SAN DIEGO, May 4, 2020 /PRNewswire/ -- Realty Income
Corporation (Realty Income, NYSE: O), The Monthly Dividend
Company®, today announced operating results for the
first quarter ended March 31, 2020.
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 March 31,
2020:
- Net income per share was $0.44
- AFFO per share increased 7.3% to $0.88, compared to the quarter ended March 31, 2019
- Invested $486.0 million in 65
properties and properties under development or expansion, including
$165.6 million in four properties in
the U.K.
- Raised $752.4 million from the
sale of common stock
- Completed the early redemption on all $250.0 million in principal amount of the 5.750%
Notes due 2021
CEO Comments
"First and foremost, our thoughts remain with everyone impacted
by the COVID-19 pandemic. As we navigate through the current state
of economic volatility and uncertainty, I want to thank my
colleagues for their hard work and dedication to help maintain the
strength of our business operations," said Sumit Roy, Realty Income's President and Chief
Executive Officer. "We continued the positive momentum into a
strong first quarter of 2020, investing $486
million in property acquisitions and ending the quarter
well-positioned with a modest net debt to EBITDAre ratio of
5.0x and a fixed charge coverage ratio of 5.5x, which represents an
all-time high. As of May
1st, we had approximately $1.2 billion of cash on hand and $1.1 billion available on our $3.0 billion revolving credit facility, excluding
the $1.0 billion accordion feature,
which we believe provides us significant financial flexibility
through the duration of the year."
"We have constructed our real estate portfolio, the majority of
which is leased to leading national or multi-national operators,
with a focus on economic resiliency. In April 2020, we collected approximately 83% of
expected contractual rent, with substantially all the non-collected
rent attributed to tenants in the theater, health and fitness,
restaurant and child care industries, each of which have been
disproportionately impacted by government-mandated closures. We
will continue to partner with our tenants to achieve mutually
beneficial outcomes during these challenging circumstances and
remain committed to creating long-term value for our
shareholders."
Select Financial Results
The following summarizes our select financial results (dollars
in millions, except per share data):
|
Three Months Ended
March 31,
|
|
2020
|
|
|
2019
|
|
Total
revenue
|
$
|
414.3
|
|
|
$
|
354.4
|
|
Net income available to
common stockholders (1)(2)
|
$
|
146.8
|
|
|
$
|
110.9
|
|
Net income per
share
|
$
|
0.44
|
|
|
$
|
0.37
|
|
Funds from operations
available to common stockholders
(FFO) (2)(3)
|
$
|
277.1
|
|
|
$
|
245.7
|
|
FFO per
share
|
$
|
0.82
|
|
|
$
|
0.81
|
|
Adjusted funds from
operations available to common stockholders (AFFO) (3)
|
$
|
297.2
|
|
|
$
|
248.7
|
|
AFFO per
share
|
$
|
0.88
|
|
|
$
|
0.82
|
|
|
|
(1)
|
The calculation to
determine net income for a real estate company includes provisions
for impairment, gains on sales of real estate, 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)
|
Net
income available to common stockholders and FFO in the first three
months of 2020 were impacted by a $9.8 million loss on
extinguishment of debt due to the January 2020 early redemption of
the 5.750% Notes due 2021 and a $3.5 million executive severance
charge for our former chief financial officer (CFO).
|
(3)
|
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 March 2020, we announced the 90th
consecutive quarterly dividend increase, which is the
106th 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 March
31, 2020 was $2.796 per share.
The amount of monthly dividends paid per share increased 3.1% to
$0.693 in the first quarter of 2020,
as compared to $0.672 in the first
quarter of 2019. During the first quarter of 2020, the company
distributed $233.8 million in common
dividends to shareholders, representing 78.7% of its AFFO of
$297.2 million.
