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Realty Income Corporation (O - Free Report) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.06, which was in line with the Zacks Consensus Estimate. The reported figure compared favorably with the prior-year quarter’s AFFO of $1.03 per share.
Results display year-over-year growth in the top line. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. However, a rise in interest expenses affected the results to some extent.
Total revenues were $1.38 billion, which surpassed the Zacks Consensus Estimate by 0.53%. The top line rose 9.5% year over year.
Per Sumit Roy, president and CEO of Realty Income, “Our first quarter results reflect the strength of our portfolio and our ability to deploy capital into high-quality opportunities, particularly in Europe. Our size, scale, and breadth of investments, together with access to various capital sources, remain key advantages and reinforce our ability to drive consistent results.”
O’s Quarter in Detail
In the first quarter, same-store rental revenues of $1.15 billion from 14,702 properties under lease witnessed a rise of 1.3% from the prior-year period.
The portfolio occupancy of 98.5% as of March 31, 2025, declined 20 basis points (bps) sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 103.9% on re-leasing properties.
Interest expenses were up 11.5% year over year to $268.4 million in the reported quarter.
In the reported quarter, O invested $1.37 billion in 121 properties and properties under development or expansion.
The company sold 55 properties in the quarter, with net sales proceeds of $92.6 million and $22.6 million of gain on sale of real estate.
O’s Balance Sheet
Realty Income exited the first quarter of 2025 with $2.9 billion of liquidity. This comprised cash and cash equivalents of $319 million, unsettled At-The-Market forward equity of $69.1 million, and $2.5 billion of availability under its unsecured revolving credit facility.
Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.
2025 Guidance for Realty Income
Management maintained its 2025 AFFO per share guidance in the range of $4.22-$4.28. The Zacks Consensus Estimate is pegged at $4.28, which is within the company’s guided range.
Full-year projections assume same-store rent growth of approximately 1% and occupancy of more than 98%. O reaffirmed full-year investment volume of approximately $4 billion.
Regency Centers Corporation (REG - Free Report) reported first-quarter 2025 NAREIT funds from operations (FFO) per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. The figure increased 6.5% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income and base rents during the quarter.
Kimco Realty Corporation (KIM - Free Report) reported first-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.
Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
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 Q1 AFFO Meets Estimates, Revenues Rise Y/Y
Realty Income Corporation (O - Free Report) reported first-quarter 2025 adjusted funds from operations (AFFO) per share of $1.06, which was in line with the Zacks Consensus Estimate. The reported figure compared favorably with the prior-year quarter’s AFFO of $1.03 per share.
Results display year-over-year growth in the top line. The company benefited from expansionary effects and a healthy pipeline of opportunities globally. However, a rise in interest expenses affected the results to some extent.
Total revenues were $1.38 billion, which surpassed the Zacks Consensus Estimate by 0.53%. The top line rose 9.5% year over year.
Per Sumit Roy, president and CEO of Realty Income, “Our first quarter results reflect the strength of our portfolio and our ability to deploy capital into high-quality opportunities, particularly in Europe. Our size, scale, and breadth of investments, together with access to various capital sources, remain key advantages and reinforce our ability to drive consistent results.”
O’s Quarter in Detail
In the first quarter, same-store rental revenues of $1.15 billion from 14,702 properties under lease witnessed a rise of 1.3% from the prior-year period.
The portfolio occupancy of 98.5% as of March 31, 2025, declined 20 basis points (bps) sequentially and 10 bps year over year. In the reported quarter, the company achieved a rent recapture rate of 103.9% on re-leasing properties.
Interest expenses were up 11.5% year over year to $268.4 million in the reported quarter.
In the reported quarter, O invested $1.37 billion in 121 properties and properties under development or expansion.
The company sold 55 properties in the quarter, with net sales proceeds of $92.6 million and $22.6 million of gain on sale of real estate.
O’s Balance Sheet
Realty Income exited the first quarter of 2025 with $2.9 billion of liquidity. This comprised cash and cash equivalents of $319 million, unsettled At-The-Market forward equity of $69.1 million, and $2.5 billion of availability under its unsecured revolving credit facility.
Net debt to annualized pro-forma adjusted EBITDAre was 5.4X.
2025 Guidance for Realty Income
Management maintained its 2025 AFFO per share guidance in the range of $4.22-$4.28. The Zacks Consensus Estimate is pegged at $4.28, which is within the company’s guided range.
Full-year projections assume same-store rent growth of approximately 1% and occupancy of more than 98%. O reaffirmed full-year investment volume of approximately $4 billion.
Realty Income currently carries a Zacks Rank #3 (Hold). 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
Regency Centers Corporation (REG - Free Report) reported first-quarter 2025 NAREIT funds from operations (FFO) per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. The figure increased 6.5% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income and base rents during the quarter.
Kimco Realty Corporation (KIM - Free Report) reported first-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.
Results have reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.