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  <p align=center style="margin:0in;margin-bottom:.0001pt;margin-top:.5in;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">United States</font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Securities and Exchange Commission<br>
  </font></b><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Washington, D.C. 20549&nbsp;</font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Form 8-K</font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">Current Report</font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Pursuant to
  Section 13 or 15(d) of the<br>
  Securities Exchange Act of 1934 </font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">Date of report
  (Date of earliest event reported):</font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;"> February 14, 2017</font></b></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:18.0pt;layout-grid-mode:char;">REALTY INCOME CORPORATION <br>
  </font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Exact name of registrant as specified in its charter) </font></p>
  
  <div align=center>
  
  <table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:503.950012pt;">
   <tr>
    <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">Maryland</font></b></p>
    </td>
   <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">1-13374</font></b></p>
    </td>
   <td valign=top width=34% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">33-0580106</font></b></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(State or Other
    Jurisdiction of Incorporation or Organization)</font></p>
    </td>
   <td valign=top width=33% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(Commission File
    Number)</font></p>
    </td>
   <td valign=top width=34% style="background:white;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:12.0pt;layout-grid-mode:char;">(IRS Employer
    Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">11995 El Camino
  Real, San Diego, California 92130<br>
  </font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Address of principal executive offices)</font></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(858) 284-5000<br>
  </font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(Registrant's telephone number, including area code) </font></p>
  
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">N/A<br>
  </font></b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">(former name or former address, if changed since last report) </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">Check the appropriate box
  below if the Form 8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions:</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:9.0pt;layout-grid-mode:char;">[ ] Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  
  
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  
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    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Item 5.02</font></b></p>
    </td>
   <td valign=top width=83% style="padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Departure of Directors or Certain Officers; Election
    of Directors; Appointment of Certain Officers; Compensatory Arrangements of
    Certain Officers.</font></b></p>
    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>
    </td>
   </tr>
  </table></div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Compensation
  Committee (the &#8220;Committee&#8221;) of the Board of Directors of Realty Income
  Corporation (the &#8220;Company&#8221;) recently engaged in a review of its incentive
  compensation program with the assistance of its independent compensation
  consultant, FPL Associates.&#160; On February 14, 2017, the Committee approved a 2017
  bonus program (the &#8220;2017 Bonus Program&#8221;) and 2017 long term incentive program
  (the &#8220;2017 LTIP&#8221;) applicable to the Company&#8217;s named executive officers (the
  &#8220;executives&#8221;).&#160; In connection with the approval of these programs, the Company and
  John Case, the Company&#8217;s Chief Executive Officer, entered into an amendment to
  Mr. Case&#8217;s employment agreement with the Company. </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Bonus Program</font></u></i></b></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The 2017 Bonus
  Program is intended to tie the Company&#8217;s executives&#8217; annual incentive awards
  closely to the Company&#8217;s financial performance. &#160;Each executive is eligible to
  participate in the 2017 Bonus Program.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Under the 2017 Bonus
  Program, the executives will be eligible to earn annual cash incentive awards based
  on the Company&#8217;s achievement in 2017 of performance goals relating to (i) adjusted
  FFO per share; (ii) portfolio occupancy; and (iii) fixed charge coverage ratio,
  as well as based on the achievement of goals related to the executive&#8217;s
  individual performance.&#160; In determining each executive&#8217;s actual annual
  incentive award under the 2017 Bonus Program, the goals will be weighted as
  follows:</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <div align=left><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:100.0%;">
   <tr style="height:17.1pt;">
    <td width=54% style="border:solid windowtext 1.0pt;height:17.1pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Criteria</font></b></p>
    </td>
   <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;height:17.1pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Weighting</font></b></p>
    </td>
   </tr>
  <tr style="height:17.5pt;">
    <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.5pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Adjusted FFO per share</font></p>
    </td>
   <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.5pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">40%</font></p>
    </td>
   </tr>
  <tr style="height:17.95pt;">
    <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Fixed charge coverage ratio</font></p>
    </td>
   <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">20%</font></p>
    </td>
   </tr>
  <tr style="height:17.95pt;">
    <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Portfolio occupancy</font></p>
    </td>
   <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:17.95pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">10%</font></p>
    </td>
   </tr>
  <tr style="height:20.65pt;">
    <td width=54% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:20.65pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Individual</font></p>
    </td>
   <td width=46% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;height:20.65pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">30%</font></p>
    </td>
   </tr>
  </table></div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, the
  Committee approved the target bonus opportunity under the 2017 Bonus Program for
  each executive, as set forth below, with the actual bonus ranging from 0% to
  approximately 200% of the target bonus. </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <div align=center>
  
