Realty Income (O) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 02, 2018
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, 2018
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		284,387,217
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Real estate, at cost:
Land	$ 4,259,909	$ 4,080,400
Buildings and improvements	11,145,329	10,936,069
Total real estate, at cost	15,405,238	15,016,469
Less accumulated depreciation and amortization	(2,433,678)	(2,346,644)
Net real estate held for investment	12,971,560	12,669,825
Real estate held for sale, net	29,953	6,674
Net real estate	13,001,513	12,676,499
Cash and cash equivalents	20,627	6,898
Accounts receivable, net	125,690	119,533
Acquired lease intangible assets, net	1,262,252	1,194,930
Goodwill	14,943	14,970
Other assets, net	49,068	45,336
Total assets	14,474,093	14,058,166
LIABILITIES AND EQUITY
Distributions payable	62,904	60,799
Accounts payable and accrued expenses	92,379	109,523
Acquired lease intangible liabilities, net	303,204	268,796
Other liabilities	123,705	116,869
Line of credit payable	1,082,000	110,000
Term loans, net	319,441	445,286
Mortgages payable, net	313,173	325,941
Notes payable, net	4,879,628	5,230,244
Total liabilities	7,176,434	6,667,458
Commitments and contingencies
Stockholders' equity:
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 284,380,175 shares issued and outstanding as of March 31, 2018 and 284,213,685 shares issued and outstanding as of December 31, 2017	9,625,200	9,624,264
Distributions in excess of net income	(2,357,220)	(2,252,763)
Total stockholders' equity	7,267,980	7,371,501
Noncontrolling interests	29,679	19,207
Total equity	7,297,659	7,390,708
Total liabilities and equity	$ 14,474,093	$ 14,058,166

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
CONSOLIDATED BALANCE SHEETS
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	284,380,175	284,213,685
Common stock and paid in capital, shares outstanding	284,380,175	284,213,685

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUE
Total revenue	$ 318,295	$ 298,025
EXPENSES
Depreciation and amortization	131,103	121,097
Interest	59,415	59,305
General and administrative	15,684	13,565
Property (including reimbursable)	16,552	19,075
Income taxes	1,223	1,047
Provisions for impairment	14,221	5,433
Total expenses	238,198	219,522
Gain on sales of real estate	3,218	10,532
Net income	83,315	89,035
Net income attributable to noncontrolling interests	(152)	(165)
Net income attributable to the Company	83,163	88,870
Preferred stock dividends		(3,911)
Excess of redemption value over carrying value of preferred shares redeemed		(13,373)
Net income available to common stockholders	$ 83,163	$ 71,586
Amounts available to common stockholders per common share:
Net income, basic and diluted (in dollars per share)	$ 0.29	$ 0.27
Weighted average common shares outstanding:
Basic (in shares)	283,917,418	263,340,491
Diluted (in shares)	284,345,328	263,934,304
Rental revenue
REVENUE
Total revenue	$ 306,548	$ 285,821
Tenant reimbursements
REVENUE
Total revenue	11,300	11,229
Other revenue
REVENUE
Total revenue	$ 447	$ 975

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 83,315	$ 89,035
Adjustments to net income:
Depreciation and amortization	131,103	121,097
Amortization of share-based compensation	3,662	2,753
Non-cash revenue adjustments	(1,544)	(1,343)
Amortization of net premiums on mortgages payable	(459)	(630)
Amortization of deferred financing costs	1,652	2,390
Gain on interest rate swaps	(2,007)	(1,330)
Gain on sales of real estate	(3,218)	(10,532)
Provisions for impairment on real estate	14,221	5,433
Change in assets and liabilities
Accounts receivable and other assets	(2,473)	3,027
Accounts payable, accrued expenses and other liabilities	(10,723)	6,119
Net cash provided by operating activities	213,529	216,019
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in real estate	(498,448)	(374,573)
Improvements to real estate, including leasing costs	(8,940)	(3,749)
Proceeds from sales of real estate	13,779	31,232
Insurance proceeds received	1,184
Collection of loans receivable	32	30
Non-refundable escrow deposits for pending acquisitions	(442)
Net cash used in investing activities	(492,835)	(347,060)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash distributions to common stockholders	(185,556)	(162,506)
Cash dividends to preferred stockholders		(6,168)
Borrowings on line of credit	1,058,000	79,000
Payments on line of credit	(86,000)	(1,199,000)
Principal payment on term loan	(125,866)
Proceeds from notes and bonds payable issued		711,812
Principal payment on notes payable	(350,000)
Principal payments on mortgages payable	(12,323)	(2,120)
Proceeds from common stock offerings, net		705,012
Proceeds from dividend reinvestment and stock purchase plan	2,346	56,991
Distributions to noncontrolling interests	(313)	(631)
Debt issuance costs		(6,614)
Other items, including shares withheld upon vesting	(6,542)	(5,417)
Net cash provided by financing activities	293,746	170,359
Net increase in cash, cash equivalents and restricted cash	14,440	39,318
Cash, cash equivalents and restricted cash, beginning of period	12,142	15,681
Cash, cash equivalents and restricted cash, end of period	$ 26,582	$ 54,999

Management Statement

Management Statement	3 Months Ended
	Mar. 31, 2018
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, 2017, which are included in our 2017 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, 2018, we owned 5,326 properties, located in 49 states and Puerto Rico, containing over 90.3 million leasable square feet.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements	2. A. The accompanying consolidated financial statements include the accounts of Realty Income and other subsidiaries 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 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. D. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. This ASU, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, 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, which is effective for interim and annual periods beginning after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. We adopted this standard effective as of January 1, 2018 and utilized the cumulative effect transition method of adoption. The adoption of this guidance did not have a material impact on our financial position or results of operations. E. In February 2016 , FASB issued ASU 2016-02 (Topic 842, Leases ), as clarified and amended by ASU 2018-01, 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, for interim and annual periods beginning after December 15, 2018. We plan to adopt this standard when it becomes effective beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard.

Supplemental Detail for Certain

Supplemental Detail for Certain Components of Consolidated Balance Sheets	3 Months Ended
	Mar. 31, 2018
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: Prepaid expenses $ $ Non-refundable escrow deposits for pending acquisitions Corporate assets, net Impounds related to mortgages payable Notes receivable issued in connection with property sales Receivable for property rebuilds Credit facility origination costs, net Restricted escrow deposits Other items $ $ C. Distributions payable consist of the following declared distributions March 31, December 31, (dollars in thousands) at: Common stock distributions $ $ Noncontrolling interests distributions $ $ D. Accounts payable and accrued expenses consist of the following March 31, December 31, (dollars in thousands) at: Notes payable - interest payable $ $ Property taxes payable Mortgages, term loans, credit line - interest payable and interest rate swaps Accrued costs on properties under development Other items $ $ E. Acquired lease intangible liabilities, net, consist of the following March 31, December 31, (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 $ $ Security deposits Capital lease obligations $ $

