Crystallizing Value Creation & Market Overview
Efficiency of the Net Lease Business
Model Supports Cash Flow Stability
Lease structure and growth drivers support a
more predictable revenue stream relative to
other forms of retail real estate
UNIQUE "NET LEASE" STRUCTURE DRIVES LOWER CASH FLOW VOLATILITY
Initial Length of Lease
Remaining Average Term
Responsibility for Property Expenses
Gross Margin
Volatility of Rental Revenue
Maintenance Capital Expenditures
REALTY INCOME
15+ Years
~ 9 Years
Client
> 98%
Low
Low
None
SHOPPING CENTERS AND MALLS
< 10 Years
~ 5-7 Years
Landlord
~ 75%
Modest / High
Modest / High
High
150k-850k sf / Low
Reliance on Anchor Tenant(s)
BEL
Average Retail Property Size/ Fungibility
12k sf / High
AMPLE EXTERNAL GROWTH OPPORTUNITIES
Target Markets
ts HIRING!
External Acquisition Opportunities
Institutional Buyer Competition
REALTY INCOME
Many
High
SHOPPING CENTERS AND MALLS
Few
Low
Modest
High
REALTY
INCOME
External acquisitions drive
26
26
-2/3 of total earnings growthView entire presentation