  <table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;">
   <tr>
    <td valign=top style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Target Bonus</font></b></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
    Case</font></p>
    </td>
   <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$1,600,000</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
    Roy</font></p>
    </td>
   <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$825,000</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
    Meurer</font></p>
    </td>
   <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$593,750</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
    Pfeiffer</font></p>
    </td>
   <td style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$450,000</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Annual incentive
  awards under the 2017 Bonus Program will be payable in cash.&#160; Each executive
  must be employed by the Company through the date of payment in order to be
  eligible to receive an annual incentive award under the program, except as may
  otherwise be provided in a written agreement between the executive and the
  Company.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Long Term Incentive
  Program</font></u></i></b></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">The 2017 LTIP is intended to
  align the interests of management with those of stockholders and to link
  executive compensation to the Company&#8217;s long-term performance.&#160; &#160;The 2017 LTIP
  consists of awards of Performance Shares and time-vesting restricted stock (or
  restricted stock units (&#8220;RSUs&#8221;)) to the executives.&#160;&#160; &#160;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><b><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;text-decoration:none;">&nbsp;</font></i></b></p>
  
  
  <a name="_bclFooter2"></a><DIV>
  
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">2</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font></p>
  
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;">&nbsp;</font></font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>
  
  
  </DIV>
  </DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_3"></a><a name="_bclPageBorder3"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
  <p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Performance
  Shares</font></i></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">General</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">.&#160; The
  Committee approved the grant to each executive of Performance Share awards in
  tandem with dividend equivalent rights.&#160; Pursuant to the Performance Share
  awards, each participant is eligible to vest in and receive a number of shares
  of the Company&#8217;s common stock ranging from 0% to approximately 200% of the
  target number of Performance Shares granted and set forth in the table below
  (for each executive, the &#8220;Target Performance Shares&#8221;), based on the attainment
  of relative total shareholder return (&#8220;TSR&#8221;) goals, debt-to-EBITDA ratio and
  dividend per share growth rate goals during the performance period running from
  January 1, 2017 through December 31, 2019 (the &#8220;Performance Period&#8221;).&#160; The approximate
  value of the Target Performance Shares granted to each executive is as follows:</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <div align=center>
  
  <table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;">
   <tr>
    <td valign=top style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Value of Target Number of </font></b></p>
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Performance Shares Granted</font></b></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
    Case</font></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$3,500,000</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
    Roy</font></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$1,652,778</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
    Meurer</font></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$918,750</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
    Pfeiffer</font></p>
    </td>
   <td valign=top style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">$661,111</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, each
  Performance Share award entitles its holder to a cash payment equal to the
  aggregate dividends that would have been paid on the total number of
  Performance Shares that vest, had such shares been outstanding on the record
  date(s) that occur over the period from January 1, 2017 through the date on
  which the shares are issued, if any. Any right to dividends with respect to
  Performance Shares that do not vest are forfeited.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Vesting and
  Payment</font></i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">.&#160; The number of Performance
  Shares that vest is dependent on (i) the Company&#8217;s TSR achieved during the
  Performance Period relative to the TSR achieved by the companies in the MSCI
  REIT Index, (ii) the Company&#8217;s TSR achieved during the Performance Period relative
  to the TSR achieved by the J.P. Morgan Net Lease companies, (iii) the Company&#8217;s
  debt-to-EBITDA ratio achieved during the Performance Period and (iv) the
  Company&#8217;s dividend per share growth rate achieved during the Performance Period
  (each, a &#8220;Performance Objective&#8221;), as well as the satisfaction of continued employment
  requirements.&#160; In determining the number of Performance Shares that performance-vest,
  the Company&#8217;s relative TSR as compared to the MSCI REIT Index companies and the
  J.P. Morgan Net Lease companies are weighted approximately 45% and 26%, respectively,
  and the debt-to-EBITDA ratio Performance Objective and the dividend per share growth
  rate Performance Objective are weighted approximately 13% and 16%, respectively.&#160;
  Fifty percent (50%), one hundred percent (100%) and two hundred percent (200%)
  of the Target Performance Shares associated with each Performance Objective will
  be eligible to vest based on the achievement of minimum, target and maximum,
  respectively, goals related to each Performance Objective.&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Additionally, the
  number of Performance Shares that performance-vest based on the achievement of
  the performance goals will need to also satisfy the service-based vesting
  condition as to 50% of such shares on January 1, 2020 and as to 50% of such
  shares on January 1, 2021 in order to be vested in full, subject to the
  executive&#8217;s continued employment. &#160;&#160;The Performance Share awards are subject to
  accelerated vesting on substantially the same terms as apply to similar
  Performance Share awards granted to executives of the Company under the LTIP
  adopted by us in 2014, 2015 and 2016. </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><i><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Time-Based Restricted
  Shares or RSUs</font></i></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In addition, as
  part of the 2017 LTIP, the Committee expects to approve in 2018 grants to each
  executive of restricted stock (or RSU) awards subject to service-based vesting
  conditions in the dollar-denominated amounts set forth in the table below.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <div align=center>
  
