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Sep 30, 2022

Realty Income Q3 2022 Earnings Report

Realty Income reported solid Q3 2022 results, marked by increased revenue and FFO per share.

Key Takeaways

Realty Income announced operating results for the three months ended September 30, 2022, featuring a net income of $219.6 million, or $0.36 per share, and normalized FFO per share increased 9.0% to $0.97. The company invested $1.87 billion in 375 properties and raised $0.7 billion from the sale of common stock.

Net income available to common stockholders was $219.6 million, or $0.36 per share.

Normalized FFO per share increased 9.0% to $0.97, compared to the three months ended September 30, 2021.

Invested $1.87 billion in 375 properties and properties under development or expansion, including $613.0 million in Europe.

Declared the 100th consecutive quarterly dividend increase in September, representing a 5.1% increase compared to the amount declared one year ago.

Total Revenue
$837M
Previous year: $492M
+70.2%
EPS
$0.98
Previous year: $0.91
+7.7%
Gross Profit
$785M
Previous year: $462M
+69.7%
Cash and Equivalents
$188M
Previous year: $517M
-63.7%
Total Assets
$45.9B
Previous year: $23.7B
+93.5%

Realty Income

Realty Income

Realty Income Revenue by Segment

Realty Income Revenue by Geographic Location

Forward Guidance

Realty Income provided approximate estimates of the key components of our 2022 earnings guidance:

Positive Outlook

  • Same store rent growth ~ 2.0%
  • Occupancy Over 98%
  • Cash G&A expenses (% of revenues) 3.5% - 4.0%
  • Property expenses (non-reimbursable) (% of revenues) 1.3% - 1.5%
  • Acquisition volume Over $6.0 billion

Challenges Ahead

  • Net income per share $1.07 to $1.15
  • Real estate depreciation and impairments per share $3.03
  • Other adjustments per share (1) $(0.11)
  • Normalized FFO per share $3.99 to $4.07
  • AFFO per share $3.87 to $3.94

Revenue & Expenses

Visualization of income flow from segment revenue to net income