Realty Income Corp (O, Financial) announced its operating results for the third quarter of 2023 on November 6, 2023. The company reported a net income of $233.5 million, or $0.33 per share, for the three months ended September 30, 2023. The normalized FFO available to common stockholders was $739.0 million, or $1.04 per share, and AFFO available to common stockholders was $721.4 million, or $1.02 per share.
Financial Highlights
Realty Income Corp (O, Financial) achieved same store rental revenue growth of 2.2% and a rent recapture rate of 106.9% on properties re-leased. The company 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 Corp (O) raised $885.9 million from the sale of common stock, primarily through its At-The-Market (ATM) program, with a weighted average price of $58.58. The company's Net Debt to Annualized Pro Forma Adjusted EBITDAre was 5.2x.
CEO Commentary
“Our Realty Income One Team continues to deliver strong results on behalf of all of whom we serve. Our pending merger with Spirit represents an exciting component of our future growth plans,” said Sumit Roy, Realty Income’s President and Chief Executive Officer. “We believe the transaction, which is expected to be immediately accretive once closed and will not be reliant on external funding, will create a solid foundation for growth in the coming year, during which we intend to be disciplined and patient capital allocators."
Financial Results
The total revenue for the three months ended September 30, 2023, was $1,039.1 million, compared to $837.3 million for the same period in 2022. The net income available to common stockholders was $233.5 million, or $0.33 per share, compared to $219.6 million, or $0.36 per share, for the same period in 2022. The FFO available to common stockholders was $736.1 million, or $1.04 per share, compared to $597.2 million, or $0.97 per share, for the same period in 2022.
Real Estate Portfolio Update
As of September 30, 2023, Realty Income Corp (O, Financial) owned or held interests in 13,282 properties, which were leased to 1,324 clients doing business in 85 industries. The portfolio occupancy was 98.8% with 159 properties available for lease or sale.
Investments in Real Estate
During the three months ended September 30, 2023, the company invested $2.0 billion in high-quality real estate at a cash cap rate of 6.9%, generated same store rental revenue growth of an attractive 2.2%, and delivered a rent recapture rate of 106.9% on properties re-leased.
Earnings Guidance
For 2023, the company expects net income per share to be between $1.25 and $1.32, and AFFO per share to be between $3.98 and $4.01. The company also expects to achieve same store rent growth of approximately 1.5% and maintain occupancy over 98%.
Explore the complete 8-K earnings release (here) from Realty Income Corp for further details.
