SAN DIEGO, July 29, 2015 /PRNewswire/ -- Realty Income
Corporation (Realty Income, NYSE: O), The Monthly Dividend
Company®, today announced record operating results for
the second quarter and first six months ended June 30, 2015. All per share amounts presented in
this press release are on a diluted per common share basis unless
stated otherwise.
COMPANY HIGHLIGHTS:
For the quarter ended June 30,
2015:
- AFFO per share increased 6.3% to $0.68, compared to the quarter ended June 30, 2014
- Invested $721.3 million in 100
new properties and properties under development or expansion
- Raised equity capital net proceeds of $382 million
- Added to the S&P 500 index
- Increased the monthly dividend in June for the 81st
time and for the 71st consecutive quarter
- Dividends paid per common share increased 4.0%, compared to the
quarter ended June 30, 2014
- Closed on a new $2.25 billion
unsecured credit facility and term loan to replace the previous
$1.5 billion unsecured credit
facility
CEO Comments
"We continue to experience excellent momentum in our business,"
said John P. Case, Realty Income's
Chief Executive Officer. "During the second quarter, we completed a
near-record volume of acquisitions, executed attractively-priced
capital markets transactions, and grew our portfolio occupancy from
the first quarter. These activities contributed to record quarterly
AFFO per share of $0.68, an increase
of 6.3% year-over-year."
"We completed $721.3 million in
acquisitions during the second quarter, achieving our
second-highest quarterly volume of property-level acquisitions in
the company's history. This brings us to $931.2 million in acquisitions completed during
the first half of the year. We largely funded our year-to-date
acquisition activities by raising $483.5
million of attractively-priced equity capital early in the
year and executing a $250 million
term loan at a fixed rate of 2.67% that comes due in 2020 when we
have no scheduled unsecured debt maturities. We also recast and
expanded our revolving credit facility this quarter to $2.0 billion, decreasing our all-in drawn
borrowing costs by 20 basis points to LIBOR plus 1.05%. We are
well-positioned with approximately $1.6
billion available on the facility to fund our future
acquisition activities. We now estimate completing approximately
$1.25 billion in acquisitions in
2015, an increase from our previous estimate of $1 billion."
"With the backdrop of our positive performance during the first
half of the year, and the continued scalability of our business, we
are raising and tightening our earnings guidance for the year from
our previous AFFO per share estimate of $2.66 - $2.71. We now expect AFFO per share for
2015 of $2.69 - $2.73, representing
year-over-year growth of 4.7% - 6.2%."
Financial Results
Revenue
Revenue for the quarter ended
June 30, 2015 increased 11.1% to
$253.9 million, as compared to
$228.6 million for the same
quarter in 2014. Revenue for the six months ended June 30, 2015 increased 11.2% to $500.7 million, as compared to $450.2 million for the same period in 2014.
Net Income Available to Common Stockholders
Net income available to common stockholders for the quarter ended
June 30, 2015 was $59.3 million, as compared to $51.4 million for the same quarter in 2014.
Net income per share for the quarter ended June 30, 2015 was $0.25, as compared to $0.23 for the same quarter in 2014.
Net income available to common stockholders for the six months
ended June 30, 2015 was $119.8 million, as compared to $98.6 million for the same period in 2014. Net
income per share for the six months ended June 30, 2015 was $0.52, as compared to $0.46 for the same period in 2014.
The calculation to determine net income for a real estate
company includes impairments and/or gains on property sales.
Impairments and/or gains on property sales vary from quarter to
quarter. This variance can significantly impact net income and
period to period comparisons.
Funds From Operations (FFO) Available to Common
Stockholders
FFO for the quarter ended June 30, 2015 increased 12.0% to $159.5 million, as compared to $142.4 million for the same quarter in 2014. FFO
per share for the quarter ended June 30,
2015 increased 7.8% to $0.69,
as compared to $0.64 for the same
quarter in 2014.
FFO for the six months ended June 30,
2015 increased 12.8% to $312.4
million, as compared to $276.9
million for the same period in 2014. FFO per share for the
six months ended June 30, 2015
increased 5.4% to $1.36, as compared
to $1.29 for the same period in
2014.
Adjusted Funds From Operations (AFFO) Available to Common
Stockholders
AFFO for the quarter ended June 30, 2015 increased 12.7% to $159.1 million, as compared to $141.2 million for the same quarter in 2014. AFFO
per share for the quarter ended June 30,
2015 increased 6.3% to $0.68,
as compared to $0.64 for the same
quarter in 2014.
AFFO for the six months ended June 30,
2015 increased 13.7% to $311.2
million, as compared to $273.8
million for the same period in 2014. AFFO per share for the
six months ended June 30, 2015 increased 6.3% to $1.36, as compared to $1.28 for the same period in 2014.
