Realty Income Announces Operating Results For Third Quarter And First Nine Months Of 2020
Realty Income Corporation (NYSE: O) reported Q3 results for 2020, showing a diluted net income per share of $0.07 and an AFFO per share of $0.81. The company collected 93.1% of contractual rent and invested $658.6 million in 89 properties, including $230 million in the U.K. Notably, it raised $348.6 million from common stock sales and issued $350 million in senior unsecured notes. Rent collection decreased slightly to 92.9% by October, with significant reserves for theater properties totaling $17.2 million. The annualized dividend saw a 3.1% increase, continuing Realty Income's tradition of reliable monthly income for investors.
- AFFO per share is $0.81, relatively stable compared to previous quarters.
- Investment of $658.6 million in 89 properties indicates robust growth strategy.
- Raised $348.6 million through common stock sales, enhancing liquidity.
- Established a $1 billion commercial paper program for financial flexibility.
- Consecutive dividend increase, reaching $2.808 annually, affirming commitment to investors.
- Net income per share declined to $0.07 from $0.32 year-over-year.
- 93.1% rent collection reflects ongoing impact of COVID-19, down slightly from previous months.
- Reserves for theater properties totaled $17.2 million due to uncertain collectability.
- Provisions for impairment of $79 million on 12 theater properties.
SAN DIEGO, Nov. 2, 2020 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the third quarter and nine months ended September 30, 2020. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.
COMPANY HIGHLIGHTS:
For the quarter ended September 30, 2020:
- Net income per share was
$0.07 - AFFO per share was
$0.81 - Collected
93.1% of contractual rent - Invested
$658.6 million in 89 properties and properties under development or expansion, including$230.0 million in seven properties in the U.K. - Issued
$350.0 million of3.250% senior unsecured notes due 2031 - Raised
$348.6 million from the sale of common stock, primarily through our At-The-Market (ATM) program - Established
$1.0 billion U.S. dollar-denominated commercial paper program
For the month ended October 31, 2020:
- Appointed Christie Kelly as Executive Vice President, Chief Financial Officer and Treasurer ("CFO"), effective January 2021
- Collected
92.9% of contractual rent due - Issued
£400.0 million through the issuance of1.625% senior unsecured notes due 2030 in our debut Sterling public offering
CEO Comments
"I appreciate the continued commitment of our dedicated and talented team toward advancing the strategy and objectives of our company, as well as the support from our clients and partners," said Sumit Roy, Realty Income's President and Chief Executive Officer. "Our operating results during the third quarter demonstrate our commitment to judiciously managing through the COVID-19 pandemic while also proactively driving our business forward. During the third quarter, we invested
"We continued to have excellent access to well-priced capital, as during the quarter we issued
Summarized Financial Results
The following summarizes our select financial results (dollars in millions, except per share data):
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Total revenue | $ | 404.6 | $ | 374.2 | $ | 1,233.5 | $ | 1,094.1 | |||
Net income available to common stockholders (1)(2) | $ | 22.9 | $ | 101.0 | $ | 277.6 | $ | 307.2 | |||
Net income per share | $ | 0.07 | $ | 0.32 | $ | 0.81 | $ | 0.98 | |||
Funds from operations available to common stockholders (FFO) (2)(3) | $ | 283.0 | $ | 262.0 | $ | 848.4 | $ | 759.2 | |||
FFO per share | $ | 0.82 | $ | 0.82 | $ | 2.48 | $ | 2.43 | |||
Adjusted funds from operations available to common stockholders (AFFO) (3) | $ | 282.5 | $ | 265.4 | $ | 875.0 | $ | 768.0 | |||
AFFO per share | $ | 0.81 | $ | 0.83 | $ | 2.55 | $ | 2.46 | |||
