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Why Is Realty Income Corp. (O) Up 8.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Realty Income Corp. (O - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Realty Income Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Realty Income Beats Q3 AFFO, Ups Acquisition Guidance
Realty Income's third-quarter 2023 AFFO per share of $1.02 beat the Zacks Consensus Estimate of $1.00. The reported figure also compared favorably with the prior-year quarter’s 98 cents.
Results displayed year-over-year growth in the top line. The retail REIT also raised its 2023 AFFO per share guidance and increased the 2023 acquisition volume projection to approximately $9 billion.
Total revenues were $1.04 billion, which met the Zacks Consensus Estimate. The top line rose 24.1% year over year.
Quarter in Detail
In the third quarter, same-store rental revenues of $716 million from 10,577 properties under lease witnessed a rise of 2.2% from the prior-year period.
The portfolio occupancy of 98.8% as of Sep 30, 2023, declined 20 basis points sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 106.9% on re-leasing activity.
O invested $2 billion in 289 properties and properties under development or expansion in the third quarter, .
Balance Sheet
Realty Income exited third-quarter 2023 with $4.5 billion of liquidity. This comprised cash and cash equivalents of $344.1 million and $3.4 billion of availability under its revolving credit facility after deducting $376.8 million in commercial paper borrowings.
Net debt to annualized pro-forma adjusted EBITDAre was 5.2X.
In the third quarter, the company raised $885.9 million from the sale of its common stock at a weighted average price of $58.58 per share, mainly through its At-The-Market program.
2023 Guidance
Realty Income revised its outlook for 2023.
Management projects 2023 AFFO per share of $3.98-$4.01.
Full-year projections assume same-store rent growth of approximately 1.5% and occupancy of more than 98%. O expects a full-year acquisition volume of approximately $9 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Realty Income Corp. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, Realty Income Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Realty Income Corp. belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Federal Realty Investment Trust (FRT - Free Report) , has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Federal Realty Investment Trust reported revenues of $286.6 million in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $0.67 for the same period compares with $1.59 a year ago.
For the current quarter, Federal Realty Investment Trust is expected to post earnings of $1.64 per share, indicating a change of +3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Federal Realty Investment Trust. Also, the stock has a VGM Score of D.
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Why Is Realty Income Corp. (O) Up 8.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Realty Income Corp. (O - Free Report) . Shares have added about 8.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Realty Income Corp. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Realty Income Beats Q3 AFFO, Ups Acquisition Guidance
Realty Income's third-quarter 2023 AFFO per share of $1.02 beat the Zacks Consensus Estimate of $1.00. The reported figure also compared favorably with the prior-year quarter’s 98 cents.
Results displayed year-over-year growth in the top line. The retail REIT also raised its 2023 AFFO per share guidance and increased the 2023 acquisition volume projection to approximately $9 billion.
Total revenues were $1.04 billion, which met the Zacks Consensus Estimate. The top line rose 24.1% year over year.
Quarter in Detail
In the third quarter, same-store rental revenues of $716 million from 10,577 properties under lease witnessed a rise of 2.2% from the prior-year period.
The portfolio occupancy of 98.8% as of Sep 30, 2023, declined 20 basis points sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 106.9% on re-leasing activity.
O invested $2 billion in 289 properties and properties under development or expansion in the third quarter, .
Balance Sheet
Realty Income exited third-quarter 2023 with $4.5 billion of liquidity. This comprised cash and cash equivalents of $344.1 million and $3.4 billion of availability under its revolving credit facility after deducting $376.8 million in commercial paper borrowings.
Net debt to annualized pro-forma adjusted EBITDAre was 5.2X.
In the third quarter, the company raised $885.9 million from the sale of its common stock at a weighted average price of $58.58 per share, mainly through its At-The-Market program.
2023 Guidance
Realty Income revised its outlook for 2023.
Management projects 2023 AFFO per share of $3.98-$4.01.
Full-year projections assume same-store rent growth of approximately 1.5% and occupancy of more than 98%. O expects a full-year acquisition volume of approximately $9 billion.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Realty Income Corp. has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, Realty Income Corp. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Realty Income Corp. belongs to the Zacks REIT and Equity Trust - Retail industry. Another stock from the same industry, Federal Realty Investment Trust (FRT - Free Report) , has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
Federal Realty Investment Trust reported revenues of $286.6 million in the last reported quarter, representing a year-over-year change of +4.8%. EPS of $0.67 for the same period compares with $1.59 a year ago.
For the current quarter, Federal Realty Investment Trust is expected to post earnings of $1.64 per share, indicating a change of +3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Federal Realty Investment Trust. Also, the stock has a VGM Score of D.