REALTY INCOME CORP Quarterly Report for Q2 Ended Jun 30, 2015

Summary

Realty Income Corporation (O) reported its second quarter and year-to-date results for the period ending June 30, 2015. The company demonstrated consistent growth in rental revenue, driven by strategic property acquisitions and solid performance from its existing portfolio. Net income available to common stockholders saw an increase, reflecting operational improvements and successful execution of its investment strategy. The company also highlighted its commitment to returning value to shareholders through consistent monthly dividends, further reinforced by recent dividend increases. Realty Income continued to expand its property portfolio through acquisitions and maintained a strong occupancy rate, underscoring the resilience of its net lease model. The company also refinanced its credit facility, enhancing its financial flexibility and reducing borrowing costs. Financially, Realty Income showed robust growth in Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO), key metrics for REITs, indicating strong operational cash flow generation. The company's balance sheet remains solid with a conservative capital structure and ample liquidity to fund future growth initiatives and meet its distribution obligations. Management expressed confidence in its ability to navigate market conditions and continue its long-term strategy of generating dependable monthly dividends.

Key Highlights

• 1Rental revenue increased by 8.8% year-over-year for the second quarter of 2015 and 9.3% for the first six months, driven by property acquisitions and same-store rent growth.
• 2Net income available to common stockholders increased by 15.4% for the quarter and 21.9% for the first six months compared to the prior year periods.
• 3Funds From Operations (FFO) per diluted share increased to $0.69 in Q2 2015 from $0.64 in Q2 2014, and AFFO per diluted share increased to $0.68 from $0.64.
• 4The company acquired 166 new properties for $931.2 million in the first six months of 2015, maintaining a high occupancy rate of 98.2% as of June 30, 2015.
• 5Realty Income entered into a new $2 billion unsecured revolving credit facility in June 2015, replacing its previous facility and enhancing financial flexibility.
• 6The company continued its history of increasing monthly dividends, with four increases declared in 2015, demonstrating a commitment to shareholder returns.
• 7Approximately 48% of annualized rental revenue was derived from properties leased to investment-grade rated companies or their subsidiaries.

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