(1) | The calculation to determine net income attributable to common stockholders includes provisions for impairment, gains on sales of real estate, and foreign currency gains and losses. These items can vary from quarter to quarter and can significantly impact net income available to common stockholders and period to period comparisons. |
(2) | Our financial results in the first nine months of 2020 were impacted by the following transactions: (i) |
(3) | The company considers FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust's (REIT's) operating performance. Realty Income defines FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts' (Nareit's) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus provisions for impairments of real estate assets, and reduced by gains on property sales. AFFO further adjusts FFO for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company's ongoing operating performance. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, our ability to make cash distributions, or our ability to pay interest payments. See the reconciliations of net income available to common stockholders to FFO and AFFO on pages nine and ten of this press release. |
Impact of COVID-19
Percentages of Contractual Rent Collected as of October 31, 2020
Month Ended | Month Ended | Month Ended | Quarter Ended | Month Ended | |||||
Contractual rent collected(1) across total portfolio | |||||||||
Contractual rent collected(1) from top 20 tenants(2) | |||||||||
Contractual rent collected(1) from investment grade tenants(3) |
(1) | Collection rates are calculated as the aggregate cash rent collected for the applicable period from the beginning of that applicable period through October 31, 2020, divided by the contractual cash rent charged for the applicable period. Cash rent collected is defined as amounts received including amounts in transit, where the tenant has confirmed payment is in process. Rent collection percentages are calculated based on contractual base rents (excluding percentage rents and tenant reimbursements). Charged amounts have not been adjusted for any COVID-19 related rent relief granted and include contractual base rents from any tenants in bankruptcy. Due to differences in applicable foreign currency conversion rates and rent conventions, the percentages above may differ from percentages calculated utilizing our total portfolio annualized contractual revenue. |
(2) | We define top 20 tenants as our 20 largest tenants based on percentage of total portfolio annualized contractual rental revenue as of the most recent reported period. |
(3) | We define investment grade tenants as tenants with a credit rating, and tenants that are subsidiaries or affiliates of companies with a credit rating, of Baa3/BBB- or higher from one of the three major rating agencies (Moody's/S&P/Fitch). |
We have executed deferral agreements or maintain ongoing deferral discussions with tenants that account for a majority of the unpaid contractual rent for each of the periods referenced in the table above. Additional detail on rent collections can be found in our supplemental materials available on our corporate website at www.realtyincome.com/investors/financial-information/quarterly-results.
Theater Industry Update
As of September 30, 2020, the theater industry represented
As a result of this analysis, we determined that for 31 of the 78 theater properties it was no longer probable that we would collect substantially all of contractual rents due. As a conservative measure, we fully reserved for six additional theater properties for which we do not possess unit level financial information. Consequently, we reserved for
Additionally, during the third quarter, we recorded provisions for impairment on 12 of the 37 theater properties for
See "Item 1A--Risk Factors" in Part II of our Quarterly Report on Form 10-Q for quarter ended September 30, 2020 for more information regarding the actual and potential future impacts of the COVID-19 pandemic and the measures taken to limit its spread on our tenants and our business, results of operations, financial condition and liquidity.