Real Estate Portfolio Update
As of March 31, 2020, our portfolio consisted of 6,525
properties located in 49 U.S. states, Puerto Rico and the U.K., and leased to
approximately 630 different tenants doing business in 51
industries. The properties are primarily freestanding and leased
under long-term, net lease agreements with a weighted average
remaining lease term of 9.2 years. The company's portfolio of
commercial real estate has historically provided dependable rental
revenue supporting the payment of monthly dividends. As of
March 31, 2020, portfolio occupancy was 98.5% with 97
properties available for lease out of the 6,525, as compared to
98.6% as of December 31, 2019 and
98.3% as of March 31, 2019.
Changes in Occupancy
Properties available
for lease at December 31, 2019
|
94
|
|
Lease
expirations
|
109
|
|
Re-leases to same
tenant (1)
|
(90)
|
|
Re-leases to new
tenant (1)(2)
|
(3)
|
|
Vacant
dispositions
|
(13)
|
|
Properties available
for lease at March 31, 2020
|
97
|
|
|
|
(1)
|
The annual new rent
on these re-leases was $17.82 million, as compared to the previous
annual rent of $18.0 million on the same properties, representing a
rent recapture rate of 99.0% on the properties re-leased during the
quarter ended March 31, 2020.
|
(2)
|
Re-leased one
property to a new tenant without a period of vacancy, and two
properties to new tenants after a period of vacancy.
|
Investments in Real Estate
The following table
summarizes our acquisitions in the U.S. and U.K. for the periods
indicated below:
|
Number of
Properties
|
|
Leasable
Square Feet
(in
millions)
|
|
Investment
($ in
millions)
|
|
Weighted
Average
Lease Term
(Years)
|
|
Initial Average
Cash Lease
Yield
|
Three months ended
March 31, 2020
|
|
|
|
|
|
|
|
|
|
Acquisitions - U.S.
(in 22 states)
|
54
|
|
|
1.4
|
|
|
$
|
318.3
|
|
|
14.8
|
|
|
6.5
|
%
|
Acquisitions - U.K.
(1)
|
4
|
|
|
0.4
|
|
|
165.6
|
|
|
12.5
|
|
|
5.1
|
%
|
Total
Acquisitions
|
58
|
|
|
1.8
|
|
|
483.9
|
|
|
14.2
|
|
|
6.0
|
%
|
Properties under
Development - U.S.
|
7
|
|
|
0.2
|
|
|
2.1
|
|
|
10.6
|
|
|
7.5
|
%
|
Total
(2)
|
65
|
|
|
2.0
|
|
|
$
|
486.0
|
|
|
14.1
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
investments of £133.3 million Sterling during the quarter ended
March 31, 2020 converted at the applicable exchange rate on the
date of acquisition.
|
(2)
|
The tenants occupying
the new properties operate in 17 industries, and are 95.4% retail
and 4.6% industrial, based on rental revenue. Approximately 36% of
the rental revenue generated from acquisitions during the first
quarter of 2020 is from investment grade rated tenants, their
subsidiaries or affiliated companies.
|
Rent Increases
The following summarizes our
same store rents on 5,535 properties under lease (dollars in
millions):
|
Three Months Ended
March 31,
|
|
Increase
|
|
2020
|
|
2019
|
|
Rental
Revenue
|
$
|
321.5
|
|
|
$
|
320.8
|
|
|
0.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Property Dispositions
The following summarizes
our property dispositions (dollars in millions):
|
Three Months
Ended
March 31,
2020
|
Properties
sold
|
17
|
|
Net sales
proceeds
|
$
|
126.2
|
|
Gain on sales of real
estate
|
$
|
38.5
|
|
Liquidity and Capital Markets
Equity Capital Raising
During the quarter ended
March 31, 2020, we raised
$752.4 million from the sale of
common stock at a weighted average price of $77.37 per share, primarily from 9,690,500 shares
issued in a March 2020 overnight
underwritten public offering, including 690,500 shares purchased by
the underwriters upon the exercise of their option to purchase
additional shares.
