Realty Income Q3 2023 Earnings Report
Key Takeaways
Realty Income reported strong Q3 2023 results, including net income of $233.5 million, normalized FFO of $739.0 million, and AFFO of $721.4 million. The company invested $2.0 billion in 289 properties and increased its investment outlook for 2023 to approximately $9.0 billion. Additionally, they raised the bottom end of AFFO per share guidance to an updated range of $3.98 to $4.01.
Net income available to common stockholders was $233.5 million, or $0.33 per share.
Normalized FFO available to common stockholders was $739.0 million, or $1.04 per share.
AFFO available to common stockholders was $721.4 million, or $1.02 per share.
Invested $2.0 billion in 289 properties and properties under development or expansion at an initial weighted average cash lease yield of 6.9%.
Realty Income
Realty Income
Realty Income Revenue by Segment
Forward Guidance
Realty Income provided 2023 earnings guidance, anticipating net income per share between $1.25 and $1.32, normalized FFO per share between $4.08 and $4.15, and AFFO per share between $3.98 and $4.01. The company expects same store rent growth to be approximately 1.5% and occupancy to remain over 98%. Acquisition volume is projected to be approximately $9.0 billion.
Positive Outlook
- Net income per share: $1.25 to $1.32
- Normalized FFO per share: $4.08 to $4.15
- AFFO per share: $3.98 to $4.01
- Same store rent growth: Approx 1.5%
- Occupancy: Over 98%
Challenges Ahead
- Real estate depreciation and impairments per share: $2.87
- Other adjustments per share: $(0.04)
- Cash G&A expenses (% of revenues): 2.9% - 3.2%
- Property expenses (non-reimbursable) (% of revenues): 1.0% - 1.2%
- Income tax expenses: $50 to $60 million