Supplemental Disclosures of Cash Flow Information

3 Months Ended

Mar. 31, 2014

Supplemental Disclosures of Cash Flow Information

Supplemental Disclosures of Cash Flow Information

16.   Supplemental Disclosures of Cash Flow Information

Cash paid for interest was $79.9 million in the first three months of 2014 and $56.2 million in the first three months of 2013.

Interest capitalized to properties under development was $95,000 in the first three months of 2014 and $229,000 in the first three months of 2013.

Cash paid for income taxes was $942,000 in the first three months of 2014 and $901,000 in the first three months of 2013.

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

A.   Share-based compensation expense was $2.7 million for the first three months of 2014 and was $3.8 million for the first three months of 2013.

B.  See note 13 for a discussion of impairments recorded by Realty Income for the first three months of 2014 and 2013.

C.  During the first three months of 2014, we acquired mortgages payable to third-party lenders of $45.9 million, recorded $2.8 million of net discounts, and recorded $901,000 of interest rate swap value to other assets, net, related to property acquisitions. During the first three months of 2013, we acquired mortgages payable (excluding the mortgages payable discussed in item D) of $48.2 million to third-party lenders and recorded $4.2 million of net premiums related to property acquisitions.

D.  During the first three months of 2013, the following components were acquired in connection with our acquisition of ARCT: (1) real estate investments and related intangible assets of $3.2 billion, (2) other assets of $19.5 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 $79.7 million, (7) other liabilities of $29.0 million, and (8) noncontrolling interests of $14.0 million.

E.  During the first three months of 2014, we applied $48.9 million of loans receivable to the purchase price of five properties acquired during the period.

F.  During the first three months of 2013, we acquired land for $750,000 as a portion of a development property.  This real estate was 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 $7.1 million at March 31, 2014.