Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 26, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | REALTY INCOME CORP | |
Entity Central Index Key | 726,728 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 290,043,300 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate, at cost: | ||
Land | $ 4,355,454 | $ 4,080,400 |
Buildings and improvements | 11,313,624 | 10,936,069 |
Total real estate, at cost | 15,669,078 | 15,016,469 |
Less accumulated depreciation and amortization | (2,509,065) | (2,346,644) |
Net real estate held for investment | 13,160,013 | 12,669,825 |
Real estate held for sale, net | 70,029 | 6,674 |
Net real estate | 13,230,042 | 12,676,499 |
Cash and cash equivalents | 30,717 | 6,898 |
Accounts receivable, net | 126,126 | 119,533 |
Acquired lease intangible assets, net | 1,228,580 | 1,194,930 |
Goodwill | 14,902 | 14,970 |
Other assets, net | 43,707 | 45,336 |
Total assets | 14,674,074 | 14,058,166 |
LIABILITIES AND EQUITY | ||
Distributions payable | 64,399 | 60,799 |
Accounts payable and accrued expenses | 122,379 | 109,523 |
Acquired lease intangible liabilities, net | 311,043 | 268,796 |
Other liabilities | 123,582 | 116,869 |
Line of credit payable | 534,000 | 110,000 |
Term loans, net | 319,531 | 445,286 |
Mortgages payable, net | 311,708 | 325,941 |
Notes payable, net | 5,374,963 | 5,230,244 |
Total liabilities | 7,161,605 | 6,667,458 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock and paid in capital, par value $0.01 per share, 370,100,000 shares authorized, 290,024,275 shares issued and outstanding as of June 30, 2018 and 284,213,685 shares issued and outstanding as of December 31, 2017 | 9,925,543 | 9,624,264 |
Distributions in excess of net income | (2,449,793) | (2,252,763) |
Total stockholders’ equity | 7,475,750 | 7,371,501 |
Noncontrolling interests | 36,719 | 19,207 |
Total equity | 7,512,469 | 7,390,708 |
Total liabilities and equity | $ 14,674,074 | $ 14,058,166 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock and paid in capital, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock and paid in capital, shares authorized | 370,100,000 | 370,100,000 |
Common stock and paid in capital, shares issued | 290,024,275 | 284,213,685 |
Common stock and paid in capital, shares outstanding | 290,024,275 | 284,213,685 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUE | ||||
Total revenue | $ 328,886 | $ 300,170 | $ 647,181 | $ 598,195 |
EXPENSES | ||||
Depreciation and amortization | 133,999 | 123,089 | 265,102 | 244,186 |
Interest | 66,628 | 63,679 | 126,043 | 122,985 |
General and administrative | 17,954 | 15,781 | 33,638 | 29,346 |
Property (including reimbursable) | 16,236 | 16,486 | 32,788 | 35,561 |
Income taxes | 1,208 | 441 | 2,431 | 1,488 |
Provisions for impairment | 3,951 | 2,274 | 18,172 | 7,706 |
Total expenses | 239,976 | 221,750 | 478,174 | 441,272 |
Gain on sales of real estate | 7,787 | 2,839 | 11,005 | 13,371 |
Net income | 96,697 | 81,259 | 180,012 | 170,294 |
Net income attributable to noncontrolling interests | (317) | (123) | (469) | (288) |
Net income attributable to the Company | 96,380 | 81,136 | 179,543 | 170,006 |
Preferred stock dividends | 0 | 0 | 0 | (3,911) |
Excess of redemption value over carrying value of preferred shares redeemed | 0 | 0 | 0 | (13,373) |
Net income available to common stockholders | $ 96,380 | $ 81,136 | $ 179,543 | $ 152,722 |
Amounts available to common stockholders per common share: | ||||
Net income, basic and diluted | $ 0.34 | $ 0.30 | $ 0.63 | $ 0.57 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 284,928,969 | 272,588,332 | 284,469,689 | 268,024,691 |
Diluted (in shares) | 285,372,256 | 273,099,487 | 284,924,336 | 268,569,855 |
Rental revenue | ||||
REVENUE | ||||
Total revenue | $ 313,870 | $ 288,049 | $ 620,418 | $ 573,870 |
Tenant reimbursements | ||||
REVENUE | ||||
Total revenue | 11,395 | 11,756 | 22,695 | 22,985 |
Other revenue | ||||
REVENUE | ||||
Total revenue | $ 3,621 | $ 365 | $ 4,068 | $ 1,340 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 180,012 | $ 170,294 |
Adjustments to net income: | ||
Depreciation and amortization | 265,102 | 244,186 |
Amortization of share-based compensation | 8,657 | 7,215 |
Non-cash revenue adjustments | (4,029) | (1,564) |
Amortization of net premiums on mortgages payable | (813) | (1,240) |
Amortization of deferred financing costs | 3,469 | 4,684 |
Gain on interest rate swaps | (2,799) | (859) |
Gain on sales of real estate | (11,005) | (13,371) |
Provisions for impairment on real estate | 18,172 | 7,706 |
Change in assets and liabilities | ||
Accounts receivable and other assets | 2,785 | 3,168 |
Accounts payable, accrued expenses and other liabilities | 17,718 | 41,620 |
Net cash provided by operating activities | 477,269 | 461,839 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in real estate | (829,818) | (696,116) |
Improvements to real estate, including leasing costs | (17,017) | (9,232) |
Proceeds from sales of real estate | 47,526 | 44,005 |
Insurance proceeds received | 3,836 | 0 |
Collection of loans receivable | 5,267 | 61 |
Net cash used in investing activities | (790,206) | (661,282) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash distributions to common stockholders | (373,044) | (335,380) |
Cash dividends to preferred stockholders | 0 | (6,168) |
Borrowings on line of credit | 1,140,000 | 772,000 |
Payments on line of credit | (716,000) | (1,244,000) |
Principal payment on term loan | (125,866) | 0 |
Proceeds from notes and bonds payable issued | 497,500 | 711,812 |
Principal payment on notes payable | (350,000) | 0 |
Principal payments on mortgages payable | (13,447) | (86,515) |
Redemption of preferred stock | 0 | (408,750) |
Proceeds from common stock offerings, net | 0 | 704,938 |
Proceeds from dividend reinvestment and stock purchase plan | 4,806 | 59,649 |
Proceeds from At-the-Market (ATM) program | 297,983 | 52,442 |
Distributions to noncontrolling interests | (758) | (887) |
Debt issuance costs | (4,436) | (6,663) |
Other items, including shares withheld upon vesting | (11,143) | (6,305) |
Net cash provided by financing activities | 345,595 | 206,173 |
Net increase in cash, cash equivalents and restricted cash | 32,658 | 6,730 |
Cash, cash equivalents and restricted cash, beginning of period | 12,142 | 15,681 |
Cash, cash equivalents and restricted cash, end of period | $ 44,800 | $ 22,411 |
Management Statement
Management Statement | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Management Statement | Management Statement The consolidated financial statements of Realty Income Corporation (“Realty Income”, the “Company”, “we”, “our” or “us”) were prepared from our books and records without audit and include all adjustments (consisting of only normal recurring accruals) necessary to present a fair statement of results for the interim periods presented. Readers of this quarterly report should refer to our audited consolidated financial statements for the year ended December 31, 2017 , which are included in our 2017 Annual Report on Form 10-K, as certain disclosures that would substantially duplicate those contained in the audited financial statements have not been included in this report. At June 30, 2018 we owned 5,483 properties, located in 49 states and Puerto Rico, containing over 92.0 million leasable square feet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements | Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements A. The accompanying consolidated financial statements include the accounts of Realty Income and other subsidiaries for which we make operating and financial decisions (i.e., control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination was recognized at fair value as of the date of the transaction (see note 10). We have no unconsolidated investments. B. We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our taxable net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income represent amounts paid by Realty Income and its subsidiaries for city and state income and franchise taxes. C. We assign a portion of goodwill to our applicable property sales, which results in a reduction of the carrying amount of our goodwill. In order to allocate goodwill to the carrying amount of properties that we sell, we utilize a relative fair value approach based on the original methodology for assigning goodwill. As we sell properties, our goodwill will likely continue to gradually decrease over time. Based on our analysis of goodwill during the second quarters of 2018 and 2017, we determined there was no impairment on our existing goodwill. D. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. This ASU, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers, and will apply to transactions such as the sale of real estate. This ASU, which is effective for interim and annual periods beginning after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. We adopted this standard effective as of January 1, 2018 and utilized the cumulative effect transition method of adoption. The adoption of this guidance did not have a material impact on our financial position or results of operations. E. In February 2016, FASB issued ASU 2016-02 (Topic 842, Leases ), as clarified and amended by ASU 2018-01, which amended Topic 840, Leases . Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of operating leases should remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. Although primarily a lessor, we are also a lessee under several ground lease arrangements. Upon adoption, we will recognize lease obligations for ground leases with a corresponding right of use asset, and are currently evaluating other impacts this amendment may have on our consolidated financial statements. The amendments included in this topic are effective, for interim and annual periods beginning after December 15, 2018. We plan to adopt this standard when it becomes effective beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. |
Supplemental Detail for Certain
Supplemental Detail for Certain Components of Consolidated Balance Sheets | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Detail for Certain Components of Consolidated Balance Sheets | Supplemental Detail for Certain Components of Consolidated Balance Sheets (dollars in thousands) A. Acquired lease intangible assets, net, consist of the following at: June 30, 2018 December 31, 2017 Acquired in-place leases $ 1,301,834 $ 1,272,897 Accumulated amortization of acquired in-place leases (495,883 ) (444,221 ) Acquired above-market leases 562,801 487,933 Accumulated amortization of acquired above-market leases (140,172 ) (121,679 ) $ 1,228,580 $ 1,194,930 B. Other assets, net, consist of the following at: June 30, 2018 December 31, 2017 Prepaid expenses $ 15,821 $ 12,851 Restricted escrow deposits 7,054 679 Impounds related to mortgages payable 7,029 4,565 Corporate assets, net 5,926 6,074 Receivable for property rebuilds 3,244 3,919 Credit facility origination costs, net 2,911 4,366 Non-refundable escrow deposits for pending acquisitions — 7,500 Notes receivable issued in connection with property sales — 5,267 Other items 1,722 115 $ 43,707 $ 45,336 C. Distributions payable consist of the following declared distributions at: June 30, 2018 December 31, 2017 Common stock distributions $ 64,241 $ 60,713 Noncontrolling interests distributions 158 86 $ 64,399 $ 60,799 D. Accounts payable and accrued expenses consist of the following at: June 30, 2018 December 31, 2017 Notes payable - interest payable $ 75,861 $ 64,058 Property taxes payable 18,200 11,718 Mortgages, term loans, credit line - interest payable and interest rate swaps 3,356 2,360 Accrued costs on properties under development 3,149 2,681 Other items 21,813 28,706 $ 122,379 $ 109,523 E. Acquired lease intangible liabilities, net, consist of the following at: June 30, 2018 December 31, 2017 Acquired below-market leases $ 394,253 $ 340,906 Accumulated amortization of acquired below-market leases (83,210 ) (72,110 ) $ 311,043 $ 268,796 F. Other liabilities consist of the following at: June 30, 2018 December 31, 2017 Rent received in advance and other deferred revenue $ 111,814 $ 105,284 Security deposits 6,287 6,259 Capital lease obligations 5,481 5,326 $ 123,582 $ 116,869 |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate Investments, Net [Abstract] | |