The company considers FFO and AFFO to be appropriate
supplemental measures of a Real Estate Investment Trust's (REIT's)
operating performance. Realty Income defines FFO consistent with
the National Association of Real Estate Investment Trust's
(NAREIT's) definition, as net income available to common
stockholders, plus depreciation and amortization of real estate
assets, plus impairments of real estate, reduced by gains on sales
of investment properties and extraordinary items. AFFO further
adjusts FFO for unique revenue and expense items, which the company
believes are not as pertinent to the measurement of the company's
ongoing operating performance. See the reconciliations of net
income available to common stockholders to FFO and AFFO on page
six.
Dividend Information
In June 2015, Realty Income announced the
71st consecutive quarterly dividend increase, which is
the 81st increase in the amount of the dividend since
the company's listing on the New York Stock Exchange in 1994. The
annualized dividend amount as of June 30,
2015 was $2.28 per share. The
amount of monthly dividends paid per share increased 4.0% to
$0.569 in the second quarter of 2015
compared to $0.547 for the same
period in 2014. Realty Income has a dividend reinvestment and stock
purchase program that can be accessed at
www.realtyincome.com. The program is administered by Wells
Fargo Shareowner Services.
Real Estate Portfolio Update
As of June 30, 2015, Realty
Income's portfolio of freestanding, single-tenant properties
consisted of 4,452 properties located in 49 states and Puerto Rico, leased to 235 commercial tenants
doing business in 47 industries. The properties are leased under
long-term, net leases with a weighted average remaining lease term
of approximately 10.3 years.
Portfolio Management Activities
The company's
portfolio of commercial real estate, owned primarily under 10- to
20-year net leases, continues to perform well and provide
dependable rental revenue supporting the payment of monthly
dividends. As of June 30, 2015, portfolio occupancy was 98.2%
with 81 properties available for lease out of a total of 4,452
properties in the portfolio, as compared to 98.3%, with 74
properties available for lease as of June
30, 2014. Economic occupancy, or occupancy as measured by
rental revenue, was 99.2% as of June 30,
2015, as compared to 99.1% as of June
30, 2014.
Since March 31, 2015, when the
company reported 86 properties available for lease, the company had
80 lease expirations, re-leased 81 properties and sold four vacant
properties. Of the 81 properties re-leased during the second
quarter of 2015, 73 properties were re-leased to existing tenants,
one was re-leased to a new tenant without vacancy, and seven were
re-leased to new tenants after a period of vacancy. The annual new
rent on these re-leases was $12.8
million, as compared to the previous annual rent of
$12.1 million on the same properties,
representing a rent recapture rate of 105.7%.
Rent Increases
During the quarter ended
June 30, 2015, same store rents on
3,681 properties under lease increased 1.5% to $200.2 million, as compared to $197.2 million for the same quarter in 2014.
For the six months ended June 30,
2015, same store rents on 3,681 properties under lease
increased 1.4% to $400.4 million, as compared to $394.9 million for the same period in
2014.
Investments in Real Estate
During the quarter
ended June 30, 2015, Realty Income
invested $721.3 million in 100 new
properties and properties under development or expansion, located
in 33 states. These properties are 100% leased with a weighted
average lease term of approximately 18.2 years and an initial
average lease yield of 6.3%. The tenants occupying the new
properties operate in 13 industries, and the property types consist
of 97.8% retail and 2.2% industrial, based on rental revenue.
Approximately 49% of the rental revenue generated from acquisitions
during the second quarter of 2015 is from investment grade-rated
tenants.
During the six months ended June 30,
2015, Realty Income invested approximately $931.2 million in 166 new properties and
properties under development or expansion, located in 35 states.
These properties are 100% leased with a weighted average lease term
of approximately 17.5 years and an initial average lease yield of
6.4%. The tenants occupying the new properties operate in 16
industries, and the property types consist of 92.1% retail and 7.9%
industrial, based on rental revenue. Approximately 52% of the
rental revenue generated from the year-to-date 2015 acquisitions is
from investment grade-rated tenants.
Property Dispositions
During the quarter ended
June 30, 2015, Realty Income sold
five properties for $8.2 million, with a gain on sales of
$3.7 million, as compared to six
properties sold for $7.0 million,
with a gain on sales of $2.0 million,
during the same quarter in 2014. During the six months ended
June 30, 2015, Realty Income sold 14
properties for $30.5 million,
with a gain on sales of $10.9 million, as compared to 17 properties
sold for $19.7 million, with a gain
on sales of $5.8 million, during
the same period in 2014.
Liquidity and Capital Markets
New Credit Facility
In June 2015, Realty Income closed on a $2.25 billion unsecured credit facility. This new
credit facility is comprised of a $2.0
billion revolving credit facility and a $250 million five-year unsecured term loan. As of
June 30, 2015, $1.57 billion was available on the revolving
credit facility.