Investments in Real Estate

Investments in Real Estate	3 Months Ended
	Mar. 31, 2018
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 2018 and 2017 During the first three months of 2018, we invested $509.8 million in 174 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 6.2%. The 174 new properties and properties under development or expansion are located in 27 states, will contain approximately 954,000 leasable square feet, and are 100% leased with a weighted average lease term of 14.0 years. The tenants occupying the new properties operate in 12 industries and are 100% retail properties, based on rental revenue. None of our investments during 2018 caused any one tenant to be 10% or more of our total assets at March 31, 2018. The $509.8 million invested during the first three months of 2018 was allocated as follows: $185.5 million to land, $249.2 million to buildings and improvements, $85.6 million to intangible assets related to leases, and $10.5 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 2018 generated total revenues of $296,000 and a net loss of $215,000 during the three months ended March 31, 2018. In comparison, 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 were located in 18 states, contain approximately 1.5 million leasable square feet, and were 100% leased with a weighted average lease term of 16.4 years. The tenants occupying the new properties operated in 13 industries and the property types consisted of 98.7% retail and 1.3% industrial, based on rental revenue. 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 during the three months ended March 31, 2017. 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 $509.8 million we invested during the first three months of 2018, $3.8 million was invested in six properties under development or expansion with an estimated initial weighted average contractual lease rate of 6.7%. 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%. B. Investments in Existing Properties During the first three months of 2018, we capitalized costs of $3.2 million on existing properties in our portfolio, consisting of $917,000 for re-leasing costs, $11,000 for recurring capital expenditures and $2.3 million for non-recurring building improvements. In comparison, 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 nonrecurring building improvements. C. Properties with Existing Leases Of the $509.8 million we invested during the first three months of 2018, approximately $110.4 million was used to acquire 53 properties with existing leases. In comparison, 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. 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 2018 and 2017 were $26.4 million and $24.8 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 2018 and 2017 were $3.9 million and $2.4 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, 2018 (in thousands): Net Increase to decrease to amortization rental revenue expense 2018 $ ) $ 2019 ) 2020 (17,053 ) 2021 ) 2022 ) Thereafter ) Totals $ ) $

Credit Facility

Credit Facility	3 Months Ended
	Mar. 31, 2018
Credit Facility
Credit facility
Debt	5. Credit Facility We have a $2.0 billion unsecured revolving credit facility, or our credit facility, with an initial term that 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, 2018 provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 0.85% with a facility commitment fee of 0.125%, for all-in drawn pricing of 0.975% 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, 2018, credit facility origination costs of $3.6 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, 2018, we had a borrowing capacity of $918.0 million available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $1.082 billion, as compared to an outstanding balance of $110.0 million at December 31, 2017. The weighted average interest rate on outstanding borrowings under our credit facility was 2.5% during the first three months of 2018 and 1.7% during the first three months of 2017. Our credit facility is subject to various leverage and interest coverage ratio limitations, and at March 31, 2018, we were in compliance with the covenants on our credit facility. We regularly review our credit facility and may seek to extend, renew or replace our credit facility, to the extent we deem appropriate.

Term Loans

Term Loans	3 Months Ended
	Mar. 31, 2018
Senior Unsecured Term Loans
Term Loans
Debt	6. Term Loans In December 2017, in conjunction with the acquisition of a portfolio of properties, we entered into a $125.9 million promissory note, which was paid in full at maturity in January 2018. Borrowings under this note bore interest at 1.52%. 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 0.90%. 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 2.62%. 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 with an initial maturity date of January 2018. Borrowing under this term loan bore interest at the current one-month LIBOR, plus 1.10%. In conjunction with this term loan, we also entered into an interest rate swap which effectively fixed our per annum interest rate on this term loan at 2.05%. In January 2018, we entered into a six-month extension of this loan, which now matures in July 2018 and includes, at our option, two additional six-month extensions. Borrowing during the extension periods bears interest at the current one-month LIBOR, plus 0.90%. The interest rate swap terminated upon the initial maturity in January 2018. Deferred financing costs of $1.2 million incurred in conjunction with the $250 million term loan and $368,000 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 $559,000 at March 31, 2018, and $580,000 at December 31, 2017, is included within term loans, net on our consolidated balance sheets.

Mortgages Payable

Mortgages Payable	3 Months Ended
	Mar. 31, 2018
Mortgages Payable
Debt
Debt	7. Mortgages Payable During the first three months of 2018, we made $12.3 million in principal payments, including the repayment of one mortgage in full for $11.0 million. 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 2018 or 2017. The assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. We expect to pay off our mortgages as soon as prepayment penalties make it economically feasible to do so. 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, 2018, we were 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 $223,000 at March 31, 2018 and $236,000 at December 31, 2017. 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, 2018 and December 31, 2017, 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 3/31/18 $ $ $ 12/31/17 $ $ $ (1) At March 31, 2018, there were 27 mortgages on 61 properties. At December 31, 2017, there were 28 mortgages on 62 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for three mortgages on three properties totaling $29.7 million and $29.9 million at March 31, 2018 and December 31, 2017, respectively. 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 $22.3 million at March 31, 2018 and $22.4 million at December 31, 2017. (2) Stated interest rates ranged from 3.7% to 6.9% at March 31, 2018, while stated interest rates ranged from 3.4% to 6.9% at December 31, 2017. (3) Effective interest rates ranged from 2.3% to 5.7% at March 31, 2018, while effective interest rates ranged from 2.6% to 5.5% at December 31, 2017. The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.4 million and deferred finance costs of $223,000, as of March 31, 2018 (dollars in millions): Year of Maturity Principal 2018 $ 2019 2020 2021 2022 Thereafter Totals $

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2018
Notes Payable
Debt
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, 2.000% notes, issued in October 2012 and due in January 2018 $ - $ 5.750% notes, issued in June 2010 and due in January 2021 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both 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, both due in October 2026 3.000% notes, issued in October 2016 and due in January 2027 3.650% notes, issued in December 2017 and due in January 2028 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 Total principal amount Unamortized net original issuance premiums and deferred financing costs ) ) $ $ The following table summarizes the maturity of our notes and bonds payable as of March 31, 2018, excluding net unamortized original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2018 $ - 2019 - 2020 - 2021 2022 Thereafter Totals $ As of March 31, 2018, the weighted average interest rate on our notes and bonds payable was 4.1% and the weighted average remaining years until maturity was 9.7 years. B. Note Repayment In January 2018, we repaid our $350.0 million of outstanding 2.000% notes, plus accrued and unpaid interest upon maturity. C. 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.

