Early Access

10-QPeriod: Q1 FY2014

REALTY INCOME CORP Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 1, 2014For Securities:O

Summary

Realty Income Corporation's (O) Q1 2014 report shows solid operational performance with a significant increase in investment property acquisitions. The company invested $656.7 million in 337 new properties and properties under development, a substantial increase from the prior year, indicating a strong growth strategy. Rental revenue saw a healthy increase of 27.6%, driven by these acquisitions and steady performance in existing same-store properties. The occupancy rate remained high at 98.3%. While net income available to common stockholders decreased compared to a strong Q1 2013 (which included a large gain on sale of real estate), Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) per share demonstrated growth, signaling underlying operational strength. The company continued its consistent monthly dividend payments, reflecting its commitment to shareholder returns.

Financial Statements
Beta
Operating Income$54.92M
Interest Expense$51.72M
Net Income$57.66M
EPS (Basic)$0.23
EPS (Diluted)$0.23
Shares Outstanding (Basic)207.00M
Shares Outstanding (Diluted)207.32M

Key Highlights

  • 1Total revenue increased by 26.2% to $221.6 million, driven by significant property acquisitions.
  • 2Invested $656.7 million in 337 new properties and properties under development, a substantial increase from $128.4 million in Q1 2013.
  • 3Maintained a strong occupancy rate of 98.3% across its portfolio of 4,208 properties.
  • 4Diluted FFO per share increased by 8.3% to $0.65, and diluted AFFO per share increased by 6.7% to $0.64, indicating growing operational profitability.
  • 5Continued its consistent monthly dividend payout, with the common stock dividend increasing by 6.4% year-over-year for the first quarter.
  • 6The company's balance sheet remains robust with total assets growing to $10.48 billion.
  • 7Early adoption of ASU 2014-08 changed the presentation of discontinued operations, with prior periods reclassified for comparability.

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