Issued 5.5 Million Shares in Common Stock
Offering
In April 2015,
Realty Income issued 5.5 million common shares. Net proceeds of
$276.4 million were used to repay a
portion of borrowings under the company's revolving credit
facility.
Direct Stock Purchase and Dividend Reinvestment Plan
Activities
During the quarter ended June 30, 2015, Realty Income issued 2,312,304
common shares via its Direct Stock Purchase Plan, generating net
proceeds of $105.5 million. During
the six months ended June 30, 2015,
Realty Income issued 4,335,580 common shares via its Direct Stock
Purchase Plan, generating net proceeds of $207.1 million.
2015 Earnings Guidance
FFO per share for 2015 should range from $2.72 to $2.77 per share, an increase of 5.4% to
7.4% over 2014 FFO per share of $2.58. FFO per share for 2015 is based on a net
income per share range of $1.01 to
$1.06, plus estimated real estate depreciation of
$1.80 per share, and reduced by
potential estimated gains on sales of investment properties of
$0.09 per share (in accordance with
NAREIT's definition of FFO).
AFFO per share for 2015 should range from $2.69 to $2.73 per share, an increase of 4.7% to
6.2% over the 2014 AFFO per share of $2.57. AFFO further adjusts FFO for unique
revenue and expense items, which are not as pertinent to the
measurement of the company's ongoing operating performance.
Additional earnings guidance detail can be found in the
company's supplemental materials available on Realty Income's
corporate website at
http://investors.realtyincome.com/quarterly-results.
Conference Call Information
In conjunction with Realty Income's quarterly results, the
company will host a conference call on July
30, 2015 at 11:30 a.m. PDT to discuss the operating
results. To access the conference, dial (888) 504-7963. When
prompted, provide the access code: 3578577.
Shareholders may also access a telephone replay of the
conference call by calling (888) 203-1112 and entering the access
code: 3578577. The telephone replay will be available through
August 13, 2015. A live webcast will
be available in listen-only mode by clicking on the webcast link at
www.realtyincome.com. A replay of the conference call
webcast will be available approximately two hours after the
conclusion of the live broadcast. The webcast replay will be
available through August 13, 2015. No
access code is required for this replay.
Supplemental Materials and Website
Supplemental materials on the second quarter and year-to-date
2015 operating results are available on Realty Income's corporate
website at
http://investors.realtyincome.com/quarterly-results.
About Realty Income
Realty Income, The Monthly Dividend Company®, is an
S&P 500 company dedicated to providing shareholders with
dependable monthly income. The company is structured as a REIT and
its monthly dividends are supported by the cash flow from over
4,400 real estate properties owned under long-term lease agreements
with regional and national commercial tenants. To date, the company
has declared 541 consecutive common stock monthly dividends
throughout its 46-year operating history and increased the dividend
81 times since Realty Income's public listing in 1994 (NYSE: O).
The company is an active buyer of net-leased commercial properties
nationwide. Additional information about the company can be
obtained from the corporate website at www.realtyincome.com
or www.twitter.com/realtyincome.
Forward-Looking Statements
Statements in this press release that are not strictly
historical are "forward-looking" statements. Forward-looking
statements involve known and unknown risks, which may cause the
company's actual future results to differ materially from expected
results. These risks include, among others, general economic
conditions, local real estate conditions, tenant financial health,
the availability of capital to finance planned growth, continued
volatility and uncertainty in the credit markets and broader
financial markets, property acquisitions and the timing of these
acquisitions, charges for property impairments, and the outcome of
any legal proceedings to which the company is a party, as described
in the company's filings with the Securities and Exchange
Commission. Consequently, forward-looking statements should be
regarded solely as reflections of the company's current operating
plans and estimates. Actual operating results may differ materially
from what is expressed or forecast in this press release. The
company undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date these statements
were made.
