10-KPeriod: FY2015

REALTY INCOME CORP Annual Report, Year Ended Dec 31, 2015

Filed February 11, 2016For Securities:O

Summary

Realty Income Corporation's (O) 2015 10-K filing highlights a year of significant growth and strategic positioning. The company expanded its property portfolio by acquiring 286 new properties and properties under development for $1.26 billion, demonstrating a robust acquisition strategy. This growth contributed to a 9.3% increase in rental revenue to $976.9 million and a 7.4% rise in Funds From Operations (FFO) per diluted share to $2.77. Realty Income continued its commitment to shareholders by increasing its monthly dividend five times during 2015, reflecting its "Monthly Dividend Company" brand. The company also strengthened its financial flexibility by establishing a new $2.25 billion unsecured credit facility and being added to the S&P 500 index, underscoring its position as a leading net lease REIT. The portfolio remains highly diversified across tenants, industries, and geographies, with an occupancy rate of 98.4% at year-end 2015.

Financial Highlights

29 data points
Beta

Net Income

$283.77M

EPS (Diluted)

$1.09

Total Assets

$11.85B

Cash & Equivalents

$50.33M

Free Cash Flow

$693.57M

Financial Statements
Beta
Operating Income$284.86M
Interest Expense$233.08M
Net Income$283.77M
EPS (Basic)$1.09
Shares Outstanding (Basic)235.77M
Shares Outstanding (Diluted)236.21M

Key Highlights

  • 1Acquired 286 new properties and properties under development for $1.26 billion in 2015.
  • 2Increased rental revenue by 9.3% to $976.9 million in 2015.
  • 3Funds From Operations (FFO) per diluted share increased by 7.4% to $2.77 in 2015.
  • 4Increased monthly dividend five times during 2015, continuing a long-standing policy.
  • 5Established a new $2.25 billion unsecured credit facility in June 2015.
  • 6Added to the S&P 500 index in April 2015.
  • 7Maintained a high occupancy rate of 98.4% at December 31, 2015, across a portfolio of 4,538 properties.

Frequently Asked Questions

In 2015, Realty Income invested $1.26 billion in 286 new properties and properties under development or expansion. These acquisitions were diversified across 40 states and leased to tenants in 21 industries, with a weighted average remaining lease term of 16.5 years.

Realty Income continued its policy of paying monthly dividends and increased the dividend five times during 2015. The dividends paid per share totaled approximately $2.2714167, an increase of 3.6% compared to $2.1916254 in 2014.

As of December 31, 2015, Realty Income reported total assets of $11.87 billion and total debt of $4.85 billion, resulting in a debt-to-market capitalization ratio of approximately 26.6%, which indicates a conservative capital structure. The company had $40.3 million in cash and cash equivalents and $1.76 billion available on its new credit facility, suggesting sufficient liquidity to meet its needs for the next twelve months.

The company's portfolio was 98.4% leased at December 31, 2015, with 4,467 properties leased out of 4,538 total. Rental revenue increased by 9.3% to $976.9 million, driven by acquisitions and same-store rent increases of 1.3% on a portfolio of 3,636 properties.