Credit Facility
We have a $3.0 billion unsecured revolving credit facility,
with an initial term that expires in March
2023 (subject to two six-month options to extend). The
revolving credit facility also has a $1.0
billion expansion feature. As of March 31, 2020, the balance of borrowings
outstanding under our revolving credit facility was $615.2 million. On April 9, 2020, we
borrowed an additional $1.2 billion
on our credit facility to increase our cash position to
$1.25 billion as a conservative
measure due to COVID–19.
As of May 1, 2020, we had
$1.9 billion of borrowings
outstanding under our revolving credit line, with a remaining
available capacity of $1.1 billion.
The revolving credit facility also has a $1.0 billion expansion feature, which is subject
to obtaining lender commitments.
Early Redemption of 5.75% Notes Due January 2021
In January 2020, we completed the early redemption
on all $250.0 million in principal
amount of our outstanding 5.750% Notes due January 2021, plus accrued and unpaid interest.
As a result of the early redemption, we recognized a $9.8 million loss on extinguishment of debt
during the first quarter of 2020.
Impact of COVID-19
On April 9, 2020 we withdrew our
2020 guidance that was provided on February
19, 2020 due to the ongoing uncertainty regarding the impact
of the COVID-19 pandemic and the measures taken to limit its
spread. We are continuing to evaluate these impacts on our business
as the situation continues to evolve and feel it is not prudent to
provide revised guidance at this time.
As of May 1, 2020:
- We have collected 82.9% of contractual rent(1) due
for the month of April 2020 across
our total portfolio;
- We are in rent deferral discussions with tenants that account
for a majority of the unpaid contractual rent for the month of
April 2020, as well as certain
tenants that did pay April contractual rent;
- We have collected 82.9% of contractual rent due for the month
of April 2020 from our top 20
tenants(2); and
- We have collected 99.9% of contractual rent due for the month
of April from 2020 our investment grade tenants(3).
(1)
|
Contractual rent is
the aggregate cash amount charged to tenants inclusive of April
monthly base rent receivables, offset by applicable discounts or
credits. U.K. rent (which is payable in pounds Sterling) was
converted at the exchange rate in effect on May 1, 2020.
|
(2)
|
We define top 20
tenants as our 20 largest tenants based on percentage of total
portfolio annualized rental revenue.
|
(3)
|
We define investment
grade tenants as tenants with a credit rating, and tenants that are
subsidiaries or affiliates of companies with a credit rating, of
Baa3/BBB- or higher from one of the three major rating agencies
(Moody's/S&P/Fitch).
|
Additional detail on April rent collections 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 our operating results, we
will host a conference call on May 5,
2020 at 11:30 a.m. PT to
discuss the results. To access the conference, dial (877) 701-6180.
When prompted, provide the conference ID 2238836.
A telephone replay of the conference call can also be accessed
by calling (800) 585-8367 and entering the passcode 2238836.
The telephone replay will be available through May 19, 2020. 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 one hour after the conclusion of the live broadcast.
The webcast replay will be available through May 19, 2020. No access code is required for this
replay.
Supplemental Materials
Supplemental materials on first quarter operating results are
available on our 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
6,500 real estate properties owned under long-term lease agreements
with commercial tenants. To date, the company has declared 598
consecutive common stock monthly dividends throughout its 51-year
operating history and increased the dividend 106 times since Realty
Income's public listing in 1994 (NYSE: O). The company is a member
of the S&P 500 Dividend Aristocrats® index.