CONSOLIDATED
STATEMENTS OF INCOME
|
(dollars in
thousands, except per share amounts) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
Three
Months
|
|
|
|
Six Months
|
|
|
|
Six Months
|
|
|
|
Ended
6/30/15
|
|
|
|
Ended
6/30/14
|
|
|
|
Ended
6/30/15
|
|
|
|
Ended
6/30/14
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
$
|
241,431
|
|
|
|
$
|
221,868
|
|
|
|
$
|
476,554
|
|
|
|
$
|
435,989
|
|
Tenant
reimbursements
|
|
|
11,607
|
|
|
|
|
6,169
|
|
|
|
|
21,570
|
|
|
|
|
12,597
|
|
Other
|
|
|
822
|
|
|
|
|
609
|
|
|
|
|
2,604
|
|
|
|
|
1,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
253,860
|
|
|
|
|
228,646
|
|
|
|
|
500,728
|
|
|
|
|
450,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
101,101
|
|
|
|
|
92,894
|
|
|
|
|
199,138
|
|
|
|
|
182,864
|
|
Interest
|
|
|
58,680
|
|
|
|
|
52,712
|
|
|
|
|
117,148
|
|
|
|
|
104,432
|
|
General and
administrative
|
|
|
12,609
|
|
|
|
|
11,587
|
|
|
|
|
25,471
|
|
|
|
|
24,473
|
|
Property (including
reimbursable)
|
|
|
14,937
|
|
|
|
|
10,127
|
|
|
|
|
28,914
|
|
|
|
|
20,704
|
|
Income
taxes
|
|
|
628
|
|
|
|
|
570
|
|
|
|
|
1,702
|
|
|
|
|
1,661
|
|
Provisions for
impairment
|
|
|
3,230
|
|
|
|
|
499
|
|
|
|
|
5,317
|
|
|
|
|
2,182
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
|
191,185
|
|
|
|
|
168,389
|
|
|
|
|
377,690
|
|
|
|
|
336,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of real
estate
|
|
|
3,675
|
|
|
|
|
1,964
|
|
|
|
|
10,893
|
|
|
|
|
3,236
|
|
Income from
continuing operations
|
66,350
|
|
|
|
|
62,221
|
|
|
|
|
133,931
|
|
|
|
|
117,138
|
|
Income from
discontinued operations
|
|
-
|
|
|
|
|
20
|
|
|
|
|
-
|
|
|
|
|
3,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
66,350
|
|
|
|
|
62,241
|
|
|
|
|
133,931
|
|
|
|
|
120,235
|
|
Net income
attributable to noncontrolling interests
|
|
(263)
|
|
|
|
|
(339)
|
|
|
|
|
(581)
|
|
|
|
|
(671)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company
|
66,087
|
|
|
|
|
61,902
|
|
|
|
|
133,350
|
|
|
|
|
119,564
|
|
Preferred stock
dividends
|
|
|
(6,770)
|
|
|
|
|
(10,482)
|
|
|
|
|
(13,540)
|
|
|
|
|
(20,965)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
59,317
|
|
|
|
$
|
51,420
|
|
|
|
$
|
119,810
|
|
|
|
$
|
98,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations (FFO) available to
common stockholders
|
|
$
|
159,470
|
|
|
|
$
|
142,409
|
|
|
|
$
|
312,370
|
|
|
|
$
|
276,910
|
|
Adjusted funds from operations (AFFO) available
to common stockholders
|
|
$
|
159,060
|
|
|
|
$
|
141,178
|
|
|
|
$
|
311,184
|
|
|
|
$
|
273,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information
for common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.45
|
|
Diluted
|
|
$
|
0.25
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.46
|
|
Diluted
|
|
$
|
0.25
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.52
|
|
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO, basic and
diluted
|
|
$
|
0.69
|
|
|
|
$
|
0.64
|
|
|
|
$
|
1.36
|
|
|
|
$
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO, basic and
diluted
|
|
$
|
0.68
|
|
|
|
$
|
0.64
|
|
|
|
$
|
1.36
|
|
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
$
|
0.569
|
|
|
|
$
|
0.547
|
|
|
|
$
|
1.130
|
|
|
|
$
|
1.094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUNDS FROM
OPERATIONS (FFO)
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define FFO, a
non-GAAP measure, consistent with NAREIT's definition, as net
income available to common stockholders, plus depreciation and
amortization of real estate assets, plus impairments of real estate
assets, reduced by gains on sales of investment properties and
extraordinary items.
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Six Months
|
|
|
Six Months
|
|
|
|
|
Ended
6/30/15
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/15
|
|
|
Ended
6/30/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
59,317
|
|
|
$
|
51,420
|
|
|
$
|
119,810
|
|
|
$
|
98,599
|
|
Depreciation and
amortization
|
|
|
101,101
|
|
|
|
92,894
|
|
|
|
199,138
|
|
|
|
182,864
|
|
Depreciation of
furniture, fixtures and equipment
|
|
|
(240)
|
|
|
|
(104)
|
|
|
|
(425)
|
|
|
(196)
|
|
Provisions for
impairment on investment properties
|
|
|
3,230
|
|
|
|
499
|
|
|
|
5,317
|
|
|
|
2,182
|
|
Gain on sale of
investment properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
