10-KPeriod: FY2007

REALTY INCOME CORP Annual Report, Year Ended Dec 31, 2007

Filed February 15, 2008For Securities:O

Summary

Realty Income Corporation (O) presents its 2007 annual report, highlighting a stable and growing real estate investment trust focused on monthly dividends. The company owns a diversified portfolio of 2,270 retail properties across 49 states, predominantly single-tenant net-leased locations occupied by regional and national retail chains. Key financial performance indicators show an increase in net income available to common stockholders to $116.2 million and Funds From Operations (FFO) to $189.7 million, demonstrating robust operational performance and continued growth. Realty Income continues its long-standing policy of increasing monthly distributions to shareholders, with 41 consecutive quarterly increases in dividends. The company actively managed its portfolio, acquiring 357 new properties for $533.7 million in 2007 and maintaining a high occupancy rate of 97.9%. With a conservative capital structure and investment-grade credit ratings, Realty Income is well-positioned to continue its strategy of acquiring and managing high-quality retail properties, aiming to provide dependable cash flow and drive shareholder value.

Key Highlights

  • 1Increased net income available to common stockholders to $116.2 million in 2007, up from $99.4 million in 2006.
  • 2Funds From Operations (FFO) grew by 21.8% to $189.7 million in 2007, demonstrating strong operational performance.
  • 3Acquired 357 new retail properties for $533.7 million in 2007, expanding the portfolio with long-term net leases.
  • 4Maintained a high portfolio occupancy rate of 97.9% across 2,270 retail properties at year-end 2007.
  • 5Continued its consistent track record of increasing monthly dividends, marking the 41st consecutive quarterly increase.
  • 6Issued $550 million in senior unsecured notes at a 6.75% interest rate in September 2007 to fund acquisitions and general corporate purposes.
  • 7Received credit rating upgrades from Moody's Investors Service in April 2007, reinforcing financial strength and stability.

Frequently Asked Questions

Realty Income's primary business objective is to generate dependable monthly cash distributions from a consistent and predictable level of Funds from Operations (FFO) per share, supported by its portfolio of retail properties leased under long-term net lease agreements.

In 2007, Realty Income reported an increase in net income available to common stockholders to $116.2 million and an increase in FFO to $189.7 million. The company also saw significant property acquisitions and continued its trend of increasing monthly dividends.

Realty Income's acquisition strategy focuses on freestanding, single-tenant retail locations leased to regional and national retail chains under long-term, net-lease agreements. They prioritize properties in well-defined target markets, often focusing on retailers providing essential goods and services.

The company maintains a conservative capital structure, aiming for solid interest and fixed charge coverage ratios. They utilize a mix of debt and equity financing, including a $300 million revolving credit facility and long-term senior unsecured notes, while adhering to covenants and aiming for investment-grade credit ratings.