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, domestic and foreign real estate conditions, tenant
financial health, the availability of capital to finance planned
growth, 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, the effects of the COVID-19
pandemic and the measures taken to limit its impact, the effects of
pandemics or global outbreaks of contagious diseases or fear of
such outbreaks, the company's tenants' ability to adequately manage
its properties and fulfill their respective lease obligations to
the company, 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
|
|
|
Ended
3/31/20
|
|
Ended
3/31/19
|
REVENUE
|
|
|
|
|
Rental (including
reimbursable)
|
|
$
|
412,157
|
|
|
$
|
354,037
|
|
Other
|
|
2,184
|
|
|
328
|
|
Total
revenue
|
|
414,341
|
|
|
354,365
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
Depreciation and
amortization
|
|
164,585
|
|
|
137,517
|
|
Interest
|
|
75,925
|
|
|
70,020
|
|
Property (including
reimbursable)
|
|
25,606
|
|
|
21,636
|
|
General and
administrative
|
|
20,964
|
|
|
15,108
|
|
Income
taxes
|
|
2,763
|
|
|
1,445
|
|
Provisions for
impairment
|
|
4,478
|
|
|
4,672
|
|
Total
expenses
|
|
294,321
|
|
|
250,398
|
|
Gain on sales of real
estate
|
|
38,506
|
|
|
7,263
|
|
Foreign currency and
derivative losses, net
|
|
(1,564)
|
|
|
—
|
|
Loss on extinguishment
of debt
|
|
(9,819)
|
|
|
—
|
|
Net income
|
|
147,143
|
|
|
111,230
|
|
Net income
attributable to noncontrolling interests
|
|
(316)
|
|
|
(288)
|
|
Net income available
to common stockholders
|
|
$
|
146,827
|
|
|
$
|
110,942
|
|
|
|
|
|
|
Funds from operations
available to common stockholders (FFO)
|
|
$
|
277,104
|
|
|
$
|
245,675
|
|
Adjusted funds from
operations available to common stockholders (AFFO)
|
|
$
|
297,223
|
|
|
$
|
248,734
|
|
|
|
|
|
|
Per share information
for common stockholders:
|
|
|
|
|
Net
income:
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.44
|
|
|
$
|
0.37
|
|
|
|
|
|
|
FFO:
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
|
|
|
|
AFFO:
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.88
|
|
|
$
|
0.82
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
|
$
|
0.693
|
|
|
$
|
0.672
|
|
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
|
|
|
|
Ended
3/31/20
|
|
Ended
3/31/19
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
146,827
|
|
|
$
|
110,942
|
|
Depreciation and
amortization
|
|
164,585
|
|
|
137,517
|
|
Depreciation of
furniture, fixtures and equipment
|
|
(126)
|
|
|
(155)
|
|
Provisions for
impairment
|
|
4,478
|
|
|
4,672
|
|
Gain on sales of real
estate
|
|
(38,506)
|
|
|
(7,263)
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
(154)
|
|
|
(38)
|
|
FFO available to
common stockholders
|
|
$
|
277,104
|
|
|
$
|
245,675
|
|
FFO allocable to
dilutive noncontrolling interests
|
|
369
|
|
|
—
|
|
Diluted
FFO
|
|
$
|
277,473
|
|
|
$
|
245,675
|
|
|
|
|
|
|
FFO per common share,
basic and diluted
|
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
|
|
|
|
Distributions paid to
common stockholders
|
|
$
|
233,824
|
|
|
$
|
204,546
|
|
|
|
|
|
|
FFO available to
common stockholders in excess of distributions paid to common
stockholders
|
|
$
|
43,280
|
|
|
$
|
41,129
|
|
|
|
|
|
|
Weighted average
number of common shares used for FFO:
|
|
|
|
|
Basic
|
|