Dividend Increases
In September 2020, we announced the 92nd consecutive quarterly dividend increase, which is the 108th increase in the amount of the dividend since the company's listing on the New York Stock Exchange (NYSE) in 1994. The annualized dividend amount as of September 30, 2020 was
Real Estate Portfolio Update
As of September 30, 2020, our portfolio consisted of 6,588 properties located in 49 U.S. states, Puerto Rico and the U.K., and leased to approximately 600 different tenants doing business in 51 separate industries. The properties are primarily freestanding and leased under long-term, net lease agreements with a weighted average remaining lease term of approximately 9.0 years. The company's portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of September 30, 2020, portfolio occupancy was
Changes in Occupancy
Three months ended September 30, 2020 | ||
Properties available for lease at June 30, 2020 | 101 | |
Lease expirations | 98 | |
Re-leases to same tenant (1) | (75) | |
Re-leases to new tenant (1)(2) | (5) | |
Vacant dispositions | (27) | |
Properties available for lease at September 30, 2020 | 92 | |
(1) | The annual new rent on these re-leases was |
(2) | Re-leased two properties to new tenants without a period of vacancy, and three properties to new tenants after a period of vacancy. |
Nine months ended September 30, 2020 | ||
Properties available for lease at December 31, 2019 | 94 | |
Lease expirations | 288 | |
Re-leases to same tenant (1) | (225) | |
Re-leases to new tenant (1)(2) | (13) | |
Vacant dispositions | (52) | |
Properties available for lease at September 30, 2020 | 92 | |
(1) | The annual new rent on these re-leases was |
(2) | Re-leased five properties to new tenants without a period of vacancy, and eight properties to new tenants after a period of vacancy. |
Investments in Real Estate
The following table summarizes our acquisitions in the U.S. and U.K. for the periods indicated below:
Number of | Leasable | Investment | Weighted | Initial Average | |||||||||||
Three months ended September 30, 2020 | |||||||||||||||
Acquisitions - U.S. (in 21 states) | 74 | 1.2 | $ | 409.2 | 15.2 | 5.9 | % | ||||||||
Acquisitions - U.K. (1) | 7 | 0.7 | 230.0 | 8.9 | 7.5 | % | |||||||||
Total Acquisitions | 81 | 1.9 | 639.2 | 12.6 | 6.4 | % | |||||||||
Properties under Development - U.S. | 8 | 0.7 | 19.4 | 18.0 | 5.9 | % | |||||||||
Total (2) | 89 | 2.6 | $ | 658.6 | 12.7 | 6.4 | % | ||||||||
Nine months ended September 30, 2020 | |||||||||||||||
Acquisitions - U.S. (in 28 states) | 154 | 3.0 | $ | 821.9 | 14.8 | 6.2 | % | ||||||||
Acquisitions - U.K. (1) | 13 | 1.2 | 453.7 | 10.0 | 6.4 | % | |||||||||
Total Acquisitions | 167 | 4.2 | 1,275.6 | 13.1 | 6.3 | % | |||||||||
Properties under Development - U.S. | 13 | 0.9 | 23.3 | 16.3 | 6.4 | % | |||||||||
Total (3) | 180 | 5.1 | $ | 1,298.9 | 13.1 | 6.3 | % | ||||||||
(1) | Represents investments of |
(2) | The tenants occupying the new properties operate in 15 industries, and are |
(3) | The tenants occupying the new properties operate in 23 industries, and are |
Same Store Rental Revenue
The following summarizes our same store rental revenue on 5,511 properties under lease (dollars in millions):
Three Months Ended September 30, | Nine Months Ended September 30, | Decrease | |||||||||||||||
2020 | 2019 | 2020 | 2019 | Three months | Nine months | ||||||||||||
Rental Revenue | $ | 303.0 | $ | 316.9 | $ | 937.2 | $ | 951.8 | (4.4) | % | (1.5) | % | |||||
Our calculation of same store rental revenue includes rent deferred for future payment as a result of lease concessions we granted in response to the COVID-19 pandemic and recognized under the practical expedient provided by the Financial Accounting Standards Board (FASB). Same store rental income was negatively impacted by reserves recorded as reductions of rental revenue of
Property Dispositions
The following summarizes our property dispositions (dollars in millions):
Three Months Ended September 30, 2020 | Nine Months Ended September 30, 2020 | ||||||
Properties sold | 37 | 66 | |||||
Net sales proceeds | $ | 51.3 | $ | 184.9 | |||
Gain on sales of real estate | $ | 13.7 | $ | 53.6 | |||
Liquidity and Capital Markets
Capital Raising
In July 2020, we issued
During the quarter ended September 30, 2020, we raised
In October 2020, we issued
Credit Facility and Commercial Paper Program
We have a
In August 2020, we established a U.S. dollar-denominated unsecured commercial paper program. Under the terms of this program, we may issue unsecured commercial paper notes up to a maximum aggregate amount outstanding of
2020 Acquisitions Guidance
Our current guidance relating to our acquisition volume is approximately
Conference Call Information
In conjunction with the release of our operating results, we will host a conference call on November 3, 2020 at 11:30 a.m. PT to discuss the results. To access the conference, dial (877) 701-6180 (United States) or (647) 689-4069 (International). When prompted, provide the conference ID 3665185.