(3,675)
|
|
|
|
(1,964)
|
|
|
|
(10,893)
|
|
|
(3,236)
|
|
|
Discontinued
operations
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,607)
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
|
(263)
|
|
|
|
(336)
|
|
|
|
(577)
|
|
|
(696)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available to
common stockholders
|
|
$
|
159,470
|
|
|
$
|
142,409
|
|
|
$
|
312,370
|
|
|
$
|
276,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common share,
basic and diluted
|
|
$
|
0.69
|
|
|
$
|
0.64
|
|
|
$
|
1.36
|
|
|
$
|
1.29
|
|
Distributions paid to
common stockholders
|
|
$
|
131,595
|
|
|
$
|
121,229
|
|
|
$
|
258,277
|
|
|
$
|
234,643
|
|
FFO in excess of
distributions paid to common
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,875
|
|
|
$
|
21,180
|
|
|
$
|
54,093
|
|
|
$
|
42,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
232,403,586
|
|
|
220,979,955
|
|
|
228,932,782
|
|
|
214,039,692
|
|
|
Diluted
|
|
232,886,185
|
|
|
221,043,619
|
|
|
229,061,762
|
|
|
214,089,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED FUNDS
FROM OPERATIONS (AFFO)
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define AFFO as FFO
adjusted for unique revenue and expense items, which the company
believes are not as pertinent to the measurement of the company's
ongoing operating performance. Most companies in our industry
use a similar measurement to AFFO, but they may use the term "CAD"
(for Cash Available for Distribution) or "FAD" (for Funds Available
for Distribution).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Six Months
|
|
|
Six Months
|
|
|
|
|
Ended
6/30/15
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/15
|
|
|
Ended
6/30/14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
59,317
|
|
|
$
|
51,420
|
|
|
$
|
119,810
|
|
|
$
|
98,599
|
|
Cumulative
adjustments to calculate FFO (1)
|
|
|
100,153
|
|
|
|
90,989
|
|
|
|
192,560
|
|
|
|
178,311
|
|
FFO available to
common stockholders
|
|
|
159,470
|
|
|
|
142,409
|
|
|
|
312,370
|
|
|
|
276,910
|
|
Amortization of
share-based compensation
|
|
|
2,811
|
|
|
|
2,752
|
|
|
|
5,362
|
|
|
|
5,449
|
|
Amortization of
deferred financing costs (2)
|
|
|
1,281
|
|
|
|
1,165
|
|
|
|
2,575
|
|
|
|
2,241
|
|
Amortization of net
mortgage premiums
|
|
|
(1,745)
|
|
|
|
(2,414)
|
|
|
|
(3,629)
|
|
|
(4,775)
|
|
Gain on early
extinguishment of mortgage debt
|
|
|
(117)
|
|
|
|
(595)
|
|
|
|
(195)
|
|
|
(619)
|
|
Loss on interest rate
swaps
|
|
|
899
|
|
|
|
984
|
|
|
|
1,958
|
|
|
|
1,042
|
|
Capitalized leasing
costs and commissions
|
|
|
(149)
|
|
|
|
(275)
|
|
|
|
(461)
|
|
|
(467)
|
|
Capitalized building
improvements
|
|
|
(977)
|
|
|
|
(1,090)
|
|
|
|
(2,009)
|
|
|
(2,267)
|
|
Straight-line
rent
|
|
|
(4,444)
|
|
|
|
(3,977)
|
|
|
|
(8,635)
|
|
|
(7,913)
|
|
Amortization of above
and below-market leases
|
|
|
1,954
|
|
|
|
2,213
|
|
|
|
3,696
|
|
|
|
4,207
|
|
Other adjustments
(3)
|
|
|
77
|
|
|
|
6
|
|
|
|
152
|
|
|
|
14
|
|
AFFO available to
common stockholders
|
|
$
|
159,060
|
|
|
$
|
141,178
|
|
|
$
|
311,184
|
|
|
$
|
273,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per common
share, basic and diluted
|
|
$
|
0.68
|
|
|
$
|
0.64
|
|
|
$
|
1.36
|
|
|
$
|
1.28
|
|
Distributions paid to
common stockholders
|
|
$
|
131,595
|
|
|
$
|
121,229
|
|
|
$
|
258,277
|
|
|
$
|
234,643
|
|
AFFO in excess of
distributions paid to common
stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
27,465
|
|
|
$
|
19,949
|
|
|
$
|
52,907
|
|
|
$
|
39,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
232,403,586
|
|
|
220,979,955
|
|
|
228,932,782
|
|
|
214,039,692
|
|
|
Diluted
|
|
232,886,185
|
|
|
221,043,619
|
|
|
229,061,762
|
|
|
214,089,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See FFO calculation
above for reconciling items.
|
(2)
|
Includes the
amortization of costs incurred and capitalized upon issuance of our
notes payable, assumption of our mortgages payable and upon
issuance of our term loans. The deferred financing costs are
being amortized over the lives of the respective mortgages and term
loans. No costs associated with our credit facility
agreements or annual fees paid to credit rating agencies have been
included.
|
(3)
|
Includes adjustments
allocable to both noncontrolling interests and capital lease
obligations.
