Crystallizing Value Creation & Market Overview
Realty Income Exhibited the Lowest Operational and Financial Volatility
During Great Recession vs. A-Rated S&P 500 REITS
2007 2009 relative rankings
REALTY INCOME
RANK
RENTAL
REVENUE (1)
GROSS
MARGIN (1)
EBITDA (1)
EBITDA
MARGIN (1)
DEBT/
EBITDA (2)
UNSECURED/
TOTAL DEBT(2)
OCCUPANCY
RATE(1)
1
0.3%
0.3%
0.4%
0.6%
0.1x
0.0%
0.1%
2
0.7%
0.5%
0.6%
0.8%
0.3x
1.2%
0.2%
3
3.1%
1.1%
3.8%
1.3%
0.5x
1.5%
0.3%
4
3.7%
1.4%
4.3%
2.0%
1.5x
2.0%
0.3%
5
4.0%
1.7%
5.7%
2.2%
2.2x
2.2%
0.7%
60
4.2%
1.7%
9.7%
7.4%
2.2x
2.8%
3.4%
7
9.7%
Source: SNL
9.4%
31.9%
20.3%
3.3x
4.9%
N/A(3)
(1) Downside Volatility calculated as the standard deviation around zero of quarterly percentage changes in each metric shown, where positive changes are replaced with zero.
(2) Upside Volatility calculated as the standard deviation around zero of quarterly percentage changes, where negative changes are replaced with zero.
(3) Company did not report consolidated quarterly portfolio occupancy during 2007-2009.
MORE VOLATILE
LESS VOLATILE
Realty Income
REITs that
currently have at
least two A-/A3
credit ratings or
better
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