SAN DIEGO, Nov. 4, 2019 /PRNewswire/ -- Realty Income
Corporation (Realty Income, NYSE: O), The Monthly Dividend
Company®, today announced operating results for the
third quarter and nine months ended September 30, 2019. 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 September 30,
2019:
- Net income per share was $0.32
- AFFO per share increased 2.5% to $0.83, compared to the quarter ended September 30, 2018
- Invested $411.5 million in 51
properties and properties under development or expansion
- Raised $572.4 million from the
sale of common stock
- Announced transaction to acquire 454 properties from CIM Real
Estate Finance Trust, Inc. ("CMFT") for approximately $1.25 billion in cash
CEO Comments
"Our operating and financial performance continues to drive
favorable results," said Sumit Roy,
Realty Income's President and Chief Executive Officer. "We invested
approximately $412 million during the
quarter which, combined with the previously announced portfolio
acquisition from CMFT, brings us to over $3.0 billion of acquisitions announced
year-to-date."
"Our balance sheet is well-positioned to capitalize on continued
activity in our investment pipeline. We raised approximately
$572 million of equity during the
third quarter primarily through our ATM program, ending the quarter
with full availability on our $3.0
billion revolving credit facility, $236 million of cash on hand, and a net
debt-to-EBITDA ratio of 5.0x."
Select Financial Results
The following summarizes our select financial results (dollars
in millions, except per share data):
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Total
revenue
|
$
|
374.2
|
|
|
$
|
338.1
|
|
|
$
|
1,094.1
|
|
|
$
|
985.3
|
|
Net income available to
common stockholders (1)
|
$
|
101.0
|
|
|
$
|
99.0
|
|
|
$
|
307.2
|
|
|
$
|
278.5
|
|
Net income per
share
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.98
|
|
|
$
|
0.97
|
|
Funds from operations
(FFO) available to common stockholders (2)
|
$
|
262.0
|
|
|
$
|
234.6
|
|
|
$
|
759.2
|
|
|
$
|
685.5
|
|
FFO per
share
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.43
|
|
|
$
|
2.39
|
|
Adjusted funds from
operations (AFFO) available to common stockholders (2)
|
$
|
265.4
|
|
|
$
|
236.2
|
|
|
$
|
768.0
|
|
|
$
|
687.7
|
|
AFFO per
share
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.46
|
|
|
$
|
2.40
|
|
|
|
(1)
|
The calculation to
determine net income for a real estate company includes
impairments, gains on property sales and foreign currency gains and
losses. These items can vary from quarter to quarter and can
significantly impact net income and period to period
comparisons.
|
(2)
|
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, a non-GAAP measure, consistent with the
National Association of Real Estate Investment Trusts' (NAREIT's)
definition, as net income available to common stockholders, plus
depreciation and amortization of real estate assets, plus
impairments of real estate assets, and reduced by gains on property
sales. 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.
Presentation of the information regarding FFO and AFFO is intended
to assist the reader in comparing the operating performance of
different REITs, although it should be noted that not all REITs
calculate FFO and AFFO in the same way, so comparisons with other
REITs may not be meaningful. FFO and AFFO should not be considered
as alternatives to reviewing our cash flows from operating,
investing, and financing activities. In addition, FFO and AFFO
should not be considered as measures of liquidity, our ability to
make cash distributions, or our ability to pay interest payments.
See the reconciliations of net income available to common
stockholders to FFO and AFFO on pages seven and eight of this press
release.
|
Dividend Increases
In September 2019, Realty Income announced the
88th consecutive quarterly dividend increase, which is
the 103rd increase in the amount of the dividend since
the company's listing on the New York Stock Exchange (NYSE) in
1994. The annualized dividend amount as of September 30, 2019 was $2.724 per share. The amount of monthly dividends
paid per share increased 3.0% to $0.680 in the third quarter of 2019, as compared
to $0.660 for the same quarter of
2018. During the third quarter of 2019, the company distributed
$216.2 million in common dividends to
shareholders, representing 81.5% of its AFFO of $265.4 million.
