Realty Income Q1 2021 Earnings Report
Key Takeaways
Realty Income announced operating results for the first quarter ended March 31, 2021. Net income per share was $0.26 and AFFO per share was $0.86. The company invested $1.03 billion in properties and properties under development or expansion, including $403.0 million in U.K. properties. They completed the early redemption on all $950.0 million in principal amount of outstanding notes due October 2022 and raised $670 million in net proceeds from a common stock public offering.
Net income per share was $0.26.
AFFO per share was $0.86.
Invested $1.03 billion in properties and properties under development or expansion, including $403.0 million in U.K. properties.
Portfolio occupancy was 98.0%.
Realty Income
Realty Income
Realty Income Revenue by Segment
Forward Guidance
We estimate FFO per share for 2021 of $3.26 to $3.34, inclusive of a $0.13 per share loss due to the early redemption of our 3.250% notes due October 2022. We estimate AFFO per share for 2021 of $3.44 to $3.49, an increase of 1.5% to 2.9% over 2020 AFFO per share of $3.39.
Positive Outlook
- Net income per share $1.19 to $1.27
- Real estate depreciation and impairments per share $2.13
- Gains on sales of properties per share $(0.06)
- FFO per share $3.26 to $3.34
- AFFO per share $3.44 to $3.49
Challenges Ahead
- Same store rent growth 0.5% to 1.0%
- Occupancy ~ 98%
- Cash G&A expenses (% of revenues) ~ 4.5%
- Property expenses (non-reimbursable) (% of revenues) 1.5% - 2.0%
- Income tax expenses~ $20 million