Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-13374 | |
Entity Registrant Name | REALTY INCOME CORPORATION | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 33-0580106 | |
Entity Address, Address Line One | 11995 El Camino Real | |
Entity Address, City or Town | San Diego | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92130 | |
City Area Code | 858 | |
Local Phone Number | 284-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 389,388,286 | |
Entity Central Index Key | 0000726728 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, $0.01 Par Value | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | O | |
Security Exchange Name | NYSE | |
1.125% Notes due 2027 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.125% Notes due 2027 | |
Trading Symbol | O27A | |
Security Exchange Name | NYSE | |
1.625% Notes due 2030 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.625% Notes due 2030 | |
Trading Symbol | O30 | |
Security Exchange Name | NYSE | |
1.750% Notes due 2033 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.750% Notes due 2033 | |
Trading Symbol | O33A | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Real estate held for investment, at cost: | ||
Land | $ 6,975,008 | $ 6,318,926 |
Buildings and improvements | 15,700,846 | 14,696,712 |
Total real estate held for investment, at cost | 22,675,854 | 21,015,638 |
Less accumulated depreciation and amortization | (3,775,540) | (3,549,486) |
Real estate held for investment, net | 18,900,314 | 17,466,152 |
Real estate and lease intangibles held for sale, net | 39,540 | 19,004 |
Cash and cash equivalents | 231,164 | 824,476 |
Accounts receivable, net | 327,920 | 285,701 |
Lease intangible assets, net | 1,969,793 | 1,710,655 |
Other assets, net | 516,210 | 434,297 |
Total assets | 21,984,941 | 20,740,285 |
LIABILITIES AND EQUITY | ||
Distributions payable | 90,455 | 85,691 |
Accounts payable and accrued expenses | 259,805 | 241,336 |
Lease intangible liabilities, net | 319,495 | 321,198 |
Other liabilities | 276,120 | 256,863 |
Line of credit payable and commercial paper | 1,285,306 | 0 |
Term loan, net | 249,457 | 249,358 |
Mortgages payable, net | 300,574 | 300,360 |
Notes payable, net | 7,330,050 | 8,267,749 |
Total liabilities | 10,111,262 | 9,722,555 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock and paid in capital, par value $0.01 per share, 740,200,000 shares authorized, 380,174,042 and 361,303,445 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 15,827,231 | 14,700,050 |
Distributions in excess of net income | (3,968,333) | (3,659,933) |
Accumulated other comprehensive loss | (19,366) | (54,634) |
Total stockholders’ equity | 11,839,532 | 10,985,483 |
Noncontrolling interests | 34,147 | 32,247 |
Total equity | 11,873,679 | 11,017,730 |
Total liabilities and equity | $ 21,984,941 | $ 20,740,285 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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, authorized (in shares) | 740,200,000 | 740,200,000 |
Common stock and paid in capital, issued (in shares) | 380,174,042 | 361,303,445 |
Common stock and paid in capital, outstanding (in shares) | 380,174,042 | 361,303,445 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUE | ||||
Rental (including reimbursable) | $ 460,256 | $ 410,201 | $ 899,621 | $ 822,358 |
Other | 4,026 | 4,435 | 7,465 | 6,619 |
Total revenue | 464,282 | 414,636 | 907,086 | 828,977 |
EXPENSES | ||||
Depreciation and amortization | 187,789 | 168,328 | 365,774 | 332,913 |
Interest | 73,674 | 77,841 | 146,749 | 153,766 |
Property (including reimbursable) | 31,734 | 26,452 | 60,233 | 52,058 |
General and administrative | 21,849 | 19,063 | 42,645 | 40,027 |
Provisions for impairment | 17,246 | 13,869 | 19,966 | 18,347 |
Merger-related costs | 13,298 | 0 | 13,298 | 0 |
Total expenses | 345,590 | 305,553 | 648,665 | 597,111 |
Gain on sales of real estate | 14,901 | 1,323 | 23,302 | 39,829 |
Foreign currency and derivative gains (losses), net | 400 | 502 | 1,204 | (1,062) |
Loss on extinguishment of debt | 0 | 0 | (46,473) | (9,819) |
Income before income taxes | 133,993 | 110,908 | 236,454 | 260,814 |
Income taxes | (9,225) | (2,838) | (15,450) | (5,601) |
Net income | 124,768 | 108,070 | 221,004 | 255,213 |
Net income attributable to noncontrolling interests | (289) | (246) | (585) | (562) |
Net income available to common stockholders | $ 124,479 | $ 107,824 | $ 220,419 | $ 254,651 |
Amounts available to common stockholders per common share: | ||||
Net income, basic (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.59 | $ 0.75 |
Net income, diluted (in dollars per share) | $ 0.33 | $ 0.31 | $ 0.59 | $ 0.75 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 374,236,424 | 343,515,406 | 372,879,165 | 340,061,487 |
Diluted (in shares) | 374,341,023 | 343,685,259 | 372,971,744 | 340,281,265 |
Other comprehensive income: | ||||
Net income available to common stockholders | $ 124,479 | $ 107,824 | $ 220,419 | $ 254,651 |
Foreign currency translation adjustment | (49) | 22 | (308) | 414 |
Unrealized gain (loss) on derivatives, net | (10,833) | (10,534) | 35,576 | (36,396) |
Comprehensive income available to common stockholders | $ 113,597 | $ 97,312 | $ 255,687 | $ 218,669 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total stockholders’ equity | Shares of common stock | Common stock and paid in capital | Distributions in excess of net income | Accumulated other comprehensive loss | Noncontrolling interests |
Balance at Dec. 31, 2019 | $ 9,804,158 | $ 9,774,456 | $ 12,873,849 | $ (3,082,291) | $ (17,102) | $ 29,702 | |
Balance (in shares) at Dec. 31, 2019 | 333,619,106 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 255,213 | 254,651 | 254,651 | 562 | |||
Other comprehensive income (loss) | (35,982) | (35,982) | (35,982) | ||||
Distributions paid and payable | (479,742) | (478,948) | (478,948) | (794) | |||
Share issuances, net of costs | 827,772 | 827,772 | 827,772 | ||||
Share issuances, net of costs (in shares) | 11,280,466 | ||||||
Share-based compensation, net | 2,500 | 2,500 | 2,500 | ||||
Share-based compensation, net (in shares) | 123,849 | ||||||
Balance at Jun. 30, 2020 | 10,373,919 | 10,344,449 | 13,704,121 | (3,306,588) | (53,084) | 29,470 | |
Balance (in shares) at Jun. 30, 2020 | 345,023,421 | ||||||
Balance at Mar. 31, 2020 | 10,417,639 | 10,388,015 | 13,604,055 | (3,173,468) | (42,572) | 29,624 | |
Balance (in shares) at Mar. 31, 2020 | 343,402,030 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 108,070 | 107,824 | 107,824 | 246 | |||
Other comprehensive income (loss) | (10,512) | (10,512) | (10,512) | ||||
Distributions paid and payable | (241,344) | (240,944) | (240,944) | (400) | |||
Share issuances, net of costs | 96,996 | 96,996 | 96,996 | ||||
Share issuances, net of costs (in shares) | 1,555,966 | ||||||
Share-based compensation, net | 3,070 | 3,070 | 3,070 | ||||
Share-based compensation, net (in shares) | 65,425 | ||||||
Balance at Jun. 30, 2020 | 10,373,919 | 10,344,449 | 13,704,121 | (3,306,588) | (53,084) | 29,470 | |
Balance (in shares) at Jun. 30, 2020 | 345,023,421 | ||||||
Balance at Dec. 31, 2020 | 11,017,730 | 10,985,483 | 14,700,050 | (3,659,933) | (54,634) | 32,247 | |
Balance (in shares) at Dec. 31, 2020 | 361,303,445 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 221,004 | 220,419 | 220,419 | 585 | |||
Other comprehensive income (loss) | 35,268 | 35,268 | 35,268 | ||||
Distributions paid and payable | (529,610) | (528,819) | (528,819) | (791) | |||
Share issuances, net of costs | 1,124,576 | 1,124,576 | 1,124,576 | ||||
Share issuances, net of costs (in shares) | 18,747,415 | ||||||
Contributions by noncontrolling interests | 2,106 | 2,106 | |||||
Share-based compensation, net | 2,605 | 2,605 | 2,605 | ||||
Share-based compensation, net (in shares) | 123,182 | ||||||
Balance at Jun. 30, 2021 | 11,873,679 | 11,839,532 | 15,827,231 | (3,968,333) | (19,366) | 34,147 | |
Balance (in shares) at Jun. 30, 2021 | 380,174,042 | ||||||
Balance at Mar. 31, 2021 | 11,567,013 | 11,534,872 | 15,371,016 | (3,827,660) | (8,484) | 32,141 | |
Balance (in shares) at Mar. 31, 2021 | 373,509,822 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 124,768 | 124,479 | 124,479 | 289 | |||
Other comprehensive income (loss) | (10,882) | (10,882) | (10,882) | ||||
Distributions paid and payable | (265,541) | (265,152) | (265,152) | (389) | |||
Share issuances, net of costs | 452,355 | 452,355 | 452,355 | ||||
Share issuances, net of costs (in shares) | 6,629,021 | ||||||
Contributions by noncontrolling interests | 2,106 | 2,106 | |||||
Share-based compensation, net | 3,860 | 3,860 | 3,860 | ||||
Share-based compensation, net (in shares) | 35,199 | ||||||
Balance at Jun. 30, 2021 | $ 11,873,679 | $ 11,839,532 | $ 15,827,231 | $ (3,968,333) | $ (19,366) | $ 34,147 | |
Balance (in shares) at Jun. 30, 2021 | 380,174,042 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 221,004 | $ 255,213 |
Adjustments to net income: | ||
Depreciation and amortization | 365,774 | 332,913 |
Amortization of share-based compensation | 8,169 | 10,400 |
Non-cash revenue adjustments | (8,233) | (1,507) |
Loss on extinguishment of debt | 46,473 | 9,819 |
Amortization of net premiums on mortgages payable | (485) | (710) |
Amortization of deferred financing costs | 5,352 | 4,916 |
Loss on interest rate swaps | 1,447 | 1,992 |
Foreign currency and derivative (gains) losses, net | (1,204) | 1,062 |
Gain on sales of real estate | (23,302) | (39,829) |
Provisions for impairment on real estate | 19,966 | 18,347 |
Change in assets and liabilities | ||
Accounts receivable and other assets | (67,970) | (61,091) |
Accounts payable, accrued expenses and other liabilities | 14,143 | (16,881) |
Net cash provided by operating activities | 581,134 | 514,644 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investment in real estate | (2,102,042) | (632,174) |
Improvements to real estate, including leasing costs | (3,997) | (4,710) |
Proceeds from sales of real estate | 91,616 | 133,643 |
Purchase of short-term investment | 0 | (300,000) |
Insurance and other proceeds received | 0 | 108 |
Non-refundable escrow deposits | (11,153) | 0 |
Net cash used in investing activities | (2,025,576) | (803,133) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Cash distributions to common stockholders | (524,056) | (474,294) |
Borrowings on line of credit and commercial paper program | 5,403,699 | 2,324,409 |
Payments on line of credit and commercial paper program | (4,097,909) | (2,385,859) |
Principal payment on term loan | 0 | (250,000) |
Proceeds from notes and bonds payable issued | 0 | 593,922 |
Principal payment on notes payable | (950,000) | (250,000) |
Principal payments on mortgages payable | (42,590) | (14,730) |
Payments upon extinguishment of debt | (47,235) | (9,445) |
Proceeds from common stock offerings, net | 669,295 | 728,883 |
Proceeds from dividend reinvestment and stock purchase plan | 5,322 | 4,815 |
Proceeds from At-the-Market (ATM) program, net | 449,959 | 94,076 |
Distributions to noncontrolling interests | (791) | (794) |
Net receipts on derivative settlements | 1,650 | 2,421 |
Debt issuance costs | 0 | (5,526) |
Other items, including shares withheld upon vesting | (5,564) | (7,901) |
Net cash provided by financing activities | 861,780 | 349,977 |
Effect of exchange rate changes on cash and cash equivalents | (1,032) | (2,175) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (583,694) | 59,313 |
Cash, cash equivalents and restricted cash, beginning of period | 850,679 | 71,005 |
Cash, cash equivalents and restricted cash, end of period | $ 266,985 | $ 130,318 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation 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, 2020, which are included in our 2020 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. Unless otherwise indicated, all dollar amounts are expressed in United States (U.S.) dollars. At June 30, 2021 we owned 6,761 properties, located in all 50 U.S. states, Puerto Rico and the United Kingdom (U.K.), consisting of approximately 118.3 million leasable square feet. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Procedures | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Procedures | Summary of Significant Accounting Policies and Procedures Principles of Consolidation. 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 or asset acquisition was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments. Federal Income Taxes. 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 and comprehensive income represent amounts accrued or paid by Realty Income and its subsidiaries for city and state income and franchise taxes and for U.K. income taxes. Lease Revenue Recognition and Accounts Receivable. The COVID-19 pandemic and the measures taken to limit its spread are negatively impacting the economy across many industries, including the industries in which some of our clients operate. These impacts may continue as the duration and severity of the pandemic increases. As a result, we have closely monitored the collectability of our accounts receivable and continue to evaluate the potential impacts of the COVID-19 pandemic and the measures taken to limit its spread on our business and industry segments as the situation continues to evolve and more information becomes available. We must continue to assess the probability of collecting substantially all of the lease payments to which we are entitled under the original lease contract as required under Topic 842, Leases . If a company concludes collection of substantially all lease payments under a lease is less than probable, rental revenue recognized for that lease is limited to cash received going forward, existing operating lease receivables must be written off as an adjustment to rental revenue, and no further operating lease receivables are recorded for that lease until such future determination is made that substantially all lease payments under that lease are now considered probable. The majority of concessions granted to our clients during 2020 and the six months ended June 30, 2021 as a result of the COVID-19 pandemic have been rent deferrals with the original lease term unchanged. We currently anticipate future concessions to be similar. In accordance with the guidance provided by the Financial Accounting Standards Board (FASB) staff, we have elected to account for these leases as if the right of deferral existed in the lease contract and therefore continue to recognize lease revenue in accordance with the lease contract in effect. In limited circumstances, the undiscounted cash flows resulting from deferrals granted increased significantly from original lease terms, which required us to account for these as lease modifications, and resulted in an insignificant impact to rental revenue for six months ended June 30, 2021. Similarly, rent abatements granted, which are also accounted for as lease modifications, impacted our rental revenue by an insignificant amount for the six months ended June 30, 2021. Unless otherwise specified, references to reserves recorded as a reduction of rental revenue include amounts reserved for in the current period, as well as unrecognized contractual rental revenue and unrecognized straight-line rental revenue for leases accounted for on a cash basis. The following table summarizes reserves recorded as a reduction of rental revenue (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rental revenue reserves $ 7.5 $ 6.4 $ 15.8 $ 7.4 Straight-line rent reserves 0.7 2.1 1.2 2.8 Total rental revenue reserves $ 8.2 $ 8.5 $ 17.0 $ 10.2 As of June 30, 2021, other than the information related to the reserves recorded to date, we do not have any further client specific information that would change our assessment that collection of substantially all of the future lease payments under our existing leases is probable. However, since the conversations regarding rent collections for our clients affected by the COVID-19 pandemic are ongoing and we do not currently know the types of future concessions, if any, that will ultimately be granted, there may be impacts in future periods that could change this assessment as the situation continues to evolve and as more information becomes available. Newly Issued Accounting Standards. In March 2020, the FASB issued ASU 2020-04 establishing Topic 848, Reference Rate Reform . ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. We are currently evaluating the impact that the expected market transition from LIBOR to alternative references rates will have on our financial statements as well as the applicability of the aforementioned expedients and exceptions provided in ASU 2020-04. Reclassification. For the three months ended June 30, 2021, we began presenting 'Income taxes,' which was previously presented in 'Expenses,' below a newly captioned subtotal for 'Income before income taxes' within our consolidated statements of income and comprehensive income. Prior year amounts have been reclassified to conform to the current year presentation. |
Agreement and Plan of Merger