Equity

Equity	3 Months Ended
	Mar. 31, 2018
Equity
Equity	9. 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 $29.8 million, the net proceeds of $704.9 million were used to repay borrowings under our credit facility. B. Redemption of Preferred Stock In April 2017, we redeemed all of the 16,350,000 shares of our 6.625% Monthly Income Class F Preferred Stock, or the Class F preferred stock, for $25 per share, plus accrued dividends. We issued an irrevocable notice of redemption with respect to the Class F preferred stock in March 2017, and, as a result, we incurred a non-cash charge of $13.4 million for the first three months of 2017, representing the Class F preferred stock original issuance costs that we paid in 2012. C. Dividend Reinvestment and Stock Purchase Plan Our Dividend Reinvestment and Stock Purchase Plan, or our 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 common 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 2018, we issued 45,933 shares and raised approximately $2.3 million under the DRSPP. During the first three months of 2017, we issued 966,557 shares and raised approximately $57.0 million under the DRSPP. From the inception of the DRSPP through March 31, 2018, we have issued 14,109,475 shares and raised approximately $664.2 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. We did not issue shares under the waiver approval process during the first three months of 2018. During the first three months of 2017, we issued 927,695 shares and raised $54.7 million under the waiver approval process. These shares are included in the total activity for the first three months of 2017 noted in the preceding paragraph. D. At-the-Market (ATM) Programs In September 2015, we established an “at-the-market” equity distribution program, or our ATM program, pursuant to which we can offer and sell up to 12,000,000 shares of common stock to, or through, a consortium of banks acting as our sales agents by means of ordinary brokers’ transactions on the NYSE at prevailing market prices or at negotiated prices. In October 2017, following the issuance and sale of the remaining shares under our prior ATM program, we established a new “at-the-market” equity distribution plan, or our new ATM program, and, together with our prior ATM program, our ATM programs, pursuant to which we are permitted to offer and sell up to 17,000,000 additional shares of common stock. We did not issue any shares under the ATM programs during the first three months of 2018 or 2017. From the inception of our ATM programs through March 31, 2018, we have issued 14,407,529 shares authorized by our ATM programs and raised $824.8 million.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2018
Noncontrolling Interests
Noncontrolling Interests	10. 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. Additionally, in March 2018, we completed the acquisition of an additional portfolio of properties, by both paying cash and issuing additional common partnership units in Realty Income, L.P as consideration for the acquisition. At March 31, 2018, the remaining units from this issuance represent a 1.1% ownership in Realty Income, L.P. We hold the remaining 98.9% 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, 2018, we and our subsidiaries held 95.0% and 74.0% 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, 2018 (dollars in thousands): Tau Operating Realty Income, L.P. Other Partnership units (1) units (2) Interests Total Carrying value at December 31, 2017 $ $ $ $ Reallocation of equity - - - - Redemptions - ) - ) Shares issued in conjunction with acquisition - Distributions ) ) ) ) Allocation of net income Carrying value at March 31, 2018 $ $ $ $ (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of March 31, 2018 and December 31, 2017. (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 242,007 units were issued on March 30, 2018. 270,189 and 88,182 remained outstanding as of March 31, 2018 and December 31, 2017, respectively. Both Tau Operating Partnership and Realty Income, L.P. are considered variable interest entities, or VIEs, in which we are deemed the primary beneficiary based on our controlling financial interests. 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, 2018 and December 31, 2017 (in thousands): March 31, 2018 December 31, 2017 Net real estate $ $ Total assets Total debt Total liabilities

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2018
Fair Value of Financial Instruments
Fair Value of Financial Instruments	11. 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): Estimated fair At March 31, 2018 Carrying value value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions (1) Notes and bonds payable (2) Estimated fair At December 31, 2017 Carrying value value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions (1) Notes and bonds payable (2) (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $5.4 million at March 31, 2018, and $5.9 million at December 31, 2017. Also excludes deferred financing costs of $223,000 at March 31, 2018 and $236,000 at December 31, 2017. (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums is $13.9 million at March 31, 2018, and $14.3 million at December 31, 2017. Also excludes deferred financing costs of $34.3 million at March 31, 2018 and $34.1 million at December 31, 2017. 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 forward interest rate 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, 2018, interest rate swaps in a liability position valued at $307,000 were included in accounts payable and accrued expenses and interest rate swaps in an asset position valued at $3.6 million 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, 2018
Gain on Sales of Real Estate
Gain on Sales of Real Estate	12. Gain on Sales of Real Estate During the first three months of 2018, we sold 14 properties for $13.8 million, which resulted in a gain of $3.2 million. During the first three months of 2017, we sold 14 properties for $31.2 million, which resulted in a gain of $10.5 million.

Impairments

Impairments	3 Months Ended
	Mar. 31, 2018
Impairments
Impairments	13. 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 2018, we recorded total provisions for impairment of $14.2 million on five properties classified as held for sale, one property classified as held for investment, and four sold properties. For the first three months of 2017, we recorded total provisions for impairment of $5.4 million on one property classified as held for sale, three properties classified as held for investment, and five sold properties.

Distributions Paid and Payable

Distributions Paid and Payable	3 Months Ended
	Mar. 31, 2018
Distributions Paid and Payable
Distributions Paid and Payable	14. 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 2018 and 2017: Month January $ $ February March Total $ $ At March 31, 2018, a distribution of $0.2195 per common share was payable and was paid in April 2018. B. Class F Preferred Stock In April 2017, we redeemed all 16,350,000 shares of our Class F preferred stock. During the first three months of 2017, we paid three monthly dividends to holders of our Class F preferred stock totaling $0.414063 per share, or $3.9 million. In April 2017, we paid a final monthly dividend of $0.101215 per share, or $1.7 million, which was recorded as interest expense, since these dividends accrued subsequent to the March 2017 notice of redemption.

Net Income per Common Share

Net Income per Common Share	3 Months Ended
	Mar. 31, 2018
Net Income per Common Share
Net Income per Common Share	15. 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, 2018
Supplemental Disclosures of Cash Flow Information
Supplemental Disclosures of Cash Flow Information	16. Supplemental Disclosures of Cash Flow Information Cash paid for interest was $71.9 million in the first three months of 2018 and $75.6 million in the first three months of 2017. Interest capitalized to properties under development was $57,000 in the first three months of 2018 and $190,000 the first three months of 2017. Cash paid for income taxes was $403,000 in the first three months of 2018 and $2.5 million the first three months of 2017. The following non-cash activities are included in the accompanying consolidated financial statements: A. During the first three months of 2018, we issued 242,007 common partnership units of Realty Income, L.P. as partial consideration for an acquisition of properties, totaling $12.1 million. B. 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. During 2017, we received the insurance proceeds for these properties. Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows ), the following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of the cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows: March 31, 2018 March 31, 2017 Cash and cash equivalents shown in the consolidated balance sheets $ $ Impounds related to mortgages payable (1) Restricted escrow deposits (1) Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ $ (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash we are legally entitled to that is not immediately available to us. As a result, they were considered restricted as of the dates presented.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2018
Segment Information
Segment Information	17. 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 $ 163,364 $ 164,919 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 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 $ $ Three months ended March 31, Revenue for the three months ended March 31, Segment rental revenue: Apparel $ $ 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 Other non-reportable segments Total rental revenue Tenant reimbursements Other revenue Total revenue $ $

Common Stock Incentive Plan

Common Stock Incentive Plan	3 Months Ended
	Mar. 31, 2018
Common Stock Incentive Plan
Common Stock Incentive Plan	18. 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 $3.7 million during the first three months of 2018 and $2.8 million during the first three months of 2017. A. Restricted Stock During the first three months of 2018, we granted 100,553 shares of common stock under the 2012 Plan. These shares vest over a four-year service period. Shares granted to employees typically vest in equal parts over a four-year or five-year service period. As of March 31, 2018, the remaining unamortized share-based compensation expense related to restricted stock totaled $20.8 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 conditions 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 2018, we granted 190,449 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 2018, we also granted 8,383 restricted stock units, all of which vest over a four-year service period. These restricted stock units have the same economic rights as shares of restricted stock. As of March 31, 2018, the remaining share-based compensation expense related to the performance shares and restricted stock units totaled $17.7 million. The fair value of the performance shares were 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, 2018
Commitments and Contingencies
Commitments and Contingencies	19. 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, 2018, we had commitments of $15.3 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of March 31, 2018, we had committed $58.0 million under construction contracts, which is expected to be paid in the next twelve months.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events
Subsequent Events	20. Subsequent Events In April 2018, we declared a dividend of $0.2195 per share to our common stockholders, which will be paid in May 2018. In April 2018, we issued $500 million of 3.875% senior unsecured notes due 2025, or the 2025 Notes. The public offering price for the 2025 Notes was 99.50% of the principal amount, for an effective yield to maturity of 3.957%. The net proceeds of approximately $493.0 million from this offering were used to repay borrowings outstanding under our credit facility, to fund investment opportunities, and for other general corporate purposes.