Real Estate Portfolio Update
As of September 30, 2019, Realty Income's portfolio
consisted of 5,964 freestanding, primarily single-tenant properties
located in 49 U.S. states, Puerto
Rico and the United
Kingdom, leased to 274 different commercial tenants, and
doing business in 49 industries. The properties are leased under
long-term, net lease agreements with a weighted average remaining
lease term of 9.3 years. The company's portfolio of commercial
real estate, owned primarily under long-term net leases, continues
to perform well and provides dependable rental revenue supporting
the payment of monthly dividends. As of September 30, 2019, portfolio occupancy was 98.3%
with 102 properties available for lease out of the 5,964, as
compared to 98.3% as of June 30, 2019
and 98.8% as of September 30,
2018.
Changes in Occupancy
Properties available
for lease at June 30, 2019
|
102
|
|
Lease
expirations
|
50
|
|
Re-leases to same
tenant (1)
|
(26)
|
|
Re-leases to new
tenant (1)(2)
|
(3)
|
|
Dispositions
|
(21)
|
|
Properties available
for lease at September 30, 2019
|
102
|
|
|
|
(1)
|
The annual new rent
on these re-leases was $6.96 million, as compared to the previous
annual rent of $6.86 million on the same properties, representing a
rent recapture rate of 101.5% on the properties re-leased during
the quarter ended September 30, 2019.
|
(2)
|
Re-leased to one new
tenant after a period of vacancy, and two new tenants without
vacancy.
|
|
|
Properties available
for lease at December 31, 2018
|
80
|
|
Lease
expirations
|
260
|
|
Re-leases to same
tenant (1)
|
(174)
|
|
Re-leases to new
tenant (1)(2)
|
(12)
|
|
Dispositions
|
(52)
|
|
Properties available
for lease at September 30, 2019
|
102
|
|
|
|
(1)
|
The annual new rent
on these re-leases was $48.52 million, as compared to the previous
annual rent of $47.53 million on the same properties, representing
a rent recapture rate of 102.1% on the properties re-leased during
the quarter ended September 30, 2019.
|
(2)
|
Re-leased to six new
tenants after a period of vacancy, and six new tenants without
vacancy.
|
Investments in Real Estate
The following table
summarizes our acquisitions in the U.S. and U.K. for the periods
indicated below:
|
Number of
Properties
|
|
Square
Feet
(in
millions)
|
|
Investment
($ in
millions)
|
|
Weighted
Average
Lease Term
(Years)
|
|
Initial Average
Cash Lease
Yield
|
Three months ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
Acquisitions - U.S.
(in 23 states)
|
39
|
|
|
2.0
|
|
|
$
|
372.0
|
|
|
15.1
|
|
|
5.7
|
%
|
Acquisitions - U.K.
(1)
|
1
|
|
|
0.1
|
|
|
27.6
|
|
|
20.6
|
|
|
4.8
|
%
|
Total
Acquisitions
|
40
|
|
|
2.1
|
|
|
399.6
|
|
|
15.4
|
|
|
5.7
|
%
|
Properties under
Development - U.S.
|
11
|
|
|
0.4
|
|
|
11.9
|
|
|
15.0
|
|
|
7.7
|
%
|
Total
(2)
|
51
|
|
|
2.5
|
|
|
$
|
411.5
|
|
|
15.4
|
|
|
5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2019
|
|
|
|
|
|
|
|
|
|
Acquisitions - U.S.
(in 38 states)
|
214
|
|
|
6.2
|
|
|
$
|
1,412.9
|
|
|
15.7
|
|
|
6.5
|
%
|
Acquisitions - U.K.