336,624,567
|
|
|
303,528,336
|
|
Diluted
|
|
337,439,634
|
|
|
303,819,878
|
|
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
|
|
|
|
Ended
3/31/20
|
|
|
Ended
3/31/19
|
|
Net income available
to common stockholders
|
|
$
|
146,827
|
|
|
$
|
110,942
|
|
Cumulative
adjustments to calculate FFO (1)
|
|
130,277
|
|
|
134,733
|
|
FFO available to
common stockholders
|
|
277,104
|
|
|
245,675
|
|
Executive severance
charge (2)
|
|
3,463
|
|
|
—
|
|
Loss on
extinguishment of debt
|
|
9,819
|
|
|
—
|
|
Amortization of
share-based compensation
|
|
3,742
|
|
|
2,764
|
|
Amortization of
deferred financing costs (3)
|
|
1,360
|
|
|
1,040
|
|
Amortization of net
mortgage premiums
|
|
(354)
|
|
|
(354)
|
|
Loss on interest rate
swaps
|
|
686
|
|
|
678
|
|
Straight-line
payments from cross-currency swaps (4)
|
|
723
|
|
|
—
|
|
Leasing costs and
commissions
|
|
(138)
|
|
|
(323)
|
|
Recurring capital
expenditures
|
|
—
|
|
|
(56)
|
|
Straight-line
rent
|
|
(7,782)
|
|
|
(4,862)
|
|
Amortization of above
and below-market leases
|
|
6,430
|
|
|
4,114
|
|
Other adjustments
(5)
|
|
2,170
|
|
|
58
|
|
AFFO available to
common stockholders
|
|
$
|
297,223
|
|
|
$
|
248,734
|
|
AFFO allocable to
dilutive noncontrolling interests
|
|
376
|
|
|
—
|
|
Diluted
AFFO
|
|
$
|
297,599
|
|
|
$
|
248,734
|
|
|
|
|
|
|
AFFO per common
share, basic and diluted
|
|
$
|
0.88
|
|
|
$
|
0.82
|
|
|
|
|
|
|
Distributions paid to
common stockholders
|
|
$
|
233,824
|
|
|
$
|
204,546
|
|
|
|
|
|
|
AFFO available to
common stockholders in excess of distributions paid to common
stockholders
|
|
$
|
63,399
|
|
|
$
|
44,188
|
|
|
|
|
|
|
Weighted average
number of common shares used for AFFO:
|
|
|
Basic
|
|
336,624,567
|
|
|
303,528,336
|
|
Diluted
|
|
337,439,634
|
|
|
303,819,878
|
|
|
|
(1)
|
See FFO calculation
on page seven for reconciling items.
|
(2)
|
The executive
severance charge represents the incremental costs incurred upon our
former CFO's departure in March 2020, consisting of $1.6 million of
cash, $1.8 million of share-based compensation expense and $58,000
of professional fees.
|
(3)
|
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.
|
(4)
|
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.
|
(5)
|
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 March 31,
|
|
2020
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
146,827
|
|
|
$
|
110,942
|
|
|
$
|
83,163
|
|
|
$
|
71,586
|
|
|
$
|
63,473
|
|
Depreciation and
amortization, net of furniture, fixtures and equipment
|
|
164,459
|
|
|
137,362
|
|
|
130,944
|
|
|
120,940
|
|
|
107,740
|
|
Provisions for
impairment
|
|
4,478
|
|
|
4,672
|
|
|
14,221
|
|
|
5,433
|
|
|
1,923
|
|
Gain on sales of real
estate
|
|
(38,506)
|
|
|
(7,263)
|
|
|
(3,218)
|
|
|
(10,532)
|
|
|
(2,289)
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
(154)
|
|
|
(38)
|
|
|
(228)
|
|
|
(214)
|
|
|
(218)
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
|
|
$
|
277,104
|
|
|
$
|
245,675
|
|
|
$
|
224,882
|
|
|
$
|
187,213
|
|
|
$
|
170,629
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted
share
|
|
$
|
0.82
|
|
|
$
|
0.81
|
|
|
$
|
0.79
|
|
|
$
|
0.71
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
|
$
|
297,223
|
|
|
$
|
248,734
|
|
|
$
|
224,560
|
|
|
$
|
201,336
|
|
|
$
|
175,918
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