Agreement and Plan of Merger | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Agreement and Plan of Merger | Agreement and Plan of Merger On April 29, 2021, we entered into an Agreement and Plan of Merger, as amended, or the Merger Agreement, with VEREIT, Inc., or VEREIT, its operating partnership, VEREIT Operating Partnership, L.P., or VEREIT OP, and two newly formed wholly-owned subsidiaries of us. Pursuant to the terms of the Merger Agreement, (i) one of the newly formed subsidiaries of us will merge with and into VEREIT OP, with VEREIT OP as the surviving entity, which we refer to as the Partnership Merger, and (ii) immediately thereafter, VEREIT will merge with and into the other newly formed subsidiary of us, with our subsidiary as the surviving corporation, which we refer to as the Merger and, together with the Partnership Merger, the Mergers. Pursuant to the terms of the Merger Agreement and subject to the terms thereof, upon the consummation of the Mergers, (i) each outstanding share of VEREIT common stock, and each outstanding common partnership unit of VEREIT OP owned by any of its partners other than VEREIT, Realty Income or their respective affiliates, will automatically be converted into 0.705 of a newly issued share of our common stock, subject to possible adjustment as provided in the Merger Agreement, (ii) each outstanding Series F preferred partnership unit of VEREIT OP owned by a partner other than VEREIT shall be converted into the right to receive $25.00, plus the accumulated and unpaid distributions described in the Merger Agreement, and (iii) each outstanding Series F preferred partnership unit of VEREIT OP owned by VEREIT will remain outstanding as a preferred partnership unit and each outstanding common partnership unit of VEREIT OP owned by VEREIT, Realty Income or their respective affiliates will remain outstanding as a common partnership unit in the surviving entity of VEREIT OP. Immediately prior to the Mergers, VEREIT will issue a redemption notice to redeem each share of issued and outstanding VEREIT Series F preferred stock at its redemption price in accordance with its terms. In connection with the Mergers, we and VEREIT intend to contribute some or all of our office real estate properties to a newly formed, wholly owned subsidiary, which we refer to as OfficeCo, and, following the Mergers, for us to distribute the outstanding voting shares of common stock of OfficeCo to our stockholders (including former VEREIT stockholders who receive shares of our common stock in the Mergers) on a pro rata basis, which we refer to as the Spin-Off. Following the consummation of the Spin-Off, we and VEREIT intend for OfficeCo to operate as a separate, publicly-traded REIT. Subject to the terms and conditions of the Merger Agreement, we and VEREIT may also or alternatively seek to sell some or all of the office real estate properties in connection with the closing of the Mergers or choose to retain some or all of the OfficeCo properties. The Merger Agreement contains customary covenants, representations, and warranties, as well as certain termination rights for VEREIT and us, in each case, as more fully described in the Merger Agreement. The consummation of the Mergers is also subject to certain customary closing conditions, including receipt of the approval by our stockholders and the stockholders of VEREIT. In addition, we will not be obligated to consummate the Mergers before January 29, 2022 unless the Spin-Off is ready, in all respects, to be consummated contemporaneously with the closing of the Mergers. If this condition is not satisfied or waived by us by January 29, 2022, and all other conditions to closing have been satisfied, the parties will be obligated to close the Mergers, regardless of whether the Spin-Off is ready to be consummated. Likewise, the Spin-Off is subject to various conditions and uncertainties and we and VEREIT may elect to sell some or all of the applicable office properties before the Spin-Off and we may elect not to proceed with the Spin-Off at all. In connection with the Merger, we have filed a registration statement on Form S-4 (File No. 333-256772), declared effective by the SEC on June 29, 2021, that includes a joint proxy statement of Realty Income and VEREIT. Realty Income and VEREIT have each scheduled special meetings of their respective stockholders to be held on August 12, 2021 in connection with the Mergers and related transactions. Realty Income stockholders will be asked to consider and vote on a proposal to approve the issuance of Realty Income common stock in the Mergers pursuant to the Merger Agreement. VEREIT stockholders will be asked to consider and vote on a proposal to approve the Merger, on the terms and subject to the conditions of the Merger Agreement and a proposal to approve, by advisory (non-binding) vote, the compensation that may be paid or become payable to the named executive officers of VEREIT in connection with the Merger. A. Merger-related Costs In addition, we have engaged service providers, including investment banks and advisors, to help us negotiate the terms of the Merger and to advise us on other merger-related matters. In connection with these services, we expect to be required to pay success-based fees to the extent that certain conditions, including the closing of the Merger and consummation of the Spin-Off and/or sale of OfficeCo business, are met. As of June 30, 2021, we expect to incur approximately $18.0 million of such success fees. As closing of the Merger has not occurred, no such amounts have been paid or accrued through June 30, 2021. If closing of the Merger does not occur, we would not expect to be required to pay these fees. B. Litigation Relating to the Mergers Stein v. VEREIT, Inc., et. al. , Case No. 1:21-cv-01409 (D. Ct. Md., June 7, 2021) (the “Stein Complaint”); Bowles v. VEREIT, Inc., et. al. , Case No. 1:21-cv-00845 (D. Ct. Del., June 10, 2021) (the “Bowles Complaint”); Leach v. VEREIT, Inc., et. al. , Case No. 1:21-cv-05270 (D. Ct. S.D.N.Y., June 14, 2021) (the “Leach Complaint”); Jenkins v. VEREIT, Inc., et. al. , Case No. 1:21-cv-05286 (D. Ct. S.D.N.Y., June 15, 2021) (the “Jenkins Complaint”); Tacka v. VEREIT, Inc., et. al. , Case No. 1:21-cv-05357 (D. Ct. S.D.N.Y., June 17, 2021) (the “Tacka Complaint”); Congregation Zichron Moishe v. VEREIT, Inc., et. al. , Case No. 1:21-cv-01729 (D. Ct. Colo., June 24, 2021) (the “Congregation Zichron Moishe Complaint”); Mishra v. VEREIT, Inc., et al. , Case No. 1:21-cv-01758 (D. Colo. June 28, 2021) (the “Mishra Complaint”) ; Walker v. VEREIT, Inc., et. al. , Case No. 1:21-cv-01791 (D. Ct. Colo. July 1, 2021) (the “Walker Complaint”); Ciccotelli v. VEREIT, Inc., et. al. , Case No. 2:21-cv-02983 (D. Ct. E.D. Pa. July 2, 2021) (the “Ciccotelli Complaint”); Upton v. VEREIT, Inc., et. al. , Case No. 1:21-cv-06129 (D. Ct. S.D.N.Y July 16, 2021) (the “Upton Complaint”); Matten v. VEREIT, Inc., et al. , Case No. 1:21-cv-06212 (S.D.N.Y. July 21, 2021) (the “Matten Complaint”); and Halberstam v. VEREIT, Inc., et al. , Case No. 1:21-cv-02000 (D. Colo. July 23, 2021 (the “Halberstam Complaint”)). Purported stockholders of Realty Income filed one lawsuit challenging the disclosures related to the Merger ( Boyko v. Realty Income Corp., et. al. , Case No. 1:21-cv-01653 (D. Ct. Colo., June 16, 2021) (the “Boyko Complaint,” and collectively, the “Complaints”)). A stockholder of Realty Income also sent the Company a demand disclosure letter on June 30, 2021 (the “Demand Letter”). The Stein, Leach, Tacka, Matten and Halberstam Complaints name VEREIT and the members of the VEREIT board of directors as defendants. The Congregation Zichron Moishe, Mishra, Walker and Upton Complaints name VEREIT, VEREIT OP, and the members of the VEREIT board of directors as defendants. The Bowles and Ciccotelli Complaints name VEREIT, the members of the VEREIT board of directors, VEREIT OP, Realty Income, Merger Sub 1 and Merger Sub 2 as defendants. The Jenkins Complaint names VEREIT, the members of the VEREIT board of directors, Realty Income, Merger Sub 1 and Merger Sub 2 as defendants. The Boyko Complaint names Realty Income and the members of the Realty Income board of directors as defendants. The Demand Letter is addressed to Realty Income and the members of the Realty Income board of directors. The Complaints each allege generally that the entities and individual defendants named in such Complaint violated Section 14(a) and Rule 14a-9 promulgated thereunder and that the individual defendants violated Section 20(a) of the Exchange Act by preparing and disseminating a registration statement that misstates or omits certain allegedly material information. The Demand Letter includes similar allegations. Furthermore, the Jenkins Complaint also alleges that: (1) members of the VEREIT board of directors breached their fiduciary duties by entering into the transactions contemplated by the Merger Agreement through a flawed and unfair process and by failing to disclose all material information to VEREIT’s stockholders; and (2) VEREIT, Realty Income, Merger Sub 1 and Merger Sub 2 each aided and abetted such breach of fiduciary duty by the VEREIT board of directors. Each Complaint seeks, among other things, injunctive relief enjoining the consummation of the Merger, if the Merger is consummated, rescission or rescissory damages and an award of the plaintiff’s costs, including attorneys’ and experts’ fees. The defendants believe that all of the claims asserted in the Complaints are without merit and intend to defend against them vigorously. On July 30, 2021, VEREIT filed a Form 8-K containing supplemental disclosures regarding the Mergers and related transactions in response to allegations set forth in the Complaints and the Demand letter. We have determined that there is a reasonable possibility that we and/or VEREIT will incur losses associated with the Complaints and Demand letter, though the amount of the reasonably possible loss or range of losses is not expected to be material. Accordingly, no accrual for merger-related litigation matters has been recorded as of June 30, 2021. However, litigation is inherently uncertain and there can be no assurance regarding the likelihood that the defendants’ defense of the actions will be successful. The outcome of these lawsuits can’t be predicted and could have a significant impact on the timing or our ability to close the Merger. Additional lawsuits arising out of the Mergers may also be filed in the future. |
Supplemental Detail for Certain
Supplemental Detail for Certain Components of Consolidated Balance Sheets | 6 Months Ended |
Jun. 30, 2021 | |
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. Accounts Receivable, net, consist of the following at: June 30, 2021 December 31, 2020 Straight-line rent receivables, net $ 195,860 $ 174,074 Client receivables, net 132,060 111,627 $ 327,920 $ 285,701 B. Lease intangible assets, net, consist of the following at: June 30, 2021 December 31, 2020 In-place leases $ 1,978,479 $ 1,840,704 Accumulated amortization of in-place leases (695,394) (744,375) Above-market leases 951,483 866,567 Accumulated amortization of above-market leases (264,775) (252,241) $ 1,969,793 $ 1,710,655 C. Other assets, net, consist of the following at: June 30, 2021 December 31, 2020 Financing receivables $ 165,604 $ 131,291 Right of use asset - operating leases, net 108,112 112,049 Right of use asset - financing leases 103,474 118,585 Derivative assets and receivables - at fair value 43,068 10 Restricted escrow deposits 34,636 21,220 Goodwill 14,017 14,180 Prepaid expenses 13,225 11,795 Non-refundable escrow deposits 12,153 1,000 Corporate assets, net 8,344 8,598 Credit facility origination costs, net 5,993 7,705 Impounds related to mortgages payable 1,185 4,983 Other items 6,399 2,881 $ 516,210 $ 434,297 D. Accounts payable and accrued expenses consist of the following at: June 30, 2021 December 31, 2020 Notes payable - interest payable $ 83,966 $ 83,219 Derivative liabilities and payables - at fair value 64,207 73,356 Property taxes payable 23,897 23,413 Accrued costs on properties under development 21,208 12,685 Accrued income taxes 11,064 5,182 Merger-related costs 8,944 — Value-added tax payable 6,450 8,077 Mortgages, term loans, credit line - interest payable and interest rate swaps 1,261 1,044 Other items 38,808 34,360 $ 259,805 $ 241,336 E. Lease intangible liabilities, net, consist of the following at: June 30, 2021 December 31, 2020 Below-market leases $ 462,898 $ 460,895 Accumulated amortization of below-market leases (143,403) (139,697) $ 319,495 $ 321,198 F. Other liabilities consist of the following at: June 30, 2021 December 31, 2020 Rent received in advance and other deferred revenue $ 153,020 $ 130,231 Lease liability - operating leases, net 110,826 114,559 Lease liability - financing leases 6,410 6,256 Security deposits 5,864 5,817 $ 276,120 $ 256,863 |
Investments in Real Estate
Investments in Real Estate | 6 Months Ended |
Jun. 30, 2021 | |
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 clients. A. Acquisitions During the Six Months Ended June 30, 2021 and 2020 Below is a summary of our acquisitions for the six months ended June 30, 2021: Number of Leasable Investment Weighted Initial Average Cash Lease Yield (1) Six months ended June 30, 2021 (2) Acquisitions - U.S. (in 29 states) 173 4,484,715 $ 1,052,333 13.7 5.5 % Acquisitions - U.K. (3) 41 3,133,460 994,783 9.8 5.6 % Total acquisitions 214 7,618,175 $ 2,047,116 11.8 5.5 % Properties under development - U.S. 40 2,015,992 114,798 15.6 5.7 % Total (4) 254 9,634,167 $ 2,161,914 12.0 5.5 % (1) The initial average cash lease yield for a property is generally computed as estimated contractual first year cash net operating income, which, in the case of a net leased property, is equal to the aggregate cash base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that a client 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. Contractual net operating income used in the calculation of initial average cash yield for the six months ended June 30, 2021 includes approximately $850,000 received as settlement credits for four properties acquired as reimbursement of free rent periods. 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 initial average cash lease yield is computed as follows: estimated cash 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. (2) None of our investments during the six months ended June 30, 2021 caused any one client to be 10% or more of our total assets at June 30, 2021. All of our investments in acquired properties during the six months ended June 30, 2021 are 100% leased at the acquisition date. (3) Represents investments of £715.1 million Sterling during the six months ended June 30, 2021, converted at the applicable exchange rate on the date of acquisition. (4) Our clients occupying the new properties operate in 28 industries, and are 75.8% retail and 24.2% industrial, based on rental revenue. Approximately 47% of the rental revenue generated from acquisitions during the six months ended June 30, 2021 is from investment grade rated clients, their subsidiaries or affiliated companies. The acquisitions during the six months ended June 30, 2021, which had no associated contingent consideration, were allocated as follows (amounts in millions): Acquisitions - U.S. Acquisitions - U.K. Six months ended June 30, 2021 (USD) (£ Sterling) Land (1) $ 383.6 £ 217.6 Buildings and improvements 538.6 370.6 Lease intangible assets (2) 173.2 132.4 Other assets (3) 38.5 — Lease intangible liabilities (4) (14.1) (5.2) Other liabilities (5) (21.5) (0.3) $ 1,098.3 £ 715.1 (1) U.K. land includes £1.3 million of right of use assets under long-term ground leases. (2) The weighted average amortization period for acquired lease intangible assets is 12.6 years. (3) U.S. other assets consists of financing receivables with above-market terms and a right-of-use asset accounted for as a finance lease. (4) The weighted average amortization period for acquired lease intangible liabilities is 14.0 years. (5) U.S. other liabilities consists entirely of deferred rent on certain below-market leases. U.K. other liabilities consists entirely of a GBP mortgage premium. The properties acquired during the six months ended June 30, 2021 generated total revenues of $24.9 million and net income of $6.1 million during the six months ended June 30, 2021. Below is a summary of our acquisitions for the six months ended June 30, 2020: Number of Leasable Square Feet Investment Weighted Initial Average Cash Lease Yield Six months ended June 30, 2020 (1) Acquisitions - U.S. (in 25 states) 80 1,851,346 $ 412,584 14.4 6.5 % Acquisitions - U.K. (2) 6 488,310 223,751 11.8 5.3 % Total acquisitions 86 2,339,656 $ 636,335 13.6 6.1 % Properties under development - U.S. 8 179,662 3,869 10.5 8.8 % Total (3) 94 2,519,318 $ 640,204 13.6 6.1 % (1) None of our investments during the six months ended June 30, 2020 caused any one client to be 10% or more of our total assets at June 30, 2020. All of our investments in acquired properties during the six months ended June 30, 2020 were 100% leased at the acquisition date. (2) Represents investments of £180.1 million Sterling during the six months ended June 30, 2020 converted at the applicable exchange rate on the date of the acquisition. (3) Our clients occupying the new properties operated in 17 industries, and are 96.5% retail and 3.5% industrial, based on rental revenue. Approximately 37% of the rental revenue generated from acquisitions during the six months ended June 30, 2020 was from investment grade rated clients, their subsidiaries or affiliated companies. The acquisitions during the six months ended June 30, 2020, which had no associated contingent consideration, were allocated as follows (amounts in millions): Acquisitions - U.S. Acquisitions - U.K. Six months ended June 30, 2020 (USD) (£ Sterling) Land (1) $ 85.1 £ 22.8 Buildings and improvements 276.4 63.9 Lease intangible assets (2) 54.5 42.8 Other assets (3) 1.5 50.6 Lease intangible liabilities (4) (2.5) — Other liabilities (5) (0.9) — $ 414.1 £ 180.1 (1) U.K. land includes £6.5 million of right of use assets under long-term ground leases. (2) The weighted average amortization period for acquired lease intangible assets is 11.8 years . (3) U.S. other assets consists of $810,000 of financing receivables with above-market terms and $689,000 of right of use assets under ground leases. U.K. other assets consists entirely of right of use assets under ground leases. (4) The weighted average amortization period for acquired lease intangible liabilities is 13.7 years. (5) U.S. other liabilities consists entirely of lease liabilities under ground leases. The properties acquired during the six months ended June 30, 2020 generated total revenues of $13.6 million and net income of $4.6 million during the six months ended June 30, 2020. B. Investments in Existing Properties During the six months ended June 30, 2021, we capitalized costs of $4.3 million on existing properties in our portfolio, consisting of $827,000 for re-leasing costs, $51,000 for recurring capital expenditures, and $3.4 million for non-recurring building improvements. In comparison, during the six months ended June 30, 2020, we capitalized costs of $4.4 million on existing properties in our portfolio, consisting of $1.1 million for re-leasing costs, $23,000 for recurring capital expenditures, and $3.3 million for non-recurring building improvements. C. Properties with Existing Leases Of the $2.16 billion we invested during the six months ended June 30, 2021, approximately $1.81 billion was used to acquire 143 properties with existing leases. In comparison, of the $640.2 million we invested during the six months ended June 30, 2020, approximately $500.3 million was used to acquire 57 properties with existing leases. The value of the in-place and above-market leases is recorded to lease intangible assets, net on our consolidated balance sheets, and the value of the below-market leases is recorded to 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 six months ended June 30, 2021 and 2020 were $77.5 million and $66.3 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 and comprehensive income. The amounts amortized as a net decrease to rental revenue for capitalized above-market and below-market leases for the six months ended June 30, 2021 and 2020 were $19.7 million and $16.1 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 above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at June 30, 2021 (dollars in thousands): Net decrease to rental revenue Increase to amortization expense 2021 $ (19,166) $ 86,752 2022 (37,749) 161,804 2023 (36,446) 145,644 2024 (34,737) 132,517 2025 (34,857) 118,843 Thereafter (204,258) 637,525 Totals $ (367,213) $ 1,283,085 |
Revolving Credit Facility and C
Revolving Credit Facility and Commercial Paper Program | 6 Months Ended |
Jun. 30, 2021 | |
Revolving Credit Facility and Commercial Paper Program | |
Debt | |