|
HISTORICAL FFO AND
AFFO
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30,
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
59,317
|
|
$
|
51,420
|
|
$
|
45,957
|
|
$
|
32,950
|
|
$
|
33,185
|
|
Depreciation and
amortization
|
|
100,861
|
|
|
92,790
|
|
|
74,471
|
|
|
35,571
|
|
|
29,000
|
|
Provisions for
impairment on investment properties
|
3,230
|
|
|
499
|
|
|
2,496
|
|
|
-
|
|
|
10
|
|
Gain on sales of
investment properties
|
(3,675)
|
|
|
(1,964)
|
|
|
(5,744)
|
|
|
(3,354)
|
|
|
(1,251)
|
|
Merger-related
costs
|
|
-
|
|
|
-
|
|
|
605
|
|
|
-
|
|
|
-
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
(263)
|
|
|
(336)
|
|
|
(220)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
159,470
|
|
$
|
142,409
|
|
$
|
117,565
|
|
$
|
65,167
|
|
$
|
60,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted
share
|
$
|
0.69
|
|
$
|
0.64
|
|
$
|
0.60
|
|
$
|
0.49
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
159,060
|
|
$
|
141,178
|
|
$
|
115,584
|
|
$
|
66,499
|
|
$
|
62,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
0.68
|
|
$
|
0.64
|
|
$
|
0.59
|
|
$
|
0.50
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
0.569
|
|
$
|
0.547
|
|
$
|
0.544
|
|
$
|
0.437
|
|
$
|
0.434
|
|
Weighted average
diluted shares outstanding
|
232,886,185
|
|
221,043,619
|
|
195,759,091
|
|
132,828,540
|
|
126,202,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended June 30,
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
119,810
|
|
$
|
98,599
|
|
$
|
108,692
|
|
$
|
59,022
|
|
$
|
63,120
|
|
Depreciation and
amortization
|
|
198,713
|
|
|
182,668
|
|
|
141,673
|
|
|
70,806
|
|
|
55,791
|
|
Provisions for
impairment on investment properties
|
5,317
|
|
|
2,182
|
|
|
2,952
|
|
|
-
|
|
|
210
|
|
Gain on sales of
investment properties
|
(10,893)
|
|
|
(5,843)
|
|
|
(44,304)
|
|
|
(3,965)
|
|
|
(1,379)
|
|
Merger-related
costs
|
|
-
|
|
|
-
|
|
|
12,635
|
|
|
-
|
|
|
-
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
(577)
|
|
|
(696)
|
|
|
(395)
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
312,370
|
|
$
|
276,910
|
|
$
|
221,253
|
|
$
|
125,863
|
|
$
|
117,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted
share
|
$
|
1.36
|
|
$
|
1.29
|
|
$
|
1.20
|
|
$
|
0.95
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
311,184
|
|
$
|
273,822
|
|
$
|
219,547
|
|
$
|
132,793
|
|
$
|
120,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
1.36
|
|
$
|
1.28
|
|
$
|
1.19
|
|
$
|
1.00
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
1.130
|
|
$
|
1.094
|
|
$
|
1.057
|
|
$
|
0.874
|
|
$
|
0.866
|
|
Weighted average
diluted shares outstanding
|
229,061,762
|
|
214,089,629
|
|
183,873,647
|
|
132,785,213
|
|
122,691,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REALTY INCOME
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
June 30, 2015 and
December 31, 2014
|
(dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
|
Real estate, at
cost:
|
|
|
|
|
|
|
Land
|
$
|
3,222,805
|
|
$
|
3,046,372
|
|
Buildings and
improvements
|
|
8,792,676
|
|
|
8,107,199
|
|
Total real estate, at
cost
|
|
12,015,481
|
|
|
11,153,571
|
|
Less accumulated
depreciation and amortization
|
|
(1,534,780)
|
|
|
(1,386,871)
|
|
Net real estate held
for investment
|
|
10,480,701
|
|
|
9,766,700
|
|
Real estate held for
sale, net
|
|
8,965
|
|
|
14,840
|
|
Net real
estate
|
|
