Early Access

10-QPeriod: Q2 FY2013

REALTY INCOME CORP Quarterly Report for Q2 Ended Jun 30, 2013

Filed July 25, 2013For Securities:O

Summary

Realty Income Corporation (O) reported its financial results for the second quarter and first six months ended June 30, 2013. The company experienced significant growth, primarily driven by its substantial acquisition of American Realty Capital Trust (ARCT) in January 2013. This acquisition significantly expanded the company's real estate portfolio, adding 515 properties and increasing its scale and diversification. Financially, Realty Income demonstrated strong performance with increases in rental revenue, net income, Funds from Operations (FFO), Normalized FFO, and Adjusted Funds from Operations (AFFO) on a year-over-year basis for both the quarter and the six-month period. The company maintained a high occupancy rate of 98.2% at quarter-end. Despite increased borrowing to fund acquisitions, the company maintained a conservative capital structure and remained in compliance with its debt covenants. Following the reporting period, Realty Income successfully issued $750 million in senior unsecured notes, which were used to repay outstanding credit facility borrowings.

Financial Highlights

28 data points
Beta

Net Income

$56.44M

EPS (Diluted)

$0.23

Total Assets

$9.42B

Free Cash Flow

$165.16M

Financial Statements
Beta
Operating Income$85.31M
Interest Expense$39.23M
Net Income$56.44M
EPS (Basic)$0.23
EPS (Diluted)$0.23
Shares Outstanding (Basic)195.57M
Shares Outstanding (Diluted)196.08M

Key Highlights

  • 1Substantial growth in rental revenue and net income, largely attributable to the acquisition of American Realty Capital Trust (ARCT).
  • 2Record high occupancy rate of 98.2% as of June 30, 2013, demonstrating portfolio strength.
  • 3Significant increases in key performance metrics such as FFO, Normalized FFO, and AFFO, indicating robust operational performance.
  • 4Successful completion of a $750 million senior unsecured note issuance in July 2013, strengthening liquidity and extending debt maturity.
  • 5Continued commitment to monthly dividends, with the company's 63rd consecutive quarterly increase and 72nd overall dividend increase since its NYSE listing.
  • 6Strategic asset management with $83.7 million in property sales during the first six months of 2013 to enhance portfolio quality.
  • 7Maintained investment-grade credit ratings from Fitch, Moody's, and S&P, reflecting financial stability.

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