Summary
Realty Income Corporation (O) filed this Form 8-K on October 1, 2012, to re-issue historical financial statements from its 2011 Form 10-K. The primary purpose is to reflect updated financial information for the period January 1, 2012, through June 30, 2012, in accordance with accounting standards for discontinued operations. This includes reclassifications related to property sales and properties held for sale. While the filing updates several sections of the 2011 10-K, including Selected Financial Data, MD&A, and Financial Statements, it's crucial for investors to note that these reclassifications have no impact on the Company's reported net income available to common stockholders, Funds From Operations (FFO), or Adjusted Funds From Operations (AFFO). The report also discloses significant subsequent events, such as the establishment of a new $1 billion unsecured acquisition credit facility and the signing of an agreement to acquire American Realty Capital Trust, Inc. (ARCT).
Key Highlights
- 1Realty Income is re-issuing and updating specific sections of its 2011 Form 10-K to incorporate financial data from January 1, 2012, to June 30, 2012, related to discontinued operations.
- 2The update includes property sales totaling $18.6 million and a classification of 16 properties as held for sale as of June 30, 2012.
- 3Crucially, these reclassifications do not alter reported net income available to common stockholders, FFO, or AFFO.
- 4The filing provides an update on a new $1 billion unsecured acquisition credit facility secured in May 2012.
- 5Realty Income has signed an agreement to acquire American Realty Capital Trust, Inc. (ARCT), announced in September 2012.
- 6The company emphasizes that this 8-K filing primarily addresses specific financial statement updates and subsequent events, and should be read in conjunction with prior filings, including the 2011 10-K and subsequent 10-Q filings.
- 7Updated exhibits, including revised financial data and ratio computations, are attached as Exhibit 99.1.