Realty Income Corporation BofA NY Global Real Estate Conference 2026

Thanks, Jana. Thanks for having us. For those of you that may not be as familiar with Realty Income, we are about a $90 billion enterprise value. We're an S&P 500 REIT, and importantly, and we take great pride in this, we are part of the S&P 500 Dividend Aristocrats Index for having increased our dividend for now 31 consecutive years. We were founded in 1969, public since 1994. We view ourselves as the largest net lease company in the world. We own predominantly retail properties, so close to 80% of our annual base rent comes from retail, and this is essential retail properties. Our top tenant, for instance, includes Dollar General, and number two is close behind that at 7-Eleven. We own 15,600 properties in all 50 U.S. states. We're also in nine countries outside the U.S., predominantly in Western Europe.

Some of the recent news for Realty Income, we announced just Monday morning, a new joint venture with KKR. This follows on the heels of a joint venture that we announced in March with Apollo. Really the impetus of these joint ventures that we're doing, and it's part of a broader private capital strategy that we have established over the last two years, is to continue to diversify our sources of equity away from the public markets. We'll continue to utilize the public markets, but this is a very capital-intensive business, given how much we raise to finance new acquisitions to grow earnings per share or AFFO per share. These joint ventures really allow us to tap into institutional pools of capital. They're really looking to provide their beneficiaries the same type of income that we have provided our investors since 1969.

I'm sure we'll go into that in more detail. That's really where we've been spending a lot of our time over the last two days at various investor meetings. With that, I'll conclude the prepared remarks, and we can go right into some of the questions here.

Yana, before we start, I just want to make sure we're covered from a forward-looking statement position. As a reminder, we may make statements that may be considered forward-looking statements under federal securities law. The company's actual future results may differ significantly from matters discussed in any forward-looking statements. We'll disclose in greater detail the factors that may cause such differences at the company's filings with the SEC.

I would summarize by saying we've got a lot of levers to grow. When you think about our business 10 years ago, we were not global. I think we weren't even in all 50 U.S. states. I know about 12 years ago, we were only about $15 billion enterprise value. To be at $90 billion today, to be in 10 different countries globally, and to now have multiple forms of capital to help finance our business beyond just the public equity markets, it really differentiates ourselves amongst our net lease peers. From our standpoint, we are much more diversified. We have the benefits of scale. We have a 95% EBITDA margin, and so this is a very efficient business, and it's one that gives us opportunities to invest across different property types, different transaction sizes that tend to be much larger.

Larger deals for us leads to wholesale discounts when we're competing against smaller peers who tend to invest in just smaller deals because they don't have the ability to diversify as much as we do. We have more liquidity. We're the only net lease REIT that has three A ratings really across the board, one of only four REITs that have one solid A rating. The other three are Prologis, Simon Property Group, and Public Storage. So there's a certain operational reputation that we also have that we've been using to really expand our business rather than just focusing on public capital. I think a lot of commercial real estate today that's held in private hands appreciates the track record, the performance, and really this specialty that we have in sourcing, underwriting, and managing net lease real estate, and we've done that very well, I think, for 57 years now.

Great. As you think about the company today, I guess in 10 years from now, do you feel like some of these paths of growth, it is still early.

Or is it more you feel like some of it you feel you are middle stage and a lot more experience, or?

Not quite the first inning. We have been at this now for the better part of 18 months or so, but you are starting to see the fruits of these efforts. Truth be told, we started working on this strategy and creating this vision, I would say five years ago. It has taken us a little bit of time to get rolling here. I think a lot of what we have announced, whether it is early this year with the GIC, the joint venture, which is a development joint venture, our U.S. Core Plus fund, where we closed on a $1.7 billion cornerstone equity raise in March, the Apollo joint venture, which we announced in March, and now the KKR, which is a Euro joint venture. We are now showing that we can expand that across borders.

For us, we think that net lease is going to be increasingly relevant, a property type, or it is not even a property type, it is really a sub-sector that can be any type of property. It is just a lease structure. But the demand for income, given the aging baby boomer that has all that wealth, that is looking to generate perpetual income until they die, effectively, as morbid as that sounds, it is a mega trend that I think we are uniquely positioned to take advantage of. So that can lend itself to more private capital vehicles. Ultimately, what does this do for the Realty Income shareholder? It allows us to generate capital-like fee revenue. It allows us to minimize the amount of public equity that we need to raise.

That is a clear differentiator as we continue to grow globally and as we continue to invest in different property types that do require external capital. We want to diversify and not be beholden to just that one source of public equity capital that our peers have to rely on solely.