Supplemental Disclosures of Cash Flow Information

3 Months Ended

Mar. 31, 2013

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information

17.   Supplemental Disclosures of Cash Flow Information

Interest paid was $56.2 million in the first three months of 2013 and $50.5 million in the first three months of 2012.

Interest capitalized to properties under development was $229,000 in the first three months of 2013 and $145,000 in the first three months of 2012.

Income taxes paid were $901,000 in the first three months of 2013 and $588,000 in the first three months of 2012.

The following non-cash investing and financing activities are included in the accompanying consolidated financial statements:

A.   Share-based compensation expense was $3.8 million for the first three months of 2013 and was $3.0 million for the first three months of 2012.

B.  See note 14 for a discussion of impairments recorded by Realty Income in discontinued operations, for the first three months of 2013.

C.  In connection with our acquisition of ARCT, during the first three months of 2013, the following components were acquired: (1) real estate investments and related intangible assets of $3.2 billion, (2) other assets of $21.1 million, (3) lines of credit payable of $317.2 million, (4) a term loan for $235.0 million, (5) mortgages payable of $539.0 million, (6) intangible liabilities of $76.0 million, (7) other liabilities of $24.8 million, and (8) noncontrolling interests of $14.0 million.

D.   For five properties we acquired, during the first three months of 2013, excluding the acquisition of ARCT, we assumed $48.2 million of mortgages payable to third-party lenders and recorded $4.2 million of net premiums.

E.  During the first three months of 2013, we adjusted the purchase price allocations for the acquisition of real estate that we made during the second half of 2012.  As a result of these adjustments, real estate increased by $3.1 million, acquired lease intangible assets, net decreased by $2.4 million, and acquired lease intangible liabilities, net increased by $712,000 on our consolidated balance sheet at March 31, 2013.

F.  During the first three months of 2013, we acquired land for $750,000 as a portion of a development property.  This real estate is included on our consolidated balance sheet at March 31, 2013, and we recorded a liability.

G.  During the first three months of 2013, we acquired real estate for $523,000 via an exchange of one of our properties.

H.   Accrued costs on properties under development resulted in an increase in buildings and improvements and accounts payable of $2.8 million at March 31, 2012.