10,489,666
|
|
|
9,781,540
|
|
Cash and cash
equivalents
|
|
18,741
|
|
|
3,852
|
|
Accounts receivable,
net
|
|
70,318
|
|
|
64,386
|
|
Acquired lease
intangible assets, net
|
|
1,051,713
|
|
|
1,039,724
|
|
Goodwill
|
|
15,386
|
|
|
15,470
|
|
Other assets,
net
|
|
82,490
|
|
|
107,650
|
|
Total
assets
|
$
|
11,728,314
|
|
$
|
11,012,622
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Distributions
payable
|
$
|
47,089
|
|
$
|
43,675
|
|
Accounts payable and
accrued expenses
|
|
112,824
|
|
|
123,287
|
|
Acquired lease
intangible liabilities, net
|
|
237,946
|
|
|
220,469
|
|
Other
liabilities
|
|
40,458
|
|
|
53,145
|
|
Lines of credit
payable
|
|
430,000
|
|
|
223,000
|
|
Term loans
|
|
320,000
|
|
|
70,000
|
|
Mortgages payable,
net
|
|
769,461
|
|
|
852,575
|
|
Notes payable,
net
|
|
3,786,063
|
|
|
3,785,372
|
|
Total
liabilities
|
|
5,743,841
|
|
|
5,371,523
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred stock and
paid in capital, par value $0.01 per share, 69,900,000 shares authorized, 16,350,000 shares
issued and outstanding as of June
30, 2015 and December 31, 2014
|
|
395,378
|
|
|
395,378
|
|
Common stock and paid
in capital, par value $0.01 per share, 370,100,000 shares authorized, 234,857,578 shares
issued and outstanding as of June
30, 2015 and 224,881,192 shares issued and outstanding as of December 31, 2014
|
|
6,953,679
|
|
|
6,464,987
|
|
Distributions in
excess of net income
|
|
(1,388,854)
|
|
|
(1,246,964)
|
|
Total stockholders'
equity
|
|
5,960,203
|
|
|
5,613,401
|
|
Noncontrolling
interests
|
|
24,270
|
|
|
27,698
|
|
Total
equity
|
|
5,984,473
|
|
|
5,641,099
|
|
Total liabilities and
equity
|
$
|
11,728,314
|
|
$
|
11,012,622
|
|
Realty Income
Performance vs. Major Stock Indices
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NASDAQ
|
|
|
Realty
Income
|
|
REIT Index
(1)
|
|
DJIA
|
|
S&P
500
|
|
Composite
|
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
|
yield
|
|
return
(2)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/18 to
12/31/1994
|
10.5
|
%
|
|
10.8
|
%
|
|
7.7
|
%
|
|
0.0
|
%
|
|
2.9
|
%
|
|
(1.6)
|
%
|
|
2.9
|
%
|
|
(1.2)
|
%
|
|
0.5
|
%
|
|
(1.7)
|
%
|
1995
|
8.3
|
%
|
|
42.0
|
%
|
|
7.4
|
%
|
|
15.3
|
%
|
|
2.4
|
%
|
|
36.9
|
%
|
|
2.3
|
%
|
|
37.6
|
%
|
|
0.6
|
%
|
|
39.9
|
%
|
1996
|
7.9
|
%
|
|
15.4
|
%
|
|
6.1
|
%
|
|
35.3
|
%
|
|
2.2
|
%
|
|
28.9
|
%
|
|
2.0
|
%
|
|
23.0
|
%
|
|
0.2
|
%
|
|
22.7
|
%
|
1997
|
7.5
|
%
|
|
14.5
|
%
|
|
5.5
|
%
|
|
20.3
|
%
|
|
1.8
|
%
|
|
24.9
|
%
|
|
1.6
|
%
|
|
33.4
|
%
|
|
0.5
|
%
|
|
21.6
|
%
|
1998
|
8.2
|
%
|
|
5.5
|
%
|
|
7.5
|
%
|
|
(17.5)
|
%
|
|
1.7
|
%
|
|
18.1
|
%
|
|
1.3
|
%
|
|
28.6
|
%
|
|
0.3
|
%
|
|
39.6
|
%
|
1999
|
10.5
|
%
|
|
(8.7)
|
%
|
|
8.7
|
%
|
|
(4.6)
|
%
|
|
1.3
|
%
|
|
27.2
|
%
|
|
1.1
|
%
|
|
21.0
|
%
|
|
0.2
|
%
|
|
85.6
|
%
|
2000
|
8.9
|
%
|
|
31.2
|
%
|
|
7.5
|
%
|
|
26.4
|
%
|
|
1.5
|
%
|
|
(4.7)
|
%
|
|
1.2
|
%
|
|
(9.1)
|
%
|
|
0.3
|
%
|
|
(39.3)
|
%
|
2001
|
7.8
|
%
|
|
27.2
|
%
|
|
7.1
|
%
|
|
13.9
|
%
|
|
1.9
|
%
|
|
(5.5)
|
%
|
|
1.4
|
%
|
|
(11.9)
|
%
|
|
0.3
|
%
|
|
(21.1)
|
%
|
2002
|
6.7
|
%
|
|
26.9
|
%
|
|
7.1
|
%
|
|
3.8
|
%
|
|
2.6
|
%
|
|
(15.0)
|
%
|
|
1.9
|
%
|
|
(22.1)
|
%
|
|
0.5
|
%
|
|
(31.5)
|
%
|
2003
|
6.0
|
%
|
|
21.0
|
%
|
|
5.5
|
%
|
|
37.1
|
%
|
|
2.3
|
%
|
|
28.3
|
%
|
|
1.8
|
%
|
|
28.7
|
%
|
|
0.6
|
%
|
|
50.0
|
%
|
2004
|
5.2
|
%