Debt | Revolving Credit Facility and Commercial Paper Program A. Credit Facility We have a $3.0 billion unsecured revolving credit facility with an initial term that expires in March 2023 and includes, at our option, two six At June 30, 2021, credit facility origination costs of $6.0 million are included in other assets, net, as compared to $7.7 million at December 31, 2020, on our consolidated balance sheet. These costs are being amortized over the remaining term of our revolving credit facility. At June 30, 2021, we had a borrowing capacity of $2.4 billion available on our revolving credit facility (subject to customary conditions to borrowing) and an outstanding balance of $635.3 million, consisting entirely of Sterling-denominated borrowings of £460.0 million, as compared to no outstanding balance on December 31, 2020. The weighted average interest rate on outstanding borrowings under our revolving credit facility was 0.9% during the six months ended June 30, 2021 and 1.6% during the six months ended June 30, 2020. Our revolving credit facility is subject to various leverage and interest coverage ratio limitations, and at June 30, 2021, we were in compliance with the covenants on our revolving credit facility. B. Commercial Paper Program In August 2020, we established a U.S. dollar-denominated unsecured commercial paper program. Under the terms of the program, we may issue from time to time unsecured commercial paper notes up to a maximum aggregate amount outstanding of $1.0 billion. The commercial paper will rank on a parity in right of payment with all of our other unsecured senior indebtedness outstanding from time to time, including borrowings under our revolving credit facility and our term loan facility and our outstanding senior unsecured notes. Proceeds from commercial paper borrowings will be used for general corporate purposes. As of June 30, 2021, the balance of borrowings outstanding under our commercial paper program was $650.0 million, which matured on July 8, 2021, as compared to no outstanding commercial paper borrowings at December 31, 2020. The weighted average interest rate on outstanding borrowings under our commercial paper program for the six months ended June 30, 2021 was 0.3%. |
Term Loans
Term Loans | 6 Months Ended |
Jun. 30, 2021 | |
Term loans | |
Debt | |
Debt | Term LoansIn October 2018, in conjunction with entering into our current revolving credit facility, we entered into a $250.0 million senior unsecured term loan, which matures in March 2024. Borrowing under this term loan bears interest at the current one-month LIBOR, plus 0.85%. In conjunction with this term loan, we also entered into an interest rate swap, which effectively fixes our per annum interest on this term loan at 3.89%. At June 30, 2021, deferred financing costs of |
Mortgages Payable
Mortgages Payable | 6 Months Ended |
Jun. 30, 2021 | |
Mortgages payable | |
Debt | |
Debt | Mortgages Payable During the six months ended June 30, 2021, we made $42.6 million in principal payments, including the repayment of five mortgages in full for $40.9 million. During the six months ended June 30, 2020, we made $14.7 million in principal payments, including the repayment of one mortgage in full for $11.4 million. During the six months ended June 30, 2021, we assumed a Sterling-denominated mortgage on one property totaling £31.0 million. No mortgages were assumed during the six months ended June 30, 2020. Assumed mortgages are secured by the properties on which the debt was placed and are considered non-recourse debt with limited customary exceptions which vary from loan to loan. 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, 2021, 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 $942,000 at June 30, 2021 and $973,000 at December 31, 2020. These costs are being amortized over the remaining term of each mortgage. The following table summarizes our mortgages payable as of June 30, 2021 and December 31, 2020, respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Remaining Unamortized Premium and Deferred Financing Costs Balance, net Mortgage 6/30/2021 62 4.5 % 4.3 % 2.9 $ 299,901 $ 673 $ 300,574 12/31/2020 68 4.9 % 4.6 % 2.9 $ 299,631 $ 729 $ 300,360 (1) At June 30, 2021, there were 14 mortgages on 62 properties. At December 31, 2020, there were 18 mortgages on 68 properties. The mortgages require monthly payments with principal payments due at maturity. At June 30, 2021 and December 31, 2020, all mortgages were at fixed interest rates. (2) Stated interest rates ranged from 3.0% to 6.9% and 3.8% to 6.9% at each of June 30, 2021 and December 31, 2020, respectively. (3) Effective interest rates ranged from 2.8% to 5.1% and 4.0% to 5.5% at each of June 30, 2021 and December 31, 2020, respectively. The following table summarizes the maturity of mortgages payable, excluding net premiums of $1.6 million and deferred financing costs of $942,000, as of June 30, 2021 (dollars in millions): Year of Maturity Principal 2021 $ 1.9 2022 112.1 2023 20.9 2024 112.5 2025 42.4 Thereafter 10.1 Totals $ 299.9 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 December 31, 2020 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 (1) $ — $ 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 500 500 0.750% notes, issued December 2020 and due in March 2026 325 325 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 3.250% notes, issued in June 2019 and due in June 2029 500 500 1.625% notes, issued in October 2020 and due December 2030 (2) 552 547 3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031 950 950 1.800% notes, issued in December 2020 and due in March 2033 400 400 2.730% notes, issued in May 2019 and due in May 2034 (2) 435 431 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 7,362 8,303 Unamortized net original issuance premiums and deferred financing costs (32) (35) $ 7,330 $ 8,268 (1) In January 2021, we completed the early redemption of all $950.0 million in principal amount. (2) Represents the principal balance (in U.S. dollars) of the October 2020 Sterling-denominated note offering and May 2019 Sterling-denominated private placement of £400.0 million and £315.0 million, respectively, converted at the applicable exchange rates on June 30, 2021, and December 31, 2020, respectively. In July 2021, we issued £400 million of 1.125% senior unsecured notes due 2027 and £350 million of 1.750% senior unsecured notes due 2033. See note 22, Subsequent Events. The following table summarizes the maturity of our notes and bonds payable as of June 30, 2021, excluding net unamortized original issuance premiums of $11.7 million and deferred financing costs of $44.1 million (dollars in millions): Year of Maturity Principal 2023 $ 750 2024 350 2025 500 Thereafter 5,762 Totals $ 7,362 As of June 30, 2021, the weighted average interest rate on our notes and bonds payable was 3.4% and the weighted average remaining years until maturity was 8.5 years. All of our outstanding notes and bonds payable have fixed interest rates and contain various covenants, with which we remained in compliance as of June 30, 2021. Additionally, with the exception of our £400 million of 1.625% senior unsecured notes issued in October 2020, our £400 million of 1.125% senior unsecured notes issued in July 2021, and £350 million of 1.750% senior unsecured notes also issued in July 2021, in each case where interest is paid annually, interest on our remaining senior unsecured note and bond obligations is paid semiannually. B. Note Repayment In January 2021, we redeemed all $950.0 million in principal amount of our outstanding 3.250% notes due October 2022, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $46.5 million loss on extinguishment of debt on our consolidated statement of income and comprehensive income during the six months ended June 30, 2021. In January 2020, we redeemed all $250.0 million in principal amount of our outstanding 5.750% notes due January 2021, plus accrued and unpaid interest. As a result of the early redemption, we recognized a $9.8 million loss on extinguishment of debt on our consolidated statement of income and comprehensive income during the six months ended June 30, 2020. |
Issuances of Common Stock
Issuances of Common Stock | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Issuances of Common Stock | Issuances of Common Stock A. Issuances of Common Stock in Underwritten Public Offerings In January 2021, we issued 12,075,000 shares of common stock in an underwritten public offering, including 1,575,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. After deducting underwriting discounts of $19.3 million, the net proceeds of $669.6 million were used to fund property acquisitions and for general corporate purposes, and working capital. In July 2021, we issued 9,200,000 shares of common stock in an underwritten public offering, including 1,200,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. After deducting underwriting discounts of $2.9 million, the net proceeds of $594.1 million were primarily used to repay borrowings under our $1.0 billion commercial paper program, to fund potential investment opportunities and/or for other general corporate purposes. For further information, see note 22, Subsequent Events . In March 2020, we issued 9,690,500 shares of common stock in an underwritten public offering, including 690,500 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. After deducting underwriting discounts and other offering costs of $21.5 million, the net proceeds of $728.5 million were used to repay borrowings under our credit facility, to fund investment opportunities, and for other general corporate purposes. B. At-the-Market (ATM) Program Under our "at-the-market" equity distribution plan, or our ATM program, up to 33,402,405 shares of common stock may be offered and sold (1) by us to, or through, a consortium of banks acting as our sales agents or (2) by a consortium of banks acting as forward sellers on behalf of any forward purchasers contemplated thereunder, in each case by means of ordinary brokers' transactions on the New York Stock Exchange ("NYSE: O") at prevailing market prices or at negotiated prices. At June 30, 2021, we had 9,088,433 shares remaining for future issuance under our ATM program. We anticipate maintaining the availability of our ATM program in the future, including the replenishment of authorized shares issuable thereunder. The following table outlines common stock issuances pursuant to our ATM program (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Shares of common stock issued under the ATM program 6,589,598 1,511,149 6,589,598 1,511,149 Gross proceeds $ 454.8 $ 95.7 $ 454.8 $ 95.7 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 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. At June 30, 2021, we had 11,420,562 shares remaining for future issuance under our DRSPP program. The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Shares of common stock issued under the DRSPP program 39,423 44,817 82,817 78,817 Gross proceeds $ 2.7 $ 2.4 $ 5.3 $ 4.8 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 six months ended June 30, 2021 or 2020. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests There are four entities with noncontrolling interests that we consolidate including an operating partnership, Realty Income, L.P., a joint venture acquired in 2019, and two development joint ventures, one acquired in 2020 and one acquired in May 2021. The following table represents the change in the carrying value of all noncontrolling interests through June 30, 2021 (dollars in thousands): Realty Income, L.P. units (1) Other Noncontrolling Interests Total Carrying value at December 31, 2020 $ 24,100 $ 8,147 $ 32,247 Contributions — 2,106 2,106 Distributions (653) (138) (791) Allocation of net income 498 87 585 Carrying value at June 30, 2021 $ 23,945 $ 10,202 $ 34,147 (1) 242,007 units were issued on March 30, 2018, 131,790 units were issued on April 30, 2018, and 89,322 units were issued on March 28, 2019. 463,119 remained outstanding at each of June 30, 2021 and December 31, 2020. In May 2021, we completed the acquisition of a development property by acquiring a controlling interest in a joint venture. We are the managing member of this joint venture, and possess the ability to control the business and manage the affairs of this entity. At June 30, 2021, we and our subsidiaries held an 68.0% interest, and consolidated this entity in our consolidated financial statements. At June 30, 2021, Realty Income, L.P., the joint venture acquired during 2019, and two development joint ventures, one acquired in 2020 and one acquired in May 2021, were considered variable interest entities, or VIEs, in which we were deemed the primary beneficiary based on our controlling financial interests. Below is a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets at June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Net real estate $ 651,920 $ 635,963 Total assets 737,071 723,668 Total liabilities 50,300 47,962 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | Financial Instruments and Fair Value Measurements 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 and commercial paper borrowings, term loan and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): June 30, 2021 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 299.9 $ 314.5 Notes and bonds payable (2) 7,362.5 8,045.6 December 31, 2020 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 299.6 $ 309.4 Notes and bonds payable (2) 8,302.4 9,324.0 (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $1.6 million at June 30, 2021, and $1.7 million at December 31, 2020. Also excludes deferred financing costs of $942,000 at June 30, 2021 and $973,000 at December 31, 2020. (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was approximately $11.7 million at June 30, 2021, and $14.6 million at December 31, 2020. Also excludes deferred financing costs of $44.1 million at June 30, 2021 and $49.2 million at December 31, 2020. The estimated fair values of our mortgages payable assumed in connection with acquisitions and private senior notes 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 mortgages payable is categorized as level three on the three-level valuation hierarchy. The estimated fair values of our publicly-traded 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. Derivatives Designated as Hedging Instruments During June 2021, to hedge the foreign currency risk associated with interest payments on intercompany loans denominated in British Pound Sterling, or GBP, we entered into a series of foreign currency forward contracts to sell GBP and buy U.S. Dollars, or USD, with a total notional amount of approximately £136.9 million, which mature between September 2021 and August 2024. These foreign currency forwards are designated as cash flow hedges. Forward points on the forward contracts are included in the assessment of hedge effectiveness. Derivatives Not Designated as Hedging Instruments In June 2021, we entered into a currency exchange swap to exchange £672.5 million for $950.0 million, which matured in July 2021. The currency exchange swap was entered into to hedge our exposure to foreign currency risk associated with Sterling-denominated assets. As the currency exchange swap is not accounted for as a hedging instrument, the change in fair value is recorded in earnings through the caption entitled 'Foreign currency and derivative gains, net' in the consolidated statements of income and comprehensive income. The net loss from derivatives not designated in hedging relationships for the three and six months ended June 30, 2021 totaled $16.0 million and $21.7 million, respectively. The following table summarizes the terms and fair values of our derivative financial instruments at June 30, 2021 and December 31, 2020 (dollars in millions): Derivative Type (1) Number of Instruments (2) Accounting Classification Hedge Designation Notional Amount Weighted Average Strike Rate (3) Maturity Date (4) Fair Value - asset (liability) June 30, December 31, June 30, December 31, 2021 2020 2021 2020 Interest rate swap 1 Derivative Cash flow $ 250.0 $ 250.0 3.04% 03/2024 $ (17.8) $ (22.6) Cross-currency swaps (5) 4 Derivative Cash flow 166.4 166.4 (6) 05/2034 (20.5) (21.4) Currency exchange swaps (5) 1 Derivative N/A 950.0 625.0 (7) 07/2021 21.1 (8.2) Forward-starting swaps (8) 4 Derivative Cash flow 300.0 300.0 1.86% 11/2032 - 06/2033 (2.8) (16.5) Forward-starting swaps (8) 2 Hybrid debt Cash flow 200.0 200.0 1.93% 11/2032 - 06/2033 (5.0) (12.8) Foreign currency forwards 36 Derivative Cash flow 193.3 — (9) 09/2021 - 08/2024 3.9 — $ 2,059.7 $ 1,541.4 $ (21.1) $ (81.5) (1) There have been no changes to hedging arrangements in-place at December 31, 2020. All hedges remained effective through June 30, 2021. For full discussion of the hedging arrangements, please refer to note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. (2) This column represents the number of instruments outstanding as of June 30, 2021. (3) Weighted average strike rate is calculated using the current notional value as of June 30, 2021. (4) This column represents maturity dates for instruments outstanding as of June 30, 2021. (5) Represents British Pound Sterling, or GBP, United States Dollar, or USD, currency instrument. (6) GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD weighted average fixed rate at 9.78%. (7) Forward GBP-USD exchange rate of 1.38. (8) There were five treasury rate locks entered into during February 2020 that were terminated in June 2020 and converted into six forward starting interest rate swaps through a cashless settlement. For full discussion of the hedging arrangements for these six forward starting swaps, please refer to Note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. (9) Weighted average forward GBP-USD exchange rate of 1.41. We measure our derivatives at fair value and include the balances within other assets and accounts payable and accrued expenses on our consolidated balance sheets. We have agreements with each of our derivative counterparties containing provisions under which we could be declared in default on our derivative obligations if repayment of our indebtedness is accelerated by the lender due to our default. We utilize interest rate swaps and forward-starting swaps to manage interest rate risk and cross-currency swaps, currency exchange swaps and foreign currency forwards to manage foreign currency risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, spot and forward rates, as well as option volatility. To comply with the provisions of ASC 820, Fair Value Measurement , we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within level two on the three-level valuation hierarchy, the credit valuation adjustments associated with our derivatives utilize level three inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by ourselves and our counterparties. However, at June 30, 2021 and December 31, 2020, we assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we determined that our derivative valuations in their entirety are classified as level two on the three-level valuation hierarchy. Unrealized gains and losses in accumulated other comprehensive income, or AOCI, are reclassified to interest expense in the case of interest rate swaps and to foreign currency gains and losses, net in the case of cross-currency swaps, when the related hedged items are recognized. During the three and six months ended June 30, 2021, we reclassified $2.6 million and $5.1 million, respectively, from AOCI as an increase to interest expense and $200,000 and $1.4 million losses for cross-currency swaps into foreign exchange gains. During the three and six months ended June 30, 2020, we reclassified $3.7 million and $5.3 million, respectively, from AOCI as an increase to interest expense and $800,000 and $12.2 million gains for cross-currency swaps into foreign exchange gains. |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases A. At June 30, 2021, we owned 6,761 properties in all 50 U.S. states, Puerto Rico, and the U.K. Of the 6,761 properties, 6,715, or 99.3%, are single-client properties, and the remaining are multi-client properties. At June 30, 2021, 103 properties were available for lease or sale. Substantially all of our leases are net leases where our client pays or reimburses us for property taxes and assessments, maintains the interior and exterior of the building and leased premises, and carries insurance coverage for public liability, property damage, fire and extended coverage. Rent based on a percentage of our client's gross sales, or percentage rents, for the three months ended June 30, 2021 and 2020 was $596,000 and $547,000, respectively. Percentage rents for the six months ended June 30, 2021 and 2020 were $1.6 million and $1.8 million, respectively. B. Major Clients - No individual client’s rental revenue, including percentage rents, represented more than 10% of our total revenue for each of the six months ended June 30, 2021 and 2020. |
