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Jun 30, 2024
Realty Income Q2 2024 Earnings Report
Realty Income reported mixed Q2 2024 results, with revenue increasing but net income per share remaining flat, while AFFO per share showed growth.
Key Takeaways
Realty Income announced its operating results for the three months ended June 30, 2024. The company reported an increase in total revenue compared to the same period last year. Net income available to common stockholders was $256.8 million, or $0.29 per share. Adjusted Funds from Operations (AFFO) per share increased by 6.0% to $1.06 compared to the three months ended June 30, 2023.
Net income available to common stockholders was $256.8 million, or $0.29 per share.
Adjusted Funds from Operations (AFFO) per share increased 6.0% to $1.06, compared to the three months ended June 30, 2023.
Invested $805.8 million at an initial weighted average cash yield of 7.9%.
Achieved a rent recapture rate of 105.7% on properties re-leased.
Realty Income
Realty Income
Forward Guidance
Realty Income provided revised estimates for key components of its 2024 earnings guidance, with net income per share adjusted to $1.21 - $1.30 and AFFO per share maintained at $4.15 - $4.21.
Positive Outlook
- Same store rent growth is expected to be approximately 1.0%.
- Occupancy is projected to remain over 98%.
- Cash G&A expenses are anticipated to be approximately 3.0% of revenues.
- Property expenses (non-reimbursable) are expected to be 1.0% - 1.5% of revenues.
- Investment volume is projected to be approximately $3.0 billion.
Challenges Ahead
- Net income per share is projected to be between $1.21 and $1.30.
- Real estate depreciation and impairments per share are estimated at $2.92.
- Other adjustments per share are expected to be $0.06.
- Normalized FFO per share is projected to be between $4.19 and $4.28.
- Disposition volume is projected to be between $400 and $500 million.