(1)
|
13
|
|
|
1.2
|
|
|
576.8
|
|
|
15.0
|
|
|
5.2
|
%
|
Total
Acquisitions
|
227
|
|
|
7.4
|
|
|
1,989.7
|
|
|
15.5
|
|
|
6.1
|
%
|
Properties under
Development - U.S.
|
14
|
|
|
0.4
|
|
|
36.0
|
|
|
16.0
|
|
|
7.4
|
%
|
Total
(3)
|
241
|
|
|
7.8
|
|
|
$
|
2,025.7
|
|
|
15.5
|
|
|
6.2
|
%
|
|
|
(1)
|
Represents
investments of £22.2 million during the quarter ended September 30,
2019 and £456.1 million during the nine months ended September 30,
2019 multiplied by the applicable exchange rate on the date of
acquisition.
|
(2)
|
The tenants occupying
the new properties operate in 13 industries, and are 48.7% retail
and 51.3% industrial, based on rental revenue. Approximately 56% of
the rental revenue generated from acquisitions during the third
quarter of 2019 is from investment grade rated tenants and their
subsidiaries.
|
(3)
|
The tenants occupying
the new properties operate in 19 industries, and are 89.6% retail
and 10.4% industrial, based on rental revenue. Approximately 25% of
the rental revenue generated from acquisitions during the first
nine months of 2019 is from investment grade rated tenants and
their subsidiaries.
|
Rent Increases
The following summarizes our
same store rents on 4,836 properties under lease (dollars in
millions):
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
Increase
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Three
months
|
|
Nine
months
|
Rental
Revenue
|
$
|
293.7
|
|
|
$
|
290.2
|
|
|
$
|
882.5
|
|
|
$
|
870.2
|
|
|
1.2
|
%
|
|
1.4
|
%
|
Property Dispositions
The following summarizes
our property dispositions (dollars in millions):
|
Three Months
Ended
September 30, 2019
|
|
Nine Months
Ended
September 30, 2019
|
Properties
sold
|
27
|
|
|
64
|
|
Net sales
proceeds
|
$
|
21.5
|
|
|
$
|
72.6
|
|
Gain on
sales
|
$
|
1.7
|
|
|
$
|
15.8
|
|
Liquidity and Capital Markets
Capital Raising
During the quarter ended
September 30, 2019, Realty Income
raised $572.4 million from the sale
of common stock at a weighted average price of $74.41 per share.
Credit Facility
Realty Income has an unsecured
credit facility, which is comprised of a $3.0 billion revolving credit facility, with an
initial term that expires in March
2023 (subject to two six-month options to extend), and a
$250.0 million term loan due
March 2024. The revolving credit
facility also has a $1.0 billion
expansion feature. In August 2019,
the credit facility was amended to allow for borrowings under the
revolving credit facility in up to 14 currencies, including U.S.
Dollars. Other terms of the credit agreement, including
maturity dates of the revolver and term loans, LIBOR spreads and
participating banks, are unchanged by the amendment. As of
September 30, 2019, we had no
outstanding borrowings under our revolving credit facility.
2019 Earnings Guidance
We estimate AFFO per share for 2019 of $3.29 to $3.34.
AFFO adjusts FFO for unique revenue and expense items, which are
not as pertinent to the measurement of Realty Income's ongoing
operating performance.
We estimate FFO per share for 2019 of $3.26 to $3.31. FFO
per share for 2019 is based on a net income per share range of
$1.32 to $1.37, plus estimated real estate depreciation
and impairments of $2.00 per share,
and reduced by potential estimated gains on sales of investment
properties of $0.06 per share (in
accordance with NAREIT's definition of FFO).
Additional earnings guidance detail can be found in Realty
Income's supplemental materials available on Realty Income's
corporate website at
www.realtyincome.com/investors/financial-information/quarterly-results.
Conference Call Information
In conjunction with the release of Realty Income's operating
results, the company will host a conference call on
November 5, 2019 at 11:30 a.m.
PT to discuss the results. To access the conference, dial
(877) 701-6180. When prompted, provide the conference ID
4192518.
