Realty Income Q4 2023 Earnings Report
Key Takeaways
Realty Income announced operating results for Q4 2023, featuring a net income available to common stockholders of $218.4 million, or $0.30 per share, and AFFO available to common stockholders of $731.0 million, or $1.01 per share. The company invested $2.7 billion at an initial weighted average cash yield of 7.6%, including expansion into new European markets. Subsequent to year end, Realty Income closed on the merger with Spirit Realty Capital, Inc.
Net income available to common stockholders was $218.4 million, or $0.30 per share.
AFFO available to common stockholders was $731.0 million, or $1.01 per share.
Invested $2.7 billion at an initial weighted average cash yield of 7.6%.
Portfolio occupancy was 98.6% at the end of 2023.
Realty Income
Realty Income
Realty Income Revenue by Segment
Forward Guidance
Realty Income provided 2024 earnings guidance, anticipating net income per share between $1.22 and $1.34 and AFFO per share between $4.13 and $4.21. Same store rent growth is expected to be approximately 1.0%, and occupancy is projected to be over 98%.
Positive Outlook
- Net income per share (1) $1.22 - $1.34
- Normalized FFO per share (1)(3) $4.17 - $4.29
- AFFO per share (3) $4.13 - $4.21
- Same store rent growth (4) Approx 1.0%
- Occupancy Over 98%
Challenges Ahead
- Net income per share and Normalized FFO per share include -$0.06 per share non-cash interest expense impact related to Spirit merger.
- Reserve reversals recognized in 2023 represent an approximately 30 basis point headwind to same store rent growth in 2024.
- Guidance excludes unidentified reserves for bad debt in excess of normalized run rate.
- Cash G&A expenses exclude stock-based compensation expense.
- Acquisition volume excludes merger with Spirit Realty, which closed January 23, 2024
Revenue & Expenses
Visualization of income flow from segment revenue to net income