10-KPeriod: FY2011

REALTY INCOME CORP Annual Report, Year Ended Dec 31, 2011

Filed February 13, 2012For Securities:O

Summary

Realty Income Corporation's 2011 10-K filing details a strong operational year for the company, emphasizing its long-term real estate investment strategy focused on freestanding, net-leased commercial properties. The company highlights its disciplined acquisition approach and commitment to its business philosophy, which centers on predictable cash flows derived from long-term leases with financially sound tenants. This filing provides investors with a comprehensive overview of the company's financial condition, results of operations, and strategic direction as of year-end 2011.

Financial Statements
Beta
Revenue$421.06M
Operating Income$139.62M
Interest Expense$108.30M
Net Income$157.03M
EPS (Basic)$1.05
EPS (Diluted)$1.05
Shares Outstanding (Basic)126.14M
Shares Outstanding (Diluted)126.19M

Key Highlights

  • 1The company's business model is centered on acquiring and managing freestanding, net-leased commercial properties, aiming for predictable cash flows.
  • 2The filing emphasizes a disciplined approach to property acquisitions and a focus on tenant credit quality.
  • 3Key financial metrics such as Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are discussed, indicating operational performance.
  • 4The company outlines its business philosophy and strategy, focusing on long-term tenant relationships and property diversification.
  • 5Information regarding the property portfolio, including location and tenant industries, is a core component of the filing.
  • 6Risk factors are detailed, providing investors with insights into potential challenges facing the company and its real estate portfolio.

Frequently Asked Questions

Realty Income's primary business strategy involves acquiring and managing freestanding, net-leased commercial properties. The company focuses on long-term leases with financially stable tenants to generate predictable and consistent cash flows.

The company discusses key performance metrics like Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). These metrics are crucial for real estate investment trusts (REITs) as they provide a more accurate measure of cash flow available for distribution and reinvestment compared to traditional net income.

The filing's 'Risk Factors' section (Item 1A) details potential risks, which could include economic downturns affecting tenant's ability to pay rent, interest rate fluctuations impacting borrowing costs and property valuations, and concentration risks related to specific tenants or property types.

Investors should pay close attention to the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' (Item 7) and the 'Financial Statements' (Item 8). These sections provide detailed insights into the company's revenue, expenses, liquidity, capital resources, and profitability, including FFO and AFFO trends.