A telephone replay of the conference call can also be accessed
by calling (800) 585-8367 and entering the passcode 4192518. The
telephone replay will be available through November 19, 2019.
A live webcast will be available in listen-only mode by clicking on
the webcast link on the company's home page or in the investors
section 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 November 19, 2019. No access code is required for
this replay.
Supplemental Materials
Supplemental materials on third quarter and year-to-date 2019
operating results are available on Realty Income's corporate
website at
www.realtyincome.com/investors/financial-information/quarterly-results.
About Realty Income
Realty Income, The Monthly Dividend Company®, is an
S&P 500 company dedicated to providing stockholders with
dependable monthly income. The company is structured as a REIT, and
its monthly dividends are supported by the cash flow from over
5,900 real estate properties owned under long-term lease agreements
with commercial tenants. To date, the company has declared 592
consecutive common stock monthly dividends throughout its 50-year
operating history and increased the dividend 103 times since Realty
Income's public listing in 1994 (NYSE: O). Additional information
about the company can be obtained from the corporate website at
www.realtyincome.com.
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 and foreign 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, changes in foreign currency exchange
rates, 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
|
|
Nine
Months
|
|
Nine
Months
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
REVENUE
|
|
|
|
|
|
|
|
Rental (including
reimbursable)
|
$
|
372,312
|
|
|
$
|
337,252
|
|
|
$
|
1,090,601
|
|
|
$
|
980,365
|
|
Other
|
1,935
|
|
|
829
|
|
|
3,461
|
|
|
4,897
|
|
Total
revenue
|
374,247
|
|
|
338,081
|
|
|
1,094,062
|
|
|
985,262
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
149,424
|
|
|
136,967
|
|
|
437,367
|
|
|
402,069
|
|
Interest
|
73,410
|
|
|
69,342
|
|
|
215,918
|
|
|
195,385
|
|
General and
administrative
|
16,460
|
|
|
16,332
|
|
|
50,153
|
|
|
49,970
|
|
Property (including
reimbursable)
|
20,354
|
|
|
15,806
|
|
|
63,332
|
|
|
48,594
|
|
Income
taxes
|
1,822
|
|
|
1,302
|
|
|
4,422
|
|
|
3,733
|
|
Provisions for
impairment
|
13,503
|
|
|
6,862
|
|
|
31,236
|
|
|
25,034
|
|
Total
expenses
|
274,973
|
|
|
246,611
|
|
|
802,428
|
|
|
724,785
|
|
Gain on sales of real
estate
|
1,674
|
|
|
7,813
|
|
|
15,828
|
|
|
18,818
|
|
Foreign currency and
derivative gains, net
|
327
|
|
|
—
|
|
|
463
|
|
|
—
|
|
Net income
|
101,275
|
|
|
99,283
|
|
|
307,925
|
|
|
279,295
|
|
Net income
attributable to noncontrolling interests
|
(226)
|
|
|
(284)
|
|
|
(740)
|
|
|
(753)
|
|
Net income available
to common stockholders
|
$
|
101,049
|
|
|
$
|
98,999
|
|
|
$
|
307,185
|
|
|
$
|
278,542
|
|
|
|
|
|
|
|
|
|
Funds from operations
available to common stockholders (FFO)
|
$
|
262,031
|
|
|
$
|
234,550
|
|
|
$
|
759,195
|
|
|
$
|
685,514
|
|
Adjusted funds from
operations available to common stockholders (AFFO)
|
$
|
265,355
|
|
|
$
|
236,195
|
|
|
$
|
768,026
|
|
|
$
|
687,744
|
|
|
|
|
|
|
|
|
|
Per share information
for common stockholders:
|
|
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.99
|
|
|
$
|
0.97
|
|
Diluted
|
$
|
0.32
|
|
|
$
|
0.34
|
|
|
$
|
0.98
|
|
|
$
|
0.97
|
|
|
|
|
|
|
|
|
|
FFO:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.44
|
|
|
$
|
2.39
|
|
Diluted
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.43
|
|
|
$
|
2.39
|
|
|
|
|
|
|
|
|
|
AFFO:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.47
|
|
|
$
|
2.40
|
|
Diluted
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.46
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
$
|
0.680
|
|
|
$
|
0.660
|
|
|
$
|
2.030
|
|
|
$
|
1.969
|
|
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 real estate sales.