Summary of Significant Accoun26

Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2018
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 subsidiaries 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.
Goodwill	C. 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	D. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. This ASU, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, 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, which is effective for interim and annual periods beginning after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. We adopted this standard effective as of January 1, 2018 and utilized the cumulative effect transition method of adoption. The adoption of this guidance did not have a material impact on our financial position or results of operations. E. In February 2016 , FASB issued ASU 2016-02 (Topic 842, Leases ), as clarified and amended by ASU 2018-01, 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, for interim and annual periods beginning after December 15, 2018. We plan to adopt this standard when it becomes effective beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard.

Supplemental Detail for Certa27

Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables)	3 Months Ended
	Mar. 31, 2018
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 ) ) $ $
Schedule of other assets, net	March 31, December 31, B. Other assets, net, consist of the following (dollars in thousands) at: Prepaid expenses $ $ Non-refundable escrow deposits for pending acquisitions Corporate assets, net Impounds related to mortgages payable Notes receivable issued in connection with property sales Receivable for property rebuilds Credit facility origination costs, net Restricted escrow deposits Other items $ $
Schedule of distributions payable	C. Distributions payable consist of the following declared distributions March 31, December 31, (dollars in thousands) at: Common stock distributions $ $ Noncontrolling interests distributions $ $
Schedule of accounts payable and accrued expenses	D. Accounts payable and accrued expenses consist of the following March 31, December 31, (dollars in thousands) at: Notes payable - interest payable $ $ Property taxes payable Mortgages, term loans, credit line - interest payable and interest rate swaps Accrued costs on properties under development Other items $ $
Schedule of acquired lease intangible liabilities, net	E. Acquired lease intangible liabilities, net, consist of the following March 31, December 31, (dollars in thousands) at: Acquired below-market leases $ $ Accumulated amortization of acquired below-market leases ) ) $ $
Schedule of 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 $ $ Security deposits Capital lease obligations $ $

Investments in Real Estate (Tab

Investments in Real Estate (Tables)	3 Months Ended
	Mar. 31, 2018
Investments in Real Estate
Schedule of future impact related to amortization 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, 2018 (in thousands): Net Increase to decrease to amortization rental revenue expense 2018 $ ) $ 2019 ) 2020 (17,053 ) 2021 ) 2022 ) Thereafter ) Totals $ ) $

Mortgages Payable (Tables)

Mortgages Payable (Tables) - Mortgages Payable	3 Months Ended
	Mar. 31, 2018
Debt
Summary of Mortgages Payable	The following is a summary of all our mortgages payable as of March 31, 2018 and December 31, 2017, 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 3/31/18 $ $ $ 12/31/17 $ $ $ (1) At March 31, 2018, there were 27 mortgages on 61 properties. At December 31, 2017, there were 28 mortgages on 62 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for three mortgages on three properties totaling $29.7 million and $29.9 million at March 31, 2018 and December 31, 2017, respectively. 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 $22.3 million at March 31, 2018 and $22.4 million at December 31, 2017. (2) Stated interest rates ranged from 3.7% to 6.9% at March 31, 2018, while stated interest rates ranged from 3.4% to 6.9% at December 31, 2017. (3) Effective interest rates ranged from 2.3% to 5.7% at March 31, 2018, while effective interest rates ranged from 2.6% to 5.5% at December 31, 2017.
Schedule of maturity of mortgages payable	The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.4 million and deferred finance costs of $223,000, as of March 31, 2018 (dollars in millions): Year of Maturity Principal 2018 $ 2019 2020 2021 2022 Thereafter Totals $

Notes Payable (Tables)

Notes Payable (Tables) - Notes Payable	3 Months Ended
	Mar. 31, 2018
Debt
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, 2.000% notes, issued in October 2012 and due in January 2018 $ - $ 5.750% notes, issued in June 2010 and due in January 2021 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both 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, both due in October 2026 3.000% notes, issued in October 2016 and due in January 2027 3.650% notes, issued in December 2017 and due in January 2028 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 Total principal amount Unamortized net original issuance premiums and deferred financing costs ) ) $ $
Schedule of maturity of debt, net	The following table summarizes the maturity of our notes and bonds payable as of March 31, 2018, excluding net unamortized original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2018 $ - 2019 - 2020 - 2021 2022 Thereafter Totals $

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 (dollars in thousands): Tau Operating Realty Income, L.P. Other Partnership units (1) units (2) Interests Total Carrying value at December 31, 2017 $ $ $ $ Reallocation of equity - - - - Redemptions - ) - ) Shares issued in conjunction with acquisition - Distributions ) ) ) ) Allocation of net income Carrying value at March 31, 2018 $ $ $ $ (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of March 31, 2018 and December 31, 2017. (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, and 242,007 units were issued on March 30, 2018. 270,189 and 88,182 remained outstanding as of March 31, 2018 and December 31, 2017, respectively.
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, 2018 and December 31, 2017 (in thousands): March 31, 2018 December 31, 2017 Net real estate $ $ Total assets Total debt Total liabilities

Fair Value of Financial Instr32

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
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): Estimated fair At March 31, 2018 Carrying value value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions (1) Notes and bonds payable (2) Estimated fair At December 31, 2017 Carrying value value Notes receivable issued in connection with property sales $ $ Mortgages payable assumed in connection with acquisitions (1) Notes and bonds payable (2) (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $5.4 million at March 31, 2018, and $5.9 million at December 31, 2017. Also excludes deferred financing costs of $223,000 at March 31, 2018 and $236,000 at December 31, 2017. (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums is $13.9 million at March 31, 2018, and $14.3 million at December 31, 2017. Also excludes deferred financing costs of $34.3 million at March 31, 2018 and $34.1 million at December 31, 2017.

Distributions Paid and Payable

Distributions Paid and Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Distributions Paid and Payable
Summary of monthly distributions paid	The following is a summary of monthly distributions paid per common share for the first three months of 2018 and 2017: Month January $ $ February March Total $ $

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	3 Months Ended
	Mar. 31, 2018
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

Supplemental Disclosures of C35

Supplemental Disclosures of Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2018
Supplemental Disclosures of Cash Flow Information
Schedule of reconciliation of cash, cash equivalents and restricted cash	March 31, 2018 March 31, 2017 Cash and cash equivalents shown in the consolidated balance sheets $ $ Impounds related to mortgages payable (1) Restricted escrow deposits (1) Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ $ (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash we are legally entitled to that is not immediately available to us. As a result, they were considered restricted as of the dates presented.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2018
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 $ 163,364 $ 164,919 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 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 $ $
Schedule of reconciliation of revenue from segments to consolidated	Three months ended March 31, Revenue for the three months ended March 31, Segment rental revenue: Apparel $ $ 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 Other non-reportable segments Total rental revenue Tenant reimbursements Other revenue Total revenue $ $

Management Statement (Details)

Management Statement (Details) ft² in Millions	Mar. 31, 2018ft²propertystate
Management Statement
Properties owned | property	5,326
Number of U.S. states where properties are owned | state	49
Leasable square feet | ft²	90.3

Supplemental Detail for Certa38

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Acquired Lease Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Acquired lease intangible assets, net
Acquired in-place leases	$ 1,290,704	$ 1,272,897
Accumulated amortization of acquired in-place leases	(470,345)	(444,221)
Acquired above-market leases	572,687	487,933
Accumulated amortization of acquired above-market leases	(130,794)	(121,679)
Total acquired lease intangible assets, net	$ 1,262,252	$ 1,194,930

Supplemental Detail for Certa39

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
Other assets, net
Prepaid expenses	$ 16,237	$ 12,851
Non-refundable escrow deposits for pending acquisitions	7,942	7,500
Corporate assets, net	5,991	6,074
Impounds related to mortgages payable	5,923	4,565	$ 2,074
Notes receivable issued in connection with property sales	5,235	5,267
Receivable for property rebuilds	4,051	3,919
Credit facility origination costs, net	3,638	4,366
Restricted escrow deposits	32	679	$ 25,327
Other items	19	115
Total other assets, net	$ 49,068	$ 45,336