  &nbsp;</div>
  <a name="_bclFooter3"></a><DIV>
  
   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">3</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font></p>
  
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;">&nbsp;</font></font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>
  
  
  </DIV>
  </DIV><HR noshade align="center" width="100%" size=2><DIV STYLE="page-break-before: always">&nbsp;</DIV><a name="page_4"></a><a name="_bclPageBorder4"></a><DIV STYLE="PADDING-RIGHT: 0%; PADDING-LEFT: 0%">
  <div align=center><table cellpadding=0 cellspacing=0 border=0 style="border:none;border-collapse:collapse;width:280.149994pt;">
   <tr>
    <td valign=top width=36% style="border:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive</font></b></p>
    </td>
   <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">2017 Restricted Stock/RSU Awards</font></b></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">John
    Case</font></p>
    </td>
   <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$1,000,000</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Sumit
    Roy</font></p>
    </td>
   <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$472,222</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Paul
    Meurer</font></p>
    </td>
   <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$262,500</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=36% style="border-bottom:solid windowtext 1.0pt;border-left:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Michael
    Pfeiffer</font></p>
    </td>
   <td valign=top width=64% style="border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">$188,889</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each such award
  vests over a period of four years following the grant date, subject to
  continued employment. The awards are subject to accelerated vesting on
  substantially the same terms as set forth in the applicable previously-filed
  form agreement.&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><b><i><u><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Amendment to Case
  Employment Agreement</font></u></i></b></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February 14,
  2017, the Company and Mr. Case entered into an amendment (the &#8220;Amendment&#8221;) to Mr.
  Case&#8217;s Amended and Restated Employment Agreement, dated September 3, 2013 (the
  &#8220;Original Employment Agreement&#8221;).&#160; The Amendment provides that Mr. Case may
  earn an annual cash performance bonus targeted at no less than 150% of Mr.
  Case&#8217;s base salary, reduced from 200% under the Original Employment Agreement. &#160;In
  addition, the Amendment removes the provision under the Original Employment
  Agreement which provided that no less than 50% of the annual equity awards
  granted to Mr. Case will be time-based awards.&#160; </font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></p>
  
  <div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td valign=top width=17% style="padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Item 8.01</font></b></p>
    </td>
   <td valign=top width=83% style="padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Other Events.</font></b></p>
    <p style="margin:0in;margin-bottom:.0001pt;page-break-after:avoid;text-align:justify;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></b></p>
    </td>
   </tr>
  </table></div>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On February 14,
  2017, the Board of Directors of the Company (the &#8220;Board&#8221;), approved the Second
  Amendment to the Realty Income Corporation 2012 Incentive Award Plan (the
  &#8220;Second Amendment&#8221;).</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Second
  Amendment institutes minimum vesting provisions on options and stock
  appreciation rights granted under the 2012 Incentive Award Plan. Pursuant to
  the Second Amendment, such awards shall vest no earlier than the eighteen (18)
  month anniversary of the date the award is granted, subject to a limited
  basket of 5% of shares of the Company&#8217;s Common Stock authorized for grant under
  Plan and the Plan administrator&#8217;s authority to accelerate the vesting of awards
  in connection with death, disability, termination of service or the
  consummation of a change in control.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The foregoing
  description of the Second Amendment is not, and does not purport to be,
  complete and is qualified in its entirety by reference to a copy of the Second
  Amendment filed as Exhibit 10.1 hereto and incorporated herein by reference.</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;text-indent:24.5pt;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">Item
  9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
  Statements and Exhibits.</font></b></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits</font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
  