|
|
32.7
|
%
|
|
4.7
|
%
|
|
31.6
|
%
|
|
2.2
|
%
|
|
5.6
|
%
|
|
1.8
|
%
|
|
10.9
|
%
|
|
0.6
|
%
|
|
8.6
|
%
|
2005
|
6.5
|
%
|
|
(9.2)
|
%
|
|
4.6
|
%
|
|
12.2
|
%
|
|
2.6
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
|
4.9
|
%
|
|
0.9
|
%
|
|
1.4
|
%
|
2006
|
5.5
|
%
|
|
34.8
|
%
|
|
3.7
|
%
|
|
35.1
|
%
|
|
2.5
|
%
|
|
19.0
|
%
|
|
1.9
|
%
|
|
15.8
|
%
|
|
0.8
|
%
|
|
9.5
|
%
|
2007
|
6.1
|
%
|
|
3.2
|
%
|
|
4.9
|
%
|
|
(15.7)
|
%
|
|
2.7
|
%
|
|
8.8
|
%
|
|
2.1
|
%
|
|
5.5
|
%
|
|
0.8
|
%
|
|
9.8
|
%
|
2008
|
7.3
|
%
|
|
(8.2)
|
%
|
|
7.6
|
%
|
|
(37.7)
|
%
|
|
3.6
|
%
|
|
(31.8)
|
%
|
|
3.2
|
%
|
|
(37.0)
|
%
|
|
1.3
|
%
|
|
(40.5)
|
%
|
2009
|
6.6
|
%
|
|
19.3
|
%
|
|
3.7
|
%
|
|
28.0
|
%
|
|
2.6
|
%
|
|
22.6
|
%
|
|
2.0
|
%
|
|
26.5
|
%
|
|
1.0
|
%
|
|
43.9
|
%
|
2010
|
5.1
|
%
|
|
38.6
|
%
|
|
3.5
|
%
|
|
27.9
|
%
|
|
2.6
|
%
|
|
14.0
|
%
|
|
1.9
|
%
|
|
15.1
|
%
|
|
1.2
|
%
|
|
16.9
|
%
|
2011
|
5.0
|
%
|
|
7.3
|
%
|
|
3.8
|
%
|
|
8.3
|
%
|
|
2.8
|
%
|
|
8.3
|
%
|
|
2.3
|
%
|
|
2.1
|
%
|
|
1.3
|
%
|
|
(1.8)
|
%
|
2012
|
4.5
|
%
|
|
20.1
|
%
|
|
3.5
|
%
|
|
19.7
|
%
|
|
3.0
|
%
|
|
10.2
|
%
|
|
2.5
|
%
|
|
16.0
|
%
|
|
2.6
|
%
|
|
15.9
|
%
|
2013
|
5.8
|
%
|
|
(1.8)
|
%
|
|
3.9
|
%
|
|
2.9
|
%
|
|
2.3
|
%
|
|
29.6
|
%
|
|
2.0
|
%
|
|
32.4
|
%
|
|
1.4
|
%
|
|
38.3
|
%
|
2014
|
4.6
|
%
|
|
33.7
|
%
|
|
3.6
|
%
|
|
28.0
|
%
|
|
2.3
|
%
|
|
10.0
|
%
|
|
2.0
|
%
|
|
13.7
|
%
|
|
1.3
|
%
|
|
13.4
|
%
|
Q2 YTD
2015
|
5.1
|
%
|
|
(4.6)
|
%
|
|
3.9
|
%
|
|
(5.4)
|
%
|
|
2.4
|
%
|
|
0.0
|
%
|
|
2.1
|
%
|
|
1.2
|
%
|
|
1.2
|
%
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compound
Average
Annual Total Return (5)
|
16.4
|
%
|
|
|
|
|
10.8
|
%
|
|
|
|
|
10.0
|
%
|
|
|
|
|
9.5
|
%
|
|
|
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All
of these dividend yields are calculated as annualized dividends
based on the last dividend paid in applicable time period divided
by the closing price as of period end. Dividend yield
sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ
dividend yield which was sourced from Datastream / Thomson
Financial.
|
|
|
(1)
|
FTSE NAREIT US Equity
REIT Index, as per NAREIT website.
|
(2)
|
Calculated as the
difference between the closing stock price as of period end less
the closing stock price as of previous period, plus dividends paid
in period, divided by closing stock price as of end of previous
period. Does not include reinvestment of dividends for the
annual percentages.
|
(3)
|
Includes reinvestment
of dividends. Source: NAREIT website and
Factset.
|
(4)
|
Price only index,
does not include dividends. Source: Factset.
|
|
|
(5)
|
All of these Compound
Average Annual Total Return rates are calculated in the same
manner: from Realty Income's NYSE listing on October 18, 1994
through June 30, 2015, and (except for NASDAQ) assuming
reinvestment of dividends. Past Performance does not guarantee
future performance. Realty Income presents this data for
informational purposes only and makes no representation about its
future performance or how it will compare in performance to other
indices in the future.
|
Logo -
http://photos.prnewswire.com/prnh/20130507/MM09486LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/realty-income-announces-record-operating-results-for-second-quarter-and-first-six-months-of-2015-300120730.html
SOURCE Realty Income Corporation