Tom Lewis, CEO, noted that the increases in propertyacquisitions "allowed us to raise the dividend again in the fourthquarter," and the property acquisitions "substantially exceeded ourexpectations during the fourth quarter and for 2006." However,Lewis said, Realty Income will continue to maintain its duediligence and underwriting standards in buying new properties.

Lewis and other Realty Income executives discussed the financialresults in a conference call Feb. 15, in which they reported thatthe company's FFO for the quarter ended Dec. 31, 2006 grew 25.1% to$44.9 million, while FFO per diluted common share increased 7% to$0.46 per share. The FFO came on revenue that increased 29.2% to$69.1 million as the company's portfolio occupancy increased to98.7% and same store rents increased 1.1% to $44.5 million.

The fourth quarter turned out to be the biggest period of theyear in respect to acquisitions, with $510.8 million of dealsclosed on 240 properties, compared with full-year acquisitions of$769.9 million and 378 additional properties. For the year, revenueincreased 22.5% to $240.1 million and FFO available to commonstockholders increased 20.2% to $155.8 million, or an increase of6.8% to $1.73 per share. Net income grew to $28.4 million comparedwith $25.5 million 2005.