EXHIBIT 10.1

                               EXTENSION AGREEMENT
                                       for
                            REALTY INCOME CORPORATION
                                 CREDIT FACILITY


     This Extension Agreement dated as of April 25, 2001 is entered into between
Realty Income Corporation (the "Company") and ("the Extending Bank").

     1. Reference is made to:

        (a) The Revolving  Credit  Agreement dated as of December 14, 1999 among
     the Company,  the Banks named therein  (including the Extending  Bank), The
     Bank of New York,  First Union  National Bank,  Wells Fargo Bank,  National
     Association, Bank of Montreal, and BNY Capital Markets, Inc., as amended by
     Amendment No.1 dated as of January 21, 2000 (as so amended and as hereafter
     amended, the "Credit Agreement"). Terms defined in the Credit Agreement are
     used herein with the same meanings.

        (b) The letter  dated  April 2, 2001 from the  Company to the  Extending
     Bank  (the  "Request  Letter")  in which  the  Company  has  requested  the
     Extending Bank to extend the Termination Date with respect to the Extending
     Bank from the current date of December 30, 2002 to December 30, 2003.

     2.  Pursuant to the  Request  Letter,  the  Extending  Bank hereby  agrees,
effective  as of the  Extension  Effective  Date (as  defined  below),  that the
Termination Date with respect to the Extending Bank shall be December 30, 2003.

     3. This  Extension  Agreement  shall  become  effective as of the date (the
"Extension Effective Date") not later than May 25, 2001 on which both:

        (a) The Company shall have paid the  Extending  Bank an extension fee of
     10 basis points (0.10%) of the Extending Bank's Commitment; and

        (b)  Banks  having  in the  aggregate  66  2/3%  or  more  of the  Total
     Commitments shall have entered into Extension  Agreements  substantially in
     the form of this Extension  Agreement,  and such Extension Agreements shall
     have become effective.

     4. In order to induce the Bank to agree to extend the Termination Date, the
Company makes the following  representations  and warranties which shall survive
the execution and delivery of this Extension Agreement:

        (a) No Default has occurred and is continuing; and

        (b) Each of the representations and warranties set forth in Article 5 of
     the Credit Agreement is true and correct as though such representations and
     warranties were made at and as of the Extension  Effective Date,  except to
     the extent that any such  representations  or  warranties  are made as of a
     specified date or with respect to a specified period of time, in which case


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     such representations and warranties shall be made as of such specified date
     or with respect to such specified period.  Each of the  representations and
     warranties made under the Credit  Agreement  (including  those made herein)
     shall  survive as provided  herein and not be waived by the  execution  and
     delivery of this Extension Agreement.

     5. Pursuant to Section 5-1401 of the New York General Obligations Law, this
Extension  Agreement shall be governed by, and construed in accordance with, the
law of the State of New York.

     IN WITNESS  WHEREOF  the Company  and the  Extending  Bank have caused this
Extension  Agreement  to be duly  executed  and  delivered  by their  respective
authorized officers as of the date first above written.

                                        REALTY INCOME CORPORATION

                                        By   /s/Michael R. Pfeiffer
                                            -------------------------------
                                            Name:  Michael R. Pfeiffer
                                            Title: Executive Vice President,
                                                   General Counsel


                                        WELLS FARGO BANK, NATIONAL ASSOCIATION

                                        By:
                                            -------------------------------
                                            Name:  Susan Rosenblatt
                                            Title: Vice President


                                        AMSOUTH BANK

                                        By:
                                            -------------------------------
                                            Name:  Katherine M. Allen
                                            Title: Vice President


                                        BANK OF MONTREAL

                                        By:
                                            -------------------------------
                                            Name:  Thomas A. Batterham
                                            Title: Director


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                                        THE BANK OF NEW YORK

                                        By:
                                            -------------------------------
                                            Name:  Elizabeth T. Ying
                                            Title: Vice President


                                        FIRST UNION NATIONAL BANK

                                        By:
                                            -------------------------------
                                            Name:  Daniel S. Sullivan
                                            Title: Managing Director


                                        SANWA BANK CALIFORNIA

                                        By:
                                            -------------------------------
                                            Name:  Phillip E. Lombardi
                                            Title: Vice President

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