EXHIBIT 12.1
                          RATIO OF EARNINGS TO FIXED CHARGES


                              REALTY INCOME CORPORATION

           STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
                                (DOLLARS IN THOUSANDS)


                              Six months ended June 30,               Years ended December 31,
                              -------------------------   -----------------------------------------------
                                   1998      1997           1997      1996      1995      1994     1993
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Net Income                       $20,232   $16,253        $34,770   $32,223   $25,600   $15,224   $29,318
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Fixed Charges:
   Interest                        5,051     3,149          7,800     1,987     2,186       354         5
   Amortization of fees              303       172            426       380       456        42        --
   Interest Capitalized              234        82            168       150       217        --        --
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     Fixed Charges                 5,588     3,403          8,394     2,517     2,859       396         5
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Net Income before
   Fixed Charges                  25,586    19,574         42,996    34,590    28,242    15,620    29,323

Divided by Fixed Charges           5,588     3,403          8,394     2,517     2,859       396         5
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Ratio of Earnings to
   Fixed Charges                       5         6              5        14        10        39     5,865
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