According to Realty Income's report, revenue for this year's second quarter has jumped 8% from the same period in 2002, rising from $33.8 million to $36.5 million. Revenue for the six months ended June 30, 2003 has shown an even greater increase, shooting up 8.3% from $66.5 million in the first half of 2002 to $72 million in the first half of 2003. Funds from operations, meanwhile, has risen 3.9% from $23 million in the second quarter of last year to $23.9 million in the second quarter of this year. On a diluted common share basis, however, FFO has dipped 1.4% to $0.68 per share from $0.69 per share. When it comes to the first six months of this year, FFO on a diluted per common share basis has remained unchanged at $1.37 per share for both periods. FFO for the six months ended June 30, 2003 jumped 5.5% to $47.9 million from $45.4 million for the first six months of 2002. According to a statement released by Realty Income Corp., "the company considers FFO to be an appropriate supplemental measure of a REIT's operating performance, as it is based on net income analyses of property portfolio performance that excludes non-cash items such as depreciation.

As of June 30, 2003, Realty Income's portfolio consists of 1,250 freestanding, single-tenant retail properties scattered throughout 48 states. The assets have been long-term, net- leased to 81 retail chains doing business in 26 retail industries. These holdings reflect a second quarter investment of $34.5 million in 25 new assets and properties under development. In addition, Realty Income has also disposed of ten properties, resulting in a gain on sales of $2.6 million.