|
|
|
Three
Months
|
|
Three
Months
|
|
Nine
Months
|
|
Nine
Months
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
101,049
|
|
|
$
|
98,999
|
|
|
$
|
307,185
|
|
|
$
|
278,542
|
|
Depreciation and
amortization
|
149,424
|
|
|
136,967
|
|
|
437,367
|
|
|
402,069
|
|
Depreciation of
furniture, fixtures and equipment
|
(136)
|
|
|
(166)
|
|
|
(438)
|
|
|
(493)
|
|
Provisions for
impairment
|
13,503
|
|
|
6,862
|
|
|
31,236
|
|
|
25,034
|
|
Gain on sales of real
estate
|
(1,674)
|
|
|
(7,813)
|
|
|
(15,828)
|
|
|
(18,818)
|
|
FFO adjustments
allocable to noncontrolling interests
|
(135)
|
|
|
(299)
|
|
|
(327)
|
|
|
(820)
|
|
FFO available to
common stockholders
|
$
|
262,031
|
|
|
$
|
234,550
|
|
|
$
|
759,195
|
|
|
$
|
685,514
|
|
FFO allocable to
dilutive noncontrolling interests
|
362
|
|
|
217
|
|
|
1,032
|
|
|
667
|
|
Diluted
FFO
|
$
|
262,393
|
|
|
$
|
234,767
|
|
|
$
|
760,227
|
|
|
$
|
686,181
|
|
|
|
|
|
|
|
|
|
FFO per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.44
|
|
|
$
|
2.39
|
|
Diluted
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
2.43
|
|
|
$
|
2.39
|
|
|
|
|
|
|
|
|
|
Distributions paid to
common stockholders
|
$
|
216,248
|
|
|
$
|
191,703
|
|
|
$
|
629,658
|
|
|
$
|
564,747
|
|
|
|
|
|
|
|
|
|
FFO available to
common stockholders in excess of distributions paid to common
stockholders
|
$
|
45,783
|
|
|
$
|
42,847
|
|
|
$
|
129,537
|
|
|
$
|
120,767
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for FFO:
|
|
|
|
|
|
|
|
Basic
|
319,945,932
|
|
|
290,664,368
|
|
|
311,556,279
|
|
|
286,599,191
|
|
Diluted
|
320,726,136
|
|
|
291,207,186
|
|
|
312,300,391
|
|
|
287,105,285
|
|
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
|
|
Nine
Months
|
|
Nine
Months
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
|
Ended
9/30/19
|
|
Ended
9/30/18
|
Net income available
to common stockholders
|
$
|
101,049
|
|
|
$
|
98,999
|
|
|
$
|
307,185
|
|
|
$
|
278,542
|
|
Cumulative
adjustments to calculate FFO (1)
|
160,982
|
|
|
135,551
|
|
|
452,010
|
|
|
406,972
|
|
FFO available to
common stockholders
|
262,031
|
|
|
234,550
|
|
|
759,195
|
|
|
685,514
|
|
Amortization of
share-based compensation
|
3,187
|
|
|
3,870
|
|
|
10,478
|
|
|
12,527
|
|
Amortization of
deferred financing costs (2)
|
1,299
|
|
|
1,014
|
|
|
3,471
|
|
|
2,872
|
|
Amortization of net
mortgage premiums
|
(354)
|
|
|
(354)
|
|
|
(1,061)
|
|
|
(1,167)
|
|
Loss (gain) on
interest rate swaps
|
694
|
|
|
(265)
|
|
|
2,058
|
|
|
(3,064)
|
|
Straight-line
