84,100,000
Interest capitalized to properties under development	190,000	126,000
Cash paid for income taxes	$ 2,500,000	1,600,000
Non-cash activities
Number of buildings damaged | building	2
Insurance proceeds receivable	$ 10,641,000		$ 300,000
Loans Assumed		32,500,000
Net premiums recorded on mortgages assumed		$ 692,000

Segment Information - Assets (D

Segment Information - Assets (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Dec. 31, 2016USD ($)segment
Reconciliation of assets from segment to consolidated
Number of activity segments | segment	47
Net real estate	$ 12,095,840	$ 11,903,791
Goodwill	15,036	15,067
Other corporate assets	203,214	151,693
Total assets	13,422,186	13,152,871
Apparel stores
Reconciliation of assets from segment to consolidated
Net real estate	173,999	175,418
Intangible assets	42,704	43,786
Automotive service
Reconciliation of assets from segment to consolidated
Net real estate	205,607	152,220
Intangible assets	36,905	33,160
Goodwill	439	440
Automotive tire services
Reconciliation of assets from segment to consolidated
Net real estate	251,650	238,151
Intangible assets	11,115	11,533
Goodwill	862	862
Beverages
Reconciliation of assets from segment to consolidated
Net real estate	292,377	293,447
Intangible assets	2,216	2,280
Child care
Reconciliation of assets from segment to consolidated
Net real estate	48,604	49,584
Goodwill	4,945	4,945
Convenience stores
Reconciliation of assets from segment to consolidated
Net real estate	1,041,436	1,050,285
Intangible assets	14,004	14,372
Goodwill	2,004	2,008
Dollar stores
Reconciliation of assets from segment to consolidated
Net real estate	1,111,511	1,120,896
Intangible assets	49,853	51,249
Drug stores
Reconciliation of assets from segment to consolidated
Net real estate	1,529,785	1,541,846
Intangible assets	179,784	182,981
Financial services
Reconciliation of assets from segment to consolidated
Net real estate	403,931	408,228
Intangible assets	28,551	29,749
General merchandise
Reconciliation of assets from segment to consolidated
Net real estate	247,193	248,040
Intangible assets	43,975	43,248
Grocery stores
Reconciliation of assets from segment to consolidated
Net real estate	679,524	464,359
Intangible assets	102,491	65,412
Health and fitness
Reconciliation of assets from segment to consolidated
Net real estate	807,317	823,697
Intangible assets	62,202	63,574
Home improvement
Reconciliation of assets from segment to consolidated
Net real estate	309,905	311,459
Intangible assets	47,434	49,932
Motor vehicle dealerships
Reconciliation of assets from segment to consolidated
Net real estate	209,588	197,713
Intangible assets	34,412	25,032
Restaurants-casual dining
Reconciliation of assets from segment to consolidated
Net real estate	499,380	511,863
Intangible assets	21,563	22,058
Goodwill	2,094	2,107
Restaurants-quick service
Reconciliation of assets from segment to consolidated
Net real estate	571,215	574,532
Intangible assets	42,606	43,356
Goodwill	1,068	1,068
Theaters
Reconciliation of assets from segment to consolidated
Net real estate	365,757	370,732
Intangible assets	12,860	13,822
Transportation services
Reconciliation of assets from segment to consolidated
Net real estate	791,483	796,717
Intangible assets	98,001	101,664
Wholesale clubs
Reconciliation of assets from segment to consolidated
Net real estate	436,306	439,557
Intangible assets	31,941	32,723
Other
Reconciliation of assets from segment to consolidated
Net real estate	2,119,272	2,135,047
Intangible assets	245,479	252,389
Goodwill	$ 3,624	$ 3,637
Number of non-reportable segments | segment	28	28

Segment Information - Revenue (

Segment Information - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment revenue information
Rental revenue	$ 285,821	$ 256,801
Tenant reimbursements	11,229	9,105
Other revenue	975	1,210
Total revenue	298,025	267,116
Apparel stores
Segment revenue information
Rental revenue	4,966	4,875
Automotive service
Segment revenue information
Rental revenue	5,543	4,677
Automotive tire services
Segment revenue information
Rental revenue	7,159	7,264
Beverages
Segment revenue information
Rental revenue	7,758	6,404
Child care
Segment revenue information
Rental revenue	5,487	5,092
Convenience stores
Segment revenue information
Rental revenue	28,303	22,864
Dollar stores
Segment revenue information
Rental revenue	22,752	22,595
Drug stores
Segment revenue information
Rental revenue	31,631	28,421
Financial services
Segment revenue information
Rental revenue	7,159	4,313
General merchandise
Segment revenue information
Rental revenue	5,361	4,259
Grocery stores
Segment revenue information
Rental revenue	10,162	7,645
Health and fitness
Segment revenue information
Rental revenue	21,605	21,304
Home improvement
Segment revenue information
Rental revenue	6,919	6,054
Motor vehicle dealerships
Segment revenue information
Rental revenue	6,736	4,214
Restaurants-casual dining
Segment revenue information
Rental revenue	10,890	9,835
Restaurants-quick service
Segment revenue information
Rental revenue	14,336	12,794
Theaters
Segment revenue information
Rental revenue	13,344	13,449
Transportation services
Segment revenue information
Rental revenue	15,388	13,091
Wholesale clubs
Segment revenue information
Rental revenue	9,413	9,370
Other
Segment revenue information
Rental revenue	$ 50,909	$ 48,281

Common Stock Incentive Plan (De

Common Stock Incentive Plan (Details) - 2012 Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Plan disclosures
Plan term from the date of adoption	10 years
General and administrative expense
Plan disclosures
Share-based compensation costs recognized	$ 2.8	$ 2.6
Maximum
Plan disclosures
Authorized shares	3,985,734
Restricted Stock
Number of shares
Shares granted	114,118
Additional disclosures
Granted shares that vest over four year service period	72,626
Granted shares that vest over five year service period	41,492
Remaining unamortized share-based compensation expense	$ 23.8
Performance Shares
Additional disclosures
Awards vesting on the first and second January1 after the end of the three year performance period (as a percent)	50.00%
Performance Shares | Executive officers
Number of shares
Shares granted	111,637
Restricted Stock Units
Number of shares
Shares granted	10,191
Additional disclosures
Granted shares that vest over four year service period	6,161
Granted shares that vest over five year service period	4,030
Performance Shares and Restricted Stock Units
Additional disclosures
Remaining unamortized share-based compensation expense	$ 12.5

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2017USD ($)
Commitments and Contingencies
Amount of commitments for re-leasing costs, recurring capital expenditures and non-recurring building improvements	$ 5
Amount of commitments for construction contracts, which is expected to be paid in next twelve months	$ 67.1

Subsequent Events (Details)

Subsequent Events (Details)	1 Months Ended
	Apr. 30, 2017$ / shares
Subsequent event | Common stock
Subsequent events
Common stock, dividends declared (in dollars per share)	$ 0.211