Investments in Real Estate | Investments in Real Estate We acquire land, buildings and improvements necessary for the successful operations of commercial tenants. A. Acquisitions During the First Six Months of 2018 and 2017 During the first six months of 2018 , we invested $856.8 million in 358 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 6.3% . The 358 new properties and properties under development or expansion are located in 32 states, will contain approximately 2.8 million leasable square feet, and are 100% leased with a weighted average lease term of 13.8 years. The tenants occupying the new properties operate in 17 industries and the property types consist of 93.7% retail and 6.3% industrial, based on rental revenue. None of our investments during 2018 caused any one tenant to be 10% or more of our total assets at June 30, 2018 . The $856.8 million invested during the first six months of 2018 was allocated as follows: $314.4 million to land, $476.0 million to buildings and improvements, $90.6 million to intangible assets related to leases, and $24.2 million to intangible liabilities related to leases and other assumed liabilities. There was no contingent consideration associated with these acquisitions. The properties acquired during the first six months of 2018 generated total revenues of $10.6 million and net income of $5.3 million during the six months ended June 30, 2018 . In comparison, during the first six months of 2017 , we invested $691.9 million in 126 new properties and properties under development or expansion with an initial weighted average contractual lease rate of 6.3% . The 126 new properties and properties under development or expansion were located in 30 states, contained approximately 3.4 million leasable square feet, and were 100% leased with a weighted average lease term of 14.8 years. The tenants occupying the new properties operated in 20 industries and the property types consisted of 95.1% retail and 4.9% industrial, based on rental revenue. The $691.9 million invested during the first six months of 2017 was allocated as follows: $170.1 million to land, $395.5 million to buildings and improvements, $130.0 million to intangible assets related to leases, and $3.7 million to intangible liabilities related to leases and other assumed liabilities. There was no contingent consideration associated with these acquisitions. The properties acquired during the first six months of 2017 generated total revenues of $7.3 million and net income of $3.4 million during the six months ended June 30, 2017 . The estimated initial weighted average contractual lease rate for a property is generally computed as estimated contractual net operating income, which, in the case of a net leased property, is equal to the aggregate base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that a tenant could default on the payment of contractual rent, we cannot provide assurance that the actual return on the funds invested will remain at the percentages listed above. In the case of a property under development or expansion, the contractual lease rate is generally fixed such that rent varies based on the actual total investment in order to provide a fixed rate of return. When the lease does not provide for a fixed rate of return on a property under development or expansion, the estimated initial weighted average contractual lease rate is computed as follows: estimated net operating income (determined by the lease) for the first full year of each lease, divided by our projected total investment in the property, including land, construction and capitalized interest costs. Of the $856.8 million we invested during the first six months of 2018 , $64.3 million was invested in 10 properties under development or expansion with an estimated initial weighted average contractual lease rate of 6.7% . Of the $691.9 million we invested during the first six months of 2017 , $9.9 million was invested in 12 properties under development or expansion with an estimated initial weighted average contractual lease rate of 7.9% . B. Investments in Existing Properties During the first six months of 2018 , we capitalized costs of $5.6 million on existing properties in our portfolio, consisting of $2.5 million for re-leasing costs, $147,000 for recurring capital expenditures and $3.0 million for non-recurring building improvements. In comparison, during the first six months of 2017 , we capitalized costs of $6.8 million on existing properties in our portfolio, consisting of $759,000 for re-leasing costs, $365,000 for recurring capital expenditures and $5.7 million for non-recurring building improvements. C. Properties with Existing Leases Of the $856.8 million we invested during the first six months of 2018 , approximately $225.8 million was used to acquire 107 properties with existing leases. In comparison, of the $691.9 million we invested during the first six months of 2017 , approximately $536.2 million was used to acquire 60 properties with existing leases. The value of the in-place and above-market leases is recorded to acquired lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to acquired lease intangible liabilities, net on our consolidated balance sheets. The values of the in-place leases are amortized as depreciation and amortization expense. The amounts amortized to expense for all of our in-place leases, for the first six months of 2018 and 2017 were $53.1 million and $51.2 million , respectively. The values of the above-market and below-market leases are amortized over the term of the respective leases, including any bargain renewal options, as an adjustment to rental revenue on our consolidated statements of income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the first six months of 2018 and 2017 were $7.9 million and $6.5 million , respectively. If a lease was to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be recorded to revenue or expense, as appropriate. The following table presents the estimated impact during the next five years and thereafter related to the amortization of the acquired above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at June 30, 2018 (in thousands): Net decrease to rental revenue Increase to amortization expense 2018 $ (7,856 ) $ 53,176 2019 (15,108 ) 97,639 2020 (14,378 ) 91,887 2021 (13,208 ) 83,903 2022 (13,074 ) 71,978 Thereafter (47,962 ) 407,368 Totals $ (111,586 ) $ 805,951 |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2018 | |
Unsecured debt | |
Debt | |
Debt | Credit Facility We have a $2.0 billion unsecured revolving credit facility, or our credit facility, with an initial term that expires in June 2019 and includes, at our option, two six -month extensions. Our credit facility has a $1.0 billion accordion expansion option. Under our credit facility, our investment grade credit ratings as of June 30, 2018 provide for financing at the London Interbank Offered Rate, commonly referred to as LIBOR, plus 0.85% with a facility commitment fee of 0.125% , for all-in drawn pricing of 0.975% over LIBOR . The borrowing rate is subject to an interest rate floor and may change if our investment grade credit ratings change. We also have other interest rate options available to us under our credit facility. Our credit facility is unsecured and, accordingly, we have not pledged any assets as collateral for this obligation. At June 30, 2018 , credit facility origination costs of $2.9 million are included in other assets, net on our consolidated balance sheet. These costs are being amortized over the remaining term of our credit facility. At June 30, 2018 , we had a borrowing capacity of approximately $1.5 billion available on our credit facility (subject to customary conditions to borrowing) and an outstanding balance of $534.0 million , as compared to an outstanding balance of $110.0 million at December 31, 2017 . The weighted average interest rate on outstanding borrowings under our credit facility was 2.7% during the first six months of 2018 and 1.8% during the first six months of 2017 . At June 30, 2018 and December 31, 2017 , the weighted average interest rate on outstanding borrowings under our credit facility was 2.9% and 4.5% , respectively. Our credit facility is subject to various leverage and interest coverage ratio limitations, and at June 30, 2018 , we were in compliance with the covenants on our credit facility. We regularly review our credit facility and may seek to extend, renew or replace our credit facility, to the extent we deem appropriate. |
Term Loans
Term Loans | 6 Months Ended |
Jun. 30, 2018 | |
Senior Unsecured Term Loans | |
Debt | |
Debt | Term Loans In December 2017, in conjunction with the acquisition of a portfolio of properties, we entered into a $125.9 million promissory note, which was paid in full at maturity in January 2018. Borrowings under this note bore interest at 1.52% . In June 2015, in conjunction with entering into our credit facility, we entered into a $250.0 million senior unsecured term loan maturing on June 30, 2020. Borrowing under this term loan bears interest at the current one-month LIBOR , plus 0.90% . In conjunction with this term loan, we also entered into an interest rate swap which effectively fixed our per annum interest rate on this term loan at 2.62% . In January 2013, in conjunction with our acquisition of American Realty Capital Trust, Inc., or ARCT, we entered into a $70.0 million senior unsecured term loan with an initial maturity date of January 2018. Borrowing under this term loan bore interest at the current one-month LIBOR , plus 1.10% . In conjunction with this term loan, we also entered into an interest rate swap which effectively fixed our per annum interest rate on this term loan at 2.05% . In January 2018, we entered into a six -month extension of this loan, which included, at our option, two additional six-month extensions. In June 2018, we exercised our first six -month extension of this loan, which now matures in January 2019. Borrowing during the extension periods bears interest at the current one-month LIBOR , plus 0.90% . The interest rate swap terminated upon the initial maturity in January 2018. Deferred financing costs of $1.2 million incurred in conjunction with the $250.0 million term loan and $368,000 incurred in conjunction with the $70.0 million term loan are being amortized over the remaining terms of each respective term loan. The net balance of these deferred financing costs, which was $469,000 at June 30, 2018 , and $580,000 at December 31, 2017 , is included within term loans, net on our consolidated balance sheets. |
Mortgages Payable
Mortgages Payable | 6 Months Ended |
Jun. 30, 2018 | |
Mortgages Payable | |
Debt | |
Debt | Mortgages Payable During the first six months of 2018 , we made $13.4 million in principal payments, including the repayment of one mortgage in full for $11.0 million. During the first six months of 2017 , we made $86.5 million in principal payments, including the repayment of five mortgages in full for $82.9 million. No mortgages were assumed during the first six months of 2018 or 2017 . The assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions for items such as solvency, bankruptcy, misrepresentation, fraud, misapplication of payments, environmental liabilities, failure to pay taxes, insurance premiums, liens on the property, violations of the single purpose entity requirements, and uninsured losses. We expect to pay off our outstanding mortgages as soon as prepayment penalties make it economically feasible to do so. Our mortgages contain customary covenants, such as limiting our ability to further mortgage each applicable property or to discontinue insurance coverage without the prior consent of the lender. At June 30, 2018 , we were in compliance with these covenants. The balance of our deferred financing costs, which are classified as part of mortgages payable, net, on our consolidated balance sheets, was $209,000 at June 30, 2018 and $236,000 at December 31, 2017 . These costs are being amortized over the remaining term of each mortgage. The following is a summary of all our mortgages payable as of June 30, 2018 and December 31, 2017 , respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Average Remaining Years Until Maturity Remaining Principal Balance Unamortized Premium and Deferred Financing Costs Balance, net Mortgage Payable Balance 6/30/2018 61 5.1 % 4.5 % 3.6 $ 306,836 $ 4,872 $ 311,708 12/31/2017 62 5.0 % 4.4 % 4.0 $ 320,283 $ 5,658 $ 325,941 (1) At June 30, 2018 , there were 27 mortgages on 61 properties. At December 31, 2017 , there were 28 mortgages on 62 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for three mortgages on three properties totaling $29.6 million and $29.9 million at June 30, 2018 and December 31, 2017 , respectively. After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totals $22.2 million at June 30, 2018 and $22.4 million at December 31, 2017 . (2) Stated interest rates ranged from 3.8% to 6.9% at June 30, 2018 , while stated interest rates ranged from 3.4% to 6.9% at December 31, 2017 . (3) Effective interest rates ranged from 2.0% to 6.0% at June 30, 2018 , while effective interest rates ranged from 2.6% to 5.5% at December 31, 2017 . The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.1 million and deferred financing costs of $209,000 , as of June 30, 2018 (dollars in millions): Year of Maturity Principal 2018 $ 8.5 2019 20.7 2020 82.4 2021 66.9 2022 109.7 Thereafter 18.6 Totals $ 306.8 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2018 | |
Notes Payable | |
Debt | |
