10-QPeriod: Q2 FY2011

REALTY INCOME CORP Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 1, 2011For Securities:O

Summary

Realty Income Corporation (O) reported its second-quarter 2011 financial results, demonstrating continued operational stability and strategic execution. The company's diversified net lease portfolio remains a core strength, providing predictable rental income. Key financial metrics such as Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are critical for investors to assess the company's performance and dividend-paying capacity in the REIT sector. Investors should pay close attention to the company's property acquisitions, dispositions, and leasing activities as indicators of portfolio health and growth potential.

Financial Statements
Beta
Revenue$102.63M
Operating Income$72.59M
Interest Expense$25.65M
Net Income$39.25M
EPS (Basic)$0.26
EPS (Diluted)$0.26
Shares Outstanding (Basic)126.00M
Shares Outstanding (Diluted)126.20M

Key Highlights

  • 1The report covers the period ending June 29, 2011, with financial statements and management's discussion and analysis detailing the company's performance.
  • 2Key financial metrics to watch include Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO), which are important measures of REIT profitability.
  • 3Management's Discussion and Analysis provides insights into the company's financial condition, results of operations, liquidity, and capital resources.
  • 4The company's property portfolio information is detailed, offering insights into the types of properties and tenants that generate revenue.
  • 5Risk factors and forward-looking statements are disclosed, providing investors with a view of potential challenges and the company's outlook.
  • 6Information regarding market risk and controls and procedures is also included, offering a comprehensive view of the company's operational and financial management.

Frequently Asked Questions

FFO is a non-GAAP measure widely used by REITs to evaluate their operating performance. It adjusts net income for depreciation and amortization (which are non-cash charges) and for gains or losses from the sale of property (which are not considered core operating activities). AFFO further refines FFO by accounting for recurring capital expenditures necessary to maintain properties, making it a closer proxy for the REIT's distributable cash flow.

While the filing does not provide specific details on recent developments within the provided excerpt, investors should refer to the 'Recent Developments' section in the full 10-Q filing for information on property acquisitions, dispositions, significant leasing activity, or capital markets transactions that occurred during the reporting period.

The 'Liquidity and Capital Resources' section of the Management's Discussion and Analysis will typically detail the company's cash on hand, availability under credit facilities, debt levels, and plans for future financing. This is crucial for understanding the company's ability to fund operations, acquisitions, and dividend payments.

The 'Risk Factors' section (Item 1A) will outline potential risks, which for a REIT like Realty Income commonly include tenant credit risk (ability of tenants to pay rent), interest rate risk (impact on borrowing costs and property valuations), concentration risk (reliance on specific tenants or property types), and general economic conditions affecting real estate.