Supplemental Detail for Certa40

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Distributions Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Distributions payable
Distributions payable	$ 62,904	$ 60,799
Noncontrolling interests
Distributions payable
Distributions payable	129	86
Common stock
Distributions payable
Distributions payable	$ 62,775	$ 60,713

Supplemental Detail for Certa41

Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Payable, Acquired Lease Intangibles, and Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Accounts payable and accrued expenses
Property taxes payable	$ 14,952	$ 11,718
Mortgages, term loans, credit line - interest payable and interest rate swaps	3,742	2,360
Accrued costs on properties under development	1,775	2,681
Other items	21,597	28,706
Total accounts payable and accrued expenses	92,379	109,523
Acquired lease intangible liabilities, net
Acquired below-market leases	380,586	340,906
Accumulated amortization of acquired below-market leases	(77,382)	(72,110)
Total acquired lease intangible liabilities, net	303,204	268,796
Other liabilities
Rent received in advance and other deferred revenue	111,997	105,284
Security deposits	6,304	6,259
Capital lease obligations	5,404	5,326
Total other liabilities	123,705	116,869
Notes Payable
Accounts payable and accrued expenses
Notes payable - interest payable	$ 50,313	$ 64,058

Investments in Real Estate - Ac

Investments in Real Estate - Acquisitions (Details)	3 Months Ended
	Mar. 31, 2018USD ($)ft²itemstate	Mar. 31, 2017USD ($)ft²itemstate
Investments in real estate properties
Leasable square feet | ft²	90,300,000
Total revenue	$ 318,295,000	$ 298,025,000
Net income (loss)	$ 83,315,000	89,035,000
Real Estate Investment
Investments in real estate properties
Number of investments in properties that caused any tenant to be 10% of more of total assets | item	0
Total revenue	$ 296,000	688,000
Net income (loss)	(215,000)	217,000
Real Estate Investment | New and under development or expansion
Investments in real estate properties
Value of properties acquired during the period	$ 509,800,000	$ 370,700,000
Number of properties acquired during the period | item	174	60
Initial weighted average contractual lease rate of properties acquired (as a percent)	6.20%	6.10%
Number of states in which properties are located | state	27	18
Leasable square feet | ft²	954,000	1,500,000
Leased area (as a percent)	100.00%	100.00%
Weighted average lease term	14 years	16 years 4 months 24 days
Allocated to Land	$ 185,500,000	$ 108,700,000
Allocated to Buildings and Improvements	249,200,000	209,500,000
Allocated to Intangible Assets related to Leases	85,600,000	53,900,000
Allocated to Intangible Liabilities related to Leases and Other Assumed Liabilities	10,500,000	1,400,000
Contingent consideration associated with acquisition	$ 0	$ 0
Real Estate Investment | New properties
Investments in real estate properties
Number of industries in which tenants operate | item		13
Real Estate Investment | New properties | Retail
Investments in real estate properties
Number of industries in which tenants operate | item	12
Property type-percentage of properties acquired	100.00%	98.70%
Real Estate Investment | New properties | Industrial
Investments in real estate properties
Property type-percentage of properties acquired		1.30%
Real Estate Investment | Properties under development
Investments in real estate properties
Value of properties acquired during the period	$ 3,800,000	$ 5,000,000
Number of properties acquired during the period | item	6	9
Initial weighted average contractual lease rate of properties acquired (as a percent)	6.70%	7.70%
Real Estate Investment | Maximum
Investments in real estate properties
Investments to any one tenant as a percentage of total assets	10.00%

Investments in Real Estate - In

Investments in Real Estate - Investments in Existing Properties (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Investments in Real Estate
Capitalized costs on existing properties	$ 3,200,000	$ 3,400,000
Re-leasing costs	917,000	410,000
Recurring capital expenditures	11,000	341,000
Nonrecurring building improvements	$ 2,300,000	$ 2,600,000

Investments in Real Estate - Pr

Investments in Real Estate - Properties with Existing Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017USD ($)item
Net decrease to rental revenue
2,018	$ (13,996)
2,019	(17,782)
2,020	(17,053)
2,021	(15,801)
2,022	(14,081)
Thereafter	(59,976)
Totals	(138,689)
Increase to amortization expense
2,018	78,871
2,019	95,948
2,020	90,191
2,021	82,239
2,022	70,962
Thereafter	402,148
Totals	820,359
In-Place Leases
Investments in real estate properties
Depreciation and amortization expense	26,400	$ 24,800
Rental Revenue
Investments in real estate properties
Amortization of above and below Market Leases	(3,900)	(2,400)
Real Estate Investment | New and under development or expansion
Investments in real estate properties
Value of properties acquired during the period	$ 509,800	$ 370,700
Number of properties acquired during the period | item	174	60
Real Estate Investment | New and under development or expansion | In-Place Leases
Investments in real estate properties
Value of properties acquired during the period	$ 110,400	$ 321,700
Number of properties acquired during the period | item	53	35

Credit Facility (Details)

Credit Facility (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)item	Mar. 31, 2017	Dec. 31, 2017USD ($)
Credit facility
Credit facility origination costs, net	$ 3,638		$ 4,366
Outstanding balance	$ 1,082,000		110,000
Credit Facility
Credit facility
Commitment fee (as a percent)	0.125%
Current borrowing capacity	$ 918,000
Outstanding balance	$ 1,082,000		$ 110,000
Weighted average borrowing rate during the period (as a percent)	2.50%	1.70%
Credit Facility | Other assets, net
Credit facility
Credit facility origination costs, net	$ 3,600
Credit Facility | Unsecured debt
Credit facility
Maximum borrowing capacity	$ 2,000,000
Number of extensions | item	2
Term of extension option	6 months
Accordion expansion option	$ 1,000,000
Credit Facility | LIBOR
Credit facility
Variable reference rate	LIBOR
Basis spread on variable rate (as a percent)	0.85%
All-in drawn variable interest rate (as a percent)	0.975%

Term Loans (Details)

Term Loans (Details)	1 Months Ended			3 Months Ended
	Jan. 31, 2018item	Jun. 30, 2015USD ($)	Jan. 31, 2013USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Promissory Note | $125.9 million promissory note
Term Loans
Face amount of loans					$ 125,900,000
Stated interest rate (as a percent)					1.52%
Senior Unsecured Term Loans
Term Loans
Deferred finance costs				$ 559,000	$ 580,000
Senior Unsecured Term Loans | $250 million senior unsecured term loan
Term Loans
Face amount of loans		$ 250,000,000
Variable reference rate		one-month LIBOR
Basis spread on variable rate (as a percent)		0.90%
Deferred financing costs incurred				1,200,000
Senior Unsecured Term Loans | Interest rate swaps | $250 million senior unsecured term loan
Term Loans
Effective yield (as a percent)		2.62%
Senior Unsecured Term Loans | ARCT | $70 million senior unsecured term loan
Term Loans
Face amount of loans			$ 70,000,000
Variable reference rate	one-month LIBOR		one-month LIBOR
Basis spread on variable rate (as a percent)	0.90%		1.10%
Loan extension period	6 months
Number of additional optional extensions | item	2
Deferred financing costs incurred				$ 368,000
Senior Unsecured Term Loans | ARCT | Interest rate swaps | $70 million senior unsecured term loan
Term Loans
Effective yield (as a percent)			2.05%