Gain on Sales of Real Estate
Gain on Sales of Real Estate | 6 Months Ended |
Jun. 30, 2021 | |
Gain (Loss) on Sale of Investments [Abstract] | |
Gain on Sales of Real Estate | Gain on Sales of Real Estate The following table summarizes our properties sold during the periods indicated below (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Number of properties 42 12 69 29 Net sales proceeds $ 56.9 $ 7.4 $ 91.6 $ 133.6 Gain on sales of real estate $ 14.9 $ 1.3 $ 23.3 $ 39.8 |
Provisions for Impairments
Provisions for Impairments | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Provisions for Impairments | Provisions for ImpairmentWe review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. 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, a fair value analysis is performed and, to the extent the estimated fair value is less than the current book value, a provision for impairment is recorded to reduce the book value to estimated fair value. Key assumptions that we utilize in this analysis include projected rental rates, estimated holding periods, 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. There were 33 properties classified as held for sale at June 30, 2021. If a property was previously reclassified as held for sale but the applicable criteria for this classification are no longer met, the property is reclassified to real estate held for investment. A property that is reclassified to held for investment is measured and recorded at the lower (i) its carrying amount before the property was classified as held for sale, adjusted for any depreciation expense that would have been recognized had the property been continuously classified as held for investment, or (ii) the fair value at the date of the subsequent decision not to sell. The following table summarizes our provisions for impairment during the periods indicated below (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Total provisions for impairment $ 17.2 $ 13.9 $ 20.0 $ 18.3 Number of properties: Classified as held for sale 14 1 14 1 Classified as held for investment 5 7 9 7 Sold 18 17 28 28 |
Distributions Paid and Payable
Distributions Paid and Payable | 6 Months Ended |
Jun. 30, 2021 | |
Dividends [Abstract] | |
Distributions Paid and Payable | Distributions Paid and Payable We pay monthly distributions to our common stockholders. The following is a summary of monthly distributions paid per common share for the six months ended June 30, 2021 and 2020: Month 2021 2020 January $ 0.2345 $ 0.2275 February 0.2345 0.2325 March 0.2345 0.2325 April 0.2350 0.2330 May 0.2350 0.2330 June 0.2350 0.2330 Total $ 1.4085 $ 1.3915 At June 30, 2021, a distribution of $0.2355 per common share was payable and was paid in July 2021. |
Net Income per Common Share
Net Income per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income per Common Share | Net Income per Common ShareBasic 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, 2021 2020 2021 2020 Weighted average shares used for the basic net income per share computation 374,236,424 343,515,406 372,879,165 340,061,487 Incremental shares from share-based compensation 104,599 169,853 92,579 219,778 Weighted average shares used for diluted net income per share computation 374,341,023 343,685,259 372,971,744 340,281,265 Unvested shares from share based compensation that were anti-dilutive 161,359 122,222 148,342 65,623 Weighted average partnership common units convertible to common shares that were anti-dilutive 463,119 463,119 463,119 463,119 |
Supplemental Disclosures of Cas
Supplemental Disclosures of Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information Cash paid for interest was $139.4 million in the six months ended June 30, 2021 and $149.4 million in the six months ended June 30, 2020. Cash paid for income taxes was $9.7 million in the six months ended June 30, 2021 and $5.3 million in the six months ended June 30, 2020. Cash paid for merger-related costs was $4.4 million in the six months ended June 30, 2021. There were no merger-related costs in the six months ended June 30, 2020. The following non-cash activities are included in the accompanying consolidated financial statements: A. During the six months ended June 30, 2021 and 2020, the fair value of net derivative liabilities decreased by $60.4 million and $28.6 million, respectively. B. During the six months ended June 30, 2021, we assumed a Sterling-denominated mortgage on one property totaling £31.0 million. C. Non-refundable deposits from 2019 of $13.8 million were applied to acquisitions during the six months ended June 30, 2020. 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 (dollars in thousands): June 30, 2021 June 30, 2020 Cash and cash equivalents shown in the consolidated balance sheets $ 231,164 $ 35,345 Restricted escrow deposits (1) 34,636 81,683 Impounds related to mortgages payable (1) 1,185 13,290 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 266,985 $ 130,318 (1) Included within other assets, net on the consolidated balance sheets (see note 4). These amounts consist of cash that we are legally entitled to, but that is not immediately available to us. As a result, these amounts were considered restricted as of the dates presented. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
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 clients into 58 activity segments. All of the properties are incorporated into one of the applicable segments. Unless otherwise specified, all segments listed below are located within the U.S. Because almost all of our leases require our clients to pay or reimburse us for operating expenses, rental revenue is the only component of segment profit and loss we measure. Our investments in industries outside of the U.S. are managed as separate operating segments. The following tables set forth certain information regarding the properties owned by us, classified according to the business of the respective clients (dollars in thousands): Assets, as of: June 30, 2021 December 31, 2020 Segment net real estate: Automotive service $ 382,764 $ 328,340 Beverages 362,944 347,366 Child care 215,132 216,718 Convenience stores 2,198,309 2,101,005 Dollar stores 1,449,235 1,420,210 Drug stores 1,520,877 1,555,106 Financial services 367,545 374,508 General merchandise 883,230 730,806 Grocery stores - U.S. 907,465 907,634 Grocery stores - U.K. 1,492,945 1,131,760 Health and fitness 1,023,606 1,050,791 Home improvement - U.S. 666,622 608,222 Home improvement - U.K. 464,102 187,289 Restaurants-casual dining 493,962 515,226 Restaurants-quick service - U.S. 1,123,317 1,062,918 Theaters - U.S. 752,439 767,117 Transportation services 778,149 729,640 Wholesale club 441,279 407,584 Other non-reportable segments 3,415,781 3,042,916 Total net real estate 18,939,703 17,485,156 Intangible assets: Automotive service 56,319 55,018 Beverages 17,146 9,401 Child care 18,852 19,848 Convenience stores 116,621 121,151 Dollar stores 87,620 77,176 Drug stores 160,033 167,975 Financial services 13,267 14,611 General merchandise 138,486 108,646 Grocery stores - U.S. 180,333 181,764 Grocery stores - U.K. 363,254 282,211 Health and fitness 63,290 67,537 Home improvement - U.S. 100,259 97,228 Home improvement - U.K. 118,272 57,369 Restaurants-casual dining 18,654 20,553 Restaurants-quick service - U.S. 44,951 47,517 Theaters - U.S. 26,650 28,292 Transportation services 56,913 53,902 Wholesale club 52,227 36,165 Other non-reportable segments 336,788 264,291 Other corporate assets 1,075,303 1,544,474 Total assets $ 21,984,941 $ 20,740,285 Three months ended June 30, Six months ended June 30, Revenue 2021 2020 2021 2020 Segment rental revenue: Automotive service $ 10,142 $ 8,661 $ 20,061 $ 17,332 Beverages 9,379 7,996 18,331 15,991 Child care 8,812 8,714 17,314 18,195 Convenience stores 51,088 46,819 101,216 93,552 Dollar stores 32,847 31,595 65,353 62,986 Drug stores 36,356 35,617 71,404 70,916 Financial services 7,593 7,573 15,317 15,116 General merchandise 16,852 11,887 32,086 23,404 Grocery stores - U.S. 19,581 19,485 39,262 38,994 Grocery stores - U.K. 23,782 11,739 44,640 22,143 Health and fitness 27,108 27,961 55,718 56,239 Home improvement - U.S. 13,544 11,382 26,582 22,692 Home improvement - U.K. 6,670 — 11,149 — Restaurants-casual dining 12,019 11,431 23,725 23,969 Restaurants-quick service - U.S. 24,260 18,820 47,762 42,128 Theaters - U.S. 19,540 24,448 39,195 49,014 Transportation services 16,827 15,975 33,259 31,960 Wholesale club 10,148 9,588 20,090 19,176 Other non-reportable segments and contractually obligated reimbursements by our clients 113,708 100,510 217,157 198,551 Rental (including reimbursable) 460,256 410,201 899,621 822,358 Other 4,026 4,435 7,465 6,619 Total revenue $ 464,282 $ 414,636 $ 907,086 $ 828,977 |
Common Stock Incentive Plan
Common Stock Incentive Plan | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Common Stock Incentive Plan | Common Stock Incentive Plan In March 2021, our Board of Directors adopted, and in May 2021, stockholders approved, the Realty Income 2021 Incentive Award Plan, or 2021 Plan, to enable us to motivate, attract and retain the services of directors, employees and consultants, considered essential to our long-term success. The 2021 Plan offers our directors, employees and consultants an opportunity to own our stock and/or rights that will reflect our growth, development and financial success. Under the terms of the 2021 Plan, the aggregate number of shares of our common stock subject to options, stock purchase rights, or SPR, stock appreciation rights, or SAR, and other awards, will be no more 8,924,231 shares. The maximum number of shares that may be subject to options, SPR, SAR and other awards granted under the plan to any individual in any calendar year may not exceed 3,200,000, and the maximum aggregate amount of cash that may be paid in cash during any calendar year with respect to one or more shares payable in cash shall be $10.0 million. The 2021 Plan replaced the Realty Income Corporation 2012 Incentive Award Plan, or the 2012 Plan, which was set to expire in March 2022. No further awards will be granted under the 2012 Plan. The disclosures below incorporate activity for both the 2012 Plan and the 2021 Plan. The amount of share-based compensation costs recognized in general and administrative expense on our consolidated statements of income and comprehensive income was $4.5 million during the three months ended June 30, 2021, $4.9 million during the three months ended June 30, 2020, $8.2 million during the six months ended June 30, 2021, and $10.4 million during the six months ended June 30, 2020 (including $1.8 million of accelerated share-based compensation costs for our former Chief Financial Officer ("CFO")). Upon the departure of our former CFO in March 2020, we incurred a severance charge of $3.5 million, consisting of $1.6 million of cash, $1.8 million related to share-based compensation expense and $58,000 of professional fees. A. Restricted Stock During the six months ended June 30, 2021, we granted 112,498 shares of common stock under the 2012 and 2021 Plans. This included 36,000 total shares of restricted stock granted to the independent members of our Board of Directors in connection with our annual awards in May 2021, 24,000 shares of which vested immediately and 12,000 shares of which vest in equal parts over a three-year service period. Our restricted stock awards granted to employees vest in equal parts over a four-year service period. As of June 30, 2021, the remaining unamortized share-based compensation expense related to restricted stock totaled $11.0 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 six months ended June 30, 2021, we granted 157,341 performance shares, as well as dividend equivalent rights, to our executive officers, of which 9,621 shares were subsequently forfeited, leaving 147,720 of the 2021 grants outstanding at June 30, 2021. The performance shares are earned based on our Total Shareholder Return (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 six months ended June 30, 2021, we also granted 17,285 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, 2021, the remaining share-based compensation expense related to the performance shares and restricted stock units totaled $15.5 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 expense amortization period for restricted stock units is the lesser of the four-year service period or the period over which the awardee reaches the qualifying retirement age. For employees who have already met the qualifying retirement age, restricted stock units are fully expensed at the grant date. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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. In connection with the Mergers, we expect to incur merger-related costs and, if the transaction is consummated, certain success-based fees and additional merger-related costs. In addition, we have been subject to lawsuits associated with the Merger Agreement. For further details, please refer to Note 3, Agreement and Plan of Merger . At June 30, 2021, we had commitments of $9.4 million for re-leasing costs, recurring capital expenditures, and non-recurring building improvements. In addition, as of June 30, 2021, we had committed $218.6 million under construction contracts related to development projects, which is expected to be paid in the next twelve months. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events A. Dividend Increases In July 2021, we declared a dividend of $0.2355 per share to our common stockholders, which will be paid in August 2021. B. Capital Raising In July 2021, we raised $594.1 million from the issuance of 9,200,000 shares of common stock in an underwritten public offering, inclusive of 1,200,000 shares purchased by the underwriters upon the exercise of their option to purchase additional shares. The company intends to use the net proceeds from this offering to repay borrowings under our commercial paper program, to fund potential investment opportunities and/or for other general corporate purposes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Procedures (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. 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 or asset acquisition was recognized at fair value as of the date of the transaction (see note 11). We have no unconsolidated investments. |
Federal Income Taxes | Federal Income Taxes. 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 and comprehensive income represent amounts accrued or paid by Realty Income and its subsidiaries for city and state income and franchise taxes and for U.K. income taxes. |
Lease Revenue Recognition and Accounts Receivable | Lease Revenue Recognition and Accounts Receivable. The COVID-19 pandemic and the measures taken to limit its spread are negatively impacting the economy across many industries, including the industries in which some of our clients operate. These impacts may continue as the duration and severity of the pandemic increases. As a result, we have closely monitored the collectability of our accounts receivable and continue to evaluate the potential impacts of the COVID-19 pandemic and the measures taken to limit its spread on our business and industry segments as the situation continues to evolve and more information becomes available. We must continue to assess the probability of collecting substantially all of the lease payments to which we are entitled under the original lease contract as required under Topic 842, Leases . If a company concludes collection of substantially all lease payments under a lease is less than probable, rental revenue recognized for that lease is limited to cash received going forward, existing operating lease receivables must be written off as an adjustment to rental revenue, and no further operating lease receivables are recorded for that lease until such future determination is made that substantially all lease payments under that lease are now considered probable. The majority of concessions granted to our clients during 2020 and the six months ended June 30, 2021 as a result of the COVID-19 pandemic have been rent deferrals with the original lease term unchanged. We currently anticipate future concessions to be similar. In accordance with the guidance provided by the Financial Accounting Standards Board (FASB) staff, we have elected to account for these leases as if the right of deferral existed in the lease contract and therefore continue to recognize lease revenue in accordance with the lease contract in effect. In limited circumstances, the undiscounted cash flows resulting from deferrals granted increased significantly from original lease terms, which required us to account for these as lease modifications, and resulted in an insignificant impact to rental revenue for six months ended June 30, 2021. Similarly, rent abatements granted, which are also accounted for as lease modifications, impacted our rental revenue by an insignificant amount for the six months ended June 30, 2021. Unless otherwise specified, references to reserves recorded as a reduction of rental revenue include amounts reserved for in the current period, as well as unrecognized contractual rental revenue and unrecognized straight-line rental revenue for leases accounted for on a cash basis. The following table summarizes reserves recorded as a reduction of rental revenue (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rental revenue reserves $ 7.5 $ 6.4 $ 15.8 $ 7.4 Straight-line rent reserves 0.7 2.1 1.2 2.8 Total rental revenue reserves $ 8.2 $ 8.5 $ 17.0 $ 10.2 As of June 30, 2021, other than the information related to the reserves recorded to date, we do not have any further client specific information that would change our assessment that collection of substantially all of the future lease payments under our existing leases is probable. However, since the conversations regarding rent collections for our clients affected by the COVID-19 pandemic are ongoing and we do not currently know the types of future concessions, if any, that will ultimately be granted, there may be impacts in future periods that could change this assessment as the situation continues to evolve and as more information becomes available. |
