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Mar 31, 2022

Realty Income Q1 2022 Earnings Report

Announced operating results, demonstrating strong performance and strategic investments.

Key Takeaways

Realty Income reported strong operating results for the three months ended March 31, 2022, with net income per share of $0.34 and normalized FFO per share increasing by 41.7% to $1.02. The company invested $1.56 billion in 213 properties and properties under development, including $796.4 million in Europe. Realty Income also signed a definitive agreement to acquire the Encore Boston Harbor Resort and Casino for $1.7 billion.

Net income per share was $0.34.

Normalized FFO per share increased 41.7% to $1.02 compared to the same period last year.

Invested $1.56 billion in 213 properties and properties under development or expansion.

Signed a definitive agreement to acquire the Encore Boston Harbor Resort and Casino for $1.7 billion.

Total Revenue
$807M
Previous year: $443M
+82.3%
EPS
$0.98
Previous year: $0.86
+14.0%
Gross Profit
$755M
Previous year: $414M
+82.2%
Cash and Equivalents
$152M
Previous year: $184M
-17.6%
Total Assets
$44.1B
Previous year: $21B
+110.0%

Realty Income

Realty Income

Realty Income Revenue by Segment

Forward Guidance

Realty Income provided approximate estimates of the key components of its 2022 earnings guidance, including net income per share of $1.08 to $1.25, normalized FFO per share of $3.88 to $4.05, and AFFO per share of $3.84 to $3.97.

Positive Outlook

  • Net income per share: $1.08 to $1.25
  • Real estate depreciation and impairments per share: $2.83
  • Gains on sales of properties per share: $(0.03)
  • Normalized FFO per share: $3.88 to $4.05
  • AFFO per share: $3.84 to $3.97

Challenges Ahead

  • Same store rent growth: ~ 1.5%
  • Occupancy: ~ 98%
  • Cash G&A expenses (% of revenues): 3.5% - 4.0%
  • Property expenses (non-reimbursable) (% of revenues): 1.5% - 2.0%
  • Income tax expenses: $45 to $50 million