Mortgages Payable (Details)

Mortgages Payable (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)propertyloan	Mar. 31, 2017USD ($)loan	Dec. 31, 2017USD ($)propertyloan
Debt
Mortgage Payable Balance	$ 313,173,000		$ 325,941,000
Mortgages Payable
Debt
Amount repaid	$ 12,300,000	$ 2,100,000
Number of assumed mortgages refinanced | loan	0	0
Remaining balance of deferred financing costs at period end	$ 223,000		$ 236,000
Number of Properties | property	61		62
Weighted Average Stated Interest Rate	5.00%		5.00%
Weighted Average Effective Interest Rate (as a percent)	4.50%		4.40%
Weighted Average Remaining Years Until Maturity	3 years 10 months 24 days		4 years
Remaining Principal Balance	$ 307,960,000		$ 320,283,000
Unamortized Premium and Deferred Finance Costs Balance, net	5,213,000		5,658,000
Mortgage Payable Balance	$ 313,173,000		$ 325,941,000
Number of mortgages | loan	27		28
Mortgages Payable | Minimum
Debt
Weighted Average Effective Interest Rate (as a percent)	2.30%		2.60%
Stated interest rate (as a percent)	3.70%		3.40%
Mortgages Payable | Maximum
Debt
Weighted Average Effective Interest Rate (as a percent)	5.70%		5.50%
Stated interest rate (as a percent)	6.90%		6.90%
Mortgages Payable | Mortgages repaid in full
Debt
Amount repaid	$ 11,000,000
Number of mortgages repaid | loan	1
Mortgages Payable | Variable rate mortgages
Debt
Remaining Principal Balance	$ 29,700,000		$ 29,900,000
Number of mortgages | loan	3		3
Number of properties with mortgages | property	3		3
Mortgages Payable | Variable rate mortgages after interest rate arrangements
Debt
Remaining Principal Balance	$ 22,300,000		$ 22,400,000

Mortgages Payable - Maturities

Mortgages Payable - Maturities (Details) - Mortgages Payable - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Debt
Unamortized premium balance	$ 5,400,000
Remaining balance of deferred financing costs at period end	223,000	$ 236,000
Maturity of mortgages payable, excluding net premiums
2,018	9,600,000
2,019	20,700,000
2,020	82,400,000
2,021	67,000,000
2,022	109,700,000
Thereafter	18,600,000
Totals	$ 308,000,000

Notes Payable - General (Detail

Notes Payable - General (Details) - USD ($) $ in Thousands	1 Months Ended
	Dec. 31, 2017	Mar. 31, 2017	Sep. 30, 2014	Oct. 31, 2012	Jun. 30, 2011	Mar. 31, 2005	Mar. 31, 2018
Debt
Notes payable, net	$ 5,230,244						$ 4,879,628
Notes Payable
Debt
Notes payable, gross	5,250,000						4,900,000
Unamortized net original issuance premiums and deferred financing costs	(20,000)						(20,000)
Notes payable, net	$ 5,230,000						$ 4,880,000
2.000% notes, issued in October 2012 and due in January 2018 | Notes Payable
Debt
Interest rate (as a percent)	2.00%
Notes payable, gross	$ 350,000
5.750% notes, issued in June 2010 and due in January 2021 | Notes Payable
Debt
Interest rate (as a percent)	5.75%						5.75%
Notes payable, gross	$ 250,000						$ 250,000
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 | Notes Payable
Debt
Interest rate (as a percent)	3.25%						3.25%
Notes payable, gross	$ 950,000						$ 950,000
3.250% notes, issued in October 2012 and due in October 2022 | Notes Payable
Debt
Issuance of Debt				$ 450,000
3.250% notes, issued in December 2017 and due in October 2022 | Notes Payable
Debt
Issuance of Debt	$ 500,000
4.650% notes, issued in July 2013 and due in August 2023 | Notes Payable
Debt
Interest rate (as a percent)	4.65%						4.65%
Notes payable, gross	$ 750,000						$ 750,000
3.875% notes, issued in June 2014 and due in July 2024 | Notes Payable
Debt
Interest rate (as a percent)	3.875%						3.875%
Notes payable, gross	$ 350,000						$ 350,000
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 | Notes Payable
Debt
Interest rate (as a percent)	4.125%						4.125%
Notes payable, gross	$ 650,000						$ 650,000
4.125% notes, issued in September 2014 and due in October 2026 | Notes Payable
Debt
Issuance of Debt			$ 250,000
4.125% notes, issued in March 2017 and due in October 2026 | Notes Payable
Debt
Issuance of Debt		$ 400,000
3.000% notes, issued in October 2016 and due in January 2027 | Notes Payable
Debt
Interest rate (as a percent)	3.00%						3.00%
Notes payable, gross	$ 600,000						$ 600,000
3.650% notes, issued in December 2017 and due in January 2028 | Notes Payable
Debt
Interest rate (as a percent)	3.65%						3.65%
Notes payable, gross	$ 550,000						$ 550,000
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 | Notes Payable
Debt
Interest rate (as a percent)	5.875%						5.875%
Notes payable, gross	$ 250,000						$ 250,000
5.875% bonds, issued in March 2005 and due in March 2035 | Notes Payable
Debt
Issuance of Debt						$ 100,000
5.875% bonds, issued in June 2011 and due in March 2035 | Notes Payable
Debt
Issuance of Debt					$ 150,000
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 | Notes Payable
Debt
Interest rate (as a percent)	4.65%						4.65%
Notes payable, gross	$ 550,000						$ 550,000
4.650% notes, issued in March 2017 and due in March 2047 | Notes Payable
Debt
Issuance of Debt		$ 300,000
4.650% notes, issued in December 2017 and due in March 2047 | Notes Payable
Debt
Issuance of Debt	$ 250,000

Notes Payable - Maturities (Det

Notes Payable - Maturities (Details) - Notes and bonds payable $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)
Maturity of notes and bonds payable
2,021	$ 250
2,022	950
Thereafter	3,700
Totals	$ 4,900
Weighted average interest rate	4.10%
Weighted average remaining years until maturity	9 years 8 months 12 days

Notes Payable - Note Repayment

Notes Payable - Note Repayment (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Jan. 31, 2018	Mar. 31, 2018
Debt
Principal payments on notes payable		$ 350,000
Notes Payable | 2.000% notes, issued in October 2012 and due in January 2018
Debt
Principal payments on notes payable	$ 350,000

Notes Payable - Note Issuances

Notes Payable - Note Issuances (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Mar. 31, 2017	Sep. 30, 2014	Mar. 31, 2017
Debt
Proceeds from issuance of debt			$ 711,812
Notes Payable | 4.650% notes, issued in March 2017 and due in March 2047
Debt
Issuance of Debt	$ 300,000
Public offering price	99.97%		99.97%
Effective yield (as a percent)	4.65%		4.65%
Notes Payable | 4.125% notes, issued in March 2017 and due in October 2026
Debt
Issuance of Debt	$ 400,000
Public offering price	102.98%		102.98%
Effective yield (as a percent)	3.75%		3.75%
Notes Payable | 4.125% notes, issued in September 2014 and due in October 2026
Debt
Issuance of Debt		$ 250,000
Notes Payable | Notes issued in March 2017
Debt
Proceeds from issuance of debt	$ 705,200

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	$ 29,800
Net proceeds from issuance of common shares	$ 704,900