A telephone replay of the conference call can also be accessed by calling (800) 585-8367 and entering the passcode 3665185. The telephone replay will be available through November 17, 2020. A live webcast will be available in listen-only mode by clicking on the webcast link on the company's home page or in the investors section at www.realtyincome.com.
A replay of the conference call webcast will be available approximately one hour after the conclusion of the live broadcast. No access code is required for this replay.
Supplemental Materials
Supplemental materials on the third quarter and year-to-date 2020 operating results, including reconciliations for non-GAAP measures, are available on our corporate website at www.realtyincome.com/investors/financial-information/quarterly-results.
About Realty Income
Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 6,500 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 604 consecutive common stock monthly dividends throughout its 51-year operating history and increased the dividend 108 times since Realty Income's public listing in 1994 (NYSE: O). The company is a member of the S&P 500 Dividend Aristocrats® index. Additional information about the company can be obtained from the corporate website at www.realtyincome.com.
Forward-Looking Statements
Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, domestic and foreign real estate conditions, tenant financial health, the availability of capital to finance planned growth, volatility and uncertainty in the credit markets and broader financial markets, changes in foreign currency exchange rates, property acquisitions and the timing of these acquisitions, charges for property impairments, the effects of the COVID-19 pandemic and the measures taken to limit its impact, the effects of pandemics or global outbreaks of contagious diseases or fear of such outbreaks, the company's tenants' ability to adequately manage its properties and fulfill their respective lease obligations to the company, and the outcome of any legal proceedings to which the company is a party, as described in the company's filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(dollars in thousands, except per share amounts) (unaudited) | ||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended 9/30/20 | Ended 9/30/19 | Ended 9/30/20 | Ended 9/30/19 | |||||||||||||
REVENUE | ||||||||||||||||
Rental (including reimbursable) (1) | $ | 401,869 | $ | 372,312 | $ | 1,224,227 | $ | 1,090,601 | ||||||||
Other | 2,703 | 1,935 | 9,322 | 3,461 | ||||||||||||
Total revenue | 404,572 | 374,247 | 1,233,549 | 1,094,062 | ||||||||||||
EXPENSES | ||||||||||||||||
Depreciation and amortization | 169,084 | 149,424 | 501,997 | 437,367 | ||||||||||||
Interest | 76,806 | 73,410 | 230,572 | 215,918 | ||||||||||||
Property (including reimbursable) | 25,410 | 20,354 | 77,468 | 63,332 | ||||||||||||
General and administrative | 16,514 | 16,460 | 56,541 | 50,153 | ||||||||||||
Income taxes | 4,592 | 1,822 | 10,193 | 4,422 | ||||||||||||
Provisions for impairment | 105,095 | 13,503 | 123,442 | 31,236 | ||||||||||||
Total expenses | 397,501 | 274,973 | 1,000,213 | 802,428 | ||||||||||||
Gain on sales of real estate | 13,736 | 1,674 | 53,565 | 15,828 | ||||||||||||
Foreign currency and derivative gains, net | 2,336 | 327 | 1,274 | 463 | ||||||||||||
Loss on extinguishment of debt | — | — | (9,819) | — | ||||||||||||