Newly Issued Accounting Standards | Newly Issued Accounting Standards. In March 2020, the FASB issued ASU 2020-04 establishing Topic 848, Reference Rate Reform . ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. We are currently evaluating the impact that the expected market transition from LIBOR to alternative references rates will have on our financial statements as well as the applicability of the aforementioned expedients and exceptions provided in ASU 2020-04. |
Reclassification | Reclassification. For the three months ended June 30, 2021, we began presenting 'Income taxes,' which was previously presented in 'Expenses,' below a newly captioned subtotal for 'Income before income taxes' within our consolidated statements of income and comprehensive income. Prior year amounts have been reclassified to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Procedures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of reserves recorded as reduction of rental revenue | The following table summarizes reserves recorded as a reduction of rental revenue (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Rental revenue reserves $ 7.5 $ 6.4 $ 15.8 $ 7.4 Straight-line rent reserves 0.7 2.1 1.2 2.8 Total rental revenue reserves $ 8.2 $ 8.5 $ 17.0 $ 10.2 |
Supplemental Detail for Certa_2
Supplemental Detail for Certain Components of Consolidated Balance Sheets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of accounts receivable, net | A. Accounts Receivable, net, consist of the following at: June 30, 2021 December 31, 2020 Straight-line rent receivables, net $ 195,860 $ 174,074 Client receivables, net 132,060 111,627 $ 327,920 $ 285,701 |
Schedule of lease intangible assets, net | B. Lease intangible assets, net, consist of the following at: June 30, 2021 December 31, 2020 In-place leases $ 1,978,479 $ 1,840,704 Accumulated amortization of in-place leases (695,394) (744,375) Above-market leases 951,483 866,567 Accumulated amortization of above-market leases (264,775) (252,241) $ 1,969,793 $ 1,710,655 |
Schedule of other assets, net | C. Other assets, net, consist of the following at: June 30, 2021 December 31, 2020 Financing receivables $ 165,604 $ 131,291 Right of use asset - operating leases, net 108,112 112,049 Right of use asset - financing leases 103,474 118,585 Derivative assets and receivables - at fair value 43,068 10 Restricted escrow deposits 34,636 21,220 Goodwill 14,017 14,180 Prepaid expenses 13,225 11,795 Non-refundable escrow deposits 12,153 1,000 Corporate assets, net 8,344 8,598 Credit facility origination costs, net 5,993 7,705 Impounds related to mortgages payable 1,185 4,983 Other items 6,399 2,881 $ 516,210 $ 434,297 |
Schedule of accounts payable and accrued expenses | D. Accounts payable and accrued expenses consist of the following at: June 30, 2021 December 31, 2020 Notes payable - interest payable $ 83,966 $ 83,219 Derivative liabilities and payables - at fair value 64,207 73,356 Property taxes payable 23,897 23,413 Accrued costs on properties under development 21,208 12,685 Accrued income taxes 11,064 5,182 Merger-related costs 8,944 — Value-added tax payable 6,450 8,077 Mortgages, term loans, credit line - interest payable and interest rate swaps 1,261 1,044 Other items 38,808 34,360 $ 259,805 $ 241,336 |
Schedule of lease intangible liabilities, net | E. Lease intangible liabilities, net, consist of the following at: June 30, 2021 December 31, 2020 Below-market leases $ 462,898 $ 460,895 Accumulated amortization of below-market leases (143,403) (139,697) $ 319,495 $ 321,198 |
Schedule of other liabilities | F. Other liabilities consist of the following at: June 30, 2021 December 31, 2020 Rent received in advance and other deferred revenue $ 153,020 $ 130,231 Lease liability - operating leases, net 110,826 114,559 Lease liability - financing leases 6,410 6,256 Security deposits 5,864 5,817 $ 276,120 $ 256,863 |
Investments in Real Estate (Tab
Investments in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate Investments, Net [Abstract] | |
Schedule of acquisitions | Below is a summary of our acquisitions for the six months ended June 30, 2021: Number of Leasable Investment Weighted Initial Average Cash Lease Yield (1) Six months ended June 30, 2021 (2) Acquisitions - U.S. (in 29 states) 173 4,484,715 $ 1,052,333 13.7 5.5 % Acquisitions - U.K. (3) 41 3,133,460 994,783 9.8 5.6 % Total acquisitions 214 7,618,175 $ 2,047,116 11.8 5.5 % Properties under development - U.S. 40 2,015,992 114,798 15.6 5.7 % Total (4) 254 9,634,167 $ 2,161,914 12.0 5.5 % (1) The initial average cash lease yield for a property is generally computed as estimated contractual first year cash net operating income, which, in the case of a net leased property, is equal to the aggregate cash base rent for the first full year of each lease, divided by the total cost of the property. Since it is possible that a client 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. Contractual net operating income used in the calculation of initial average cash yield for the six months ended June 30, 2021 includes approximately $850,000 received as settlement credits for four properties acquired as reimbursement of free rent periods. 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 initial average cash lease yield is computed as follows: estimated cash 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. (2) None of our investments during the six months ended June 30, 2021 caused any one client to be 10% or more of our total assets at June 30, 2021. All of our investments in acquired properties during the six months ended June 30, 2021 are 100% leased at the acquisition date. (3) Represents investments of £715.1 million Sterling during the six months ended June 30, 2021, converted at the applicable exchange rate on the date of acquisition. (4) Our clients occupying the new properties operate in 28 industries, and are 75.8% retail and 24.2% industrial, based on rental revenue. Approximately 47% of the rental revenue generated from acquisitions during the six months ended June 30, 2021 is from investment grade rated clients, their subsidiaries or affiliated companies. Below is a summary of our acquisitions for the six months ended June 30, 2020: Number of Leasable Square Feet Investment Weighted Initial Average Cash Lease Yield Six months ended June 30, 2020 (1) Acquisitions - U.S. (in 25 states) 80 1,851,346 $ 412,584 14.4 6.5 % Acquisitions - U.K. (2) 6 488,310 223,751 11.8 5.3 % Total acquisitions 86 2,339,656 $ 636,335 13.6 6.1 % Properties under development - U.S. 8 179,662 3,869 10.5 8.8 % Total (3) 94 2,519,318 $ 640,204 13.6 6.1 % (1) None of our investments during the six months ended June 30, 2020 caused any one client to be 10% or more of our total assets at June 30, 2020. All of our investments in acquired properties during the six months ended June 30, 2020 were 100% leased at the acquisition date. (2) Represents investments of £180.1 million Sterling during the six months ended June 30, 2020 converted at the applicable exchange rate on the date of the acquisition. (3) Our clients occupying the new properties operated in 17 industries, and are 96.5% retail and 3.5% industrial, based on rental revenue. Approximately 37% of the rental revenue generated from acquisitions during the six months ended June 30, 2020 was from investment grade rated clients, their subsidiaries or affiliated companies. |
Schedule allocation of acquisitions | The acquisitions during the six months ended June 30, 2021, which had no associated contingent consideration, were allocated as follows (amounts in millions): Acquisitions - U.S. Acquisitions - U.K. Six months ended June 30, 2021 (USD) (£ Sterling) Land (1) $ 383.6 £ 217.6 Buildings and improvements 538.6 370.6 Lease intangible assets (2) 173.2 132.4 Other assets (3) 38.5 — Lease intangible liabilities (4) (14.1) (5.2) Other liabilities (5) (21.5) (0.3) $ 1,098.3 £ 715.1 (1) U.K. land includes £1.3 million of right of use assets under long-term ground leases. (2) The weighted average amortization period for acquired lease intangible assets is 12.6 years. (3) U.S. other assets consists of financing receivables with above-market terms and a right-of-use asset accounted for as a finance lease. (4) The weighted average amortization period for acquired lease intangible liabilities is 14.0 years. (5) U.S. other liabilities consists entirely of deferred rent on certain below-market leases. U.K. other liabilities consists entirely of a GBP mortgage premium. The acquisitions during the six months ended June 30, 2020, which had no associated contingent consideration, were allocated as follows (amounts in millions): Acquisitions - U.S. Acquisitions - U.K. Six months ended June 30, 2020 (USD) (£ Sterling) Land (1) $ 85.1 £ 22.8 Buildings and improvements 276.4 63.9 Lease intangible assets (2) 54.5 42.8 Other assets (3) 1.5 50.6 Lease intangible liabilities (4) (2.5) — Other liabilities (5) (0.9) — $ 414.1 £ 180.1 (1) U.K. land includes £6.5 million of right of use assets under long-term ground leases. (2) The weighted average amortization period for acquired lease intangible assets is 11.8 years . (3) U.S. other assets consists of $810,000 of financing receivables with above-market terms and $689,000 of right of use assets under ground leases. U.K. other assets consists entirely of right of use assets under ground leases. (4) The weighted average amortization period for acquired lease intangible liabilities is 13.7 years. (5) U.S. other liabilities consists entirely of lease liabilities under ground leases. |
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 above-market and below-market lease intangibles and the amortization of the in-place lease intangibles at June 30, 2021 (dollars in thousands): Net decrease to rental revenue Increase to amortization expense 2021 $ (19,166) $ 86,752 2022 (37,749) 161,804 2023 (36,446) 145,644 2024 (34,737) 132,517 2025 (34,857) 118,843 Thereafter (204,258) 637,525 Totals $ (367,213) $ 1,283,085 |
Mortgages Payable (Tables)
Mortgages Payable (Tables) - Mortgages payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Summary of mortgages payable | The following table summarizes our mortgages payable as of June 30, 2021 and December 31, 2020, respectively (dollars in thousands): As Of Number of Properties (1) Weighted Average Stated Interest Rate (2) Weighted Average Effective Interest Rate (3) Weighted Remaining Unamortized Premium and Deferred Financing Costs Balance, net Mortgage 6/30/2021 62 4.5 % 4.3 % 2.9 $ 299,901 $ 673 $ 300,574 12/31/2020 68 4.9 % 4.6 % 2.9 $ 299,631 $ 729 $ 300,360 (1) At June 30, 2021, there were 14 mortgages on 62 properties. At December 31, 2020, there were 18 mortgages on 68 properties. The mortgages require monthly payments with principal payments due at maturity. At June 30, 2021 and December 31, 2020, all mortgages were at fixed interest rates. (2) Stated interest rates ranged from 3.0% to 6.9% and 3.8% to 6.9% at each of June 30, 2021 and December 31, 2020, respectively. (3) Effective interest rates ranged from 2.8% to 5.1% and 4.0% to 5.5% at each of June 30, 2021 and December 31, 2020, respectively. |
Schedule of maturity of debt, net | The following table summarizes the maturity of mortgages payable, excluding net premiums of $1.6 million and deferred financing costs of $942,000, as of June 30, 2021 (dollars in millions): Year of Maturity Principal 2021 $ 1.9 2022 112.1 2023 20.9 2024 112.5 2025 42.4 Thereafter 10.1 Totals $ 299.9 |
Notes Payable (Tables)
Notes Payable (Tables) - Notes and bonds payable | 6 Months Ended |
Jun. 30, 2021 | |
Debt | |
Schedule of unsecured notes and bonds | Our senior unsecured notes and bonds consist of the following, sorted by maturity date (dollars in millions): June 30, 2021 December 31, 2020 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 (1) $ — $ 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 500 500 0.750% notes, issued December 2020 and due in March 2026 325 325 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 3.250% notes, issued in June 2019 and due in June 2029 500 500 1.625% notes, issued in October 2020 and due December 2030 (2) 552 547 3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031 950 950 1.800% notes, issued in December 2020 and due in March 2033 400 400 2.730% notes, issued in May 2019 and due in May 2034 (2) 435 431 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 7,362 8,303 Unamortized net original issuance premiums and deferred financing costs (32) (35) $ 7,330 $ 8,268 (1) In January 2021, we completed the early redemption of all $950.0 million in principal amount. (2) Represents the principal balance (in U.S. dollars) of the October 2020 Sterling-denominated note offering and May 2019 Sterling-denominated private placement of £400.0 million and £315.0 million, respectively, converted at the applicable exchange rates on June 30, 2021, and December 31, 2020, respectively. |
Schedule of maturity of debt, net | The following table summarizes the maturity of our notes and bonds payable as of June 30, 2021, excluding net unamortized original issuance premiums of $11.7 million and deferred financing costs of $44.1 million (dollars in millions): Year of Maturity Principal 2023 $ 750 2024 350 2025 500 Thereafter 5,762 Totals $ 7,362 |
Issuances of Common Stock (Tabl
Issuances of Common Stock (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ATM Program | |
Class of Stock [Line Items] | |
Schedule of common stock issuances | The following table outlines common stock issuances pursuant to our ATM program (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Shares of common stock issued under the ATM program 6,589,598 1,511,149 6,589,598 1,511,149 Gross proceeds $ 454.8 $ 95.7 $ 454.8 $ 95.7 |
DRSPP | |
Class of Stock [Line Items] | |
Schedule of common stock issuances | The following table outlines common stock issuances pursuant to our DRSPP program (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Shares of common stock issued under the DRSPP program 39,423 44,817 82,817 78,817 Gross proceeds $ 2.7 $ 2.4 $ 5.3 $ 4.8 |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 (dollars in thousands): Realty Income, L.P. units (1) Other Noncontrolling Interests Total Carrying value at December 31, 2020 $ 24,100 $ 8,147 $ 32,247 Contributions — 2,106 2,106 Distributions (653) (138) (791) Allocation of net income 498 87 585 Carrying value at June 30, 2021 $ 23,945 $ 10,202 $ 34,147 |
Summary selected financial data of consolidated VIEs | Below is a summary of selected financial data of consolidated VIEs included in the consolidated balance sheets at June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Net real estate $ 651,920 $ 635,963 Total assets 737,071 723,668 Total liabilities 50,300 47,962 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 and commercial paper borrowings, term loan and all other liabilities, due to their short-term nature or interest rates and terms that are consistent with market, except for our mortgages payable assumed in connection with acquisitions and our senior notes and bonds payable, which are disclosed as follows (dollars in millions): June 30, 2021 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 299.9 $ 314.5 Notes and bonds payable (2) 7,362.5 8,045.6 December 31, 2020 Carrying value Estimated fair value Mortgages payable assumed in connection with acquisitions (1) $ 299.6 $ 309.4 Notes and bonds payable (2) 8,302.4 9,324.0 (1) Excludes non-cash net premiums recorded on the mortgages payable. The unamortized balance of these net premiums was $1.6 million at June 30, 2021, and $1.7 million at December 31, 2020. Also excludes deferred financing costs of $942,000 at June 30, 2021 and $973,000 at December 31, 2020. (2) Excludes non-cash original issuance premiums and discounts recorded on notes payable. The unamortized balance of the net original issuance premiums was approximately $11.7 million at June 30, 2021, and $14.6 million at December 31, 2020. Also excludes deferred financing costs of $44.1 million at June 30, 2021 and $49.2 million at December 31, 2020. |
Schedule of derivative financial instruments | The following table summarizes the terms and fair values of our derivative financial instruments at June 30, 2021 and December 31, 2020 (dollars in millions): Derivative Type (1) Number of Instruments (2) Accounting Classification Hedge Designation Notional Amount Weighted Average Strike Rate (3) Maturity Date (4) Fair Value - asset (liability) June 30, December 31, June 30, December 31, 2021 2020 2021 2020 Interest rate swap 1 Derivative Cash flow $ 250.0 $ 250.0 3.04% 03/2024 $ (17.8) $ (22.6) Cross-currency swaps (5) 4 Derivative Cash flow 166.4 166.4 (6) 05/2034 (20.5) (21.4) Currency exchange swaps (5) 1 Derivative N/A 950.0 625.0 (7) 07/2021 21.1 (8.2) Forward-starting swaps (8) 4 Derivative Cash flow 300.0 300.0 1.86% 11/2032 - 06/2033 (2.8) (16.5) Forward-starting swaps (8) 2 Hybrid debt Cash flow 200.0 200.0 1.93% 11/2032 - 06/2033 (5.0) (12.8) Foreign currency forwards 36 Derivative Cash flow 193.3 — (9) 09/2021 - 08/2024 3.9 — $ 2,059.7 $ 1,541.4 $ (21.1) $ (81.5) (1) There have been no changes to hedging arrangements in-place at December 31, 2020. All hedges remained effective through June 30, 2021. For full discussion of the hedging arrangements, please refer to note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. (2) This column represents the number of instruments outstanding as of June 30, 2021. (3) Weighted average strike rate is calculated using the current notional value as of June 30, 2021. (4) This column represents maturity dates for instruments outstanding as of June 30, 2021. (5) Represents British Pound Sterling, or GBP, United States Dollar, or USD, currency instrument. (6) GBP fixed rates initially at 4.82% and escalating to 10.96%, and USD weighted average fixed rate at 9.78%. (7) Forward GBP-USD exchange rate of 1.38. (8) There were five treasury rate locks entered into during February 2020 that were terminated in June 2020 and converted into six forward starting interest rate swaps through a cashless settlement. For full discussion of the hedging arrangements for these six forward starting swaps, please refer to Note 2 to our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2020. (9) Weighted average forward GBP-USD exchange rate of 1.41. |
Gain on Sales of Real Estate (T
Gain on Sales of Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Gain (Loss) on Sale of Investments [Abstract] | |