payments from cross-currency swaps (3)
|
1,754
|
|
|
—
|
|
|
2,553
|
|
|
—
|
|
Leasing costs and
commissions
|
(851)
|
|
|
(379)
|
|
|
(1,880)
|
|
|
(2,831)
|
|
Recurring capital
expenditures
|
(406)
|
|
|
(382)
|
|
|
(577)
|
|
|
(529)
|
|
Straight-line
rent
|
(7,642)
|
|
|
(6,575)
|
|
|
(19,735)
|
|
|
(18,207)
|
|
Amortization of above
and below-market leases
|
5,486
|
|
|
4,655
|
|
|
13,227
|
|
|
12,426
|
|
Other adjustments
(4)
|
157
|
|
|
61
|
|
|
297
|
|
|
203
|
|
AFFO available to
common stockholders
|
$
|
265,355
|
|
|
$
|
236,195
|
|
|
$
|
768,026
|
|
|
$
|
687,744
|
|
AFFO allocable to
dilutive noncontrolling interests
|
368
|
|
|
227
|
|
|
1,064
|
|
|
692
|
|
Diluted
AFFO
|
$
|
265,723
|
|
|
$
|
236,422
|
|
|
$
|
769,090
|
|
|
$
|
688,436
|
|
|
|
|
|
|
|
|
|
AFFO per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.47
|
|
|
$
|
2.40
|
|
Diluted
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
2.46
|
|
|
$
|
2.40
|
|
|
|
|
|
|
|
|
|
Distributions paid to
common stockholders
|
$
|
216,248
|
|
|
$
|
191,703
|
|
|
$
|
629,658
|
|
|
$
|
564,747
|
|
|
|
|
|
|
|
|
|
AFFO available to
common stockholders in excess of distributions paid to common
stockholders
|
$
|
49,107
|
|
|
$
|
44,492
|
|
|
$
|
138,368
|
|
|
$
|
122,997
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for AFFO:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
319,945,932
|
|
|
290,664,368
|
|
|
311,556,279
|
|
|
286,599,191
|
|
Diluted
|
320,726,136
|
|
|
291,207,186
|
|
|
312,300,391
|
|
|
287,105,285
|
|
|
|
(1)
|
See FFO calculation
on page seven for reconciling items.
|
|
|
(2)
|
Includes the
amortization of costs incurred and capitalized upon issuance of our
notes payable, assumption of our mortgages payable and issuance of
our term loans. The deferred financing costs are being amortized
over the lives of the respective notes payable, mortgages and term
loans. No costs associated with our credit facility agreements
or annual fees paid to credit rating agencies have been
included.
|
|
|
(3)
|
Straight-line
payments from cross-currency swaps represent quarterly payments in
U.S. dollars received by us from counterparties in exchange for
associated foreign currency payments. These USD payments are fixed
and determinable for the duration of the associated hedging
transaction.
|
|
|
(4)
|
Includes adjustments
allocable to noncontrolling interests, obligations related to
financing lease liabilities, and foreign currency gains and losses
as a result of intercompany debt and remeasurement
transactions.
