Curating Best-in-Class Portfolio slide image

Curating Best-in-Class Portfolio

REALTY INCOME Strong Balance Sheet - One of Only Seven S&P 500 REITs with Two A3/A- Ratings or Better ■Commercial Paper (1) ■GBP Denominated Notes STAGGERED DEBT MATURITY PROFILE in $ millions ■Term Loan (2) ■Revolver ■Mortgages (3) ■Unsecured Notes $724 $1,841 2023 2024 $1,092 2025 $3,614 $2,805 $1,651 $1,101 $950 $652 2026 2027 2028 2029 2030 $2,441 $1,865 2031 2032 2033+ FAVORABLE CREDIT RATINGS Long-Term Unsecured Debt Rating MOODY'S A3/Stable S&P Global A-/ Stable Low Leverage / High Coverage Ratios 5.3x Net Debt to Annualized Pro Forma Adj. EBITDAre(4) KEY CREDIT METRICS Conservative Long-Term Debt Profile 5.2x 85% Fixed Charge Coverage Ratio 30% Debt to Total Market Cap 95% Unsecured Fixed Rate 6.2 yrs W.A. term to maturity for notes & bonds (1) Commercial paper borrowings outstanding at December 31, 2022 were $702 million and mature between January 2023 and February 2023. (2) As of December 31, 2022, there was a carrying balance of $2.0 billion outstanding under our revolving credit facility. In April 2022, we amended and restated our unsecured credit facility in order to increase the borrowing capacity to $4.25 billion and extend the initial term to June 2026. (3) Includes the principal balance (in USD) of one Sterling-denominated mortgage payable of £30.7 million converted at the applicable exchange rate on December 31, 2022. (4) Net Debt/Annualized Pro Forma Adjusted EBITDAre is a ratio used by management as a measure of leverage. It is calculated as net debt (which we define as total debt per our consolidated balance sheet, excluding deferred financing costs and net premiums and discounts, but including our proportionate share on debt from unconsolidated entities, less cash and cash equivalents), divided by Annualized Pro Forma Adjusted EBITDAre. The Annualized Pro Forma Adjustments, which include transaction accounting adjustments in accordance with U.S GAAP, consist of adjustments to incorporate Adjusted EBITDAre from properties we acquired or stabilized during the applicable quarter and remove Adjusted EBITDAre from properties we disposed of during the applicable quarter, giving pro forma effect to all transactions as if they occurred at the beginning of the applicable period. Our calculation includes all adjustments consistent with the requirements to present Adjusted EBITDAre on a pro forma basis in accordance with Article 11 of Regulation S-X. The annualized Pro Forma Adjustments are consistent with the debt service coverage ratio calculated under financial covenants for our senior unsecured notes. 42 42
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