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Realty Income Enters $348M Sale-Leaseback with Buffets/Ryan's Restaurants

National Dining Chain Will Continue to Run 144 Properties in 21 States
November 8, 2006
Realty Income Corp., The Monthly Dividend Co.® (NYSE:O) completed its acquisition of 144 Buffets/Ryan's restaurant properties in connection with a transaction with affiliates of Fortress Investment Group LLC for approximately $348 million. Subsidiaries of Buffets Inc. are leasing the properties under an average of 20-year, net-lease agreements.

The restaurants contain an average of approximately 10,300 leasable square feet and are on average lot sizes of 2.86 acres. The properties are in 21 states throughout the Midwest and the South, including properties in Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Missouri, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia. Realty Income plans to hold 116 of the properties in its main portfolio as long-term investments and will place the remaining assets in its Crest Net Lease Inc. subsidiary for future sale.

Buffets Inc. announced its acquisition of Ryan's Restaurant Group Inc. earlier this month. The Eagan, MN-based Buffets Inc. is a national buffet restaurant chain and one of the five largest companies in the casual and mid-scale dining segment. It has annual revenues greater than $1.7 billion, and operates 672 restaurants in 42 states, principally under the Ryan's®, Fire Mountain®, Old Country Buffet® and HomeTown Buffet® brands. Ryan’s will operate as a separate division of Buffets and will continue to be based in Greer, SC.
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