|
HISTORICAL FFO AND
AFFO
|
(dollars in
thousands, except per share amounts)
|
|
For the three months
ended September 30,
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
101,049
|
|
|
$
|
98,999
|
|
|
$
|
87,940
|
|
|
$
|
70,302
|
|
|
$
|
60,705
|
|
Depreciation and
amortization, net of furniture, fixtures and equipment
|
149,288
|
|
|
136,801
|
|
|
127,436
|
|
|
113,730
|
|
|
104,154
|
|
Provisions for
impairment
|
13,503
|
|
|
6,862
|
|
|
365
|
|
|
8,763
|
|
|
3,864
|
|
Gain on sales of real
estate
|
(1,674)
|
|
|
(7,813)
|
|
|
(4,319)
|
|
|
(4,335)
|
|
|
(6,224)
|
|
FFO adjustments
allocable to noncontrolling interests
|
(135)
|
|
|
(299)
|
|
|
(230)
|
|
|
(174)
|
|
|
(339)
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
262,031
|
|
|
$
|
234,550
|
|
|
$
|
211,192
|
|
|
$
|
188,286
|
|
|
$
|
162,160
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted
share
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.77
|
|
|
$
|
0.73
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
265,355
|
|
|
$
|
236,195
|
|
|
$
|
213,601
|
|
|
$
|
186,575
|
|
|
$
|
165,790
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
0.83
|
|
|
$
|
0.81
|
|
|
$
|
0.77
|
|
|
$
|
0.72
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
0.680
|
|
|
$
|
0.660
|
|
|
$
|
0.635
|
|
|
$
|
0.601
|
|
|
$
|
0.570
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - FFO
|
320,726,136
|
|
|
291,207,186
|
|
|
276,050,671
|
|
|
258,356,892
|
|
|
236,739,942
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - AFFO
|
320,726,136
|
|
|
291,207,186
|
|
|
276,138,853
|
|
|
258,356,892
|
|
|
236,739,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months
ended September 30,
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
307,185
|
|
|
$
|
278,542
|
|
|
$
|
240,662
|
|
|
$
|
202,820
|
|
|
$
|
180,515
|
|
Depreciation and
amortization, net of furniture, fixtures and equipment
|
436,929
|
|
|
401,576
|
|
|
371,315
|
|
|
331,617
|
|
|
302,868
|
|
Provisions for
impairment
|
31,236
|
|
|
25,034
|
|
|
8,072
|
|
|
16,955
|
|
|
9,182
|
|
Gain on sales of real
estate
|
(15,828)
|
|
|
(18,818)
|
|
|
(17,689)
|
|
|
(15,283)
|
|
|
(17,117)
|
|
FFO adjustments
allocable to noncontrolling interests
|
(327)
|
|
|
(820)
|
|
|
(683)
|
|
|
(546)
|
|
|
(918)
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
$
|
759,195
|
|
|
$
|
685,514
|
|
|
$
|
601,677
|
|
|
$
|
535,563
|
|
|
$
|
474,530
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted
share
|
$
|
2.43
|
|
|
$
|
2.39
|
|
|
$
|
2.22
|
|
|
$
|
2.11
|
|
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
768,026
|
|
|
$
|
687,744
|
|
|
$
|
623,327
|
|
|
$
|
543,367
|
|
|
$
|
477,006
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
2.46
|
|
|
$
|
2.40
|
|
|
$
|
2.30
|
|
|
$
|
2.14
|
|
|
$
|
2.06
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
2.030
|
|
|
$
|
1.969
|
|
|
$
|
1.891
|
|
|
$
|
1.786
|
|
|
$
|
1.700
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - FFO
|
312,300,391
|
|
|
287,105,285
|
|
|
271,126,114
|
|
|
254,223,301
|
|
|
231,545,745
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - AFFO
|
312,300,391
|
|
|
287,105,285
|
|
|
271,214,296
|
|
|
254,458,747
|
|
|
231,545,745
|
|
REALTY INCOME
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(dollars in
thousands, except per share data)
|
|
|