Debt | Notes Payable A. General Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): June 30, 2018 December 31, 2017 2.000% notes, issued in October 2012 and due in January 2018 $ — $ 350 5.750% notes, issued in June 2010 and due in January 2021 250 250 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 950 950 4.650% notes, issued in July 2013 and due in August 2023 750 750 3.875% notes, issued in June 2014 and due in July 2024 350 350 3.875% notes, issued in April 2018 and due in April 2025 500 — 4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 650 650 3.000% notes, issued in October 2016 and due in January 2027 600 600 3.650% notes, issued in December 2017 and due in January 2028 550 550 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 250 250 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 550 550 Total principal amount 5,400 5,250 Unamortized net original issuance premiums and deferred financing costs (25 ) (20 ) $ 5,375 $ 5,230 The following table summarizes the maturity of our notes and bonds payable as of June 30, 2018 , excluding net unamortized original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2021 $ 250 2022 950 Thereafter 4,200 Totals $ 5,400 As of June 30, 2018 , the weighted average interest rate on our notes and bonds payable was 4.0% and the weighted average remaining years until maturity was 9.2 years. B. Note Repayment In January 2018, we repaid our $350.0 million of outstanding 2.000% notes, plus accrued and unpaid interest upon maturity. C. Note Issuances In April 2018, we issued $500.0 million of 3.875% senior unsecured notes due 2025, or the 2025 Notes. The public offering price for the 2025 Notes was 99.50% of the principal amount, for an effective yield to maturity of 3.957% . The net proceeds of approximately $493.1 million from this offering were used to repay borrowings outstanding under our credit facility, to fund investment opportunities, and for other general corporate purposes. In March 2017, we issued $300 million of 4.650% senior unsecured notes due 2047, or the 2047 Notes, and $400 million of 4.125% senior unsecured notes due 2026, or the 2026 Notes. The public offering price for the 2047 Notes was 99.97% of the principal amount for an effective yield to maturity of 4.65% . The public offering price for the 2026 Notes was 102.98% of the principal amount for an effective yield to maturity of 3.75% . The 2026 Notes constituted a further issuance of, and formed a single series with, the $250 million aggregate principal amount of senior notes due 2026, issued in September 2014. The net proceeds of approximately $705.2 million from the offerings were used to repay borrowings outstanding under our credit facility to fund investment opportunities, and for other general corporate purposes. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Equity | Equity A. Issuance of Common Stock In March 2017, we issued 11,850,000 shares of common stock. After underwriting discounts and other offering costs of $29.8 million , the net proceeds of $704.9 million were used to repay borrowings under our credit facility. B. Redemption of Preferred Stock In April 2017, we redeemed all of the 16,350,000 shares of our 6.625% Monthly Income Class F Preferred Stock, or the Class F preferred stock, for $25 per share, plus accrued dividends. We issued an irrevocable notice of redemption with respect to the Class F preferred stock in March 2017, and, as a result, we incurred a non-cash charge of $13.4 million for the first six months of 2017, representing the Class F preferred stock original issuance costs that we paid in 2012. C. Dividend Reinvestment and Stock Purchase Plan Our Dividend Reinvestment and Stock Purchase Plan, or our DRSPP, provides our common stockholders, as well as new investors, with a convenient and economical method of purchasing our common stock and reinvesting their distributions. Our DRSPP also allows our current common stockholders to buy additional shares of common stock by reinvesting all or a portion of their distributions. Our DRSPP authorizes up to 26,000,000 common shares to be issued. During the first six months of 2018 , we issued 93,061 shares and raised approximately $4.8 million under the DRSPP. During the first six months of 2017 , we issued 1,013,412 shares and raised approximately $59.6 million under the DRSPP. From the inception of our DRSPP through June 30, 2018 , we have issued 14,156,603 shares and raised approximately $666.6 million . Our DRSPP includes a waiver approval process, allowing larger investors or institutions, per a formal approval process, to purchase shares at a small discount, if approved by us. We did not issue shares under the waiver approval process during the first six months of 2018 . During the first six months of 2017 , we issued 927,695 shares and raised $54.7 million under the waiver approval process. These shares are included in the total activity for the first six months of 2017 noted in the preceding paragraph. D. At-the-Market (ATM) Programs In September 2015, we established an “at-the-market” equity distribution program, or our ATM program, pursuant to which we can offer and sell up to 12,000,000 shares of common stock to, or through, a consortium of banks acting as our sales agents by means of ordinary brokers’ transactions on the NYSE at prevailing market prices or at negotiated prices. In October 2017, following the issuance and sale of the remaining shares under our prior ATM program, we established a new “at-the-market” equity distribution plan, or our new ATM program, and, together with our prior ATM program, our ATM programs, pursuant to which we are permitted to offer and sell up to 17,000,000 additional shares of common stock. During the first six months of 2018 , we issued 5,575,273 shares and raised approximately $298.0 million under the ATM program. During the first six months of 2017 , we issued 935,746 shares and raised approximately $52.4 million under the ATM program. From the inception of our ATM programs through June 30, 2018 , we have issued 19,982,802 shares authorized by our ATM programs and raised approximately $1.1 billion . |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests In January 2013, we completed our acquisition of ARCT. Equity issued as consideration for this transaction included common and preferred partnership units issued by Tau Operating Partnership, L.P., or Tau Operating Partnership, the consolidated subsidiary which owns properties acquired through the ARCT acquisition. We and our subsidiaries hold a 99.4% interest in Tau Operating Partnership, and consolidate the entity. In June 2013, we completed the acquisition of a portfolio of properties by issuing common partnership units in Realty Income, L.P. as consideration for the acquisition. Additionally, in March and April 2018, we completed the acquisition of an additional portfolio of properties, by paying both cash and by issuing additional common partnership units in Realty Income, L.P as consideration for the acquisitions. At June 30, 2018 , the remaining units from these issuances represent a 1.6% ownership in Realty Income, L.P. We hold the remaining 98.4% interests in this entity and consolidate the entity. Neither of the common partnership units have voting rights. Both common partnership units are entitled to monthly distributions equal to the amount paid to common stockholders of Realty Income, and are redeemable in cash or Realty Income common stock, at our option, and at a conversion ratio of one to one, subject to certain exceptions. Noncontrolling interests with redemption provisions that permit the issuer to settle in either cash or common stock, at the option of the issuer, were evaluated to determine whether temporary or permanent equity classification on the balance sheet was appropriate. We determined that the units meet the requirements to qualify for presentation as permanent equity. In 2016, we completed the acquisition of two properties by acquiring a controlling interest in two separate entities. We are the managing member of each of these entities, and possess the ability to control the business and manage the affairs of these entities. At June 30, 2018 , we and our subsidiaries held 95.0% and 74.0% interests, respectively, and fully consolidated these entities in our consolidated financial statements. The following table represents the change in the carrying value of all noncontrolling interests through June 30, 2018 (dollars in thousands): Tau Operating Partnership units (1) Realty Income, L.P. units (2) Other Noncontrolling Interests Total Carrying value at December 31, 2017 $ 13,322 $ 2,160 $ 3,725 $ 19,207 Reallocation of equity 572 (43 ) (37 ) 492 Redemptions — (1,468 ) — (1,468 ) Shares issued in conjunction with acquisition — 18,848 18,848 Distributions (417 ) (336 ) (76 ) (829 ) Allocation of net income 173 257 39 469 Carrying value at June 30, 2018 $ 13,650 $ 19,418 $ 3,651 $ 36,719 (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of June 30, 2018 and December 31, 2017 . (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, 242,007 units were issued on March 30, 2018 and 131,790 units were issued on April 30, 2018. 401,979 and 88,182 remained outstanding as of June 30, 2018 and December 31, 2017 , respectively. Tau Operating Partnership, Realty Income, L.P. and the two entities acquired in 2016 are considered variable interest entities, or VIEs, in which we are deemed the primary beneficiary based on our controlling financial interests. Below is a summary of selected financial data of consolidated VIEs, for which we are the primary beneficiary included in the consolidated balance sheets at June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Net real estate $ 2,961,127 $ 2,936,397 Total assets 3,348,144 3,342,443 Total debt 198,332 210,384 Total liabilities 330,757 313,295 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The disclosure for assets and liabilities measured at fair value requires allocation to a three-level valuation hierarchy. This valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loans and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our notes receivable issued in connection with property sales, mortgages payable and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): At June 30, 2018 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 306.8 $ 314.4 Notes and bonds payable (2) 5,400.0 5,391.9 At December 31, 2017 Carrying value Estimated fair value Notes receivable issued in connection with property sales $ 5.3 $ 5.3 Mortgages payable assumed in connection with acquisitions (1) 320.3 334.2 Notes and bonds payable (2) 5,250.0 5,475.3 (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $5.1 million at June 30, 2018 , and $5.9 million at December 31, 2017. Also excludes deferred financing costs of $209,000 at June 30, 2018 and $236,000 at December 31, 2017 . (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums is $11.1 million at June 30, 2018 , and $14.3 million at December 31, 2017 . Also excludes deferred financing costs of $36.2 million at June 30, 2018 and $34.1 million at December 31, 2017 . The estimated fair values of our notes receivable issued in connection with property sales and our mortgages payable have been calculated by discounting the future cash flows using an interest rate based upon the relevant forward interest rate curve, plus an applicable credit-adjusted spread. Because this methodology includes unobservable inputs that reflect our own internal assumptions and calculations, the measurement of estimated fair values related to our notes receivable and mortgages payable is categorized as level three on the three-level valuation hierarchy. The estimated fair values of our senior notes and bonds payable are based upon indicative market prices and recent trading activity of our senior notes and bonds payable. Because this methodology includes inputs that are less observable by the public and are not necessarily reflected in active markets, the measurement of the estimated fair values, related to our notes and bonds payable, is categorized as level two on the three-level valuation hierarchy. We record interest rate swaps on the consolidated balance sheet at fair value. At June 30, 2018 , interest rate swaps in a liability position valued at $214,000 were included in accounts payable and accrued expenses and interest rate swaps in an asset position valued at $4.3 million were included in other assets, net on the consolidated balance sheet. The fair value of our interest rate swaps are based on valuation techniques including discounted cash flow analysis on the expected cash flows of each swap, using both observable and unobservable market-based inputs, including interest rate curves. Because this methodology uses observable and unobservable inputs, and the unobservable inputs are not significant to the fair value measurement, the measurement of interest rate swaps is categorized as level two on the three-level valuation hierarchy. |
Gain on Sales of Real Estate
Gain on Sales of Real Estate | 6 Months Ended |
Jun. 30, 2018 | |
Gain (Loss) on Sale of Investments [Abstract] | |
Gain on Sales of Real Estate | Gain on Sales of Real Estate During the second quarter of 2018 , we sold 26 properties for $33.7 million , which resulted in a gain of $7.8 million . During the second quarter of 2017 , we sold 15 properties for $12.8 million , which resulted in a gain of $2.8 million . During the first six months of 2018 , we sold 40 properties for $47.5 million , which resulted in a gain of $11.0 million . During the first six months of 2017 , we sold 29 properties for $44.0 million , which resulted in a gain of $13.4 million . |
Impairments
Impairments | 6 Months Ended |
Jun. 30, 2018 | |
Asset Impairment Charges [Abstract] | |
Impairments | Impairments We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. A provision is made for impairment if estimated future operating cash flows (undiscounted and without interest charges) plus estimated disposition proceeds (undiscounted) are less than the current book value of the property. Key factors that we utilize in this analysis include projected rental rates, estimated holding periods, historical sales and releases, capital expenditures and property sales capitalization rates. If a property is classified as held for sale, it is carried at the lower of carrying cost or estimated fair value, less estimated cost to sell, and depreciation of the property ceases. During the second quarter of 2018 , we recorded total provisions for impairment of $4.0 million on eight properties classified as held for sale, one property classified as held for investment, and nine sold properties. For the first six months of 2018 , we recorded total provisions for impairment of $18.2 million on nine properties classified as held for sale, two property classified as held for investment, and 14 sold properties. In comparison, for the second quarter of 2017 , we recorded total provisions for impairment of $2.3 million on one property classified as held for investment and nine sold properties. For the first six months of 2017 , we recorded total provisions for impairment of $7.7 million on four properties classified as held for investment and 14 sold properties. |
Distributions Paid and Payable
Distributions Paid and Payable | 6 Months Ended |
Jun. 30, 2018 | |
Dividends [Abstract] | |
Distributions Paid and Payable | Distributions Paid and Payable A. Common Stock We pay monthly distributions to our common stockholders. The following is a summary of monthly distributions paid per common share for the first six months of 2018 and 2017 : Month 2018 2017 January $ 0.2125 $ 0.2025 February 0.2190 0.2105 March 0.2190 0.2105 April 0.2195 0.2110 May 0.2195 0.2110 June 0.2195 0.2110 Total $ 1.3090 $ 1.2565 At June 30, 2018 , a distribution of $0.22 per common share was payable and was paid in July 2018. B. Class F Preferred Stock In April 2017, we redeemed all 16,350,000 shares of our Class F preferred stock. During the first six months of 2017 , we paid three monthly dividends to holders of our Class F preferred stock totaling $0.414063 per share, or $3.9 million. In April 2017, we paid a final monthly dividend of $0.101215 per share, or $1.7 million, which was recorded as interest expense, since these dividends accrued subsequent to the March 2017 notice of redemption. |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share Reconciliation [Abstract] | |
