•
Dec 31, 2022

Realty Income Q4 2022 Earnings Report

Realty Income reported solid Q4 2022 results, marked by strategic acquisitions and high occupancy rates.

Key Takeaways

Realty Income announced operating results for Q4 2022, featuring a net income of $227.3 million, or $0.36 per share, and normalized FFO increasing by 18.0% to $1.05 per share. The company completed the acquisition of Encore Boston Harbor Resort and Casino for $1.7 billion and invested $3.9 billion in 578 properties. Portfolio occupancy remained high at 99.0%.

Net income available to common stockholders was $227.3 million, or $0.36 per share.

Normalized FFO increased 18.0% to $1.05 per share.

Completed the acquisition of the land and real estate assets of Encore Boston Harbor Resort and Casino from Wynn Resorts, Limited for $1.7 billion.

Achieved property-level occupancy of 99.0%.

Total Revenue
$889M
Previous year: $685M
+29.7%
EPS
$1
Previous year: $0.94
+6.4%
Gross Profit
$820M
Previous year: $641M
+27.8%
Cash and Equivalents
$171M
Previous year: $259M
-33.8%
Total Assets
$49.7B
Previous year: $43.1B
+15.2%

Realty Income

Realty Income

Realty Income Revenue by Segment

Forward Guidance

Realty Income provided 2023 earnings guidance, including net income per share of $1.20 to $1.32, Normalized FFO per share of $4.01 to $4.13, and AFFO per share of $3.93 to $4.03. The company anticipates same store rent growth over 1.25% and occupancy over 98%.

Positive Outlook

  • Net income per share: $1.20 to $1.32
  • Normalized FFO per share: $4.01 to $4.13
  • AFFO per share: $3.93 to $4.03
  • Same store rent growth: Over 1.25%
  • Occupancy: Over 98%

Challenges Ahead

  • Real estate depreciation and impairments per share: $2.84
  • Other adjustments per share: $(0.03)
  • Cash G&A expenses (% of revenues): 3.0% - 3.5%
  • Property expenses (non-reimbursable) (% of revenues): 1.0% - 1.5%
  • Income tax expenses: $55 to $65 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income