September 30,
2019
|
|
December 31,
2018
|
ASSETS
|
(unaudited)
|
|
|
Real estate, at
cost:
|
|
|
|
Land
|
$
|
5,085,951
|
|
|
$
|
4,682,660
|
|
Buildings and
improvements
|
13,062,209
|
|
|
11,858,806
|
|
Total real estate, at
cost
|
18,148,160
|
|
|
16,541,466
|
|
Less accumulated
depreciation and amortization
|
(3,017,204)
|
|
|
(2,714,534)
|
|
Net real estate held
for investment
|
15,130,956
|
|
|
13,826,932
|
|
Real estate held for
sale, net
|
15,770
|
|
|
16,585
|
|
Net real
estate
|
15,146,726
|
|
|
13,843,517
|
|
Cash and cash
equivalents
|
236,064
|
|
|
10,387
|
|
Accounts
receivable
|
163,444
|
|
|
144,991
|
|
Lease intangible
assets, net
|
1,313,798
|
|
|
1,199,597
|
|
Goodwill
|
14,503
|
|
|
14,630
|
|
Other assets,
net
|
305,369
|
|
|
47,361
|
|
Total
assets
|
$
|
17,179,904
|
|
|
$
|
15,260,483
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Distributions
payable
|
$
|
74,735
|
|
|
$
|
67,789
|
|
Accounts payable and
accrued expenses
|
163,154
|
|
|
133,765
|
|
Lease intangible
liabilities, net
|
326,172
|
|
|
310,866
|
|
Other
liabilities
|
260,357
|
|
|
127,109
|
|
Line of credit
payable
|
—
|
|
|
252,000
|
|
Term loans,
net
|
498,936
|
|
|
568,610
|
|
Mortgages payable,
net
|
282,053
|
|
|
302,569
|
|
Notes payable,
net
|
6,256,400
|
|
|
5,376,797
|
|
Total
liabilities
|
7,861,807
|
|
|
7,139,505
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock and paid
in capital, par value $0.01 per share, 740,200,000 shares
authorized, 325,910,281 shares issued and outstanding as of
September 30, 2019 and 370,100,000 shares authorized, 303,742,090
shares issued and outstanding as of December 31, 2018
|
12,294,138
|
|
|
10,754,495
|
|
Distributions in
excess of net income
|
(2,987,120)
|
|
|
(2,657,655)
|
|
Accumulated other
comprehensive loss
|
(13,599)
|
|
|
(8,098)
|
|
Total stockholders'
equity
|
9,293,419
|
|
|
8,088,742
|
|
Noncontrolling
interests
|
24,678
|
|
|
32,236
|
|
Total
equity
|
9,318,097
|
|
|
8,120,978
|
|
Total liabilities and
equity
|
$
|
17,179,904
|
|
|
$
|
15,260,483
|
|
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%
|
2015
|
4.4%
|
|
13.0%
|
|
3.9%
|
|
2.8%
|
|
2.6%
|
|
0.2%
|
|
2.2%
|
|
1.4%
|
|
1.4%
|
|
5.7%
|
2016
|
4.2%
|
|
16.0%
|
|
4.0%
|
|
8.6%
|
|
2.5%
|
|
16.5%
|
|
2.1%
|
|
12.0%
|
|
1.4%
|
|
7.5%
|
2017
|
4.5%
|
|
3.6%
|
|
3.9%
|
|
8.7%
|
|
2.2%
|
|
28.1%
|
|
1.9%
|
|
21.8%
|
|
1.1%
|
|
28.2%
|
2018
|
4.2%
|
|
15.2%
|
|
4.4%
|
|
(4.0%)
|
|
2.5%
|
|
(3.5%)
|
|
2.2%
|
|
(4.4%)
|
|
1.4%
|
|
(3.9%)
|
YTD 2019
|
3.5%
|
|
24.9%
|
|
3.5%
|
|
28.5%
|
|
2.5%
|
|
17.5%
|
|
2.0%
|
|
20.6%
|
|
1.1%
|
|
20.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compound Average
Annual Total
Return (5)
|
16.8%
|
|
|
|
10.9%
|
|
|
|
10.6%
|
|
|
|
9.8%
|
|
|
|
9.9%
|
|
Note: The
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 as NASDAQ did not report total return
metrics for the entirety of the measurement period. Source:
Factset.
|
|
|
(5)
|
The Compound Average
Annual Total Return rates are calculated in the same manner for
each period from Realty Income's NYSE listing on October 18,
1994 through September 30, 2019, and (except for NASDAQ) assume
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.
|
View original content to download
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SOURCE Realty Income Corporation