  <div align=left><table cellpadding=0 cellspacing=0 border=0 style="width:100.0%;">
   <tr>
    <td valign=top width=8% style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Exhibit No.</font></b></p>
    </td>
   <td valign=top width=2% style="padding:0in 0in 1.5pt 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>
    </td>
   <td valign=top width=90% style="border-bottom:solid black 1.5pt;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Description of Exhibit</font></b></p>
    </td>
   </tr>
  <tr style="height:3.7pt;">
    <td valign=top width=8% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">10.1</font></p>
    </td>
   <td valign=top width=2% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
   <td valign=top width=90% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">Second
    Amendment to Realty Income Corporation 2012 Incentive Award Plan</font></p>
    </td>
   </tr>
  <tr style="height:3.7pt;">
    <td valign=top width=8% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
   <td valign=top width=2% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
   <td valign=top width=90% style="height:3.7pt;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
   </tr>
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    <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:both;">&nbsp;</font></p>
    </td>
   </tr>
  </table></div>
  
  <p style="margin:0in;margin-bottom:12.0pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:0in;"><b><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;layout-grid-mode:both;">&nbsp;</font></b></p>
  
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   <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;">4</font><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:12.0pt;"></font></font></p>
  
  
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  <p style="margin:0in;margin-bottom:.0001pt;"><font style="display:none;"><font face="Times New Roman" lang=EN-US style="font-size:8.0pt;layout-grid-mode:char;">&nbsp;</font></font></p>
  
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  <p style="line-height:115%;margin:0in;margin-bottom:10.0pt;"><font style="line-height:115%;"><b><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:both;">SIGNATURE</font></b></font></p>
  
  <p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="Times New Roman" lang=EN-US style="font-size:10.0pt;layout-grid-mode:char;">Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized. </font></p>
  
  <div align=left><table cellpadding=0 cellspacing=0 border=0 style="border-collapse:collapse;width:504.000000pt;">
   <tr>
    <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Dated: February 17, 2017</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">REALTY INCOME CORPORATION</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=5% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;"><br>
    By:</font></p>
    </td>
   <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=49% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;"><br>
    </font><u><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">/s/ MICHAEL R. PFEIFFER&#160;&#160;&#160;&#160;&#160;&#160; </font></u></p>
    <p style="margin:0in;margin-bottom:.0001pt;"><font face=arial,sans-serif style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   </tr>
  <tr>
    <td valign=top width=40% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=5% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=3% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
   <td valign=top width=49% style="background:white;padding:0in 0in 0in 0in;">
    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Michael R. Pfeiffer</font></p>
    </td>
   </tr>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
    </td>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">&nbsp;</font></p>
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    <p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman" style="font-size:10.0pt;layout-grid-mode:char;">Executive Vice President,
    General Counsel and Secretary</font></p>
    </td>
   </tr>
  </table></div>
  