Net income | 23,143 | 101,275 | 278,356 | 307,925 | ||||||||||||
Net income attributable to noncontrolling interests | (239) | (226) | (801) | (740) | ||||||||||||
Net income available to common stockholders | $ | 22,904 | $ | 101,049 | $ | 277,555 | $ | 307,185 | ||||||||
Funds from operations available to common stockholders (FFO) | $ | 282,978 | $ | 262,031 | $ | 848,419 | $ | 759,195 | ||||||||
Adjusted funds from operations available to common stockholders (AFFO) | $ | 282,509 | $ | 265,355 | $ | 874,972 | $ | 768,026 | ||||||||
Per share information for common stockholders: | ||||||||||||||||
Net income: | ||||||||||||||||
Basic | $ | 0.07 | $ | 0.32 | $ | 0.81 | $ | 0.99 | ||||||||
Diluted | $ | 0.07 | $ | 0.32 | $ | 0.81 | $ | 0.98 | ||||||||
FFO: | ||||||||||||||||
Basic | $ | 0.82 | $ | 0.82 | $ | 2.48 | $ | 2.44 | ||||||||
Diluted | $ | 0.82 | $ | 0.82 | $ | 2.48 | $ | 2.43 | ||||||||
AFFO: | ||||||||||||||||
Basic | $ | 0.82 | $ | 0.83 | $ | 2.56 | $ | 2.47 | ||||||||
Diluted | $ | 0.81 | $ | 0.83 | $ | 2.55 | $ | 2.46 | ||||||||
Cash dividends paid per common share | $ | 0.701 | $ | 0.680 | $ | 2.092 | $ | 2.030 | ||||||||
(1) | We recorded reserves as a reduction of rental revenue of |
FUNDS FROM OPERATIONS (FFO)
(dollars in thousands, except per share amounts)
We define FFO, a non-GAAP measure, consistent with Nareit's definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus provisions for impairments of real estate assets, reduced by gains on real estate sales.
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended 9/30/20 | Ended 9/30/19 | Ended 9/30/20 | Ended 9/30/19 | |||||||||||||
Net income available to common stockholders | $ | 22,904 | $ | 101,049 | $ | 277,555 | $ | 307,185 | ||||||||
Depreciation and amortization | 169,084 | 149,424 | 501,997 | 437,367 | ||||||||||||
Depreciation of furniture, fixtures and equipment | (157) | (136) | (435) | (438) | ||||||||||||
Provisions for impairment | 105,095 | 13,503 | 123,442 | 31,236 | ||||||||||||
Gain on sales of real estate | (13,736) | (1,674) | (53,565) | (15,828) | ||||||||||||
FFO adjustments allocable to noncontrolling interests | (212) | (135) | (575) | (327) | ||||||||||||
FFO available to common stockholders | $ | 282,978 | $ | 262,031 | $ | 848,419 | $ | 759,195 | ||||||||
FFO allocable to dilutive noncontrolling interests | 345 | 362 | 1,063 | 1,032 | ||||||||||||
Diluted FFO | $ | 283,323 | $ | 262,393 | $ | 849,482 | $ | 760,227 | ||||||||
FFO per common share: | ||||||||||||||||
Basic | $ | 0.82 | $ | 0.82 | $ | 2.48 | $ | 2.44 | ||||||||
Diluted | $ | 0.82 | $ | 0.82 | $ | 2.48 | $ | 2.43 | ||||||||
Distributions paid to common stockholders | $ | 242,241 | $ | 216,248 | $ | 716,535 | $ | 629,658 | ||||||||
FFO available to common stockholders in excess of distributions paid to common stockholders | $ | 40,737 | $ | 45,783 | $ | 131,884 | $ | 129,537 | ||||||||
Weighted average number of common shares used for FFO: | ||||||||||||||||
Basic | 346,476,217 | 319,945,932 | 342,214,164 | 311,556,279 | ||||||||||||
Diluted | 347,212,593 | 320,726,136 | 342,946,337 | 312,300,391 | ||||||||||||
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(dollars in thousands, except per share amounts)
We define AFFO as FFO adjusted for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company's ongoing operating performance. Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution).
