10-QPeriod: Q3 FY2015

REALTY INCOME CORP Quarterly Report for Q3 Ended Sep 30, 2015

Filed October 29, 2015For Securities:O

Summary

Realty Income Corporation (O) reported its third quarter and first nine months of 2015 results, demonstrating consistent growth driven by strategic property acquisitions and a well-performing, diversified real estate portfolio. The company continued its strong track record of increasing monthly dividends, reflecting its commitment to returning value to shareholders. Rental revenue saw a significant increase year-over-year, supported by substantial investments in new properties across various states and industries. The company maintained a high occupancy rate of 98.3% and benefited from a diversified tenant base, mitigating risks associated with any single tenant or industry concentration. Liquidity remains strong with substantial availability under its credit facility, allowing for continued investment and operational flexibility.

Financial Highlights

27 data points
Beta

Net Income

$67.47M

EPS (Diluted)

$0.26

Total Assets

$11.74B

Free Cash Flow

$151.24M

Financial Statements
Beta
Operating Income$201.74M
Interest Expense$63.95M
Net Income$67.47M
EPS (Basic)$0.26
Shares Outstanding (Basic)236.21M
Shares Outstanding (Diluted)236.74M

Key Highlights

  • 1Total revenue increased by 9.7% for the nine months ended September 30, 2015, compared to the same period in 2014, reaching $759.6 million.
  • 2Net income available to common stockholders grew by 15.3% for the first nine months of 2015, reaching $180.5 million ($0.78 per diluted share).
  • 3Funds From Operations (FFO) available to common stockholders increased by 13.2% year-over-year for the first nine months of 2015, totaling $474.5 million ($2.05 per diluted share).
  • 4Adjusted Funds From Operations (AFFO) available to common stockholders saw a 14.6% increase for the first nine months of 2015, reaching $477.0 million ($2.06 per diluted share).
  • 5The company invested approximately $1.1 billion in 195 new properties and properties under development during the first nine months of 2015.
  • 6Realty Income maintained a high portfolio occupancy rate of 98.3% as of September 30, 2015, with 4,399 out of 4,473 properties leased.
  • 7The company declared and paid monthly dividends, increasing its dividend per share five times during 2015, reflecting a consistent track record of shareholder returns.

Frequently Asked Questions

For the nine months ended September 30, 2015, Realty Income reported a total revenue of $759.6 million, a 9.2% increase compared to the same period in 2014. Net income available to common stockholders rose by 15.3% to $180.5 million, or $0.78 per diluted share. The company also saw significant growth in its key operational metrics, with FFO increasing by 13.2% to $474.5 million and AFFO increasing by 14.6% to $477.0 million.

Realty Income maintained a robust and diversified property portfolio with an occupancy rate of 98.3% as of September 30, 2015. The company actively invested in its portfolio, acquiring 195 new properties and properties under development for approximately $1.1 billion during the first nine months of 2015. These investments were diversified across 49 states and 47 industries, with a focus on retail and industrial properties.

Realty Income maintained strong liquidity, reporting $7.1 million in cash and cash equivalents as of September 30, 2015. The company had approximately $1.56 billion available under its new $2.0 billion unsecured revolving credit facility, providing ample resources for operations, acquisitions, and other corporate purposes. The company's capital structure is considered conservative, with total outstanding borrowings representing approximately 30.9% of its total market capitalization.

Realty Income continued its policy of paying monthly dividends, further demonstrating its commitment to shareholders. During 2015, the company increased its dividend per share five times, and had achieved 72 consecutive quarterly dividend increases as of October 2015. The total dividends paid per common share for the first nine months of 2015 increased by 3.5% compared to the same period in 2014.