10-QPeriod: Q2 FY2023

REALTY INCOME CORP Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 3, 2023For Securities:O

Summary

Realty Income Corporation (O) reported strong performance for the second quarter and first half of 2023. Total revenue saw a significant increase of approximately 25.6% year-over-year for the six-month period, reaching $1.96 billion. This growth was driven by robust rental revenue, up 17.0%, and a substantial increase in other revenue. The company also demonstrated effective capital management, raising approximately $2.98 billion in net proceeds from the sale of common stock through its At-the-Market (ATM) program during the first half of the year. Furthermore, Realty Income continued its commitment to shareholders by increasing its monthly dividend for the fourth time in 2023, underscoring its focus on delivering consistent and growing returns. The company maintains a strong liquidity position with approximately $3.5 billion available as of June 30, 2023, including cash and cash equivalents and available credit facilities.

Financial Highlights

34 data points
Beta

Revenue

$1.02B

Net Income

$195.41M

19.2% Net Margin

EPS (Diluted)

$0.29

Total Assets

$53.98B

Cash & Equivalents

$253.69M

Free Cash Flow

$734.88M

Financial Statements
Beta
Revenue$1.02B
Operating Expenses$817.82M
Interest Expense$183.86M
Net Income$195.41M
EPS (Basic)$0.29
EPS (Diluted)$0.29
Shares Outstanding (Basic)674.11M
Shares Outstanding (Diluted)674.59M

Key Highlights

  • 1Total revenue for the six months ended June 30, 2023, increased by 21.4% to $1.96 billion compared to the prior year.
  • 2Rental revenue (excluding reimbursable) grew by 17.0% year-over-year for the six-month period, reaching $1.77 billion.
  • 3The company raised approximately $2.98 billion in net proceeds from the issuance of common stock primarily through its At-the-Market (ATM) program in the first half of 2023.
  • 4Realty Income continued its dividend growth policy, increasing its monthly dividend four times in 2023, and has now achieved 103 consecutive quarterly dividend increases.
  • 5As of June 30, 2023, the company reported total liquidity of approximately $3.5 billion, comprising cash and cash equivalents and available credit facilities.
  • 6The occupancy rate remained strong at 99.0% as of June 30, 2023, with 137 properties available for lease out of a portfolio of 13,118 properties.
  • 7Significant investment in real estate occurred, with $4.8 billion invested in 997 properties and properties under development or expansion during the first half of 2023.

Frequently Asked Questions

Realty Income reported a total revenue of $1.96 billion for the six months ended June 30, 2023, representing a 21.4% increase compared to $1.62 billion in the same period of 2022. This growth was primarily driven by a 17.0% increase in rental revenue (excluding reimbursements) to $1.77 billion.

The company actively managed its capital by raising approximately $2.98 billion in net proceeds through its At-the-Market (ATM) program. As of June 30, 2023, Realty Income maintained a strong liquidity position with approximately $3.5 billion in available funds, including cash and cash equivalents and availability under its revolving credit facility.

As of June 30, 2023, Realty Income's portfolio comprised 13,118 properties. The company maintained a high occupancy rate of 99.0%, with 137 properties available for lease. Significant investments were made in the first half of the year, with $4.8 billion invested in acquiring and developing properties.

Realty Income is committed to providing dependable monthly dividends to its shareholders and has a history of increasing them. In 2023, the company increased its monthly dividend four times, marking its 103rd consecutive quarterly dividend increase. The annualized dividend yield was approximately 5.1% based on the stock price at June 30, 2023.