Three Months | Three Months | Nine Months | Nine Months | |||||||||||||
Ended 9/30/20 | Ended 9/30/19 | Ended 9/30/20 | Ended 9/30/19 | |||||||||||||
Net income available to common stockholders (1) | $ | 22,904 | $ | 101,049 | $ | 277,555 | $ | 307,185 | ||||||||
Cumulative adjustments to calculate FFO (2) | 260,074 | 160,982 | 570,864 | 452,010 | ||||||||||||
FFO available to common stockholders | 282,978 | 262,031 | 848,419 | 759,195 | ||||||||||||
Executive severance charge (3) | — | — | 3,463 | — | ||||||||||||
Loss on extinguishment of debt | — | — | 9,819 | — | ||||||||||||
Amortization of share-based compensation | 3,020 | 3,187 | 11,644 | 10,478 | ||||||||||||
Amortization of deferred financing costs (4) | 956 | 1,299 | 3,792 | 3,471 | ||||||||||||
Amortization of net mortgage premiums | (310) | (354) | (1,020) | (1,061) | ||||||||||||
Loss on interest rate swaps | 1,123 | 694 | 3,115 | 2,058 | ||||||||||||
Straight-line payments from cross-currency swaps (5) | 614 | 1,754 | 1,960 | 2,553 | ||||||||||||
Leasing costs and commissions | 98 | (851) | (1,013) | (1,880) | ||||||||||||
Recurring capital expenditures | (105) | (406) | (126) | (577) | ||||||||||||
Straight-line rent | (6,445) | (7,642) | (20,469) | (19,735) | ||||||||||||
Amortization of above and below-market leases, net | 2,408 | 5,486 | 14,925 | 13,227 | ||||||||||||
Other adjustments (6) | (1,828) | 157 | 463 | 297 | ||||||||||||
AFFO available to common stockholders | $ | 282,509 | $ | 265,355 | $ | 874,972 | $ | 768,026 | ||||||||
AFFO allocable to dilutive noncontrolling interests | 347 | 368 | 1,079 | 1,064 | ||||||||||||
Diluted AFFO | $ | 282,856 | $ | 265,723 | $ | 876,051 | $ | 769,090 | ||||||||
AFFO per common share: | ||||||||||||||||
Basic | $ | 0.82 | $ | 0.83 | $ | 2.56 | $ | 2.47 | ||||||||
Diluted | $ | 0.81 | $ | 0.83 | $ | 2.55 | $ | 2.46 | ||||||||
Distributions paid to common stockholders | $ | 242,241 | $ | 216,248 | $ | 716,535 | $ | 629,658 | ||||||||
AFFO available to common stockholders in excess of distributions paid to common stockholders | $ | 40,268 | $ | 49,107 | $ | 158,437 | $ | 138,368 | ||||||||
Weighted average number of common shares used for AFFO: | ||||||||||||||||
Basic | 346,476,217 | 319,945,932 | 342,214,164 | 311,556,279 | ||||||||||||
Diluted | 347,212,593 | 320,726,136 | 342,946,337 | 312,300,391 | ||||||||||||
(1) | As of September 30, 2020, there was |
(2) | See FFO calculation on page nine for reconciling items. |
(3) | The executive severance charge represents the incremental costs incurred upon our former CFO's departure in March 2020, consisting of |
(4) | Includes the amortization of costs incurred and capitalized upon issuance of our notes payable, assumption of our mortgages payable and issuance of our term loans. The deferred financing costs are being amortized over the lives of the respective notes payable, mortgages and term loans. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included. |
(5) | Straight-line payments from cross-currency swaps represent quarterly payments in U.S. dollars received by us from counterparties in exchange for associated foreign currency payments. These USD payments are fixed and determinable for the duration of the associated hedging transaction. |
(6) | Includes adjustments allocable to noncontrolling interests, obligations related to financing lease liabilities, and foreign currency gains and losses as a result of intercompany debt and remeasurement transactions. |
