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Jun 30, 2021

Realty Income Q2 2021 Earnings Report

Realty Income reported operating results for the second quarter of 2021.

Key Takeaways

Realty Income announced operating results for the three months ended June 30, 2021, with net income per share of $0.33 and normalized FFO and AFFO per share of $0.88. The company invested $1.13 billion in 156 properties and properties under development or expansion, including $591.8 million in United Kingdom (U.K.) properties.

Net income per share was $0.33.

Normalized FFO and AFFO per share were $0.88.

Invested $1.13 billion in 156 properties and properties under development or expansion, including $591.8 million in United Kingdom (U.K.) properties.

Raised $457.5 million from the sale of common stock, primarily through our At-The-Market (ATM) program.

Total Revenue
$464M
Previous year: $415M
+12.0%
EPS
$0.88
Previous year: $0.86
+2.3%
Gross Profit
$433M
Previous year: $388M
+11.4%
Cash and Equivalents
$231M
Previous year: $35.3M
+554.0%
Total Assets
$22B
Previous year: $19.1B
+15.1%

Realty Income

Realty Income

Forward Guidance

Realty Income estimates Normalized FFO per share for 2021 of $3.37 to $3.46 and AFFO per share for 2021 of $3.53 to $3.59. They also anticipate acquisition volume to be around $4.5 billion with occupancy over 98%.

Positive Outlook

  • Same store rent growth 1.5% - 2.0%
  • Occupancy over 98%
  • Acquisition volume ~ $4.5 billion
  • Net income per share $1.32 to $1.41
  • AFFO per share $3.53 to $3.59

Challenges Ahead

  • Real estate depreciation and impairments per share $2.11
  • Gains on sales of properties per share $(0.09)
  • Merger-related costs (actual) $0.03
  • Cash G&A expenses (% of revenues) ~ 4.5%
  • Property expenses (non-reimbursable) (% of revenues) 1.5% - 1.8%