|
$
|
0.88
|
|
|
$
|
0.82
|
|
|
$
|
0.79
|
|
|
$
|
0.76
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
|
$
|
0.693
|
|
|
$
|
0.672
|
|
|
$
|
0.651
|
|
|
$
|
0.624
|
|
|
$
|
0.588
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - FFO
|
|
337,439,634
|
|
|
303,819,878
|
|
|
284,345,328
|
|
|
263,934,304
|
|
|
250,381,001
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding - AFFO
|
|
337,439,634
|
|
|
303,819,878
|
|
|
284,345,328
|
|
|
264,022,486
|
|
|
250,381,001
|
|
REALTY INCOME
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(dollars in
thousands, except per share data) (unaudited)
|
|
|
March 31,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
|
Real estate held for
investment, at cost:
|
|
|
|
|
Land
|
|
$
|
5,742,023
|
|
|
$
|
5,684,034
|
|
Buildings and
improvements
|
|
14,070,733
|
|
|
13,833,882
|
|
Total real estate held
for investment, at cost
|
|
19,812,756
|
|
|
19,517,916
|
|
Less accumulated
depreciation and amortization
|
|
(3,242,175)
|
|
|
(3,117,919)
|
|
Real estate held for
investment, net
|
|
16,570,581
|
|
|
16,399,997
|
|
Real estate and lease
intangibles held for sale, net
|
|
21,356
|
|
|
96,775
|
|
Cash and cash
equivalents
|
|
41,804
|
|
|
54,011
|
|
Accounts
receivable
|
|
185,632
|
|
|
181,969
|
|
Lease intangible
assets, net
|
|
1,516,819
|
|
|
1,493,383
|
|
Other assets,
net
|
|
460,250
|
|
|
328,661
|
|
Total
assets
|
|
$
|
18,796,442
|
|
|
$
|
18,554,796
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Distributions
payable
|
|
$
|
80,911
|
|
|
$
|
76,728
|
|
Accounts payable and
accrued expenses
|
|
182,177
|
|
|
177,039
|
|
Lease intangible
liabilities, net
|
|
328,748
|
|
|
333,103
|
|
Other
liabilities
|
|
251,353
|
|
|
262,221
|
|
Line of credit
payable
|
|
615,176
|
|
|
704,335
|
|
Term loans,
net
|
|
499,151
|
|
|
499,044
|
|
Mortgages payable,
net
|
|
408,158
|
|
|
410,119
|
|
Notes payable,
net
|
|
6,013,129
|
|
|
6,288,049
|
|
Total
liabilities
|
|
8,378,803
|
|
|
8,750,638
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and paid
in capital, par value $0.01 per share, 740,200,000 shares
authorized, 343,402,030 and 333,619,106 shares issued and
outstanding as of March 31, 2020 and December 31, 2019,
respectively
|
|
13,604,055
|
|
|
12,873,849
|
|
Distributions in
excess of net income
|
|
(3,173,468)
|
|
|
(3,082,291)
|
|
Accumulated other
comprehensive loss
|
|
(42,572)
|
|
|
(17,102)
|
|
Total stockholders'
equity
|
|
10,388,015
|
|
|
9,774,456
|
|
Noncontrolling
interests
|
|
29,624
|
|
|
29,702
|
|
Total
equity
|
|
10,417,639
|
|
|
9,804,158
|
|
Total liabilities and
equity
|
|
$
|
18,796,442
|
|
|
$
|
18,554,796
|
|
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%)
|
2019
|
3.7%
|
|
21.1%
|
|
3.7%
|
|
28.7%
|
|
2.4%
|
|
25.3%
|
|
1.9%
|
|
31.5%
|
|
1.1%
|
|
35.2%
|
Q1 2020
|
5.6%
|
|
(31.3%)
|
|
4.8%
|
|
(23.4%)
|
|
3.0%
|
|
(22.7%)
|
|
2.3%
|
|
(19.6%)
|
|
1.5%
|
|
(14.2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compound
Average
Annual Total
Return (5)
|
|
14.6%
|
|
|
|
9.5%
|
|
|
|
9.5%
|
|
|
|
9.0%
|
|
|
|
9.5%
|
|
|
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 March 31, 2020, 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.
|
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SOURCE Realty Income Corporation