Schedule of properties sold | The following table summarizes our properties sold during the periods indicated below (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Number of properties 42 12 69 29 Net sales proceeds $ 56.9 $ 7.4 $ 91.6 $ 133.6 Gain on sales of real estate $ 14.9 $ 1.3 $ 23.3 $ 39.8 |
Provisions for Impairments (Tab
Provisions for Impairments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of provisions for impairment | The following table summarizes our provisions for impairment during the periods indicated below (dollars in millions): Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Total provisions for impairment $ 17.2 $ 13.9 $ 20.0 $ 18.3 Number of properties: Classified as held for sale 14 1 14 1 Classified as held for investment 5 7 9 7 Sold 18 17 28 28 |
Distributions Paid and Payable
Distributions Paid and Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Dividends [Abstract] | |
Summary of monthly distributions paid per common share | The following is a summary of monthly distributions paid per common share for the six months ended June 30, 2021 and 2020: Month 2021 2020 January $ 0.2345 $ 0.2275 February 0.2345 0.2325 March 0.2345 0.2325 April 0.2350 0.2330 May 0.2350 0.2330 June 0.2350 0.2330 Total $ 1.4085 $ 1.3915 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of 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, 2021 2020 2021 2020 Weighted average shares used for the basic net income per share computation 374,236,424 343,515,406 372,879,165 340,061,487 Incremental shares from share-based compensation 104,599 169,853 92,579 219,778 Weighted average shares used for diluted net income per share computation 374,341,023 343,685,259 372,971,744 340,281,265 Unvested shares from share based compensation that were anti-dilutive 161,359 122,222 148,342 65,623 Weighted average partnership common units convertible to common shares that were anti-dilutive 463,119 463,119 463,119 463,119 |
Supplemental Disclosures of C_2
Supplemental Disclosures of Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 (dollars in thousands): June 30, 2021 June 30, 2020 Cash and cash equivalents shown in the consolidated balance sheets $ 231,164 $ 35,345 Restricted escrow deposits (1) 34,636 81,683 Impounds related to mortgages payable (1) 1,185 13,290 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 266,985 $ 130,318 (1) Included within other assets, net on the consolidated balance sheets (see note 4). These amounts consist of cash that we are legally entitled to, but that is not immediately available to us. As a result, these amounts were considered restricted as of the dates presented. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 clients (dollars in thousands): Assets, as of: June 30, 2021 December 31, 2020 Segment net real estate: Automotive service $ 382,764 $ 328,340 Beverages 362,944 347,366 Child care 215,132 216,718 Convenience stores 2,198,309 2,101,005 Dollar stores 1,449,235 1,420,210 Drug stores 1,520,877 1,555,106 Financial services 367,545 374,508 General merchandise 883,230 730,806 Grocery stores - U.S. 907,465 907,634 Grocery stores - U.K. 1,492,945 1,131,760 Health and fitness 1,023,606 1,050,791 Home improvement - U.S. 666,622 608,222 Home improvement - U.K. 464,102 187,289 Restaurants-casual dining 493,962 515,226 Restaurants-quick service - U.S. 1,123,317 1,062,918 Theaters - U.S. 752,439 767,117 Transportation services 778,149 729,640 Wholesale club 441,279 407,584 Other non-reportable segments 3,415,781 3,042,916 Total net real estate 18,939,703 17,485,156 Intangible assets: Automotive service 56,319 55,018 Beverages 17,146 9,401 Child care 18,852 19,848 Convenience stores 116,621 121,151 Dollar stores 87,620 77,176 Drug stores 160,033 167,975 Financial services 13,267 14,611 General merchandise 138,486 108,646 Grocery stores - U.S. 180,333 181,764 Grocery stores - U.K. 363,254 282,211 Health and fitness 63,290 67,537 Home improvement - U.S. 100,259 97,228 Home improvement - U.K. 118,272 57,369 Restaurants-casual dining 18,654 20,553 Restaurants-quick service - U.S. 44,951 47,517 Theaters - U.S. 26,650 28,292 Transportation services 56,913 53,902 Wholesale club 52,227 36,165 Other non-reportable segments 336,788 264,291 Other corporate assets 1,075,303 1,544,474 Total assets $ 21,984,941 $ 20,740,285 |
Schedule of reconciliation of revenue from segments to consolidated | Three months ended June 30, Six months ended June 30, Revenue 2021 2020 2021 2020 Segment rental revenue: Automotive service $ 10,142 $ 8,661 $ 20,061 $ 17,332 Beverages 9,379 7,996 18,331 15,991 Child care 8,812 8,714 17,314 18,195 Convenience stores 51,088 46,819 101,216 93,552 Dollar stores 32,847 31,595 65,353 62,986 Drug stores 36,356 35,617 71,404 70,916 Financial services 7,593 7,573 15,317 15,116 General merchandise 16,852 11,887 32,086 23,404 Grocery stores - U.S. 19,581 19,485 39,262 38,994 Grocery stores - U.K. 23,782 11,739 44,640 22,143 Health and fitness 27,108 27,961 55,718 56,239 Home improvement - U.S. 13,544 11,382 26,582 22,692 Home improvement - U.K. 6,670 — 11,149 — Restaurants-casual dining 12,019 11,431 23,725 23,969 Restaurants-quick service - U.S. 24,260 18,820 47,762 42,128 Theaters - U.S. 19,540 24,448 39,195 49,014 Transportation services 16,827 15,975 33,259 31,960 Wholesale club 10,148 9,588 20,090 19,176 Other non-reportable segments and contractually obligated reimbursements by our clients 113,708 100,510 217,157 198,551 Rental (including reimbursable) 460,256 410,201 899,621 822,358 Other 4,026 4,435 7,465 6,619 Total revenue $ 464,282 $ 414,636 $ 907,086 $ 828,977 |
Basis of Presentation (Details)
Basis of Presentation (Details) ft² in Millions | Jun. 30, 2021ft²propertystate |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of properties owned | property | 6,761 |
Number of U.S. states where operating | state | 50 |
Leasable square feet (sq ft) | ft² | 118.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Procedures (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||||
Rental revenue reserves | $ 7.5 | $ 6.4 | $ 15.8 | $ 7.4 |
Straight-line rent reserves | 0.7 | 2.1 | 1.2 | 2.8 |
Total rental revenue reserves | $ 8.2 | $ 8.5 | $ 17 | $ 10.2 |
Agreement and Plan of Merger (D
Agreement and Plan of Merger (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)lawsuit | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)lawsuit | Jun. 30, 2020USD ($) | Apr. 29, 2021subsidiary$ / sharesRate | |
Business Acquisition [Line Items] | |||||
Merger-related costs | $ | $ 13,298 | $ 0 | $ 13,298 | $ 0 | |
Potential success fees upon closing of merger | $ | $ 18,000 | $ 18,000 | |||
Disclosure challenges, purported stockholders of VEREIT | |||||
Business Acquisition [Line Items] | |||||
Number of lawsuits filed to date | lawsuit | 12 | 12 | |||
Disclosure challenges, purported stockholders of Realty Income | |||||
Business Acquisition [Line Items] | |||||
Number of lawsuits filed to date | lawsuit | 1 | 1 | |||
VEREIT Inc | |||||
Business Acquisition [Line Items] | |||||
Newly formed subsidiaries | subsidiary | 2 | ||||
Conversion for common stock and common units per merger agreement | Rate | 70.50% | ||||
Right to receive cash for Series F preferred shares (in dollars per share) | $ / shares | $ 25 |
Supplemental Detail for Certa_3
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Receivable | ||
Straight-line rent receivables, net | $ 195,860 | $ 174,074 |
Client receivables, net | 132,060 | 111,627 |
Accounts receivable | $ 327,920 | $ 285,701 |
Supplemental Detail for Certa_4
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Lease Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lease intangible assets, net | ||
Total acquired lease intangible assets, net | $ 1,969,793 | $ 1,710,655 |
In-place leases | ||
Lease intangible assets, net | ||
Lease intangible assets, gross | 1,978,479 | 1,840,704 |
Accumulated amortization of lease intangible assets | (695,394) | (744,375) |
Above-market leases | ||
Lease intangible assets, net | ||
Lease intangible assets, gross | 951,483 | 866,567 |
Accumulated amortization of lease intangible assets | $ (264,775) | $ (252,241) |
Supplemental Detail for Certa_5
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Other assets, net | |||
Financing receivables | $ 165,604 | $ 131,291 | |
Right of use asset - operating leases, net | 108,112 | 112,049 | |
Right of use asset - financing leases | 103,474 | 118,585 | |
Derivative assets and receivables - at fair value | 43,068 | 10 | |
Restricted escrow deposits | 34,636 | 21,220 | $ 81,683 |
Goodwill | 14,017 | 14,180 | |
Prepaid expenses | 13,225 | 11,795 | |
Non-refundable escrow deposits | 12,153 | 1,000 | |
Corporate assets, net | 8,344 | 8,598 | |
Credit facility origination costs, net | 5,993 | 7,705 | |
Impounds related to mortgages payable | 1,185 | 4,983 | $ 13,290 |
Other items | 6,399 | 2,881 | |
Total other assets, net | $ 516,210 | $ 434,297 | |
Right-of-use asset, operating leases, balance sheet line item | Total other assets, net | Total other assets, net | |
Right-of-use asset, financing leases, balance sheet line item | Total other assets, net | Total other assets, net |
Supplemental Detail for Certa_6
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts payable and accrued expenses consist of the following at: | ||
Derivative liabilities and payables - at fair value | $ 64,207 | $ 73,356 |
Property taxes payable | 23,897 | 23,413 |
Accrued costs on properties under development | 21,208 | 12,685 |
Accrued income taxes | 11,064 | 5,182 |
Merger-related costs | 8,944 | 0 |
Value-added tax payable | 6,450 | 8,077 |
Other items | 38,808 | 34,360 |
Total accounts payable and accrued expenses | 259,805 | 241,336 |
Notes payable | ||
Accounts payable and accrued expenses consist of the following at: | ||
Interest payable | 83,966 | 83,219 |
Mortgages, term loans, credit line | ||
Accounts payable and accrued expenses consist of the following at: | ||
Interest payable | $ 1,261 | $ 1,044 |
Supplemental Detail for Certa_7
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Lease Intangible Liabilities, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lease intangible liabilities, net, consist of the following at: | ||
Below-market leases | $ 462,898 | $ 460,895 |
Accumulated amortization of below-market leases | (143,403) | (139,697) |
Total lease intangible liabilities, net | $ 319,495 | $ 321,198 |
Supplemental Detail for Certa_8
Supplemental Detail for Certain Components of Consolidated Balance Sheets - Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Other liabilities consist of the following at: | ||
Rent received in advance and other deferred revenue | $ 153,020 | $ 130,231 |
Lease liability - operating leases, net | 110,826 | 114,559 |
Lease liability - financing leases | 6,410 | 6,256 |
Security deposits | 5,864 | 5,817 |
Total other liabilities | $ 276,120 | $ 256,863 |
Lease liability, operating leases, balance sheet line item | Total other liabilities | Total other liabilities |
Lease liability, financing leases, balance sheet line item | Total other liabilities | Total other liabilities |
Investments in Real Estate - Ac
Investments in Real Estate - Acquisitions (Details) $ in Thousands, £ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($)ft²propertystate | Jun. 30, 2021GBP (£)ft²propertystate | Jun. 30, 2020USD ($)ft²propertystate | Jun. 30, 2020GBP (£)ft²propertystate | |
Real Estate [Line Items] | ||||
Number of properties | property | 254 | 254 | 94 | 94 |
Leasable square feet (sq ft) | ft² | 9,634,167 | 9,634,167 | 2,519,318 | 2,519,318 |
Investment | $ | $ 2,161,914 | $ 640,204 | ||
Weighted average lease term (years) | 12 years | 12 years | 13 years 7 months 6 days | 13 years 7 months 6 days |
Initial average cash lease yield (percent) | 5.50% | 5.50% | 6.10% | 6.10% |
U.K. | ||||
Real Estate [Line Items] | ||||
Investment | £ | £ 715.1 | £ 180.1 | ||
New properties | ||||
Real Estate [Line Items] | ||||
Number of properties, new | property | 214 | 214 | 86 | 86 |
Leasable square feet (sq ft) | ft² | 7,618,175 | 7,618,175 | 2,339,656 | 2,339,656 |
Investment | $ | $ 2,047,116 | $ 636,335 | ||
Weighted average lease term (years) | 11 years 9 months 18 days | 11 years 9 months 18 days | 13 years 7 months 6 days | 13 years 7 months 6 days |
Initial average cash lease yield (percent) | 5.50% | 5.50% | 6.10% | 6.10% |
New properties | U.S. | ||||
Real Estate [Line Items] | ||||
Number of properties, new | property | 173 | 173 | 80 | 80 |
Number of states | state | 29 | 29 | 25 | 25 |
Leasable square feet (sq ft) | ft² | 4,484,715 | 4,484,715 | 1,851,346 | 1,851,346 |
Investment | $ | $ 1,052,333 | $ 412,584 | ||
Weighted average lease term (years) | 13 years 8 months 12 days | 13 years 8 months 12 days | 14 years 4 months 24 days | 14 years 4 months 24 days |
Initial average cash lease yield (percent) | 5.50% | 5.50% | 6.50% | 6.50% |
New properties | U.K. | ||||
Real Estate [Line Items] | ||||
Number of properties, new | property | 41 | 41 | 6 | 6 |
Leasable square feet (sq ft) | ft² | 3,133,460 | 3,133,460 | 488,310 | 488,310 |
Investment | $ | $ 994,783 | $ 223,751 | ||
Weighted average lease term (years) | 9 years 9 months 18 days | 9 years 9 months 18 days | 11 years 9 months 18 days | 11 years 9 months 18 days |
Initial average cash lease yield (percent) | 5.60% | 5.60% | 5.30% | 5.30% |
Properties under development | U.S. | ||||
Real Estate [Line Items] | ||||
Number of properties, under development | property | 40 | 40 | 8 | 8 |
Leasable square feet (sq ft) | ft² | 2,015,992 | 2,015,992 | 179,662 | 179,662 |
Investment | $ | $ 114,798 | $ 3,869 | ||
Weighted average lease term (years) | 15 years 7 months 6 days | 15 years 7 months 6 days | 10 years 6 months | 10 years 6 months |
Initial average cash lease yield (percent) | 5.70% | 5.70% | 8.80% | 8.80% |
Investments in Real Estate - _2
Investments in Real Estate - Acquisitions Footnotes (Details) $ in Thousands, £ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($)propertyindustry | Jun. 30, 2021GBP (£)propertyindustry | Jun. 30, 2020USD ($)industry | Jun. 30, 2020GBP (£)industry | |
Real Estate [Line Items] | ||||
Settlement credits as reimbursement for acquired rent free period | $ 850 | |||
Number of properties related to settlement credits | property | 4 | 4 | ||
Acquired properties, percentage leased at the acquisition date (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Value of properties acquired during the period | $ 2,161,914 | $ 640,204 | ||
Number of industries in which tenants operate | industry | 28 | 28 | 17 | 17 |
Rental revenue generated from acquisitions from investment grade tenants (as a percent) | 47.00% | 47.00% | 37.00% | 37.00% |
Retail | ||||
Real Estate [Line Items] | ||||
Property type acquired based on rental revenue (as a percent) | 75.80% | 75.80% | 96.50% | 96.50% |
Industrial | ||||
Real Estate [Line Items] | ||||
Property type acquired based on rental revenue (as a percent) | 24.20% | 24.20% | 3.50% | 3.50% |
U.K. | ||||
Real Estate [Line Items] | ||||
Value of properties acquired during the period | £ | £ 715.1 | £ 180.1 |
Investments in Real Estate - _3
Investments in Real Estate - Acquisitions Allocation (Details) $ in Thousands, £ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2021GBP (£) | Jun. 30, 2020USD ($) | Jun. 30, 2020GBP (£) | |
Acquisitions | ||||
Weighted average amortization period for acquired lease intangible assets | 12 years 7 months 6 days | 12 years 7 months 6 days | 11 years 9 months 18 days | 11 years 9 months 18 days |
Weighted average amortization period for acquired lease intangible liabilities | 14 years | 14 years | 13 years 8 months 12 days | 13 years 8 months 12 days |
Real Estate Investment | U.S. | ||||
Acquisitions | ||||
Land | $ 383,600 | $ 85,100 | ||
Buildings and improvements | 538,600 | 276,400 | ||
Lease intangible assets | 173,200 | 54,500 | ||
Other assets | 38,500 | 1,500 | ||
Lease intangible liabilities | (14,100) | (2,500) | ||
Other liabilities | (21,500) | (900) | ||
Net | $ 1,098,300 | 414,100 | ||
Real Estate Investment | U.S. | Other assets | ||||
Acquisitions | ||||
Allocated to right-of-use assets under ground leases | 689 | |||
Allocated to financing receivables | $ 810 | |||
Real Estate Investment | U.K. | ||||
Acquisitions | ||||
Land | £ | £ 217.6 | £ 22.8 | ||
Buildings and improvements | £ | 370.6 | 63.9 | ||
Lease intangible assets | £ | 132.4 | 42.8 | ||
Other assets | £ | 0 | 50.6 | ||
Lease intangible liabilities | £ | (5.2) | 0 | ||
Other liabilities | £ | (0.3) | 0 | ||
Net | £ | 715.1 | 180.1 | ||
Real Estate Investment | U.K. | Land | ||||
Acquisitions | ||||
Allocated to right-of-use assets under ground leases | £ | £ 1.3 | £ 6.5 |
Investments in Real Estate - _4
Investments in Real Estate - Acquisitions Narrative (Details) - Real Estate Investment - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Investments in real estate properties | ||
Contingent consideration associated with acquisitions | $ 0 | $ 0 |
Revenue generated from acquired properties during the period | 24,900,000 | 13,600,000 |
Net income generated from acquired properties during the period | $ 6,100,000 | $ 4,600,000 |
Investments in Real Estate - In
Investments in Real Estate - Investments in Existing Properties Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Investments in real estate properties | ||
Capitalized costs on existing portfolio | $ 3,997 | $ 4,710 |
Investments in existing properties | ||
Investments in real estate properties | ||
Capitalized costs on existing portfolio | 4,300 | 4,400 |
Re-leasing costs | 827 | 1,100 |
Recurring capital expenditures | 51 | 23 |
Non-recurring building improvements | $ 3,400 | $ 3,300 |
Investments in Real Estate - Pr
Investments in Real Estate - Properties with Existing Leases Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | |
Real Estate Properties [Line Items] | ||
Value of properties acquired during the period | $ 2,161,914 | $ 640,204 |
Number of properties acquired during the period | property | 254 | 94 |
Rental revenue | ||
Real Estate Properties [Line Items] | ||
Amortization of above and below market Leases | $ 19,700 | $ 16,100 |
In-place leases | ||
Real Estate Properties [Line Items] | ||
Depreciation and amortization expense | 77,500 | 66,300 |
Real Estate Investment | ||
Real Estate Properties [Line Items] | ||
Value of properties acquired during the period | 2,160,000 | 640,200 |
Real Estate Investment | Properties with existing leases | In-place leases | ||
Real Estate Properties [Line Items] | ||
Value of properties acquired during the period | $ 1,810,000 | $ 500,300 |
Number of properties acquired during the period | property | 143 | 57 |
Investments in Real Estate - Es
Investments in Real Estate - Estimated Impact of Amortization of Lease Intangibles (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Net decrease to rental revenue | |
2021 | $ (19,166) |
2022 | (37,749) |
2023 | (36,446) |
2024 | (34,737) |
2025 | (34,857) |
Thereafter | (204,258) |
Totals | (367,213) |
Increase to amortization expense | |
2021 | 86,752 |
2022 | 161,804 |
2023 | 145,644 |
2024 | 132,517 |
2025 | 118,843 |
Thereafter | 637,525 |
Totals | $ 1,283,085 |
Revolving Credit Facility and_2
Revolving Credit Facility and Commercial Paper Program (Details) £ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($)currencyextension | Jun. 30, 2020 | Jun. 30, 2021GBP (£)extension | Dec. 31, 2020USD ($) | |
