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Mar 31, 2023

Realty Income Q1 2023 Earnings Report

Realty Income reported operating results for the quarter ended March 31, 2023, with increased normalized FFO per share and strategic investments.

Key Takeaways

Realty Income announced strong Q1 2023 results, featuring a net income of $225.0 million, or $0.34 per share, and a normalized FFO per share increase of 2.0% to $1.04. The company invested $1.7 billion in 339 properties and updated its 2023 AFFO per share guidance to $3.94 to $4.03.

Net income available to common stockholders was $225.0 million, or $0.34 per share.

Normalized FFO per share increased 2.0% to $1.04, compared to the three months ended March 31, 2022.

Invested $1.7 billion in 339 properties and properties under development or expansion at an initial weighted average cash lease yield of 7.0%.

Updated 2023 AFFO per share guidance range to $3.94 to $4.03, representing 1.7% annual growth at the midpoint.

Total Revenue
$944M
Previous year: $807M
+17.0%
EPS
$0.98
Previous year: $0.98
+0.0%
Gross Profit
$875M
Previous year: $755M
+15.9%
Cash and Equivalents
$165M
Previous year: $152M
+8.6%
Total Assets
$51.1B
Previous year: $44.1B
+16.0%

Realty Income

Realty Income

Realty Income Revenue by Segment

Forward Guidance

Realty Income updated its 2023 AFFO per share guidance range to $3.94 to $4.03 and anticipates acquisition volume to be over $6.0 billion.

Positive Outlook

  • Net income per share is projected to be between $1.22 and $1.32.
  • Normalized FFO per share is expected to be between $4.05 and $4.15.
  • AFFO per share is guided to be between $3.94 and $4.03.
  • Same store rent growth is anticipated to be over 1.25%.
  • Occupancy is expected to remain over 98%.

Challenges Ahead

  • Real estate depreciation and impairments per share are estimated at $2.87.
  • Other adjustments per share are projected to be $(0.03).
  • Income tax expenses are expected to be between $55 and $65 million.
  • Cash G&A expenses (% of revenues) will be 2.9% - 3.4%.
  • Property expenses (non-reimbursable) (% of revenues) will be 1.0% - 1.4%

Revenue & Expenses

Visualization of income flow from segment revenue to net income