HISTORICAL FFO AND AFFO | ||||||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||
For the three months ended September 30, | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Net income available to common stockholders | $ | 22,904 | $ | 101,049 | $ | 98,999 | $ | 87,940 | $ | 70,302 | ||||||||||
Depreciation and amortization, net of furniture, fixtures and equipment | 168,927 | 149,288 | 136,801 | 127,436 | 113,730 | |||||||||||||||
Provisions for impairment | 105,095 | 13,503 | 6,862 | 365 | 8,763 | |||||||||||||||
Gain on sales of real estate | (13,736) | (1,674) | (7,813) | (4,319) | (4,335) | |||||||||||||||
FFO adjustments allocable to noncontrolling interests | (212) | (135) | (299) | (230) | (174) | |||||||||||||||
FFO | $ | 282,978 | $ | 262,031 | $ | 234,550 | $ | 211,192 | $ | 188,286 | ||||||||||
FFO per diluted share | $ | 0.82 | $ | 0.82 | $ | 0.81 | $ | 0.77 | $ | 0.73 | ||||||||||
AFFO | $ | 282,509 | $ | 265,355 | $ | 236,195 | $ | 213,601 | $ | 186,575 | ||||||||||
AFFO per diluted share | $ | 0.81 | $ | 0.83 | $ | 0.81 | $ | 0.77 | $ | 0.72 | ||||||||||
Cash dividends paid per share | $ | 0.701 | $ | 0.680 | $ | 0.660 | $ | 0.635 | $ | 0.601 | ||||||||||
Weighted average diluted shares outstanding - FFO | 347,212,593 | 320,726,136 | 291,207,186 | 276,050,671 | 258,356,892 | |||||||||||||||
Weighted average diluted shares outstanding - AFFO | 347,212,593 | 320,726,136 | 291,207,186 | 276,138,853 | 258,356,892 | |||||||||||||||
For the nine months ended September 30, | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||
Net income available to common stockholders | $ | 277,555 | $ | 307,185 | $ | 278,542 | $ | 240,662 | $ | 202,820 | ||||||||||
Depreciation and amortization, net of furniture, fixtures and equipment | 501,562 | 436,929 | 401,576 | 371,315 | 331,617 | |||||||||||||||
Provisions for impairment | 123,442 | 31,236 | 25,034 | 8,072 | 16,955 | |||||||||||||||
Gain on sales of real estate | (53,565) | (15,828) | (18,818) | (17,689) | (15,283) | |||||||||||||||
FFO adjustments allocable to noncontrolling interests | (575) | (327) | (820) | (683) | (546) | |||||||||||||||
FFO | $ | 848,419 | $ | 759,195 | $ | 685,514 | $ | 601,677 | $ | 535,563 | ||||||||||
FFO per diluted share | $ | 2.48 | $ | 2.43 | $ | 2.39 | $ | 2.22 | $ | 2.11 | ||||||||||
AFFO | $ | 874,972 | $ | 768,026 | $ | 687,744 | $ | 623,327 | $ | 543,367 | ||||||||||
AFFO per diluted share | $ | 2.55 | $ | 2.46 | $ | 2.40 | $ | 2.30 | $ | 2.14 | ||||||||||
Cash dividends paid per share | $ | 2.092 | $ | 2.030 | $ | 1.969 | $ | 1.891 | $ | 1.786 | ||||||||||
Weighted average diluted shares outstanding - FFO | 342,946,337 | 312,300,391 | 287,105,285 | 271,126,114 | 254,223,301 | |||||||||||||||
Weighted average diluted shares outstanding - AFFO | 342,946,337 | 312,300,391 | 287,105,285 | 271,214,296 | 254,458,747 | |||||||||||||||
REALTY INCOME CORPORATION AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(dollars in thousands, except per share and share count data) (unaudited) | ||||||||
September 30, 2020 | December 31, 2019 | |||||||
ASSETS | ||||||||
Real estate held for investment, at cost: | ||||||||
Land | $ | 5,982,495 | $ | 5,684,034 | ||||
Buildings and improvements | 14,203,277 | 13,833,882 | ||||||
Total real estate held for investment, at cost | 20,185,772 | 19,517,916 | ||||||
Less accumulated depreciation and amortization | (3,444,099) | (3,117,919) | ||||||
Real estate held for investment, net | 16,741,673 | 16,399,997 | ||||||