Credit facility | ||||
Credit facility origination costs | $ 5,993,000 | $ 7,705,000 | ||
Maximum aggregate capacity of commercial paper program | 1,000,000,000 | |||
Commercial paper borrowings outstanding | 650,000,000 | 0 | ||
Unsecured debt | Revolving credit facility | ||||
Credit facility | ||||
Maximum borrowing capacity | $ 3,000,000,000 | |||
Number of extensions | extension | 2 | 2 | ||
Term of extension option | 6 months | |||
Number of currencies allowable per facility | currency | 14 | |||
Credit facility expansion option | $ 1,000,000,000 | |||
Current borrowing capacity | 2,400,000,000 | |||
Outstanding balance | $ 635,300,000 | £ 460 | 0 | |
Weighted average borrowing rate during the period (as a percent) | 0.90% | 1.60% | ||
Unsecured debt | Revolving credit facility | Other assets, net | ||||
Credit facility | ||||
Credit facility origination costs | $ 6,000,000 | $ 7,700,000 | ||
Unsecured debt | Revolving credit facility | LIBOR | ||||
Credit facility | ||||
Basis spread on variable rate (as a percent) | 0.775% | |||
Commitment fee (as a percent) | 0.125% | |||
All-in drawn variable interest rate (as a percent) | 0.90% | |||
Commercial paper | ||||
Credit facility | ||||
Weighted average borrowing rate during the period (as a percent) | 0.30% |
Term Loans (Details)
Term Loans (Details) - Term loans - USD ($) | 1 Months Ended | ||
Oct. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt | |||
Deferred finance costs balance | $ 543,000 | $ 642,000 | |
$250 million senior unsecured term loan due March 2024 | |||
Debt | |||
Face amount of loan | $ 250,000,000 | ||
Effective yield (as a percent) | 3.89% | ||
$250 million senior unsecured term loan due March 2024 | LIBOR | |||
Debt | |||
Basis spread on variable rate (as a percent) | 0.85% |
Mortgages Payable - Narrative (
Mortgages Payable - Narrative (Details) $ in Thousands, £ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($)propertymortgage | Jun. 30, 2021GBP (£)propertymortgage | Jun. 30, 2020USD ($)mortgage | Dec. 31, 2020USD ($) | |
Debt | ||||
Principal payments on mortgages payable | $ 42,590 | $ 14,730 | ||
Number of mortgages assumed | 1 | 1 | 0 | |
Mortgages payable | ||||
Debt | ||||
Principal payments on mortgages payable | $ 42,600 | $ 14,700 | ||
Number of mortgages assumed | mortgage | 1 | 1 | ||
Mortgage loans assumed | £ | £ 31 | |||
Unamortized net premiums | $ 1,600 | |||
Deferred financing costs | 942 | $ 973 | ||
Mortgages payable | Mortgages repaid in full | ||||
Debt | ||||
Principal payments on mortgages payable | $ 40,900 | $ 11,400 | ||
Number of mortgages paid in full | mortgage | 5 | 5 | 1 |
Mortgages Payable - Summary of
Mortgages Payable - Summary of Mortgages Payable (Details) - Mortgages payable $ in Thousands | Jun. 30, 2021USD ($)propertymortgage | Dec. 31, 2020USD ($)propertymortgage |
Debt | ||
Number of Properties | property | 62 | 68 |
Weighted Average Stated Interest Rate (as a percent) | 4.50% | 4.90% |
Weighted Average Effective Interest Rate (as a percent) | 4.30% | 4.60% |
Weighted Average Remaining Years Until Maturity | 2 years 10 months 24 days | 2 years 10 months 24 days |
Remaining Principal Balance | $ 299,901 | $ 299,631 |
Unamortized Premium and Deferred Finance Costs Balance, net | 673 | 729 |
Net payable amount | $ 300,574 | $ 300,360 |
Number of mortgages | mortgage | 14 | 18 |
Minimum | ||
Debt | ||
Weighted Average Effective Interest Rate (as a percent) | 2.80% | 4.00% |
Stated interest rate (as a percent) | 3.00% | 3.80% |
Maximum | ||
Debt | ||
Weighted Average Effective Interest Rate (as a percent) | 5.10% | 5.50% |
Stated interest rate (as a percent) | 6.90% | 6.90% |
Mortgages Payable - Summary o_2
Mortgages Payable - Summary of Maturities (Details) - Mortgages payable - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Maturity of mortgages payable | ||
2021 | $ 1,900 | |
2022 | 112,100 | |
2023 | 20,900 | |
2024 | 112,500 | |
2025 | 42,400 | |
Thereafter | 10,100 | |
Totals | $ 299,901 | $ 299,631 |
Notes Payable - General (Detail
Notes Payable - General (Details) | 1 Months Ended | |||||||||||||
Jan. 31, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Oct. 31, 2020GBP (£) | Jul. 31, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2014USD ($) | Oct. 31, 2012USD ($) | Jun. 30, 2011USD ($) | Mar. 31, 2005USD ($) | |
3.250% notes, issued in May 2020 and due in January 2031 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 600,000,000 | |||||||||||||
3.250% notes, issued in July 2020 and due in January 2031 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 350,000,000 | |||||||||||||
Notes and bonds payable | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 7,362,000,000 | $ 8,303,000,000 | ||||||||||||
Unamortized net original issuance premiums and deferred financing costs | (32,000,000) | (35,000,000) | ||||||||||||
Net payable amount | 7,330,000,000 | 8,268,000,000 | ||||||||||||
Notes and bonds payable | 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 0 | 950,000,000 | ||||||||||||
Interest rate (as a percent) | 3.25% | 3.25% | 3.25% | |||||||||||
Early redemption of notes payable | $ 950,000,000 | |||||||||||||
Notes and bonds payable | 3.250% notes, issued in October 2012 and due in October 2022 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 450,000,000 | |||||||||||||
Notes and bonds payable | 3.250% notes, issued in December 2017 and due in October 2022 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 500,000,000 | |||||||||||||
Notes and bonds payable | 4.650% notes, issued in July 2013 and due in August 2023 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 750,000,000 | 750,000,000 | ||||||||||||
Interest rate (as a percent) | 4.65% | 4.65% | ||||||||||||
Notes and bonds payable | 3.875% notes, issued in June 2014 and due in July 2024 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 350,000,000 | 350,000,000 | ||||||||||||
Interest rate (as a percent) | 3.875% | 3.875% | ||||||||||||
Notes and bonds payable | 3.875% notes, issued in April 2018 and due in April 2025 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 500,000,000 | 500,000,000 | ||||||||||||
Interest rate (as a percent) | 3.875% | 3.875% | ||||||||||||
Notes and bonds payable | 0.750% notes, issued in December 2020 and due in March 2026 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 325,000,000 | 325,000,000 | ||||||||||||
Interest rate (as a percent) | 0.75% | 0.75% | ||||||||||||
Notes and bonds payable | 4.125% notes, $250 issued in September 2014 and $400 issued in March 2017, both due in October 2026 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 650,000,000 | 650,000,000 | ||||||||||||
Interest rate (as a percent) | 4.125% | 4.125% | ||||||||||||
Notes and bonds payable | 4.125% notes, issued in September 2014 and due in October 2026 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 250,000,000 | |||||||||||||
Notes and bonds payable | 4.125% notes, issued in March 2017 and due in October 2026 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 400,000,000 | |||||||||||||
Notes and bonds payable | 3.000% notes, issued in October 2016 and due in January 2027 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 600,000,000 | 600,000,000 | ||||||||||||
Interest rate (as a percent) | 3.00% | 3.00% | ||||||||||||
Notes and bonds payable | 3.650% notes, issued in December 2017 and due in January 2028 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 550,000,000 | 550,000,000 | ||||||||||||
Interest rate (as a percent) | 3.65% | 3.65% | ||||||||||||
Notes and bonds payable | 3.250% notes, issued in June 2019 and due in June 2029 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 500,000,000 | 500,000,000 | ||||||||||||
Interest rate (as a percent) | 3.25% | 3.25% | ||||||||||||
Notes and bonds payable | 1.625% notes, issued in October 2020 and due in December 2030 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 552,000,000 | £ 400,000,000 | 547,000,000 | £ 400,000,000 | ||||||||||
Interest rate (as a percent) | 1.625% | 1.625% | 1.625% | |||||||||||
Face amount of notes | £ | £ 400,000,000 | |||||||||||||
Notes and bonds payable | 3.250% notes, $600 issued in May 2020 and $350 issued in July 2020, both due in January 2031 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 950,000,000 | 950,000,000 | ||||||||||||
Interest rate (as a percent) | 3.25% | 3.25% | ||||||||||||
Notes and bonds payable | 1.800% notes, issued in December 2020 and due in March 2033 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 400,000,000 | 400,000,000 | ||||||||||||
Interest rate (as a percent) | 1.80% | 1.80% | ||||||||||||
Notes and bonds payable | 2.730% notes, issued in May 2019 and due in May 2034 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 435,000,000 | £ 315,000,000 | 431,000,000 | £ 315,000,000 | ||||||||||
Interest rate (as a percent) | 2.73% | 2.73% | ||||||||||||
Notes and bonds payable | 5.875% bonds, $100 issued in March 2005 and $150 issued in June 2011, both due in March 2035 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 250,000,000 | 250,000,000 | ||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||||||||
Notes and bonds payable | 5.875% bonds, issued in March 2005 and due in March 2035 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 100,000,000 | |||||||||||||
Notes and bonds payable | 5.875% bonds, issued in June 2011 and due in March 2035 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 150,000,000 | |||||||||||||
Notes and bonds payable | 4.650% notes, $300 issued in March 2017 and $250 issued in December 2017, both due in March 2047 | ||||||||||||||
Debt | ||||||||||||||
Total principal amount | $ 550,000,000 | $ 550,000,000 | ||||||||||||
Interest rate (as a percent) | 4.65% | 4.65% | ||||||||||||
Notes and bonds payable | 4.650% notes, issued in March 2017 and due in March 2047 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 300,000,000 | |||||||||||||
Notes and bonds payable | 4.650% notes, issued in December 2017 and due in March 2047 | ||||||||||||||
Debt | ||||||||||||||
Face amount of notes | $ 250,000,000 |
Notes Payable - General Narrati
Notes Payable - General Narrative (Details) - Notes and bonds payable $ in Millions | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jul. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | Oct. 31, 2020GBP (£) | |
Debt | ||||
Unamortized net original issuance premiums | $ | $ 11.7 | $ 14.6 | ||
Deferred financing costs | $ | $ 44.1 | $ 49.2 | ||
Weighted average interest rate (as a percent) | 3.40% | |||
Weighted average remaining years until maturity | 8 years 6 months | |||
1.625% notes, issued in October 2020 and due in December 2030 | ||||
Debt | ||||
Face amount of notes | £ 400,000,000 | |||
Stated interest rate (as a percent) | 1.625% | 1.625% | ||
1.125% notes, issued in July 2021 and due in 2027 | Subsequent event | ||||
Debt | ||||
Face amount of notes | £ 400,000,000 | |||
Stated interest rate (as a percent) | 1.125% | |||
1.750% notes, issued in July 2021 and due in 2033 | Subsequent event | ||||
Debt | ||||
Face amount of notes | £ 350,000,000 | |||
Stated interest rate (as a percent) | 1.75% |
Notes Payable - Maturities (Det
Notes Payable - Maturities (Details) - Notes and bonds payable - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Maturity of notes and bonds payable | ||
2023 | $ 750 | |
2024 | 350 | |
2025 | 500 | |
Thereafter | 5,762 | |
Totals | $ 7,362 | $ 8,303 |
Notes Payable - Note Repayment
Notes Payable - Note Repayment Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt | ||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ 46,473 | $ 9,819 | ||
Notes payable | 3.250% notes, $450 issued in October 2012 and $500 issued in December 2017, both due in October 2022 | ||||||
Debt | ||||||
Early redemption of notes payable | $ 950,000 | |||||
Interest rate (as a percent) | 3.25% | 3.25% | 3.25% | |||
Loss on extinguishment of debt | $ 46,500 | |||||
Notes payable | 5.750% notes, issued in June 2010 and due in January 2021 | ||||||
Debt | ||||||
Early redemption of notes payable | $ 250,000 | |||||
Interest rate (as a percent) | 5.75% | |||||
Loss on extinguishment of debt | $ 9,800 |
Issuances of Common Stock - Iss
Issuances of Common Stock - Issuance of Common Stock in Underwritten Public Offering (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Stock [Line Items] | |||||
Proceeds from share issuances, net | $ 669,600,000 | $ 728,500,000 | $ 669,295,000 | $ 728,883,000 | |
Commercial paper program | $ 1,000,000,000 | ||||
Subsequent event | |||||
Class of Stock [Line Items] | |||||
Proceeds from share issuances, net | $ 594,100,000 | ||||
Underwritten Public Offering | |||||
Class of Stock [Line Items] | |||||
Underwriting discounts | $ 19,300,000 | $ 21,500,000 | |||
Underwritten Public Offering | Subsequent event | |||||
Class of Stock [Line Items] | |||||
Underwriting discounts | $ 2,900,000 | ||||
Common stock | Underwritten Public Offering | |||||
Class of Stock [Line Items] | |||||
Shares of common stock issued (in shares) | 12,075,000 | 9,690,500 | |||
Common stock | Underwritten Public Offering | Subsequent event | |||||
Class of Stock [Line Items] | |||||
Shares of common stock issued (in shares) | 9,200,000 | ||||
Common stock | Underwriter Option | |||||
Class of Stock [Line Items] | |||||
Shares of common stock issued (in shares) | 1,575,000 | 690,500 | |||
Common stock | Underwriter Option | Subsequent event | |||||
Class of Stock [Line Items] | |||||
Shares of common stock issued (in shares) | 1,200,000 |
Issuances of Common Stock - At-
Issuances of Common Stock - At-the-Market (ATM) Program (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
At-the-Market (ATM) Program | ||||
Gross proceeds | $ 449,959 | $ 94,076 | ||
ATM Program | ||||
At-the-Market (ATM) Program | ||||
At-the-Market equity distribution program, authorized shares (in shares) | 33,402,405 | 33,402,405 | ||
Shares remaining for future issuance (in shares) | 9,088,433 | 9,088,433 | ||
Common stock | ATM Program | ||||
At-the-Market (ATM) Program | ||||
Shares of common stock issued (in shares) | 6,589,598 | 1,511,149 | 6,589,598 | 1,511,149 |
Gross proceeds | $ 454,800 | $ 95,700 | $ 454,800 | $ 95,700 |
Issuances of Common Stock - Div
Issuances of Common Stock - Dividend Reinvestment and Stock Purchase Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Dividend Reinvestment and Stock Purchase Plan | ||||
Gross proceeds | $ 5,322 | $ 4,815 | ||
DRSPP | ||||
Dividend Reinvestment and Stock Purchase Plan | ||||
Dividend Reinvestment and Stock Purchase Plan, authorized shares (in shares) | 26,000,000 | 26,000,000 | ||
Shares remaining for future issuance (in shares) | 11,420,562 | 11,420,562 | ||
Common stock | DRSPP | ||||
Dividend Reinvestment and Stock Purchase Plan | ||||
Shares of common stock issued (in shares) | 39,423 | 44,817 | 82,817 | 78,817 |
Gross proceeds | $ 2,700 | $ 2,400 | $ 5,300 | $ 4,800 |
Noncontrolling Interests - Narr
Noncontrolling Interests - Narrative (Details) | 1 Months Ended | 12 Months Ended | |
May 31, 2021joint_venture | Dec. 31, 2020joint_venture | Jun. 30, 2021noncontrolling_interestjoint_venture | |
Noncontrolling interests | |||
Number of noncontrolling interests consolidated | noncontrolling_interest | 4 | ||
Number of development joint ventures | 2 | ||
Number of development joint ventures acquired | 1 | 1 | |
Consolidated joint venture | |||
Noncontrolling interests | |||
Ownership interest (as a percent) | 68.00% |
Noncontrolling Interests - Chan
Noncontrolling Interests - Change in Carrying Value (Details) - USD ($) $ in Thousands | Mar. 28, 2019 | Apr. 30, 2018 | Mar. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Change in the carrying value of all noncontrolling interests | ||||||||
Carrying value at beginning of the period | $ 32,247 | |||||||
Contributions | $ 2,106 | 2,106 | ||||||
Allocation of net income | 289 | $ 246 | 585 | $ 562 | ||||
Carrying value at end of the period | $ 34,147 | $ 34,147 | ||||||
Realty Income, L.P. | ||||||||
Change in the carrying value of all noncontrolling interests | ||||||||
Number of partnership units issued (in units) | 89,322 | 131,790 | 242,007 | |||||
Number of partnership units outstanding (in units) | 463,119 | 463,119 | 463,119 | |||||
Noncontrolling interests | ||||||||
Change in the carrying value of all noncontrolling interests | ||||||||
Carrying value at beginning of the period | $ 32,247 | |||||||
Contributions | $ 2,106 | 2,106 | ||||||
Distributions | (791) | |||||||
Allocation of net income | 585 | |||||||
Carrying value at end of the period | 34,147 | 34,147 | ||||||
Noncontrolling interests | Realty Income, L.P. | ||||||||
Change in the carrying value of all noncontrolling interests | ||||||||
Carrying value at beginning of the period | 24,100 | |||||||
Contributions | 0 | |||||||
Distributions | (653) | |||||||
Allocation of net income | 498 | |||||||
Carrying value at end of the period | 23,945 | 23,945 | ||||||
Noncontrolling interests | Other Noncontrolling Interests | ||||||||
Change in the carrying value of all noncontrolling interests | ||||||||
Carrying value at beginning of the period | 8,147 | |||||||
Contributions | 2,106 | |||||||
Distributions | (138) | |||||||
Allocation of net income | 87 | |||||||
Carrying value at end of the period | $ 10,202 | $ 10,202 |
Noncontrolling Interests - Vari
Noncontrolling Interests - Variable Interest Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Variable interest entity | ||
Net real estate | $ 18,900,314 | $ 17,466,152 |
Total assets | 21,984,941 | 20,740,285 |
Total liabilities | 10,111,262 | 9,722,555 |
Primary Beneficiary | ||
Variable interest entity | ||
Net real estate | 651,920 | 635,963 |
Total assets | 737,071 | 723,668 |
Total liabilities | $ 50,300 | $ 47,962 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary or Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying value | ||
Fair value of financial assets and liabilities | ||
Mortgages payable assumed in connection with acquisitions | $ 299,900 | $ 299,600 |
Notes and bonds payable | 7,362,500 | 8,302,400 |
Estimated fair value | ||
Fair value of financial assets and liabilities | ||
Mortgages payable assumed in connection with acquisitions | 314,500 | 309,400 |
Notes and bonds payable | 8,045,600 | 9,324,000 |
Mortgages payable | ||
Fair value of financial assets and liabilities | ||
Unamortized net original issuance premiums | 1,600 | 1,700 |
Deferred financing costs at period end | 942 | 973 |
Notes and bonds payable | ||
Fair value of financial assets and liabilities | ||
Unamortized net original issuance premiums | 11,700 | 14,600 |
Deferred financing costs at period end | $ 44,100 | $ 49,200 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Narrative (Details) $ in Thousands, £ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021GBP (£)derivative | Jun. 30, 2021USD ($)derivative | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | |||||||
Aggregate notional amount | $ 2,059,700 | $ 1,541,400 | |||||
Net loss from derivatives not designated in hedging relationships | $ 16,000 | $ 21,700 | |||||
