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Realty Income Corporation’s (O - Free Report) third-quarter 2024 adjusted funds from operations (AFFO) per share of $1.05 was in line with the Zacks Consensus Estimate. The reported figure also compared favorably with the prior-year quarter’s $1.02 per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Results display year-over-year top-line growth. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. However, portfolio occupancy saw a marginal decrease sequentially and year over year, affecting the results to some extent.
Total revenues were $1.33 billion, which missed the Zacks Consensus Estimate of $1.34 billion. However, the top line rose 28.1% year over year.
O’s Quarter in Detail
In the third quarter, same-store rental revenues of $1 billion from 13,499 properties under lease witnessed a rise of 0.2% from the prior-year period.
The portfolio occupancy of 98.7% as of Sept. 30, 2024, shrunk 10 basis points (bps) sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 105.0% on re-leasing properties.
In the reported quarter, O invested $740.1 million in 169 properties and properties under development or expansion.
O’s Balance Sheet
Realty Income exited the third quarter of 2024 with $5.2 billion of liquidity. This comprised cash and cash equivalents of $397 million, unsettled At-The-Market forward equity of $958.1 million, and $3.8 billion of availability under its unsecured revolving credit facility.
Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.
2024 Guidance for Realty Income
Management revised its 2024 AFFO per share in the band of $4.17-$4.21 from the previous guidance of $4.15-$4.21. The Zacks Consensus Estimate is pegged at $4.20, which is within the company range.
Full-year projections assume same-store rent growth of approximately 1% and occupancy of more than 98%. O now expects a full-year investment volume of approximately $3.5 billion.
Simon Property Group, Inc. (SPG - Free Report) reported third-quarter FFO per share of $2.84, missing the Zacks Consensus Estimate of $3. The figure decreased from $3.20 reported in the year-ago period.
Results reflected higher interest expenses on a year-over-year basis. However, an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels, supported the results to some extent. SPG raised its fourth-quarter 2024 dividend.
Federal Realty Investment Trust’s (FRT - Free Report) third-quarter 2024 FFO per share of $1.71 narrowly missed the Zacks Consensus Estimate of $1.72. However, this marked a rise of 3.6% from the year-ago quarter’s tally of $1.65.
Results reflected healthy leasing activity and significant occupancy gains at its properties. FRT has also tightened and increased its guidance for 2024 FFO per share.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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Realty Income's Q3 AFFO Meets Estimates, Revenues Rise Y/Y
Realty Income Corporation’s (O - Free Report) third-quarter 2024 adjusted funds from operations (AFFO) per share of $1.05 was in line with the Zacks Consensus Estimate. The reported figure also compared favorably with the prior-year quarter’s $1.02 per share.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Results display year-over-year top-line growth. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. However, portfolio occupancy saw a marginal decrease sequentially and year over year, affecting the results to some extent.
Total revenues were $1.33 billion, which missed the Zacks Consensus Estimate of $1.34 billion. However, the top line rose 28.1% year over year.
O’s Quarter in Detail
In the third quarter, same-store rental revenues of $1 billion from 13,499 properties under lease witnessed a rise of 0.2% from the prior-year period.
The portfolio occupancy of 98.7% as of Sept. 30, 2024, shrunk 10 basis points (bps) sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 105.0% on re-leasing properties.
In the reported quarter, O invested $740.1 million in 169 properties and properties under development or expansion.
O’s Balance Sheet
Realty Income exited the third quarter of 2024 with $5.2 billion of liquidity. This comprised cash and cash equivalents of $397 million, unsettled At-The-Market forward equity of $958.1 million, and $3.8 billion of availability under its unsecured revolving credit facility.
Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.
2024 Guidance for Realty Income
Management revised its 2024 AFFO per share in the band of $4.17-$4.21 from the previous guidance of $4.15-$4.21. The Zacks Consensus Estimate is pegged at $4.20, which is within the company range.
Full-year projections assume same-store rent growth of approximately 1% and occupancy of more than 98%. O now expects a full-year investment volume of approximately $3.5 billion.
Realty Income currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Realty Income Corporation Price, Consensus and EPS Surprise
Realty Income Corporation price-consensus-eps-surprise-chart | Realty Income Corporation Quote
Performance of Other Retail REITs
Simon Property Group, Inc. (SPG - Free Report) reported third-quarter FFO per share of $2.84, missing the Zacks Consensus Estimate of $3. The figure decreased from $3.20 reported in the year-ago period.
Results reflected higher interest expenses on a year-over-year basis. However, an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels, supported the results to some extent. SPG raised its fourth-quarter 2024 dividend.
Federal Realty Investment Trust’s (FRT - Free Report) third-quarter 2024 FFO per share of $1.71 narrowly missed the Zacks Consensus Estimate of $1.72. However, this marked a rise of 3.6% from the year-ago quarter’s tally of $1.65.
Results reflected healthy leasing activity and significant occupancy gains at its properties. FRT has also tightened and increased its guidance for 2024 FFO per share.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.