Equity - Redemption of Preferre

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

Equity - Dividend Reinvestment

Equity - Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) $ in Thousands	3 Months Ended		85 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018
Dividend Reinvestment and Stock Purchase Plan
Proceeds from dividend reinvestment and stock purchase plan	$ 2,346	$ 56,991
Common stock
Dividend Reinvestment and Stock Purchase Plan
Authorized common shares to be issued	26,000,000
Number of common shares issued	45,933	966,557	14,109,475
Proceeds from dividend reinvestment and stock purchase plan	$ 2,300	$ 57,000	$ 664,200
Number of common shares issued under the waiver approval process		927,695
Amount raised from share issued under the waiver approval process		$ 54,700

Equity - At-the-Market (ATM) Pr

Equity - At-the-Market (ATM) Programs (Details) - Common stock - USD ($) $ in Millions	1 Months Ended	31 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Oct. 31, 2017	Sep. 30, 2015
At-the-market (ATM) Programs
Share issuances, net of costs (in shares)	11,850,000
ATM
At-the-market (ATM) Programs
Share issuances, net of costs (in shares)		14,407,529
Proceeds from At-the-Market (ATM) program		$ 824.8
ATM | Maximum
At-the-market (ATM) Programs
Shares authorized			17,000,000	12,000,000

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)shares	Mar. 31, 2017USD ($)	Dec. 31, 2016propertyitem	Mar. 30, 2018shares	Dec. 31, 2017shares	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	$ 19,207
Redemptions	(1,468)
Shares issued in conjunction with acquisition	12,144
Distributions	(356)
Allocation of net income	152	$ 165
Carrying value at end of the period	$ 29,679
Joint Venture One
Noncontrolling interests
Ownership interest (as a percent)	95.00%
Joint Venture Two
Noncontrolling interests
Ownership interest (as a percent)	74.00%
Tau Operating Partnership
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	$ 13,322
Distributions	(208)
Allocation of net income	77
Carrying value at end of the period	$ 13,191
Number of partnership units issued | shares							317,022
Number of partnership units outstanding | shares	317,022				317,022
Realty Income, L.P.
Noncontrolling interests
Third party partnership units, ownership interest (as a percent)	1.10%
Realty Income partnership units, ownership interest (as a percent)	98.90%
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 2,160
Redemptions	(1,468)
Shares issued in conjunction with acquisition	12,144
Distributions	(72)
Allocation of net income	55
Carrying value at end of the period	$ 12,819
Number of partnership units issued | shares	242,007			242,007		534,546
Number of partnership units outstanding | shares	270,189				88,182
Other Noncontrolling Interests
Change in the carrying value of all noncontrolling interests
Carrying value at beginning of the period	$ 3,725
Distributions	(76)
Allocation of net income	20
Carrying value at end of the period	$ 3,669

Noncontrolling Interests - Vari

Noncontrolling Interests - Variable interest entity (Details) - Variable Interest Entities, Primary Beneficiary, Aggregated Disclosure - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Variable interest entity
Net real estate	$ 2,955,112	$ 2,936,397
Total assets	3,352,666	3,342,443
Total debt	198,670	210,384
Total liabilities	$ 312,315	$ 313,295

Fair Value of Financial Instr59

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Level 2 | Accounts payable and accrued expenses | Interest rate swaps
Fair value of financial assets and liabilities
Fair value of derivative liabilities	$ 307,000
Level 2 | Other assets, net | Interest rate swaps
Fair value of financial assets and liabilities
Fair value of derivative assets	3,600,000
Mortgages Payable
Fair value of financial assets and liabilities
Unamortized balance of non-cash net premiums	5,400,000	$ 5,900,000
Deferred financing costs	223,000	236,000
Notes and bonds payable
Fair value of financial assets and liabilities
Unamortized balance of original issuance premiums	13,900,000	14,300,000
Deferred financing costs	34,300,000	34,100,000
Carrying value
Fair value of financial assets and liabilities
Notes receivable issued in connection with property sales	5,200,000	5,300,000
Mortgages payable assumed in connection with acquisitions	308,000,000	320,300,000
Notes and bonds payable	4,900,000,000	5,250,000,000
Estimated fair value
Fair value of financial assets and liabilities
Notes receivable issued in connection with property sales	5,200,000	5,300,000
Mortgages payable assumed in connection with acquisitions	320,600,000	334,200,000
Notes and bonds payable	$ 4,974,600,000	$ 5,475,300,000

Gain on Sales of Real Estate (D

Gain on Sales of Real Estate (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)property	Mar. 31, 2017USD ($)property
Gain on Sales of Real Estate
Property Sales Count | property	14	14
Proceeds from sales of real estate	$ 13,779	$ 31,232
Gain on sales of properties	$ 3,200	$ 10,500

Impairments (Details)

Impairments (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)property	Mar. 31, 2017USD ($)property
Impairments
Total provisions for impairment | $	$ 14.2	$ 5.4
Number of impaired properties held-for-sale	5	1
Number of impaired properties held-for-investment	1	3
Number of impaired properties sold	4	5

Distributions Paid and Payabl62

Distributions Paid and Payable - Common Stock (Details) - Common stock - $ / shares	1 Months Ended						3 Months Ended
	Mar. 31, 2018	Feb. 28, 2018	Jan. 31, 2018	Mar. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Distributions Paid and Payable
Total common stock dividends paid per share (in dollars per share)	$ 0.2190	$ 0.2190	$ 0.2125	$ 0.2105	$ 0.2105	$ 0.2025	$ 0.6505	$ 0.6235
Monthly distributions payable (in dollars per share)	$ 0.2195						$ 0.2195

Distributions Paid and Payabl63

Distributions Paid and Payable - Preferred Stock and Realty Income, L.P. Units (Details) - Class F Preferred Stock $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended
	Apr. 30, 2017USD ($)$ / sharesshares	Mar. 31, 2017USD ($)item$ / shares
Distributions Paid and Payable
Preferred stock redeemed | shares	16,350,000
Number of monthly distributions paid | item		3
Dividends paid per preferred share | $ / shares	$ 0.101215	$ 0.414063
Preferred stock dividends paid | $	$ 1.7	$ 3.9

Net Income per Common Share (De

Net Income per Common Share (Details) - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net Income per Common Share
Weighted average shares used for the basic net income per share computation	283,917,418	263,340,491
Incremental shares from share-based compensation	110,888	276,791
Weighted average shares used for diluted net income per share computation	284,345,328	263,934,304
Unvested Shares
Net Income per Common Share
Unvested shares from share-based compensation that were anti-dilutive	24,329	58,887
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	54,227	88,182

Supplemental Disclosures of C65

Supplemental Disclosures of Cash Flow Information (Details)	3 Months Ended
	Mar. 31, 2018USD ($)shares	Mar. 31, 2017USD ($)building	Mar. 30, 2018shares	Dec. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Jun. 27, 2013shares
Supplemental Disclosures of Cash Flow Information
Cash paid for interest	$ 71,900,000	$ 75,600,000
Cash paid for income taxes	403,000	$ 2,500,000
Non-cash activities
Number of buildings damaged | building		2
Damaged buildings insurance receivables		$ 10,600,000
Reconciliation of cash and cash equivalents
Cash and cash equivalents shown in the consolidated balance sheets	20,627,000	27,598,000		$ 6,898,000
Impounds related to mortgages payable	5,923,000	2,074,000		4,565,000
Restricted escrow deposits	32,000	25,327,000		679,000
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows	26,582,000	54,999,000		$ 12,142,000	$ 15,681,000
Properties under development
Supplemental Disclosures of Cash Flow Information
Interest capitalized to properties under development	$ 57,000	$ 190,000
Realty Income, L.P.
Non-cash activities
Number of partnership units issued | shares	242,007		242,007			534,546
Value of partnership units issued	$ 12,100,000