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text: form8k2017planupdates.htm - Generated by SEC Publisher for SEC Filing
  United States
  Securities and Exchange Commission
  Washington, D.C. 20549
  Form 8-K
  Current Report
  Pursuant to
  Section 13 or 15(d) of the
  Securities Exchange Act of 1934
  Date of report
  (Date of earliest event reported):
  February 14, 2017
  REALTY INCOME CORPORATION
  (Exact name of registrant as specified in its charter)
  Maryland
  1-13374
  33-0580106
  (State or Other
    Jurisdiction of Incorporation or Organization)
  (Commission File
    Number)
  (IRS Employer
    Identification No.)
  11995 El Camino
  Real, San Diego, California 92130
  (Address of principal executive offices)
  (858) 284-5000
  (Registrant's telephone number, including area code)
  N/A
  (former name or former address, if changed since last report)
  Check the appropriate box
  below if the Form 8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions:
  [ ] Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [ ] Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [ ] Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
  240.14d-2(b))
  [ ] Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Item 5.02
  Departure of Directors or Certain Officers; Election
    of Directors; Appointment of Certain Officers; Compensatory Arrangements of
    Certain Officers.
  The Compensation
  Committee (the "Committee") of the Board of Directors of Realty Income
  Corporation (the "Company") recently engaged in a review of its incentive
  compensation program with the assistance of its independent compensation
  consultant, FPL Associates.  On February 14, 2017, the Committee approved a 2017
  bonus program (the "2017 Bonus Program") and 2017 long term incentive program
  (the "2017 LTIP") applicable to the Company's named executive officers (the
  "executives").  In connection with the approval of these programs, the Company and
  John Case, the Company's Chief Executive Officer, entered into an amendment to
  Mr. Case's employment agreement with the Company.
  Bonus Program
  The 2017 Bonus
  Program is intended to tie the Company's executives' annual incentive awards
  closely to the Company's financial performance.  Each executive is eligible to
  participate in the 2017 Bonus Program.
  Under the 2017 Bonus
  Program, the executives will be eligible to earn annual cash incentive awards based
  on the Company's achievement in 2017 of performance goals relating to (i) adjusted
  FFO per share; (ii) portfolio occupancy; and (iii) fixed charge coverage ratio,
  as well as based on the achievement of goals related to the executive's
  individual performance.  In determining each executive's actual annual
  incentive award under the 2017 Bonus Program, the goals will be weighted as
  follows:
  Criteria
  Weighting
  Adjusted FFO per share
  40%
  Fixed charge coverage ratio
  20%
  Portfolio occupancy
  10%
  Individual
  30%
  In addition, the
  Committee approved the target bonus opportunity under the 2017 Bonus Program for
  each executive, as set forth below, with the actual bonus ranging from 0% to
  approximately 200% of the target bonus.
  Executive
  Target Bonus
  John
    Case
  $1,600,000
  Sumit
    Roy
  $825,000
  Paul
    Meurer
  $593,750
  Michael
    Pfeiffer
  $450,000
  Annual incentive
  awards under the 2017 Bonus Program will be payable in cash.  Each executive
  must be employed by the Company through the date of payment in order to be
  eligible to receive an annual incentive award under the program, except as may
  otherwise be provided in a written agreement between the executive and the
  Company.
  Long Term Incentive
  Program
  The 2017 LTIP is intended to
  align the interests of management with those of stockholders and to link
  executive compensation to the Company's long-term performance.   The 2017 LTIP
  consists of awards of Performance Shares and time-vesting restricted stock (or
  restricted stock units ("RSUs")) to the executives.
  2
  Performance
  Shares
  General
  .  The
  Committee approved the grant to each executive of Performance Share awards in
  tandem with dividend equivalent rights.  Pursuant to the Performance Share
  awards, each participant is eligible to vest in and receive a number of shares
  of the Company's common stock ranging from 0% to approximately 200% of the
  target number of Performance Shares granted and set forth in the table below
  (for each executive, the "Target Performance Shares"), based on the attainment
  of relative total shareholder return ("TSR") goals, debt-to-EBITDA ratio and
  dividend per share growth rate goals during the performance period running from
  January 1, 2017 through December 31, 2019 (the "Performance Period").  The approximate
  value of the Target Performance Shares granted to each executive is as follows:
  Executive
  Value of Target Number of
  Performance Shares Granted
  John
    Case
  $3,500,000
  Sumit
    Roy
  $1,652,778
  Paul
    Meurer
  $918,750
  Michael
    Pfeiffer
  $661,111
  In addition, each
  Performance Share award entitles its holder to a cash payment equal to the