Net Income per Common Share | Net Income per Common Share Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted net income per common share is computed by dividing net income available to common stockholders, plus income attributable to dilutive shares and convertible common units, for the period by the weighted average number of common shares that would have been outstanding assuming the issuance of common shares for all potentially dilutive common shares outstanding during the reporting period. The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Weighted average shares used for the basic net income per share computation 284,928,969 272,588,332 284,469,689 268,024,691 Incremental shares from share-based compensation 126,265 194,133 137,625 228,142 Weighted average partnership common units convertible to common shares that were dilutive 317,022 317,022 317,022 317,022 Weighted average shares used for diluted net income per share computation 285,372,256 273,099,487 284,924,336 268,569,855 Unvested shares from share-based compensation that were anti-dilutive 237,861 44,191 164,111 32,016 Weighted average partnership common units convertible to common shares that were anti-dilutive 359,980 88,182 207,948 88,182 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Cash paid for interest was $111.9 million in the first six months of 2018 and $107.3 million in the first six months of 2017 . Interest capitalized to properties under development was $130,000 in the first six months of 2018 and $272,000 in the first six months of 2017 . Cash paid for income taxes was $2.9 million in the first six months of 2018 and $3.3 million in the first six months of 2017 . The following non-cash activities are included in the accompanying consolidated financial statements: A. During the first six months of 2018 , we issued 373,797 common partnership units of Realty Income, L.P. as partial consideration for an acquisition of properties, totaling $18.8 million. B. During the first six months of 2018 , we completed the acquisition of a property using $7.5 million in funds that were held in a non-refundable escrow account. These funds were included in other assets, net, at December 31, 2017. C. During the first six months of 2017 , we removed the net book value of two damaged buildings from our consolidated balance sheet, and recorded net receivables of $10.7 million . During 2017, we received the insurance proceeds for these properties. Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows ), the following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of the cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows: June 30, 2018 June 30, 2017 Cash and cash equivalents shown in the consolidated balance sheets $ 30,717 $ 10,945 Restricted escrow deposits (1) 7,054 8,550 Impounds related to mortgages payable (1) 7,029 2,916 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 44,800 $ 22,411 (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash we are legally entitled to that is not immediately available to us. As a result, they were considered restricted as of the dates presented. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We evaluate performance and make resource allocation decisions on an industry by industry basis. For financial reporting purposes, we have grouped our tenants into 48 activity segments. All of the properties are incorporated into one of the applicable segments. Because almost all of our leases require the tenant to pay operating expenses, rental revenue is the only component of segment profit and loss we measure. The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants (dollars in thousands): Assets, as of: June 30, 2018 December 31, 2017 Segment net real estate: Apparel $ 161,920 $ 164,919 Automotive service 209,964 213,156 Automotive tire services 243,271 247,557 Beverages 287,032 289,170 Child care 60,058 61,527 Convenience stores 1,397,354 997,170 Dollar stores 1,101,066 1,105,097 Drug stores 1,511,955 1,518,443 Financial services 428,731 384,867 General merchandise 318,584 313,181 Grocery stores 773,501 793,286 Health and fitness 886,585 896,430 Home improvement 428,730 407,002 Motor vehicle dealerships 201,073 204,651 Restaurants-casual dining 475,028 494,977 Restaurants-quick service 803,886 681,763 Theaters 561,477 566,585 Transportation services 766,883 776,068 Wholesale club 420,048 426,551 Other non-reportable segments 2,192,896 2,134,099 Total segment net real estate 13,230,042 12,676,499 Intangible assets: Apparel 34,641 36,600 Automotive service 62,664 64,388 Automotive tire services 9,520 10,383 Beverages 1,894 2,022 Convenience stores 95,392 45,445 Dollar stores 47,357 47,905 Drug stores 171,741 173,893 Financial services 22,563 24,867 General merchandise 45,893 50,184 Grocery stores 144,239 140,780 Health and fitness 74,992 76,276 Home improvement 61,666 61,045 Motor vehicle dealerships 29,937 31,720 Restaurants-casual dining 19,100 20,079 Restaurants-quick service 62,303 51,711 Theaters 25,555 26,448 Transportation services 80,111 87,162 Wholesale club 28,040 29,596 Other non-reportable segments 210,972 214,426 Goodwill: Automotive service 437 437 Automotive tire services 862 862 Child care 4,899 4,924 Convenience stores 2,002 2,004 Restaurants-casual dining 2,047 2,062 Restaurants-quick service 1,057 1,064 Other non-reportable segments 3,598 3,617 Other corporate assets 200,550 171,767 Total assets $ 14,674,074 $ 14,058,166 Three months ended June 30, Six months ended June 30, Revenue 2018 2017 2018 2017 Segment rental revenue: Apparel $ 4,210 $ 4,928 $ 8,541 $ 9,895 Automotive service 7,021 6,298 14,030 11,841 Automotive tire services 7,708 7,616 15,147 14,775 Beverages 7,836 7,758 15,673 15,516 Child care 5,216 4,845 10,916 10,332 Convenience stores 34,008 26,965 61,869 55,268 Dollar stores 23,237 22,757 46,487 45,508 Drug stores 32,436 31,614 64,775 63,245 Financial services 6,890 7,159 13,891 14,318 General merchandise 7,290 5,395 14,159 10,756 Grocery stores 15,673 13,597 31,338 23,759 Health and fitness 23,614 21,789 47,057 43,394 Home improvement 9,339 7,090 18,583 14,010 Motor vehicle dealerships 5,712 5,755 12,948 12,491 Restaurants-casual dining 11,029 10,716 21,989 21,606 Restaurants-quick service 17,083 14,517 33,362 28,853 Theaters 17,565 13,114 35,335 26,458 Transportation services 15,762 15,633 31,548 31,021 Wholesale club 9,341 9,413 18,873 18,827 Other non-reportable segments 52,900 51,090 103,897 101,997 Total rental revenue 313,870 288,049 620,418 573,870 Tenant reimbursements 11,395 11,756 22,695 22,985 Other revenue 3,621 365 4,068 1,340 Total revenue $ 328,886 $ 300,170 $ 647,181 $ 598,195 |
Common Stock Incentive Plan
Common Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Common Stock Incentive Plan | Common Stock Incentive Plan In 2012, our Board of Directors adopted and stockholders approved the Realty Income Corporation 2012 Incentive Award Plan, or the 2012 Plan, to enable us to motivate, attract and retain the services of directors and employees considered essential to our long-term success. The 2012 Plan offers our directors and employees an opportunity to own our stock or rights that will reflect our growth, development and financial success. Under the terms of the 2012 plan, the aggregate number of shares of our common stock subject to options, restricted stock, stock appreciation rights, restricted stock units and other awards, will be no more than 3,985,734 shares. The 2012 Plan has a term of ten years from the date it was adopted by our Board of Directors. The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income was $5.0 million during the second quarter of 2018, $4.5 million during the second quarter of 2017, $8.7 million during the first six months of 2018 and $7.2 million during the first six months of 2017 . A. Restricted Stock During the first six months of 2018 , we granted 137,000 shares of common stock under the 2012 Plan. This included an annual grant of 28,000 shares of common stock to the independent members of our Board of Directors in May 2018, 20,000 of which shares vested immediately, 4,000 shares of which vest in equal parts over a three -year service period, and 4,000 shares of which vest in equal parts over a two -year service period. With the exception of shares granted to our independent directors, shares granted to employees typically vest in equal parts over a four -year or five -year service period. As of June 30, 2018 , the remaining unamortized share-based compensation expense related to restricted stock totaled $18.8 million , which is being amortized on a straight-line basis over the service period of each applicable award. The amount of share-based compensation is based on the fair value of the stock at the grant date. We define the grant date as the date the recipient and Realty Income have a mutual understanding of the key terms and conditions of the award, and the recipient of the grant begins to benefit from, or be adversely affected by, subsequent changes in the price of the shares. B. Performance Shares and Restricted Stock Units During the first six months of 2018 , we granted 190,449 performance shares, as well as dividend equivalent rights, to our executive officers. The performance shares are earned based on our TSR performance relative to select industry indices and peer groups as well as achievement of certain operating metrics, and vest 50% on the first and second January 1 after the end of the three year performance period, subject to continued service. During the first six months of 2018 , we also granted 8,383 restricted stock units, all of which vest over a four -year service period. These restricted stock units have the same economic rights as shares of restricted stock. As of June 30, 2018 , the remaining share-based compensation expense related to the performance shares and restricted stock units totaled $15.8 million . The fair value of the performance shares were estimated on the date of grant using a Monte Carlo Simulation model. The performance shares are being recognized on a tranche-by-tranche basis over the service period. The amount of share-based compensation for the restricted stock units is based on the fair value of our common stock at the grant date. The restricted stock units are being recognized on a straight-line basis over the service period. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In the ordinary course of business, we are party to various legal actions which we believe are routine in nature and incidental to the operation of our business. We believe that the outcome of the proceedings will not have a material adverse effect upon our consolidated financial position or results of operations. At June 30, 2018 , we had commitments of $15.9 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of June 30, 2018 , we had committed $14.3 million under construction contracts, which is expected to be paid in the next twelve months. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In July 2018, we declared a dividend of $0.22 per share to our common stockholders, which will be paid in August 2018. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | A. The accompanying consolidated financial statements include the accounts of Realty Income and other subsidiaries for which we make operating and financial decisions (i.e., control), after elimination of all material intercompany balances and transactions. We consolidate entities that we control and record a noncontrolling interest for the portion that we do not own. Noncontrolling interest that was created or assumed as part of a business combination was recognized at fair value as of the date of the transaction (see note 10). We have no unconsolidated investments. |
Federal Income Taxes | B. We have elected to be taxed as a real estate investment trust, or REIT, under the Internal Revenue Code of 1986, as amended. We believe we have qualified and continue to qualify as a REIT. Under the REIT operating structure, we are permitted to deduct dividends paid to our stockholders in determining our taxable income. Assuming our dividends equal or exceed our taxable net income, we generally will not be required to pay federal corporate income taxes on such income. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements, except for federal income taxes of our taxable REIT subsidiaries. The income taxes recorded on our consolidated statements of income represent amounts paid by Realty Income and its subsidiaries for city and state income and franchise taxes. |
Goodwill | C. We assign a portion of goodwill to our applicable property sales, which results in a reduction of the carrying amount of our goodwill. In order to allocate goodwill to the carrying amount of properties that we sell, we utilize a relative fair value approach based on the original methodology for assigning goodwill. As we sell properties, our goodwill will likely continue to gradually decrease over time. |
