Realty Income Announces 2021 Common Stock Dividend Tax Allocation and Estimated Market Value of VEREIT Notes Exchanged for Realty Income Notes |

SAN DIEGO, January 28, 2022 /PRNewswire/ — Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced the final calculation of the dividend tax status for its 2021 common stock dividends. In addition, Realty Income today announced the final calculation of the dividend tax status for VEREIT’s 2021 common stock dividends. , Inc. (VEREIT, formerly NYSE: VER) and 6.70% Seres F Cumulative Redeemable Preferred Shares (Series F Preferred Shares, formerly NYSE: VER-PF) dividends. A portion of the common stock dividend is considered a non-taxable distribution for real estate and VEREIT income. The respective tax characteristics of the dividends paid per share are described below:

Realty Income Corporation Common Stock (CUSIP: 756109104)

Total ordinary dividends paid in 2021(1)

$4.8927123

Share of ordinary dividend income

$1.5146899 (30.958%)

Total capital gains distribution(2)

$0.0854609 (1.747%)

Non-taxable distribution (return of capital)

$3.2925615 (67.295%)

(1)

Note that the amount distributed in 2021 includes the tax distribution of $2,060 of shares of Orion Office REIT Inc. (Orion, NYSE: ONL), which occurred as part of our spin-off from Orion on November 12, 2021, following our merger with VEREIT Inc. on November 1, 2021. The fair market value of these shares was determined to be $20.6272 per share, which was calculated using the five-day volume-weighted average trading price after the episode.

(2)

Unrecovered Section 1250 gain of $0.0649153, or 1.327% of total common dividends paid in 2021, and Section 897 gain of $0.0854609, or 1.747% of total common dividends paid in 2021, both represent a further characterization of, and are part of, “Total Capital Gains Allocation.”

VEREIT, Inc. Common Stock (CUSIP: 92339V308)

Total ordinary dividends paid in 2021

$1.7710000

Share of ordinary dividend income

$1.3051316 (73.695%)

Total capital gains distribution(3)

$0.0227853 (1.286%)

Non-taxable distribution (return of capital)

$0.4430831 (25.019%)

(3)

The unrecaptured Section 1250 gain of $0.0227853, or 1.286% of total ordinary dividends paid in 2021, represents and is a further characterization of the “total capital gains distribution”.

VEREIT, Inc. Preferred Series F Preferred Shares (CUSIP: 92339V209)

Total Ser. F Pref. Stk dividends paid in 2021

$1.3958330

Share of ordinary dividend income

$1.3718823 (98.284%)

Total capital gains distribution(4)

$0.0239507 (1.716%)

(4)

The unrecaptured Section 1250 gain of $0.0239507, or 1.716% of total ordinary dividends paid in 2021, represents and is a further characterization of “total capital gains distribution”.

Shareholders are encouraged to consult their tax advisers as to their specific tax treatment of property income or VEREIT dividends received.

Additionally, the old VEREIT Notes identified below, which were exchanged for new Realty Income Notes in November 2021, have been determined to be publicly traded for US federal income tax purposes. The estimated issue prices of the New Realty Income Notes have been determined as follows:

Asset name

Target CUSIP

New CUSIP

Series of banknotes

Market value (per $1,000 principal amount)

ARC PROP OPER SHARE 4.600% 2/06/24

03879QAF1

756109BD5

4,600% 2024 Tickets

$1,074.32

BY OPERATIONAL VEREIT 4.625% 01/11/25

92340LAD1

756109BE3

4.625% 2025 Notes

$1,122.75

BY OPERATIONAL VEREIT 4.875% 06/01/26

92340LAA7

756109BF0

4.875% 2026 Notes

$1,139.87

BY VEREIT OPERATIONAL 3.950% 8/15/27

92340LAC3

756109BG8

3.950% 2027 Notes

$1,111.93

BY VEREIT OPERATIONAL 3,400% 01/15/28

92340LAF6

756109BH6

3,400% 2028 Tickets

$1,079.83

BY VEREIT OPERATIONAL 2,200% 6/15/28

92340LAH2

756109BJ2

2.200% 2028 Tickets

$1,013.58

VEREIT BY OPERATIONAL 3.100% 12/15/29

92340LAE9

756109BK9

3.100% 2029 Tickets

$1,073.38

BY VEREIT OPERATIONAL 2.850% 12/15/32

92340LAG4

756109BL7

2.850% 2032 Notes

$1,051.43

About the company

Real Estate Income, the Monthly Dividend Company®is an S&P 500 company and member of the S&P 500 Dividend Aristocrats® index. We invest in people and places to deliver reliable monthly dividends that grow over time. The company is structured as a REIT and its monthly dividends are supported by cash flow from nearly 11,000 real estate properties held under long-term lease agreements with commercial customers. To date, the company has declared 619 consecutive monthly common stock dividends during its 53 years of operation and has increased the dividend 114 times since Realty Income’s IPO in 1994 (NYSE:O). Additional information about the Company may be obtained on the Company’s website at www.realty income.com.

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SOURCE Real Estate Income Corporation

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