10-QPeriod: Q1 FY2013

REALTY INCOME CORP Quarterly Report for Q1 Ended Mar 31, 2013

Filed April 26, 2013For Securities:O

Summary

Realty Income Corporation (O) reported its first quarter 2013 financial results, marked by a significant acquisition of American Realty Capital Trust, Inc. (ARCT) for approximately $3.2 billion. This acquisition substantially increased the company's real estate portfolio size and diversification. Total revenue for the quarter rose to $171.7 million from $112.3 million in the prior year, driven by this acquisition and organic growth. Net income available to common stockholders surged to $61.3 million ($0.36 per diluted share) from $26.1 million ($0.20 per diluted share) in Q1 2012. Funds From Operations (FFO) also saw substantial growth, increasing by 53.0% to $92.9 million ($0.54 per diluted share) year-over-year. Normalized FFO, which excludes merger-related costs, grew even more significantly. The company maintained a strong occupancy rate of 97.7% and continued its policy of paying monthly dividends, increasing the dividend per common share in February and April 2013.

Financial Highlights

27 data points
Beta

Net Income

$73.22M

EPS (Diluted)

$0.36

Total Assets

$8.76B

Free Cash Flow

$56.27M

Financial Statements
Beta
Operating Income$33.37M
Interest Expense$41.60M
Net Income$73.22M
EPS (Basic)$0.37
EPS (Diluted)$0.36
Shares Outstanding (Basic)171.66M
Shares Outstanding (Diluted)172.05M

Key Highlights

  • 1Completed the acquisition of American Realty Capital Trust (ARCT) for approximately $3.2 billion in January 2013, significantly expanding the real estate portfolio.
  • 2Total revenue increased to $171.7 million for Q1 2013 from $112.3 million in Q1 2012.
  • 3Net income available to common stockholders rose to $61.3 million in Q1 2013, from $26.1 million in Q1 2012.
  • 4Diluted Earnings Per Share (EPS) increased to $0.36 in Q1 2013, from $0.20 in Q1 2012.
  • 5Funds From Operations (FFO) grew by 53.0% to $92.9 million ($0.54 per diluted share) in Q1 2013 compared to Q1 2012.
  • 6Maintained a high portfolio occupancy rate of 97.7% as of March 31, 2013.
  • 7Continued its policy of monthly dividend payments, with increases declared in February and April 2013.

Frequently Asked Questions

The most significant event was the completion of the acquisition of American Realty Capital Trust (ARCT) for approximately $3.2 billion in January 2013. This transaction substantially increased Realty Income's real estate portfolio size and diversification.

The acquisition contributed significantly to the increase in total revenue, which rose to $171.7 million from $112.3 million year-over-year. Net income available to common stockholders also saw a substantial increase, reaching $61.3 million compared to $26.1 million in the prior year's quarter.

Realty Income maintained a strong occupancy rate of 97.7% as of March 31, 2013, with 3,444 out of 3,525 properties leased. This indicates a stable and well-leased portfolio.

Yes, Realty Income continued its policy of paying monthly dividends to common stockholders. The company declared increases to its monthly dividend in February and April 2013, reflecting its consistent cash flow and commitment to returning value to shareholders.