Realty Income Pitch Deck
Cap Rates Poised to Push Higher as Owner-Occupier Debt Costs Rise
10-YEAR PUBLIC BOND YIELDS
REALTY INCOME
8%
6%
4%
2%
1/2022
3/2022
180
120
60
0
1/2022
3/2022
5/2022
7/2022
9/2022
11/2022
CHANGE IN CREDIT SPREADS (bps)
5/2022
7/2022
6.88%
5.08%
мигли
148
9/2022
REALTY
INCOME¹
AVERAGE TOP
CLIENTS²
Traditional financing costs afforded
to corporate operators are nearing
7%, making the sale-leaseback (SLB)
financing option incrementally
attractive
As financing alternatives increase in
cost, we expect SLB yields to
correlate higher
1022 2022 3Q22
49
11/2022
Realty Income Investment
Cap Rates
Avg. 10-Year Bond Yields
for Top Clients (2)
5.6%
5.7%
6.1%
3.9% 5.4% 5.8%
Source: Bloomberg / Data as of 11/25/22
1) Realty Income spreads derived from December 2032 bonds
2)Includes the following top 20 clients based on percentage of total portfolio annualized contractual rent as of September 30, 2022 who have public bonds
outstanding as of September 30, 2022: Dollar General, Walgreens, 7-Eleven, Dollar Tree / Family Dollar, FedEx, CVS Pharmacy, Lifetime Fitness, Wal-
Mart/Sam's Club, AMC Theaters, Tractor Supply, Tesco, Home Depot, Kroger, and Fas Mart (GPM Investments).
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