Segment Information - Assets (D

Segment Information - Assets (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Dec. 31, 2017USD ($)
Reconciliation of assets from segment to consolidated
Number of activity segments | segment	47
Net real estate	$ 13,001,513	$ 12,676,499
Goodwill	14,943	14,970
Other corporate assets	195,385	171,767
Total assets	14,474,093	14,058,166
Apparel
Reconciliation of assets from segment to consolidated
Net real estate	163,364	164,919
Intangible assets	35,631	36,600
Automotive service
Reconciliation of assets from segment to consolidated
Net real estate	211,628	213,156
Intangible assets	63,645	64,388
Goodwill	437	437
Automotive tire services
Reconciliation of assets from segment to consolidated
Net real estate	245,427	247,557
Intangible assets	9,945	10,383
Goodwill	862	862
Beverages
Reconciliation of assets from segment to consolidated
Net real estate	288,100	289,170
Intangible assets	1,958	2,022
Child care
Reconciliation of assets from segment to consolidated
Net real estate	60,769	61,527
Goodwill	4,909	4,924
Convenience stores
Reconciliation of assets from segment to consolidated
Net real estate	1,310,469	997,170
Intangible assets	115,761	45,445
Goodwill	2,004	2,004
Dollar stores
Reconciliation of assets from segment to consolidated
Net real estate	1,097,269	1,105,097
Intangible assets	47,071	47,905
Drug stores
Reconciliation of assets from segment to consolidated
Net real estate	1,528,130	1,518,443
Intangible assets	175,915	173,893
Financial services
Reconciliation of assets from segment to consolidated
Net real estate	381,092	384,867
Intangible assets	23,700	24,867
General merchandise
Reconciliation of assets from segment to consolidated
Net real estate	316,331	313,181
Intangible assets	47,912	50,184
Grocery stores
Reconciliation of assets from segment to consolidated
Net real estate	779,444	793,286
Intangible assets	147,048	140,780
Health and fitness
Reconciliation of assets from segment to consolidated
Net real estate	890,539	896,430
Intangible assets	76,690	76,276
Home improvement
Reconciliation of assets from segment to consolidated
Net real estate	424,429	407,002
Intangible assets	62,829	61,045
Motor vehicle dealerships
Reconciliation of assets from segment to consolidated
Net real estate	203,203	204,651
Intangible assets	30,828	31,720
Restaurants-casual dining
Reconciliation of assets from segment to consolidated
Net real estate	485,273	494,977
Intangible assets	19,590	20,079
Goodwill	2,058	2,062
Restaurants-quick service
Reconciliation of assets from segment to consolidated
Net real estate	720,717	681,763
Intangible assets	53,647	51,711
Goodwill	1,063	1,064
Theaters
Reconciliation of assets from segment to consolidated
Net real estate	565,080	566,585
Intangible assets	26,538	26,448
Transportation services
Reconciliation of assets from segment to consolidated
Net real estate	770,305	776,068
Intangible assets	83,631	87,162
Wholesale club
Reconciliation of assets from segment to consolidated
Net real estate	423,299	426,551
Intangible assets	28,818	29,596
Other non-reportable segments
Reconciliation of assets from segment to consolidated
Net real estate	2,136,645	2,134,099
Intangible assets	211,095	214,426
Goodwill	$ 3,610	$ 3,617

Segment Information - Revenue (

Segment Information - Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Segment revenue information
Total revenue	$ 318,295	$ 298,025
Rental revenue
Segment revenue information
Total revenue	306,548	285,821
Tenant reimbursements
Segment revenue information
Total revenue	11,300	11,229
Other revenue
Segment revenue information
Total revenue	447	975
Apparel | Rental revenue
Segment revenue information
Total revenue	4,331	4,966
Automotive service | Rental revenue
Segment revenue information
Total revenue	7,009	5,543
Automotive tire services | Rental revenue
Segment revenue information
Total revenue	7,439	7,159
Beverages | Rental revenue
Segment revenue information
Total revenue	7,836	7,758
Child care | Rental revenue
Segment revenue information
Total revenue	5,672	5,487
Convenience stores | Rental revenue
Segment revenue information
Total revenue	28,000	28,303
Dollar stores | Rental revenue
Segment revenue information
Total revenue	23,250	22,752
Drug stores | Rental revenue
Segment revenue information
Total revenue	32,242	31,631
Financial services | Rental revenue
Segment revenue information
Total revenue	7,020	7,159
General merchandise | Rental revenue
Segment revenue information
Total revenue	6,870	5,361
Grocery stores | Rental revenue
Segment revenue information
Total revenue	15,665	10,162
Health and fitness | Rental revenue
Segment revenue information
Total revenue	23,444	21,605
Home improvement | Rental revenue
Segment revenue information
Total revenue	9,244	6,919
Motor vehicle dealerships | Rental revenue
Segment revenue information
Total revenue	7,311	6,736
Restaurants-casual dining | Rental revenue
Segment revenue information
Total revenue	10,948	10,890
Restaurants-quick service | Rental revenue
Segment revenue information
Total revenue	16,249	14,336
Theaters | Rental revenue
Segment revenue information
Total revenue	17,770	13,344
Transportation services | Rental revenue
Segment revenue information
Total revenue	15,786	15,388
Wholesale club | Rental revenue
Segment revenue information
Total revenue	9,532	9,413
Other non-reportable segments | Rental revenue
Segment revenue information
Total revenue	$ 50,930	$ 50,909

Common Stock Incentive Plan (De

Common Stock Incentive Plan (Details) - 2012 Plan - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Common Stock Incentive Plan
Plan term from the date of adoption	10 years
General and administrative expense
Common Stock Incentive Plan
Share-based compensation costs recognized	$ 3.7	$ 2.8
Maximum
Common Stock Incentive Plan
Authorized shares	3,985,734
Restricted Stock
Common Stock Incentive Plan
Shares granted	100,553
Vesting period	4 years
Remaining unamortized share-based compensation expense	$ 20.8
Restricted Stock | Minimum
Common Stock Incentive Plan
Vesting period	4 years
Restricted Stock | Maximum
Common Stock Incentive Plan
Vesting period	5 years
Performance Shares and Restricted Stock Units
Common Stock Incentive Plan
Remaining unamortized share-based compensation expense	$ 17.7
Performance Shares | Executive officers
Common Stock Incentive Plan
Shares granted	190,449
Performance Shares | Executive officers | Three year vesting period
Common Stock Incentive Plan
Awards vesting on the first and second January 1 after the end of the three year performance period (as a percent)	50.00%
Vesting period	3 years
Restricted Stock Units
Common Stock Incentive Plan
Shares granted	8,383
Restricted Stock Units | Four year vesting period
Common Stock Incentive Plan
Vesting period	4 years

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2018USD ($)
Commitments and Contingencies
Amount of commitments for re-leasing costs, recurring capital expenditures and non-recurring building improvements	$ 15.3
Amount of commitments for construction contracts, which is expected to be paid in next twelve months	$ 58

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent events $ / shares in Units, $ in Millions	1 Months Ended
	Apr. 30, 2018USD ($)$ / shares
3.875% senior unsecured notes, issued in April 2018 and due in 2025
Subsequent events
Issuance of Debt	$ 500
Interest rate (as a percent)	3.875%
Principal amount of public offering (as a percent)	99.50%
Effective yield to maturity (as a percent)	3.957%
Net proceeds on public offering	$ 493
Common stock
Subsequent events
Common stock, dividends declared (in dollars per share) | $ / shares	$ 0.2195