  aggregate dividends that would have been paid on the total number of
  Performance Shares that vest, had such shares been outstanding on the record
  date(s) that occur over the period from January 1, 2017 through the date on
  which the shares are issued, if any. Any right to dividends with respect to
  Performance Shares that do not vest are forfeited.
  Vesting and
  Payment
  .  The number of Performance
  Shares that vest is dependent on (i) the Company's TSR achieved during the
  Performance Period relative to the TSR achieved by the companies in the MSCI
  REIT Index, (ii) the Company's TSR achieved during the Performance Period relative
  to the TSR achieved by the J.P. Morgan Net Lease companies, (iii) the Company's
  debt-to-EBITDA ratio achieved during the Performance Period and (iv) the
  Company's dividend per share growth rate achieved during the Performance Period
  (each, a "Performance Objective"), as well as the satisfaction of continued employment
  requirements.  In determining the number of Performance Shares that performance-vest,
  the Company's relative TSR as compared to the MSCI REIT Index companies and the
  J.P. Morgan Net Lease companies are weighted approximately 45% and 26%, respectively,
  and the debt-to-EBITDA ratio Performance Objective and the dividend per share growth
  rate Performance Objective are weighted approximately 13% and 16%, respectively. 
  Fifty percent (50%), one hundred percent (100%) and two hundred percent (200%)
  of the Target Performance Shares associated with each Performance Objective will
  be eligible to vest based on the achievement of minimum, target and maximum,
  respectively, goals related to each Performance Objective.
  Additionally, the
  number of Performance Shares that performance-vest based on the achievement of
  the performance goals will need to also satisfy the service-based vesting
  condition as to 50% of such shares on January 1, 2020 and as to 50% of such
  shares on January 1, 2021 in order to be vested in full, subject to the
  executive's continued employment.   The Performance Share awards are subject to
  accelerated vesting on substantially the same terms as apply to similar
  Performance Share awards granted to executives of the Company under the LTIP
  adopted by us in 2014, 2015 and 2016.
  Time-Based Restricted
  Shares or RSUs
  In addition, as
  part of the 2017 LTIP, the Committee expects to approve in 2018 grants to each
  executive of restricted stock (or RSU) awards subject to service-based vesting
  conditions in the dollar-denominated amounts set forth in the table below.
  3
  Executive
  2017 Restricted Stock/RSU Awards
  John
    Case
  $1,000,000
  Sumit
    Roy
  $472,222
  Paul
    Meurer
  $262,500
  Michael
    Pfeiffer
  $188,889
  Each such award
  vests over a period of four years following the grant date, subject to
  continued employment. The awards are subject to accelerated vesting on
  substantially the same terms as set forth in the applicable previously-filed
  form agreement.
  Amendment to Case
  Employment Agreement
  On February 14,
  2017, the Company and Mr. Case entered into an amendment (the "Amendment") to Mr.
  Case's Amended and Restated Employment Agreement, dated September 3, 2013 (the
  "Original Employment Agreement").  The Amendment provides that Mr. Case may
  earn an annual cash performance bonus targeted at no less than 150% of Mr.
  Case's base salary, reduced from 200% under the Original Employment Agreement.  In
  addition, the Amendment removes the provision under the Original Employment
  Agreement which provided that no less than 50% of the annual equity awards
  granted to Mr. Case will be time-based awards.
  Item 8.01
  Other Events.
  On February 14,
  2017, the Board of Directors of the Company (the "Board"), approved the Second
  Amendment to the Realty Income Corporation 2012 Incentive Award Plan (the
  "Second Amendment").
  The Second
  Amendment institutes minimum vesting provisions on options and stock
  appreciation rights granted under the 2012 Incentive Award Plan. Pursuant to
  the Second Amendment, such awards shall vest no earlier than the eighteen (18)
  month anniversary of the date the award is granted, subject to a limited
  basket of 5% of shares of the Company's Common Stock authorized for grant under
  Plan and the Plan administrator's authority to accelerate the vesting of awards
  in connection with death, disability, termination of service or the
  consummation of a change in control.
  The foregoing
  description of the Second Amendment is not, and does not purport to be,
  complete and is qualified in its entirety by reference to a copy of the Second
  Amendment filed as Exhibit 10.1 hereto and incorporated herein by reference.
  Item
  9.01                 Financial
  Statements and Exhibits.
  (d)     Exhibits
  Exhibit No.
  Description of Exhibit
  10.1
  Second
    Amendment to Realty Income Corporation 2012 Incentive Award Plan
  4
  SIGNATURE
  Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.
  Dated: February 17, 2017
  REALTY INCOME CORPORATION
  By:
  /s/ MICHAEL R. PFEIFFER
  Michael R. Pfeiffer
  Executive Vice President,
    General Counsel and Secretary
  5