Curating Best-in-Class Portfolio
Investment Spreads Tend to Persevere Even as Interest Rates Rise
RISING INTEREST RATES DO NOT POSE SIGNIFICANT EARNINGS
HEADWIND TO THE NET LEASE BUSINESS MODEL
REALTY INCOME
12%
10%
8%
6%
4%
2%
R2=0.9
It takes 12 months for cap rates to adjust to
changing interest rates...
Realty Income Acquisition Cap Rate
Average 10Y UST Yield (12M Lag)
(1)
0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
600 bps
400 bps
200 bps
RECESSIONARY ENVIRONMENT PRESENTS
ATTRACTIVE ACQUISITIONS OPPORTUNITIES
Measured as acquisition cap rate spread over
average 10-year Treasury during a given year
indicates recession years
12970
27
0 bps
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(1) Weighted average initial cash lease yield during each year.View entire presentation