Recent Accounting Pronouncements | D. In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers. This ASU, as amended by ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, outlines a comprehensive model for companies to use in accounting for revenue arising from contracts with customers, and will apply to transactions such as the sale of real estate. This ASU, which is effective for interim and annual periods beginning after December 15, 2017, requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. We adopted this standard effective as of January 1, 2018 and utilized the cumulative effect transition method of adoption. The adoption of this guidance did not have a material impact on our financial position or results of operations. E. In February 2016, FASB issued ASU 2016-02 (Topic 842, Leases ), as clarified and amended by ASU 2018-01, which amended Topic 840, Leases . Under this amended topic, the accounting applied by a lessor is largely unchanged from that applied under Topic 840, Leases . The large majority of operating leases should remain classified as operating leases, and lessors should continue to recognize lease income for those leases on a generally straight-line basis over the lease term. Although primarily a lessor, we are also a lessee under several ground lease arrangements. Upon adoption, we will recognize lease obligations for ground leases with a corresponding right of use asset, and are currently evaluating other impacts this amendment may have on our consolidated financial statements. The amendments included in this topic are effective, for interim and annual periods beginning after December 15, 2018. We plan to adopt this standard when it becomes effective beginning January 1, 2019, and we expect to elect the practical expedients available for implementation under the standard. |
Supplemental Detail for Certa27
Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of acquired lease intangible assets, net | A. Acquired lease intangible assets, net, consist of the following at: June 30, 2018 December 31, 2017 Acquired in-place leases $ 1,301,834 $ 1,272,897 Accumulated amortization of acquired in-place leases (495,883 ) (444,221 ) Acquired above-market leases 562,801 487,933 Accumulated amortization of acquired above-market leases (140,172 ) (121,679 ) $ 1,228,580 $ 1,194,930 |
Schedule of other assets, net | B. Other assets, net, consist of the following at: June 30, 2018 December 31, 2017 Prepaid expenses $ 15,821 $ 12,851 Restricted escrow deposits 7,054 679 Impounds related to mortgages payable 7,029 4,565 Corporate assets, net 5,926 6,074 Receivable for property rebuilds 3,244 3,919 Credit facility origination costs, net 2,911 4,366 Non-refundable escrow deposits for pending acquisitions — 7,500 Notes receivable issued in connection with property sales — 5,267 Other items 1,722 115 $ 43,707 $ 45,336 |
Schedule of distributions payable | C. Distributions payable consist of the following declared distributions at: June 30, 2018 December 31, 2017 Common stock distributions $ 64,241 $ 60,713 Noncontrolling interests distributions 158 86 $ 64,399 $ 60,799 |
Schedule of accounts payable and accrued expenses | D. Accounts payable and accrued expenses consist of the following at: June 30, 2018 December 31, 2017 Notes payable - interest payable $ 75,861 $ 64,058 Property taxes payable 18,200 11,718 Mortgages, term loans, credit line - interest payable and interest rate swaps 3,356 2,360 Accrued costs on properties under development 3,149 2,681 Other items 21,813 28,706 $ 122,379 $ 109,523 |
Schedule of acquired lease intangible liabilities, net | E. Acquired lease intangible liabilities, net, consist of the following at: June 30, 2018 December 31, 2017 Acquired below-market leases $ 394,253 $ 340,906 Accumulated amortization of acquired below-market leases (83,210 ) (72,110 ) $ 311,043 $ 268,796 |
Schedule of other liabilities | F. Other liabilities consist of the following at: June 30, 2018 December 31, 2017 Rent received in advance and other deferred revenue $ 111,814 $ 105,284 Security deposits 6,287 6,259 Capital lease obligations 5,481 5,326 $ 123,582 $ 116,869 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate Investments, Net [Abstract] | |
Schedule of future impact related to amortization of above-market, below-market and in-place lease intangibles | The following table presents the estimated impact during the next five years and thereafter related to the amortization of the acquired above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at June 30, 2018 (in thousands): Net decrease to rental revenue Increase to amortization expense 2018 $ (7,856 ) $ 53,176 2019 (15,108 ) 97,639 2020 (14,378 ) 91,887 2021 (13,208 ) 83,903 2022 (13,074 ) 71,978 Thereafter (47,962 ) 407,368 Totals $ (111,586 ) $ 805,951 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) - Mortgages Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt | |
Summary of Mortgages Payable | The following is a summary of all our mortgages payable as of June 30, 2018 and December 31, 2017 , respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Average Remaining Years Until Maturity Remaining Principal Balance Unamortized Premium and Deferred Financing Costs Balance, net Mortgage Payable Balance 6/30/2018 61 5.1 % 4.5 % 3.6 $ 306,836 $ 4,872 $ 311,708 12/31/2017 62 5.0 % 4.4 % 4.0 $ 320,283 $ 5,658 $ 325,941 (1) At June 30, 2018 , there were 27 mortgages on 61 properties. At December 31, 2017 , there were 28 mortgages on 62 properties. The mortgages require monthly payments with principal payments due at maturity. The mortgages are at fixed interest rates, except for three mortgages on three properties totaling $29.6 million and $29.9 million at June 30, 2018 and December 31, 2017 , respectively. After factoring in arrangements which limit our exposure to interest rate risk and effectively fix our per annum interest rates, our mortgage debt subject to variable rates totals $22.2 million at June 30, 2018 and $22.4 million at December 31, 2017 . (2) Stated interest rates ranged from 3.8% to 6.9% at June 30, 2018 , while stated interest rates ranged from 3.4% to 6.9% at December 31, 2017 . (3) Effective interest rates ranged from 2.0% to 6.0% at June 30, 2018 , while effective interest rates ranged from 2.6% to 5.5% at December 31, 2017 . |
Schedule of maturity of mortgages payable | The following table summarizes the maturity of mortgages payable, excluding net premiums of $5.1 million and deferred financing costs of $209,000 , as of June 30, 2018 (dollars in millions): Year of Maturity Principal 2018 $ 8.5 2019 20.7 2020 82.4 2021 66.9 2022 109.7 Thereafter 18.6 Totals $ 306.8 |
Notes Payable (Tables)
Notes Payable (Tables) - Notes Payable | 6 Months Ended |
Jun. 30, 2018 | |
Debt | |
Schedule of Notes Payable | Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): June 30, 2018 December 31, 2017 2.000% notes, issued in October 2012 and due in January 2018 $ — $ 350 5.750% notes, issued in June 2010 and due in January 2021 250 250 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 950 950 4.650% notes, issued in July 2013 and due in August 2023 750 750 3.875% notes, issued in June 2014 and due in July 2024 350 350 3.875% notes, issued in April 2018 and due in April 2025 500 — 4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 650 650 3.000% notes, issued in October 2016 and due in January 2027 600 600 3.650% notes, issued in December 2017 and due in January 2028 550 550 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 250 250 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 550 550 Total principal amount 5,400 5,250 Unamortized net original issuance premiums and deferred financing costs (25 ) (20 ) $ 5,375 $ 5,230 |
Schedule of maturity of debt, net | The following table summarizes the maturity of our notes and bonds payable as of June 30, 2018 , excluding net unamortized original issuance premiums and deferred financing costs (dollars in millions): Year of Maturity Principal 2021 $ 250 2022 950 Thereafter 4,200 Totals $ 5,400 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of the change in the carrying value of all noncontrolling interests | The following table represents the change in the carrying value of all noncontrolling interests through June 30, 2018 (dollars in thousands): Tau Operating Partnership units (1) Realty Income, L.P. units (2) Other Noncontrolling Interests Total Carrying value at December 31, 2017 $ 13,322 $ 2,160 $ 3,725 $ 19,207 Reallocation of equity 572 (43 ) (37 ) 492 Redemptions — (1,468 ) — (1,468 ) Shares issued in conjunction with acquisition — 18,848 18,848 Distributions (417 ) (336 ) (76 ) (829 ) Allocation of net income 173 257 39 469 Carrying value at June 30, 2018 $ 13,650 $ 19,418 $ 3,651 $ 36,719 (1) 317,022 Tau Operating Partnership units were issued on January 22, 2013 and remained outstanding as of June 30, 2018 and December 31, 2017 . (2) 534,546 Realty Income, L.P. units were issued on June 27, 2013, 242,007 units were issued on March 30, 2018 and 131,790 units were issued on April 30, 2018. 401,979 and 88,182 remained outstanding as of June 30, 2018 and December 31, 2017 , respectively. |
Summary selected financial data of consolidated VIEs | Below is a summary of selected financial data of consolidated VIEs, for which we are the primary beneficiary included in the consolidated balance sheets at June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 Net real estate $ 2,961,127 $ 2,936,397 Total assets 3,348,144 3,342,443 Total debt 198,332 210,384 Total liabilities 330,757 313,295 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value by balance sheet groupings | We believe that the carrying values reflected in our consolidated balance sheets reasonably approximate the fair values for cash and cash equivalents, accounts receivable, escrow deposits, loans receivable, line of credit payable, term loans and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our notes receivable issued in connection with property sales, mortgages payable and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): At June 30, 2018 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 306.8 $ 314.4 Notes and bonds payable (2) 5,400.0 5,391.9 At December 31, 2017 Carrying value Estimated fair value Notes receivable issued in connection with property sales $ 5.3 $ 5.3 Mortgages payable assumed in connection with acquisitions (1) 320.3 334.2 Notes and bonds payable (2) 5,250.0 5,475.3 (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums is $5.1 million at June 30, 2018 , and $5.9 million at December 31, 2017. Also excludes deferred financing costs of $209,000 at June 30, 2018 and $236,000 at December 31, 2017 . (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums is $11.1 million at June 30, 2018 , and $14.3 million at December 31, 2017 . Also excludes deferred financing costs of $36.2 million at June 30, 2018 and $34.1 million at December 31, 2017 . |
Distributions Paid and Payable
Distributions Paid and Payable (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Dividends [Abstract] | |
Summary of monthly distributions paid | The following is a summary of monthly distributions paid per common share for the first six months of 2018 and 2017 : Month 2018 2017 January $ 0.2125 $ 0.2025 February 0.2190 0.2105 March 0.2190 0.2105 April 0.2195 0.2110 May 0.2195 0.2110 June 0.2195 0.2110 Total $ 1.3090 $ 1.2565 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation | The following is a reconciliation of the denominator of the basic net income per common share computation to the denominator of the diluted net income per common share computation. Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Weighted average shares used for the basic net income per share computation 284,928,969 272,588,332 284,469,689 268,024,691 Incremental shares from share-based compensation 126,265 194,133 137,625 228,142 Weighted average partnership common units convertible to common shares that were dilutive 317,022 317,022 317,022 317,022 Weighted average shares used for diluted net income per share computation 285,372,256 273,099,487 284,924,336 268,569,855 Unvested shares from share-based compensation that were anti-dilutive 237,861 44,191 164,111 32,016 Weighted average partnership common units convertible to common shares that were anti-dilutive 359,980 88,182 207,948 88,182 |
Supplemental Disclosures of C35
Supplemental Disclosures of Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of reconciliation of cash, cash equivalents and restricted cash | Per the requirements of ASU 2016-18 (Topic 230, Statement of Cash Flows ), the following table provides a reconciliation of cash and cash equivalents reported within the consolidated balance sheets to the total of the cash, cash equivalents and restricted cash reported within the consolidated statements of cash flows: June 30, 2018 June 30, 2017 Cash and cash equivalents shown in the consolidated balance sheets $ 30,717 $ 10,945 Restricted escrow deposits (1) 7,054 8,550 Impounds related to mortgages payable (1) 7,029 2,916 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 44,800 $ 22,411 (1) Included within other assets, net on the consolidated balance sheets (see note 3). These amounts consist of cash we are legally entitled to that is not immediately available to us. As a result, they were considered restricted as of the dates presented. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of reconciliation of assets from segment to consolidated | The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective tenants (dollars in thousands): Assets, as of: June 30, 2018 December 31, 2017 Segment net real estate: Apparel $ 161,920 $ 164,919 Automotive service 209,964 213,156 Automotive tire services 243,271 247,557 Beverages 287,032 289,170 Child care 60,058 61,527 Convenience stores 1,397,354 997,170 Dollar stores 1,101,066 1,105,097 Drug stores 1,511,955 1,518,443 Financial services 428,731 384,867 General merchandise 318,584 313,181 Grocery stores 773,501 793,286 Health and fitness 886,585 896,430 Home improvement 428,730 407,002 Motor vehicle dealerships 201,073 204,651 Restaurants-casual dining 475,028 494,977 Restaurants-quick service 803,886 681,763 Theaters 561,477 566,585 Transportation services 766,883 776,068 Wholesale club 420,048 426,551 Other non-reportable segments 2,192,896 2,134,099 Total segment net real estate 13,230,042 12,676,499 Intangible assets: Apparel 34,641 36,600 Automotive service 62,664 64,388 Automotive tire services 9,520 10,383 Beverages 1,894 2,022 Convenience stores 95,392 45,445 Dollar stores 47,357 47,905 Drug stores 171,741 173,893 Financial services 22,563 24,867 General merchandise 45,893 50,184 Grocery stores 144,239 140,780 Health and fitness 74,992 76,276 Home improvement 61,666 61,045 Motor vehicle dealerships 29,937 31,720 Restaurants-casual dining 19,100 20,079 Restaurants-quick service 62,303 51,711 Theaters 25,555 26,448 Transportation services 80,111 87,162 Wholesale club 28,040 29,596 Other non-reportable segments 210,972 214,426 Goodwill: Automotive service 437 437 Automotive tire services 862 862 Child care 4,899 4,924 Convenience stores 2,002 2,004 Restaurants-casual dining 2,047 2,062 Restaurants-quick service 1,057 1,064 Other non-reportable segments 3,598 3,617 Other corporate assets 200,550 171,767 Total assets $ 14,674,074 $ 14,058,166 |
