Realty Income Q1 2024 Earnings Report
Key Takeaways
Realty Income's Q1 2024 saw a revenue increase but a decrease in net income due to merger costs and property impairments. The company completed significant investment volume, primarily in the U.K. and Europe, and maintained a high occupancy rate in its diversified portfolio.
Net income available to common stockholders was $129.7 million, or $0.16 per share.
AFFO available to common stockholders was $862.9 million, or $1.03 per share.
Closed on the stock-for-stock merger with Spirit Realty Capital, Inc.
Invested $598.0 million at an initial weighted average cash yield of 7.8%, excluding the Spirit merger.
Realty Income
Realty Income
Realty Income Revenue by Segment
Forward Guidance
Realty Income provided 2024 earnings guidance, expecting a net income per share between $1.23 and $1.35, Normalized FFO per share between $4.17 and $4.29, and AFFO per share between $4.13 and $4.21. The company anticipates same-store rent growth of approximately 1.0% and occupancy over 98%.
Positive Outlook
- Net income per share is projected between $1.23 and $1.35.
- Normalized FFO per share is expected to be in the range of $4.17 to $4.29.
- AFFO per share is anticipated to be between $4.13 and $4.21.
- Same store rent growth is forecasted at approximately 1.0%.
- Occupancy is expected to remain above 98%.
Challenges Ahead
- Net income per share includes non-cash interest expense related to the Spirit merger.
- Normalized FFO per share and AFFO per share exclude merger and integration-related costs associated with the Spirit merger.
- Reserve reversals recognized in 2023 represent an approximately 30 basis point headwind to same-store rent growth in 2024.
- G&A expenses inclusive of stock-based compensation are expected to be approximately 3.4% - 3.7% of rental revenue, excluding reimbursements.
- Acquisition volume excludes the merger with Spirit, which closed January 23, 2024.