Realty Income Q3 2021 Earnings Report
Key Takeaways
Realty Income announced positive operating results for Q3 2021. Net income per share increased to $0.34, normalized FFO per share increased to $0.89, and AFFO per share increased to $0.91. The company invested $1.61 billion in 308 properties and completed the merger with VEREIT, Inc.
Net income per share increased to $0.34, compared to $0.07 for the three months ended September 30, 2020.
Normalized FFO per share increased 8.5% to $0.89, compared to the three months ended September 30, 2020.
AFFO per share increased 12.3% to $0.91, compared to the three months ended September 30, 2020.
Invested $1.61 billion in 308 properties and properties under development or expansion, including $532.5 million in Europe.
Realty Income
Realty Income
Realty Income Revenue by Segment
Forward Guidance
Realty Income is increasing its 2021 AFFO per share guidance to $3.55 - $3.60 and introducing 2022 AFFO per share guidance of $3.84 - $3.97, assuming the consummation of the spin-off as anticipated on November 12th.
Positive Outlook
- Increased 2021 AFFO per share guidance to $3.55 - $3.60, representing 5.5% annual growth based on the midpoint.
- Increased acquisition guidance of over $5 billion.
- Introducing 2022 AFFO per share guidance of $3.84 - $3.97, representing 9.2% annual growth based on the midpoint.
- Same store rent growth ~ 2.0%
- Occupancy over 98%
Challenges Ahead
- Net income and Normalized FFO guidance does not include any one-time charges associated with future debt redemptions.
- Cash G&A expenses (% of revenues) 4.0% - 4.5%
- Property expenses (non-reimbursable) (% of revenues) 1.5% - 1.8%
- Income tax expenses ~ $30 million
- Does not include any estimated merger-related costs for the remainder of 2021.