Schedule of reconciliation of revenue from segments to consolidated | Three months ended June 30, Six months ended June 30, Revenue 2018 2017 2018 2017 Segment rental revenue: Apparel $ 4,210 $ 4,928 $ 8,541 $ 9,895 Automotive service 7,021 6,298 14,030 11,841 Automotive tire services 7,708 7,616 15,147 14,775 Beverages 7,836 7,758 15,673 15,516 Child care 5,216 4,845 10,916 10,332 Convenience stores 34,008 26,965 61,869 55,268 Dollar stores 23,237 22,757 46,487 45,508 Drug stores 32,436 31,614 64,775 63,245 Financial services 6,890 7,159 13,891 14,318 General merchandise 7,290 5,395 14,159 10,756 Grocery stores 15,673 13,597 31,338 23,759 Health and fitness 23,614 21,789 47,057 43,394 Home improvement 9,339 7,090 18,583 14,010 Motor vehicle dealerships 5,712 5,755 12,948 12,491 Restaurants-casual dining 11,029 10,716 21,989 21,606 Restaurants-quick service 17,083 14,517 33,362 28,853 Theaters 17,565 13,114 35,335 26,458 Transportation services 15,762 15,633 31,548 31,021 Wholesale club 9,341 9,413 18,873 18,827 Other non-reportable segments 52,900 51,090 103,897 101,997 Total rental revenue 313,870 288,049 620,418 573,870 Tenant reimbursements 11,395 11,756 22,695 22,985 Other revenue 3,621 365 4,068 1,340 Total revenue $ 328,886 $ 300,170 $ 647,181 $ 598,195 |
Management Statement (Details)
Management Statement (Details) ft² in Millions | Jun. 30, 2018ft²stateproperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Properties owned | property | 5,483 |
Number of U.S. states where properties are owned | state | 49 |
Leasable square feet | ft² | 92 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies and Procedures and Recent Accounting Pronouncements Narrative (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | ||
Impairment on goodwill | $ 0 | $ 0 |
Supplemental Detail for Certa39
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Acquired Lease Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Acquired lease intangible assets, net | ||
Acquired in-place leases | $ 1,301,834 | $ 1,272,897 |
Accumulated amortization of acquired in-place leases | (495,883) | (444,221) |
Acquired above-market leases | 562,801 | 487,933 |
Accumulated amortization of acquired above-market leases | (140,172) | (121,679) |
Total acquired lease intangible assets, net | $ 1,228,580 | $ 1,194,930 |
Supplemental Detail for Certa40
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Other assets, net | |||
Prepaid expenses | $ 15,821 | $ 12,851 | |
Restricted escrow deposits | 7,054 | 679 | $ 8,550 |
Impounds related to mortgages payable | 7,029 | 4,565 | $ 2,916 |
Corporate assets, net | 5,926 | 6,074 | |
Receivable for property rebuilds | 3,244 | 3,919 | |
Credit facility origination costs, net | 2,911 | 4,366 | |
Non-refundable escrow deposits for pending acquisitions | 0 | 7,500 | |
Notes receivable issued in connection with property sales | 0 | 5,267 | |
Other items | 1,722 | 115 | |
Total other assets, net | $ 43,707 | $ 45,336 |
Supplemental Detail for Certa41
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Distributions Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Distributions payable | ||
Distributions payable | $ 64,399 | $ 60,799 |
Noncontrolling interests | ||
Distributions payable | ||
Distributions payable | 158 | 86 |
Common stock | ||
Distributions payable | ||
Distributions payable | $ 64,241 | $ 60,713 |
Supplemental Detail for Certa42
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Payable, Acquired Lease Intangibles, and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts payable and accrued expenses | ||
Property taxes payable | $ 18,200 | $ 11,718 |
Mortgages, term loans, credit line - interest payable and interest rate swaps | 3,356 | 2,360 |
Accrued costs on properties under development | 3,149 | 2,681 |
Other items | 21,813 | 28,706 |
Total accounts payable and accrued expenses | 122,379 | 109,523 |
Acquired lease intangible liabilities, net | ||
Acquired below-market leases | 394,253 | 340,906 |
Accumulated amortization of acquired below-market leases | (83,210) | (72,110) |
Total acquired lease intangible liabilities, net | 311,043 | 268,796 |
Other liabilities | ||
Rent received in advance and other deferred revenue | 111,814 | 105,284 |
Security deposits | 6,287 | 6,259 |
Capital lease obligations | 5,481 | 5,326 |
Total other liabilities | 123,582 | 116,869 |
Notes Payable | ||
Accounts payable and accrued expenses | ||
Notes payable - interest payable | $ 75,861 | $ 64,058 |
Investments in Real Estate - Ac
Investments in Real Estate - Acquisitions (Details) $ in Thousands, ft² in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)ft² | Jun. 30, 2017USD ($)ft² | Jun. 30, 2018USD ($)ft²stateitemindustryproperty | Jun. 30, 2017USD ($)ft²stateindustryproperty | |
Investments in real estate properties | ||||
Leasable square feet | ft² | 92 | 92 | ||
Total revenue | $ 328,886 | $ 300,170 | $ 647,181 | $ 598,195 |
Net income (loss) | $ 96,697 | $ 81,259 | $ 180,012 | 170,294 |
Real Estate Investment | ||||
Investments in real estate properties | ||||
Number of investments in properties that caused any tenant to be 10% of more of total assets | item | 0 | |||
Total revenue | $ 10,600 | 7,300 | ||
Net income (loss) | 5,300 | 3,400 | ||
Real Estate Investment | New and under development or expansion | ||||
Investments in real estate properties | ||||
Value of properties acquired during the period | $ 856,800 | $ 691,900 | ||
Number of properties acquired during the period | property | 358 | 126 | ||
Initial weighted average contractual lease rate of properties acquired (as a percent) | 6.30% | 6.30% | ||
Number of states in which properties are located | state | 32 | 30 | ||
Leasable square feet | ft² | 2.8 | 3.4 | 2.8 | 3.4 |
Leased area (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Weighted average lease term | 13 years 10 months 2 days | 14 years 9 months 7 days | ||
Allocated to Land | $ 314,400 | $ 170,100 | ||
Allocated to Buildings and Improvements | 476,000 | 395,500 | ||
Allocated to Intangible Assets related to Leases | 90,600 | 130,000 | ||
Allocated to Intangible Liabilities related to Leases and Other Assumed Liabilities | 24,200 | 3,700 | ||
Contingent consideration associated with acquisition | $ 0 | $ 0 | $ 0 | $ 0 |
Real Estate Investment | New properties | Retail | ||||
Investments in real estate properties | ||||
Number of industries in which tenants operate | industry | 17 | 20 | ||
Property type-percentage of properties acquired | 93.70% | 95.10% | ||
Real Estate Investment | New properties | Industrial | ||||
Investments in real estate properties | ||||
Property type-percentage of properties acquired | 6.30% | 4.90% | ||
Real Estate Investment | Properties under development | ||||
Investments in real estate properties | ||||
Value of properties acquired during the period | $ 64,300 | $ 9,900 | ||
Number of properties acquired during the period | property | 10 | 12 | ||
Initial weighted average contractual lease rate of properties acquired (as a percent) | 6.70% | 7.90% | ||
Real Estate Investment | Maximum | ||||
Investments in real estate properties | ||||
Investments to any one tenant as a percentage of total assets | 10.00% |
Investments in Real Estate - In
Investments in Real Estate - Investments in Existing Properties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Real Estate Investments, Net [Abstract] | ||
Capitalized costs on existing properties | $ 5,600 | $ 6,800 |
Re-leasing costs | 2,500 | 759 |
Recurring capital expenditures | 147 | 365 |
Nonrecurring building improvements | $ 3,000 | $ 5,700 |
Investments in Real Estate - Pr
Investments in Real Estate - Properties with Existing Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018USD ($)property | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)itemproperty | |
Net decrease to rental revenue | |||
2,018 | $ (7,856) | ||
2,019 | (15,108) | ||
2,020 | (14,378) | ||
2,021 | (13,208) | ||
2,022 | (13,074) | ||
Thereafter | (47,962) | ||
Totals | (111,586) | ||
Increase to amortization expense | |||
2,018 | 53,176 | ||
2,019 | 97,639 | ||
2,020 | 91,887 | ||
2,021 | 83,903 | ||
2,022 | 71,978 | ||
Thereafter | 407,368 | ||
Totals | 805,951 | ||
In-Place Leases | |||
Investments in real estate properties | |||
Depreciation and amortization expense | $ 53,100 | $ 51,200 | |
Rental Revenue | |||
Investments in real estate properties | |||
Amortization of above and below Market Leases | 7,900 | 6,500 | |
Real Estate Investment | New and under development or expansion | |||
Investments in real estate properties | |||
Value of properties acquired during the period | $ 856,800 | $ 691,900 | |
Number of properties acquired during the period | property | 358 | 126 | |
Initial weighted average contractual lease rate of properties acquired (as a percent) | 6.30% | 6.30% | |
Real Estate Investment | New and under development or expansion | In-Place Leases | |||
Investments in real estate properties | |||
Value of properties acquired during the period | $ 225,800 | $ 536,200 | |
Number of properties acquired during the period | 107 | 60 | |
Real Estate Investment | Properties under development | |||
Investments in real estate properties | |||
Value of properties acquired during the period | $ 64,300 | $ 9,900 | |
Number of properties acquired during the period | property | 10 | 12 | |
Initial weighted average contractual lease rate of properties acquired (as a percent) | 6.70% | 7.90% |
Credit Facility (Details)
Credit Facility (Details) | 6 Months Ended | ||
Jun. 30, 2018USD ($)extension | Jun. 30, 2017 | Dec. 31, 2017USD ($) | |
Credit facility | |||
Credit facility origination costs, net | $ 2,911,000 | $ 4,366,000 | |
Outstanding balance | $ 534,000,000 | $ 110,000,000 | |
Weighted average interest rate | 2.90% | 4.50% | |
Credit Facility | |||
Credit facility | |||
Commitment fee (as a percent) | 0.125% | ||
Current borrowing capacity | $ 1,500,000,000 | ||
Outstanding balance | $ 534,000,000 | $ 110,000,000 | |
Weighted average borrowing rate during the period (as a percent) | 2.70% | 1.80% | |
Credit Facility | Other assets, net | |||
Credit facility | |||
Credit facility origination costs, net | $ 2,900,000 | ||
Credit Facility | Unsecured debt | |||
Credit facility | |||
Maximum borrowing capacity | $ 2,000,000,000 | ||
Number of extensions | extension | 2 | ||
Term of extension option | 6 months | ||
Accordion expansion option | $ 1,000,000,000 | ||
Credit Facility | LIBOR | |||
Credit facility | |||
Basis spread on variable rate (as a percent) | 0.85% | ||
All-in drawn variable interest rate (as a percent) | 0.975% | ||
Variable reference rate | LIBOR |
Term Loans (Details)
Term Loans (Details) | 1 Months Ended | 6 Months Ended | |||
Jan. 31, 2018item | Jun. 30, 2015USD ($) | Jan. 31, 2013USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Promissory Note | $125.9 million promissory note | |||||
Debt | |||||
Face amount of loans | $ 125,900,000 | ||||
Stated interest rate (as a percent) | 1.52% | ||||
Senior Unsecured Term Loans | |||||
Debt | |||||
Deferred finance costs | $ 469,000 | $ 580,000 | |||
Senior Unsecured Term Loans | $250 million senior unsecured term loan | |||||
Debt | |||||
Face amount of loans | $ 250,000,000 | ||||
Variable reference rate | one-month LIBOR | ||||
Basis spread on variable rate (as a percent) | 0.90% | ||||
Deferred financing costs incurred | 1,200,000 | ||||
Senior Unsecured Term Loans | Interest rate swaps | $250 million senior unsecured term loan | |||||
Debt | |||||
Effective yield (as a percent) | 2.62% | ||||
Senior Unsecured Term Loans | ARCT | $70 million senior unsecured term loan | |||||
Debt | |||||
Face amount of loans | $ 70,000,000 | ||||
Variable reference rate | one-month LIBOR | one-month LIBOR | |||
Basis spread on variable rate (as a percent) | 0.90% | 1.10% | |||
Number of additional optional extensions | item | 2 | ||||
Loan extension period | 6 months | ||||
Deferred financing costs incurred | $ 368,000 | ||||
Senior Unsecured Term Loans | ARCT | Interest rate swaps | $70 million senior unsecured term loan | |||||
Debt | |||||
Effective yield (as a percent) | 2.05% |
Mortgages Payable (Details)
Mortgages Payable (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018USD ($)loanproperty | Jun. 30, 2017USD ($)loan | Dec. 31, 2017USD ($)loanproperty | Mar. 31, 2018USD ($) | |
Debt | ||||
Weighted Average Stated Interest Rate | 2.90% | 4.50% | ||
Mortgage Payable Balance | $ 311,708 | $ 325,941 | ||
Mortgages Payable | ||||
Debt | ||||
Amount repaid | $ 13,400 | $ 86,500 | ||
Number of assumed mortgages refinanced | loan | 0 | 0 | ||
Remaining balance of deferred financing costs at period end | $ 209 | $ 236 | $ 209 | |
Number of Properties | property | 61 | 62 | ||
Weighted Average Stated Interest Rate | 5.10% | 5.00% | ||
Weighted Average Effective Interest Rate (as a percent) | 4.50% | 4.40% | ||
Weighted Average Remaining Years Until Maturity | 3 years 7 months 6 days | 4 years | ||
Remaining Principal Balance | $ 306,836 | $ 320,283 | ||