Real estate and lease intangibles held for sale, net | 41,093 | 96,775 | ||||||
Cash and cash equivalents | 724,750 | 54,011 | ||||||
Accounts receivable | 261,752 | 181,969 | ||||||
Lease intangible assets, net | 1,610,457 | 1,493,383 | ||||||
Other assets, net | 405,645 | 328,661 | ||||||
Total assets | $ | 19,785,370 | $ | 18,554,796 | ||||
LIABILITIES AND EQUITY | ||||||||
Distributions payable | $ | 82,980 | $ | 76,728 | ||||
Accounts payable and accrued expenses | 206,626 | 177,039 | ||||||
Lease intangible liabilities, net | 318,690 | 333,103 | ||||||
Other liabilities | 241,425 | 262,221 | ||||||
Line of credit payable and commercial paper | 856,142 | 704,335 | ||||||
Term loans, net | 249,308 | 499,044 | ||||||
Mortgages payable, net | 335,594 | 410,119 | ||||||
Notes payable, net | 6,994,817 | 6,288,049 | ||||||
Total liabilities | 9,285,582 | 8,750,638 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity: | ||||||||
Common stock and paid in capital, par value | 14,050,494 | 12,873,849 | ||||||
Distributions in excess of net income | (3,527,521) | (3,082,291) | ||||||
Accumulated other comprehensive loss | (52,446) | (17,102) | ||||||
Total stockholders' equity | 10,470,527 | 9,774,456 | ||||||
Noncontrolling interests | 29,261 | 29,702 | ||||||
Total equity | 10,499,788 | 9,804,158 | ||||||
Total liabilities and equity | $ | 19,785,370 | $ | 18,554,796 | ||||
Realty Income Performance vs. Major Stock Indices | |||||||||||||||||||
Equity | NASDAQ | ||||||||||||||||||
Realty Income | REIT Index (1) | DJIA | S&P 500 | Composite | |||||||||||||||
Dividend | Total | Dividend | Total | Dividend | Total | Dividend | Total | Dividend | Total | ||||||||||
yield | return (2) | yield | return (3) | yield | return (3) | yield | return (3) | yield | return (4) | ||||||||||
10/18 to 12/31/1994 | ( | ( | ( | ||||||||||||||||
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YTD 2020 | ( | ( | ( | ||||||||||||||||
Compound Average Annual Total Return (5) | |||||||||||||||||||
Note: All of these dividend yields are calculated as annualized dividends based on the last dividend paid in applicable time period divided by the closing price as of period end. Dividend yield sources: Nareit website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream / Thomson Financial. | |
(1) | FTSE Nareit US Equity REIT Index, as per Nareit website. |
(2) | Calculated as the difference between the closing stock price as of period end less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price as of end of previous period. Does not include reinvestment of dividends for the annual percentages. |
(3) | Includes reinvestment of dividends. Source: Nareit website and Factset. |
(4) | Price only index, does not include dividends as NASDAQ did not report total return metrics for the entirety of the measurement period. Source: Factset. |
(5) | All of these Compound Average Annual Total Return rates are calculated in the same manner for each period from Realty Income's NYSE listing on October 18, 1994 through September 30, 2020, and (except for NASDAQ) assume reinvestment of dividends. Past performance does not guarantee future performance. Realty Income presents this data for informational purposes only and makes no representation about its future performance or how it will compare in performance to other indices in the future. |
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SOURCE Realty Income Corporation
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