Unamortized Premium and Deferred Finance Costs Balance, net | 4,872 | 5,658 | ||
Mortgage Payable Balance | $ 311,708 | $ 325,941 | ||
Number of mortgages | loan | 27 | 28 | ||
Number of properties with mortgages | property | 61 | 62 | ||
Mortgages Payable | Minimum | ||||
Debt | ||||
Weighted Average Effective Interest Rate (as a percent) | 2.00% | 2.60% | ||
Stated interest rate (as a percent) | 3.80% | 3.40% | ||
Mortgages Payable | Maximum | ||||
Debt | ||||
Weighted Average Effective Interest Rate (as a percent) | 6.00% | 5.50% | ||
Stated interest rate (as a percent) | 6.90% | 6.90% | ||
Mortgages Payable | Mortgages repaid in full | ||||
Debt | ||||
Amount repaid | $ 11,000 | $ 82,900 | ||
Number of mortgages repaid | loan | 1 | 5 | ||
Mortgages Payable | Variable rate mortgages | ||||
Debt | ||||
Remaining Principal Balance | $ 29,600 | $ 29,900 | ||
Number of mortgages | loan | 3 | 3 | ||
Number of properties with mortgages | property | 3 | 3 | ||
Mortgages Payable | Variable rate mortgages after interest rate arrangements | ||||
Debt | ||||
Remaining Principal Balance | $ 22,200 | $ 22,400 |
Mortgages Payable - Maturities
Mortgages Payable - Maturities (Details) - Mortgages Payable - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Debt | |||
Unamortized premium balance | $ 5,100 | ||
Remaining balance of deferred financing costs at period end | 209 | $ 209 | $ 236 |
Maturity of mortgages payable, excluding net premiums | |||
2,018 | 8,500 | ||
2,019 | 20,700 | ||
2,020 | 82,400 | ||
2,021 | 66,900 | ||
2,022 | 109,700 | ||
Thereafter | 18,600 | ||
Totals | $ 306,800 |
Notes Payable - General (Detail
Notes Payable - General (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||||||
Apr. 30, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Sep. 30, 2014 | Oct. 31, 2012 | Jun. 30, 2011 | Mar. 31, 2005 | Jun. 30, 2018 | Jan. 31, 2018 | |
Debt | |||||||||
Notes payable, net | $ 5,230,244 | $ 5,374,963 | |||||||
Notes Payable | |||||||||
Debt | |||||||||
Notes payable, gross | 5,250,000 | 5,400,000 | |||||||
Unamortized net original issuance premiums and deferred financing costs | (20,000) | (25,000) | |||||||
Notes payable, net | $ 5,230,000 | 5,375,000 | |||||||
Issuance of Debt | $ 500,000 | ||||||||
2.000% notes, issued in October 2012 and due in January 2018 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 2.00% | 2.00% | |||||||
Notes payable, gross | $ 350,000 | $ 0 | |||||||
5.750% notes, issued in June 2010 and due in January 2021 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | |||||||
Notes payable, gross | $ 250,000 | $ 250,000 | |||||||
3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.25% | 3.25% | |||||||
Notes payable, gross | $ 950,000 | $ 950,000 | |||||||
3.250% notes, issued in October 2012 and due in October 2022 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 450,000 | ||||||||
3.250% notes, issued in December 2017 and due in October 2022 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 500,000 | ||||||||
4.650% notes, issued in July 2013 and due in August 2023 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | |||||||
Notes payable, gross | $ 750,000 | $ 750,000 | |||||||
3.875% notes, issued in June 2014 and due in July 2024 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||||
Notes payable, gross | $ 350,000 | $ 350,000 | |||||||
3.875% notes, issued in April 2018 and due in April 2025 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.875% | 3.875% | |||||||
Notes payable, gross | $ 0 | $ 500,000 | |||||||
4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.125% | 4.125% | |||||||
Notes payable, gross | $ 650,000 | $ 650,000 | |||||||
4.125% notes, issued in September 2014 and due in October 2026 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 250,000 | ||||||||
4.125% notes, issued in March 2017 and due in October 2026 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.125% | ||||||||
Issuance of Debt | $ 400,000 | ||||||||
3.000% notes, issued in October 2016 and due in January 2027 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.00% | 3.00% | |||||||
Notes payable, gross | $ 600,000 | $ 600,000 | |||||||
3.650% notes, issued in December 2017 and due in January 2028 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 3.65% | 3.65% | |||||||
Notes payable, gross | $ 550,000 | $ 550,000 | |||||||
5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 5.875% | 5.875% | |||||||
Notes payable, gross | $ 250,000 | $ 250,000 | |||||||
5.875% bonds, issued in March 2005 and due in March 2035 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 100,000 | ||||||||
5.875% bonds, issued in June 2011 and due in March 2035 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 150,000 | ||||||||
4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 | Notes Payable | |||||||||
Debt | |||||||||
Stated interest rate (as a percent) | 4.65% | 4.65% | |||||||
Notes payable, gross | $ 550,000 | $ 550,000 | |||||||
4.650% notes, issued in March 2017 and due in March 2047 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 300,000 | ||||||||
4.650% notes, issued in December 2017 and due in March 2047 | Notes Payable | |||||||||
Debt | |||||||||
Issuance of Debt | $ 250,000 |
Notes Payable - Maturities (Det
Notes Payable - Maturities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Maturity of notes and bonds payable | ||
Weighted average interest rate | 2.90% | 4.50% |
Notes and bonds payable | ||
Maturity of notes and bonds payable | ||
2,021 | $ 250 | |
2,022 | 950 | |
Thereafter | 4,200 | |
Totals | $ 5,400 | |
Weighted average interest rate | 4.00% | |
Weighted average remaining years until maturity | 9 years 2 months 12 days |
Notes Payable - Note Repayment
Notes Payable - Note Repayment (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Jan. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Debt | |||||
Principal payments on notes payable | $ 350,000 | $ 0 | |||
Notes Payable | |||||
Debt | |||||
Issuance of Debt | $ 500,000 | ||||
Effective yield (as a percent) | 3.875% | ||||
Notes Payable | 2.000% notes, issued in October 2012 and due in January 2018 | |||||
Debt | |||||
Principal payments on notes payable | $ 350,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% |
Notes Payable - Note Issuances
Notes Payable - Note Issuances (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2018 | Mar. 31, 2017 | Sep. 30, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt | |||||
Proceeds from issuance of debt | $ 497,500 | $ 711,812 | |||
Notes Payable | |||||
Debt | |||||
Issuance of Debt | $ 500,000 | ||||
Effective yield (as a percent) | 3.875% | ||||
Public offering price | 99.50% | ||||
Notes Payable | 3.957% notes, issued in April 2018 and due in April 2045 | |||||
Debt | |||||
Effective yield (as a percent) | 3.957% | ||||
Notes Payable | Notes issued in April 2018 | |||||
Debt | |||||
Proceeds from issuance of debt | $ 493,100 | ||||
Notes Payable | 4.650% notes, issued in March 2017 and due in March 2047 | |||||
Debt | |||||
Issuance of Debt | $ 300,000 | ||||
Effective yield (as a percent) | 4.65% | ||||
Public offering price | 99.97% | ||||
Notes Payable | 4.125% notes, issued in March 2017 and due in October 2026 | |||||
Debt | |||||
Stated interest rate (as a percent) | 4.125% | ||||
Issuance of Debt | $ 400,000 | ||||
Effective yield (as a percent) | 3.75% | ||||
Public offering price | 102.98% | ||||
Notes Payable | 4.125% notes, issued in September 2014 and due in October 2026 | |||||
Debt | |||||
Issuance of Debt | $ 250,000 | ||||
Notes Payable | Notes issued in March 2017 | |||||
Debt | |||||
Proceeds from issuance of debt | $ 705,200 |
Equity - Issuance of Common Sto
Equity - Issuance of Common Stock (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Issuance of Common Stock | |||
Net proceeds from issuance of common shares | $ 0 | $ 704,938 | |
Common stock | |||
Issuance of Common Stock | |||
Shares issued | 11,850,000 | ||
Underwriting discounts and offering costs | $ 29,800 | ||
Net proceeds from issuance of common shares | $ 704,900 |
Equity - Redemption of Preferre
Equity - Redemption of Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Redemption of Preferred Stock | |||||
Excess of redemption value over carrying value of preferred shares subject to redemption | $ 0 | $ 0 | $ 0 | $ 13,373 | |
Class F Preferred Stock | |||||
Redemption of Preferred Stock | |||||
Preferred stock redeemed | 16,350,000 | ||||
Preferred stock, dividend rate (as a percent) | 6.625% | ||||
Preferred stock, redemption price per share (in dollars per share) | $ 25 | ||||
Excess of redemption value over carrying value of preferred shares subject to redemption | $ 13,400 |
Equity - Dividend Reinvestment
Equity - Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) $ in Thousands | 6 Months Ended | 18 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | |
Dividend Reinvestment and Stock Purchase Plan | |||
Proceeds from dividend reinvestment and stock purchase plan | $ 4,806 | $ 59,649 | |
Common stock | |||
Dividend Reinvestment and Stock Purchase Plan | |||
Authorized common shares to be issued | 26,000,000 | ||
Number of common shares issued | 93,061 | 1,013,412 | 14,156,603 |
Proceeds from dividend reinvestment and stock purchase plan | $ 4,800 | $ 59,600 | $ 666,600 |
Number of common shares issued under the waiver approval process | 927,695 | ||
Amount raised from share issued under the waiver approval process | $ 54,700 |
Equity - At-the-Market (ATM) Pr
Equity - At-the-Market (ATM) Programs (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 31 Months Ended | |||
Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Oct. 31, 2017 | Sep. 30, 2015 | |
At-the-market (ATM) Programs | ||||||
Proceeds from At-the-Market (ATM) program | $ 297,983 | $ 52,442 | ||||
Common stock | ||||||
At-the-market (ATM) Programs | ||||||
Share issuances, net of costs (in shares) | 11,850,000 | |||||
At market program | Maximum | Common stock | ||||||
At-the-market (ATM) Programs | ||||||
Shares authorized | 17,000,000 | 12,000,000 | ||||
Common stock | At market program | ||||||
At-the-market (ATM) Programs | ||||||
Share issuances, net of costs (in shares) | 5,575,273 | 935,746 | 19,982,802 | |||
Proceeds from At-the-Market (ATM) program | $ 298,000 | $ 52,400 | $ 1,100,000 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($) | Dec. 31, 2016entityproperty | Apr. 30, 2018shares | Mar. 30, 2018shares | Dec. 31, 2017shares | Jun. 27, 2013shares | Jan. 31, 2013 | Jan. 22, 2013shares | |
Noncontrolling interests | |||||||||||
Conversion ratio | 1 | ||||||||||
Number of properties acquired | property | 2 | ||||||||||
Number of joint ventures controlling interest acquired | entity | 2 | ||||||||||
Change in the carrying value of all noncontrolling interests | |||||||||||
Carrying value at beginning of the period | $ 19,207 | ||||||||||
Reallocation of equity | 492 | ||||||||||
Redemptions | (1,468) | ||||||||||
Shares issued in conjunction with acquisition | 18,848 | ||||||||||
Distributions | (829) | ||||||||||
Allocation of net income | $ 317 | $ 123 | 469 | $ 288 | |||||||
Carrying value at end of the period | $ 36,719 | $ 36,719 | |||||||||
Joint Venture One | |||||||||||
Noncontrolling interests | |||||||||||
Ownership interest (as a percent) | 95.00% | 95.00% | |||||||||
Joint Venture Two | |||||||||||
Noncontrolling interests | |||||||||||
Ownership interest (as a percent) | 74.00% | 74.00% | |||||||||
Tau Operating Partnership | |||||||||||
Noncontrolling interests | |||||||||||
Realty Income partnership units, ownership interest (as a percent) | 99.40% | ||||||||||
Change in the carrying value of all noncontrolling interests | |||||||||||
Carrying value at beginning of the period | $ 13,322 | ||||||||||
Reallocation of equity | 572 | ||||||||||
Redemptions | 0 | ||||||||||
Shares issued in conjunction with acquisition | 0 | ||||||||||
Distributions | (417) | ||||||||||
Allocation of net income | 173 | ||||||||||
Carrying value at end of the period | $ 13,650 | $ 13,650 | |||||||||
Number of partnership units outstanding | shares | 317,022 | 317,022 | 317,022 | ||||||||
Number of partnership units issued | shares | 317,022 | ||||||||||
Realty Income, L.P. | |||||||||||
Noncontrolling interests | |||||||||||
Realty Income partnership units, ownership interest (as a percent) | 98.40% | 98.40% | |||||||||
Third party partnership units, ownership interest (as a percent) | 1.60% | 1.60% | |||||||||
Change in the carrying value of all noncontrolling interests | |||||||||||
Carrying value at beginning of the period | $ 2,160 | ||||||||||
Reallocation of equity | (43) | ||||||||||
Redemptions | (1,468) | ||||||||||
Shares issued in conjunction with acquisition | 18,848 | ||||||||||
Distributions | (336) | ||||||||||
Allocation of net income | 257 | ||||||||||
Carrying value at end of the period | $ 19,418 | $ 19,418 | |||||||||
Number of partnership units outstanding | shares | 401,979 | 401,979 | 88,182 | ||||||||
Number of partnership units issued | shares | 373,797 | 373,797 | 131,790 | 242,007 | 534,546 | ||||||
Other Noncontrolling Interests | |||||||||||
Change in the carrying value of all noncontrolling interests | |||||||||||
Carrying value at beginning of the period | $ 3,725 | ||||||||||
Reallocation of equity | (37) | ||||||||||
Redemptions | 0 | ||||||||||
Distributions | (76) | ||||||||||
Allocation of net income | 39 | ||||||||||
Carrying value at end of the period | $ 3,651 | $ 3,651 |
Noncontrolling Interests - Vari
Noncontrolling Interests - Variable interest entity (Details) - Variable Interest Entities, Primary Beneficiary, Aggregated Disclosure - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Variable interest entity | ||
Net real estate | $ 2,961,127 | $ 2,936,397 |
Total assets | 3,348,144 | 3,342,443 |
Total debt | 198,332 | 210,384 |
Total liabilities | $ 330,757 | $ 313,295 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Level 2 | Accounts payable and accrued expenses | Interest rate swaps | |||
Fair value of financial assets and liabilities | |||
Fair value of derivative liabilities | $ 214 | ||
Level 2 | Other assets, net | Interest rate swaps | |||
Fair value of financial assets and liabilities | |||
Fair value of derivative assets | 4,300 | ||
Mortgages Payable | |||
Fair value of financial assets and liabilities | |||
Unamortized balance of non-cash net premiums | 5,100 | $ 5,900 | |
Deferred financing costs | 209 | $ 209 | 236 |
Notes and bonds payable | |||
Fair value of financial assets and liabilities | |||
Deferred financing costs | 36,200 | 34,100 | |
Unamortized balance of original issuance premiums | 11,100 | 14,300 | |
Carrying value | |||
Fair value of financial assets and liabilities | |||
Notes receivable issued in connection with property sales | 5,300 | ||
Mortgages payable assumed in connection with acquisitions | 306,800 | 320,300 | |
Notes and bonds payable | 5,400,000 | 5,250,000 | |
Estimated fair value | |||
Fair value of financial assets and liabilities | |||
Notes receivable issued in connection with property sales | 5,300 | ||
Mortgages payable assumed in connection with acquisitions | 314,400 | 334,200 | |
Notes and bonds payable | $ 5,391,900 | $ 5,475,300 |
Gain on Sales of Real Estate (D
Gain on Sales of Real Estate (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)property | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)property | |
Gain (Loss) on Sale of Investments [Abstract] | ||||
Property Sales Count | property | 26 | 15 | 40 | 29 |
Proceeds from sales of real estate | $ 33,700 | $ 12,800 | $ 47,526 | $ 44,005 |
Gain on sales of properties | $ 7,800 | $ 2,800 | $ 11,000 | $ 13,400 |
Impairments (Details)
Impairments (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)property | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)property | |
Asset Impairment Charges [Abstract] | ||||
Total provisions for impairment | $ | $ 4 | $ 2.3 | $ 18.2 | $ 7.7 |
Number of impaired properties held-for-sale | 8 | 9 | ||
Number of impaired properties held-for-investment | 1 | 1 | 2 | 4 |
Number of impaired properties sold | 9 | 9 | 14 | 14 |
Distributions Paid and Payabl63
Distributions Paid and Payable - Common Stock (Details) - $ / shares | 1 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Jun. 30, 2017 | May 31, 2017 | Apr. 30, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Distributions Paid and Payable | ||||||||||||||
Monthly distributions payable (in dollars per share) | $ 0.22 | $ 0.22 | ||||||||||||
Common stock | ||||||||||||||
Distributions Paid and Payable | ||||||||||||||
Total common stock dividends paid per share (in dollars per share) | $ 0.2195 | $ 0.2195 | $ 0.2195 | $ 0.219 | $ 0.219 | $ 0.2125 | $ 0.211 | $ 0.211 | $ 0.211 | $ 0.2105 | $ 0.2105 | $ 0.2025 | $ 1.309 | $ 1.2565 |
Distributions Paid and Payabl64
Distributions Paid and Payable - Preferred Stock and Realty Income, L.P. Units (Details) - Class F Preferred Stock $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended |
Apr. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)item$ / shares | |
Distributions Paid and Payable | ||
Preferred stock redeemed | shares | 16,350,000 | |
Number of monthly distributions paid | item | 3 | |
Dividends paid per preferred share | $ / shares | $ 0.101215 | $ 0.414063 |
Preferred stock dividends paid | $ | $ 1.7 | $ 3.9 |
Net Income per Common Share (De
Net Income per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net Income per Common Share | ||||
Weighted average shares used for the basic net income per share computation | 284,928,969 | 272,588,332 | 284,469,689 | 268,024,691 |
Incremental shares from share-based compensation | 126,265 | 194,133 | 137,625 | 228,142 |
Weighted average shares used for diluted net income per share computation | 285,372,256 | 273,099,487 | 284,924,336 | 268,569,855 |
Unvested Shares | ||||
Net Income per Common Share | ||||
Unvested shares from share-based compensation that were anti-dilutive | 237,861 | 44,191 | 164,111 | 32,016 |
Convertible Partnership Units | ||||
Net Income per Common Share | ||||
Weighted average partnership common units convertible to common shares that were dilutive | 317,022 | 317,022 | 317,022 | 317,022 |
Unvested shares from share-based compensation that were anti-dilutive | 359,980 | 88,182 | 207,948 | 88,182 |
Supplemental Disclosures of C66
Supplemental Disclosures of Cash Flow Information (Details) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)building | Apr. 30, 2018shares | Mar. 30, 2018shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 27, 2013shares | |
Supplemental Disclosures of Cash Flow Information | |||||||
Cash paid for interest | $ 111,900 | $ 107,300 | |||||
Cash paid for income taxes | 2,900 | $ 3,300 | |||||
Non-cash activities | |||||||
Non-refundable escrow deposits for pending acquisitions | 0 | $ 7,500 | |||||
Number of buildings damaged | building | 2 | ||||||
Damaged buildings insurance receivables | $ 10,700 | ||||||
Reconciliation of cash and cash equivalents | |||||||
Cash and cash equivalents shown in the consolidated balance sheets | 30,717 | 10,945 | 6,898 | ||||
Restricted escrow deposits | 7,054 | 8,550 | 679 | ||||
Impounds related to mortgages payable | 7,029 | 2,916 | 4,565 | ||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | 44,800 | 22,411 | $ 12,142 | $ 15,681 | |||
Properties under development | |||||||
Supplemental Disclosures of Cash Flow Information | |||||||
Interest capitalized to properties under development | $ 130 | $ 272 | |||||
Realty Income, L.P. | |||||||
Non-cash activities | |||||||
Number of partnership units issued | shares | 373,797 | 131,790 | 242,007 | 534,546 | |||
Value of partnership units issued | $ 18,800 |
Segment Information - Assets (D
Segment Information - Assets (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Reconciliation of assets from segment to consolidated | ||
Number of activity segments | segment | 48 | |
Net real estate | $ 13,230,042 | $ 12,676,499 |
Goodwill | 14,902 | 14,970 |
Other corporate assets | 200,550 | 171,767 |
Total assets | 14,674,074 | 14,058,166 |
Apparel | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 161,920 | 164,919 |
Intangible assets | 34,641 | 36,600 |
Automotive service | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 209,964 | 213,156 |
Intangible assets | 62,664 | 64,388 |
Goodwill | 437 | 437 |
Automotive tire services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 243,271 | 247,557 |
Intangible assets | 9,520 | 10,383 |
Goodwill | 862 | 862 |
Beverages | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 287,032 | 289,170 |
Intangible assets | 1,894 | 2,022 |
Child care | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 60,058 | 61,527 |
Goodwill | 4,899 | 4,924 |
Convenience stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,397,354 | 997,170 |
Intangible assets | 95,392 | 45,445 |
Goodwill | 2,002 | 2,004 |
Dollar stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,101,066 | 1,105,097 |
Intangible assets | 47,357 | 47,905 |
Drug stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,511,955 | 1,518,443 |
Intangible assets | 171,741 | 173,893 |
Financial services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 428,731 | 384,867 |
Intangible assets | 22,563 | 24,867 |
General merchandise | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 318,584 | 313,181 |
Intangible assets | 45,893 | 50,184 |
Grocery stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 773,501 | 793,286 |
Intangible assets | 144,239 | 140,780 |
Health and fitness | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 886,585 | 896,430 |
Intangible assets | 74,992 | 76,276 |
Home improvement | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 428,730 | 407,002 |
Intangible assets | 61,666 | 61,045 |
Motor vehicle dealerships | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 201,073 | 204,651 |
Intangible assets | 29,937 | 31,720 |
Restaurants-casual dining | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 475,028 | 494,977 |
Intangible assets | 19,100 | 20,079 |
Goodwill | 2,047 | 2,062 |
Restaurants-quick service | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 803,886 | 681,763 |
Intangible assets | 62,303 | 51,711 |
Goodwill | 1,057 | 1,064 |
Theaters | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 561,477 | 566,585 |
Intangible assets | 25,555 | 26,448 |
Transportation services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 766,883 | 776,068 |
Intangible assets | 80,111 | 87,162 |
Wholesale club | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 420,048 | 426,551 |
Intangible assets | 28,040 | 29,596 |
Other non-reportable segments | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 2,192,896 | 2,134,099 |
Intangible assets | 210,972 | 214,426 |
Goodwill | $ 3,598 | $ 3,617 |
Segment Information - Revenue (
Segment Information - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment revenue information | ||||
Total revenue | $ 328,886 | $ 300,170 | $ 647,181 | $ 598,195 |
Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 313,870 | 288,049 | 620,418 | 573,870 |
Tenant reimbursements | ||||
Segment revenue information | ||||
Total revenue | 11,395 | 11,756 | 22,695 | 22,985 |
Other revenue | ||||
Segment revenue information | ||||
Total revenue | 3,621 | 365 | 4,068 | 1,340 |
Apparel | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 4,210 | 4,928 | 8,541 | 9,895 |
Automotive service | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 7,021 | 6,298 | 14,030 | 11,841 |
Automotive tire services | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 7,708 | 7,616 | 15,147 | 14,775 |
Beverages | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 7,836 | 7,758 | 15,673 | 15,516 |
Child care | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 5,216 | 4,845 | 10,916 | 10,332 |
Convenience stores | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 34,008 | 26,965 | 61,869 | 55,268 |
Dollar stores | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 23,237 | 22,757 | 46,487 | 45,508 |
Drug stores | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 32,436 | 31,614 | 64,775 | 63,245 |
Financial services | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 6,890 | 7,159 | 13,891 | 14,318 |
General merchandise | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 7,290 | 5,395 | 14,159 | 10,756 |
Grocery stores | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 15,673 | 13,597 | 31,338 | 23,759 |
Health and fitness | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 23,614 | 21,789 | 47,057 | 43,394 |
Home improvement | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 9,339 | 7,090 | 18,583 | 14,010 |
Motor vehicle dealerships | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 5,712 | 5,755 | 12,948 | 12,491 |
Restaurants-casual dining | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 11,029 | 10,716 | 21,989 | 21,606 |
Restaurants-quick service | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 17,083 | 14,517 | 33,362 | 28,853 |
Theaters | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 17,565 | 13,114 | 35,335 | 26,458 |
Transportation services | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 15,762 | 15,633 | 31,548 | 31,021 |
Wholesale club | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | 9,341 | 9,413 | 18,873 | 18,827 |
Other non-reportable segments | Rental revenue | ||||
Segment revenue information | ||||
Total revenue | $ 52,900 | $ 51,090 | $ 103,897 | $ 101,997 |
Common Stock Incentive Plan (De
Common Stock Incentive Plan (Details) - 2012 Plan - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common Stock Incentive Plan | |||||
Plan term from the date of adoption | 10 years | ||||
General and administrative expense | |||||
Common Stock Incentive Plan | |||||
Share-based compensation costs recognized | $ 4.5 | $ 18.8 | |||
Maximum | |||||
Common Stock Incentive Plan | |||||
Authorized shares | 3,985,734 | 3,985,734 | |||
Restricted Stock | |||||
Common Stock Incentive Plan | |||||
Share-based compensation costs recognized | $ 5 | $ 8.7 | $ 7.2 | ||
Shares granted | 28,000 | 137,000 | |||
Shares vested | 20,000 | ||||
Restricted Stock | Two year vesting period | |||||
Common Stock Incentive Plan | |||||
Shares vested | 4,000 | ||||
Vesting period | 2 years | ||||
Restricted Stock | Three year vesting period | |||||
Common Stock Incentive Plan | |||||
Shares vested | 4,000 | ||||
Vesting period | 3 years | ||||
Restricted Stock | Minimum | |||||
Common Stock Incentive Plan | |||||
Vesting period | 4 years | ||||
Restricted Stock | Maximum | |||||
Common Stock Incentive Plan | |||||
Vesting period | 5 years | ||||
Performance Shares and Restricted Stock Units | |||||
Common Stock Incentive Plan | |||||
Remaining unamortized share-based compensation expense | $ 15.8 | $ 15.8 | |||
Performance Shares | Executive officers | |||||
Common Stock Incentive Plan | |||||
Shares granted | 190,449 | ||||
Performance Shares | Executive officers | Three year vesting period | |||||
Common Stock Incentive Plan | |||||
Vesting period | 3 years | ||||
Awards vesting on the first and second January 1 after the end of the three year performance period (as a percent) | 50.00% | ||||
Restricted Stock Units | |||||
Common Stock Incentive Plan | |||||
Shares granted | 8,383 | ||||
Restricted Stock Units | Four year vesting period | |||||
Common Stock Incentive Plan | |||||
Vesting period | 4 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Amount of commitments for re-leasing costs, recurring capital expenditures and non-recurring building improvements | $ 15.9 |
Amount of commitments for construction contracts, which is expected to be paid in next twelve months | $ 14.3 |
Subsequent Events (Details)
Subsequent Events (Details) | 1 Months Ended |
Jul. 31, 2018$ / shares | |
Subsequent events | Common stock | |
Subsequent events | |
Common stock, dividends declared (in dollars per share) | $ 0.22 |