Foreign currency forwards | Designated as hedging instrument | Cash flow hedge | |||||||
Derivative [Line Items] | |||||||
Number of instruments | derivative | 36 | 36 | |||||
Aggregate notional amount | £ 136.9 | $ 193,300 | 0 | ||||
Currency exchange swaps | Not designated as hedging instrument | |||||||
Derivative [Line Items] | |||||||
Number of instruments | derivative | 1 | 1 | |||||
Aggregate notional amount | £ 672.5 | $ 950,000 | 625,000 | ||||
Interest rate swap | Designated as hedging instrument | Cash flow hedge | |||||||
Derivative [Line Items] | |||||||
Number of instruments | derivative | 1 | 1 | |||||
Aggregate notional amount | $ 250,000 | 250,000 | |||||
Interest rate swap | Interest expense | |||||||
Derivative [Line Items] | |||||||
Unrealized gains (losses) reclassified to income statement | (2,600) | $ (3,700) | (5,100) | $ (5,300) | |||
Interest rate swap unrealized loss expected to be reclassified within next twelve months | $ 10,300 | ||||||
Cross-currency swaps | Designated as hedging instrument | Cash flow hedge | |||||||
Derivative [Line Items] | |||||||
Number of instruments | derivative | 4 | 4 | |||||
Aggregate notional amount | $ 166,400 | $ 166,400 | |||||
Cross-currency swaps | Foreign exchange gains | |||||||
Derivative [Line Items] | |||||||
Unrealized gains (losses) reclassified to income statement | $ (200) | $ 800 | $ (1,400) | $ 12,200 | |||
Cross-currency swap unrealized gains expected to be reclassified within next twelve months | $ 1,800 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Derivative Financial Instruments (Details) £ in Millions, $ in Millions | Jun. 30, 2021GBP (£)derivativeRate | Jun. 30, 2021USD ($)derivativeRate | Dec. 31, 2020USD ($) | Feb. 29, 2020derivative |
Derivative [Line Items] | ||||
Notional Amount | $ 2,059.7 | $ 1,541.4 | ||
Fair Value - asset (liability) | $ (21.1) | (81.5) | ||
Interest rate swap | Designated as hedging instrument | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 1 | 1 | ||
Notional Amount | $ 250 | 250 | ||
Strike (percent) | 3.04% | 3.04% | ||
Fair Value - asset (liability) | $ (17.8) | (22.6) | ||
Cross-currency swaps | Designated as hedging instrument | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 4 | 4 | ||
Notional Amount | $ 166.4 | 166.4 | ||
Fair Value - asset (liability) | $ (20.5) | (21.4) | ||
Cross-currency swaps | Designated as hedging instrument | Cash flow hedge | GBP | Minimum | ||||
Derivative [Line Items] | ||||
Strike (percent) | 4.82% | 4.82% | ||
Cross-currency swaps | Designated as hedging instrument | Cash flow hedge | GBP | Maximum | ||||
Derivative [Line Items] | ||||
Strike (percent) | 10.96% | 10.96% | ||
Cross-currency swaps | Designated as hedging instrument | Cash flow hedge | USD | Weighted Average | ||||
Derivative [Line Items] | ||||
Strike (percent) | 9.78% | 9.78% | ||
Currency exchange swaps | Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 1 | 1 | ||
Notional Amount | £ 672.5 | $ 950 | 625 | |
Fair Value - asset (liability) | $ 21.1 | (8.2) | ||
Forward exchange rate | Rate | 138.00% | 138.00% | ||
Forward-starting swap, derivative | Designated as hedging instrument | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 4 | 4 | ||
Notional Amount | $ 300 | 300 | ||
Strike (percent) | 1.86% | 1.86% | ||
Fair Value - asset (liability) | $ (2.8) | (16.5) | ||
Forward-starting swaps, hybrid debt | Designated as hedging instrument | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 2 | 2 | ||
Notional Amount | $ 200 | 200 | ||
Strike (percent) | 1.93% | 1.93% | ||
Fair Value - asset (liability) | $ (5) | (12.8) | ||
Foreign currency forwards | Designated as hedging instrument | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 36 | 36 | ||
Notional Amount | £ 136.9 | $ 193.3 | 0 | |
Fair Value - asset (liability) | $ 3.9 | $ 0 | ||
Foreign currency forwards | Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Forward exchange rate | Rate | 141.00% | 141.00% | ||
Treasury rate locks | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 5 | |||
Forward-starting swaps | Cash flow hedge | ||||
Derivative [Line Items] | ||||
Number of Instruments | derivative | 6 | 6 |
Operating Leases (Details)
Operating Leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)propertystate | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)propertystate | Jun. 30, 2020USD ($) | |
Operating Leases | ||||
Number of properties owned | 6,761 | 6,761 | ||
Number of U.S. states where operating | state | 50 | 50 | ||
Percentage rent received | $ | $ 596 | $ 547 | $ 1,600 | $ 1,800 |
Single-client properties | ||||
Operating Leases | ||||
Number of properties owned | 6,715 | 6,715 | ||
Single-client properties as percentage of total properties | 99.30% | 99.30% | ||
Properties available for lease or sale | ||||
Operating Leases | ||||
Number of properties owned | 103 | 103 |
Gain on Sales of Real Estate (D
Gain on Sales of Real Estate (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | |
Properties sold during the period | ||||
Number of properties | property | 42 | 12 | 69 | 29 |
Net sales proceeds | $ 56,900 | $ 7,400 | $ 91,600 | $ 133,600 |
Gain on sales of real estate | $ 14,901 | $ 1,323 | $ 23,302 | $ 39,829 |
Provisions for Impairments (Det
Provisions for Impairments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | |
Provisions for impairment | ||||
Provisions for impairment | $ | $ 17,246 | $ 13,869 | $ 19,966 | $ 18,347 |
Number of impaired properties held for sale | 14 | 1 | 14 | 1 |
Number of impaired properties held for investment | 5 | 7 | 9 | 7 |
Number of impaired properties sold | 18 | 17 | 28 | 28 |
Additional Disclosures by Disposal Groups [Line Items] | ||||
Number of properties owned | 6,761 | 6,761 | ||
Held-for-sale | ||||
Additional Disclosures by Disposal Groups [Line Items] | ||||
Number of properties owned | 33 | 33 |
Distributions Paid and Payabl_2
Distributions Paid and Payable (Details) - $ / shares | 1 Months Ended | 6 Months Ended | |||||||||||||
Jul. 31, 2021 | Jun. 30, 2021 | May 31, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Jan. 31, 2021 | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Distributions Paid and Payable | |||||||||||||||
Distributions paid per common share (in dollars per share) | $ 0.2350 | $ 0.2350 | $ 0.2350 | $ 0.2345 | $ 0.2345 | $ 0.2345 | $ 0.2330 | $ 0.2330 | $ 0.2330 | $ 0.2325 | $ 0.2325 | $ 0.2275 | $ 1.4085 | $ 1.3915 | |
Distributions payable (in dollars per share) | $ 0.2355 | $ 0.2355 | |||||||||||||
Subsequent event | |||||||||||||||
Distributions Paid and Payable | |||||||||||||||
Distributions paid per common share (in dollars per share) | $ 0.2355 |
Net Income per Common Share (De
Net Income per Common Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares used for the basic net income per share computation (in shares) | 374,236,424 | 343,515,406 | 372,879,165 | 340,061,487 |
Incremental shares from share-based compensation (in shares) | 104,599 | 169,853 | 92,579 | 219,778 |
Weighted average shares used for diluted net income per share computation (in shares) | 374,341,023 | 343,685,259 | 372,971,744 | 340,281,265 |
Unvested shares from share-based compensation | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation (in shares) | 161,359 | 122,222 | 148,342 | 65,623 |
Convertible common partnership units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation (in shares) | 463,119 | 463,119 | 463,119 | 463,119 |
Supplemental Disclosures of C_3
Supplemental Disclosures of Cash Flow Information - Narrative (Details) £ in Millions | 6 Months Ended | ||
Jun. 30, 2021GBP (£)propertymortgage | Jun. 30, 2021USD ($)propertymortgage | Jun. 30, 2020USD ($)mortgage | |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid for interest | $ 139,400,000 | $ 149,400,000 | |
Cash paid for income taxes | 9,700,000 | 5,300,000 | |
Cash paid or merger-related costs | $ 4,400,000 | $ 0 | |
Non-cash activities | |||
Number of mortgages assumed | 1 | 1 | 0 |
Non-refundable deposits applied to acquisitions | $ 13,800,000 | ||
Mortgages payable | |||
Non-cash activities | |||
Number of mortgages assumed | mortgage | 1 | 1 | |
Mortgage loans assumed | £ | £ 31 | ||
Derivative | |||
Non-cash activities | |||
Decrease in fair value of net derivative liabilities | $ 60,400,000 | $ 28,600,000 |
Supplemental Disclosures of C_4
Supplemental Disclosures of Cash Flow Information - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Reconciliation of cash,cash equivalents, and restricted cash | ||||
Cash and cash equivalents shown in the consolidated balance sheets | $ 231,164 | $ 824,476 | $ 35,345 | |
Restricted escrow deposits | 34,636 | 21,220 | 81,683 | |
Impounds related to mortgages payable | 1,185 | 4,983 | 13,290 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 266,985 | $ 850,679 | $ 130,318 | $ 71,005 |
Segment Information - Assets (D
Segment Information - Assets (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)segment | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | ||
Number of activity segments | segment | 58 | |
Reconciliation of assets from segment to consolidated | ||
Net real estate | $ 18,939,703 | $ 17,485,156 |
Intangible assets | 1,969,793 | 1,710,655 |
Other corporate assets | 1,075,303 | 1,544,474 |
Total assets | 21,984,941 | 20,740,285 |
Automotive service | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 382,764 | 328,340 |
Intangible assets | 56,319 | 55,018 |
Beverages | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 362,944 | 347,366 |
Intangible assets | 17,146 | 9,401 |
Child care | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 215,132 | 216,718 |
Intangible assets | 18,852 | 19,848 |
Convenience stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 2,198,309 | 2,101,005 |
Intangible assets | 116,621 | 121,151 |
Dollar stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,449,235 | 1,420,210 |
Intangible assets | 87,620 | 77,176 |
Drug stores | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,520,877 | 1,555,106 |
Intangible assets | 160,033 | 167,975 |
Financial services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 367,545 | 374,508 |
Intangible assets | 13,267 | 14,611 |
General merchandise | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 883,230 | 730,806 |
Intangible assets | 138,486 | 108,646 |
Grocery stores - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 907,465 | 907,634 |
Intangible assets | 180,333 | 181,764 |
Grocery stores - U.K. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,492,945 | 1,131,760 |
Intangible assets | 363,254 | 282,211 |
Health and fitness | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,023,606 | 1,050,791 |
Intangible assets | 63,290 | 67,537 |
Home improvement - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 666,622 | 608,222 |
Intangible assets | 100,259 | 97,228 |
Home improvement - U.K. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 464,102 | 187,289 |
Intangible assets | 118,272 | 57,369 |
Restaurants-casual dining | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 493,962 | 515,226 |
Intangible assets | 18,654 | 20,553 |
Restaurants-quick service - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 1,123,317 | 1,062,918 |
Intangible assets | 44,951 | 47,517 |
Theaters - U.S. | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 752,439 | 767,117 |
Intangible assets | 26,650 | 28,292 |
Transportation services | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 778,149 | 729,640 |
Intangible assets | 56,913 | 53,902 |
Wholesale club | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 441,279 | 407,584 |
Intangible assets | 52,227 | 36,165 |
Other non-reportable segments | ||
Reconciliation of assets from segment to consolidated | ||
Net real estate | 3,415,781 | 3,042,916 |
Intangible assets | $ 336,788 | $ 264,291 |
Segment Information - Revenue (
Segment Information - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment revenue information | ||||
Rental (including reimbursable) | $ 460,256 | $ 410,201 | $ 899,621 | $ 822,358 |
Other | 4,026 | 4,435 | 7,465 | 6,619 |
Total revenue | 464,282 | 414,636 | 907,086 | 828,977 |
Automotive service | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 10,142 | 8,661 | 20,061 | 17,332 |
Beverages | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 9,379 | 7,996 | 18,331 | 15,991 |
Child care | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 8,812 | 8,714 | 17,314 | 18,195 |
Convenience stores | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 51,088 | 46,819 | 101,216 | 93,552 |
Dollar stores | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 32,847 | 31,595 | 65,353 | 62,986 |
Drug stores | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 36,356 | 35,617 | 71,404 | 70,916 |
Financial services | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 7,593 | 7,573 | 15,317 | 15,116 |
General merchandise | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 16,852 | 11,887 | 32,086 | 23,404 |
Grocery stores - U.S. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 19,581 | 19,485 | 39,262 | 38,994 |
Grocery stores - U.K. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 23,782 | 11,739 | 44,640 | 22,143 |
Health and fitness | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 27,108 | 27,961 | 55,718 | 56,239 |
Home improvement - U.S. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 13,544 | 11,382 | 26,582 | 22,692 |
Home improvement - U.K. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 6,670 | 0 | 11,149 | 0 |
Restaurants-casual dining | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 12,019 | 11,431 | 23,725 | 23,969 |
Restaurants-quick service - U.S. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 24,260 | 18,820 | 47,762 | 42,128 |
Theaters - U.S. | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 19,540 | 24,448 | 39,195 | 49,014 |
Transportation services | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 16,827 | 15,975 | 33,259 | 31,960 |
Wholesale club | ||||
Segment revenue information | ||||
Rental (including reimbursable) | 10,148 | 9,588 | 20,090 | 19,176 |
Other non-reportable segments and tenant reimbursements | ||||
Segment revenue information | ||||
Rental (including reimbursable) | $ 113,708 | $ 100,510 | $ 217,157 | $ 198,551 |
Common Stock Incentive Plan - S
Common Stock Incentive Plan - Summary (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | May 31, 2021 | |
Common Stock Incentive Plan | ||||||
Severance charge | $ 3,500,000 | |||||
2021 Plan | ||||||
Common Stock Incentive Plan | ||||||
Authorized shares | 8,924,231 | |||||
Maximum number of shares that may be granted to any individual in any calendar year | 3,200,000 | |||||
Maximum aggregate amount of cash that may be paid during any calendar year with respect to one or more shares payable in cash | $ 10,000,000 | |||||
General and administrative expense | ||||||
Common Stock Incentive Plan | ||||||
Share-based compensation costs recognized | $ 4,500,000 | $ 4,900,000 | $ 8,200,000 | $ 10,400,000 | ||
Accelerated share-based compensation costs | $ 1,800,000 | |||||
Cash | ||||||
Common Stock Incentive Plan | ||||||
Severance charge | 1,600,000 | |||||
Share-based compensation | ||||||
Common Stock Incentive Plan | ||||||
Severance charge | 1,800,000 | |||||
Professional fees | ||||||
Common Stock Incentive Plan | ||||||
Severance charge | $ 58,000 |
Common Stock Incentive Plan - R
Common Stock Incentive Plan - Restricted Stock (Details) - Restricted Stock - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
May 31, 2021 | Jun. 30, 2021 | |
Common Stock Incentive Plan | ||
Shares granted in period (in shares) | 112,498 | |
Vesting period (in years) | 4 years | |
Unamortized share-based compensation expense | $ 11 | |
Independent directors | ||
Common Stock Incentive Plan | ||
Shares granted in period (in shares) | 36,000 | |
Independent directors | Vest immediately | ||
Common Stock Incentive Plan | ||
Shares granted in period (in shares) | 24,000 | |
Independent directors | Vest over service period | ||
Common Stock Incentive Plan | ||
Shares granted in period (in shares) | 12,000 | |
Vesting period (in years) | 3 years |
Common Stock Incentive Plan - P
Common Stock Incentive Plan - Performance Shares and Restricted Stock Units (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)shares | |
Performance Shares and Restricted Stock Units | |
Common Stock Incentive Plan | |
Unamortized share-based compensation expense | $ | $ 15.5 |
Performance Shares | |
Common Stock Incentive Plan | |
Shares granted in period (in shares) | 157,341 |
Shares forfeited (in shares) | 9,621 |
Vesting rights percentage | 50.00% |
Vesting period (in years) | 3 years |
Performance Shares | 2021 grants | |
Common Stock Incentive Plan | |
Grants outstanding (in shares) | 147,720 |
Restricted Stock Units | |
Common Stock Incentive Plan | |
Shares granted in period (in shares) | 17,285 |
Vesting period (in years) | 4 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Jun. 30, 2021USD ($) |
Re-leasing costs, recurring capital expenditures, and non-recurring building improvements | |
Commitments and Contingencies [Line Items] | |
Other commitments | $ 9.4 |
Construction contracts | |
Commitments and Contingencies [Line Items] | |
Other commitments | $ 218.6 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Jul. 31, 2021USD ($)$ / sharesshares | Jan. 31, 2021USD ($)shares | Mar. 31, 2020USD ($)shares | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jul. 31, 2021GBP (£) | |
Subsequent Event [Line Items] | ||||||
Proceeds from common stock offerings, net | $ | $ 669,600 | $ 728,500 | $ 669,295 | $ 728,883 | ||
Common stock | Underwritten Public Offering | ||||||
Subsequent Event [Line Items] | ||||||
Share issuances, net of costs (in shares) | 12,075,000 | 9,690,500 | ||||
Common stock | Underwriter Option | ||||||
Subsequent Event [Line Items] | ||||||
Share issuances, net of costs (in shares) | 1,575,000 | 690,500 | ||||
Notes payable | ||||||
Subsequent Event [Line Items] | ||||||
Weighted average remaining years until maturity | 8 years 6 months | |||||
Subsequent event | ||||||
Subsequent Event [Line Items] | ||||||
Common stock dividend declared (in dollars per share) | $ / shares | $ 0.2355 | |||||
Proceeds from common stock offerings, net | $ | $ 594,100 | |||||
Subsequent event | Common stock | Underwritten Public Offering | ||||||
Subsequent Event [Line Items] | ||||||
Share issuances, net of costs (in shares) | 9,200,000 | |||||
Subsequent event | Common stock | Underwriter Option | ||||||
Subsequent Event [Line Items] | ||||||
Share issuances, net of costs (in shares) | 1,200,000 | |||||
Subsequent event | 2027 Notes and 2033 Notes | Notes payable | ||||||
Subsequent Event [Line Items] | ||||||
Effective yield (as a percent) | 1.48% | |||||
Weighted average remaining years until maturity | 8 years 9 months 18 days | |||||
Subsequent event | 1.125% notes, issued in July 2021 and due in 2027 | Notes payable | ||||||
Subsequent Event [Line Items] | ||||||
Face amount of loan | £ | £ 400,000,000 | |||||
Stated interest rate (as a percent) | 1.125% | |||||
Public offering price (as a percent) | 99.305% | |||||
Effective yield (as a percent) | 1.242% | |||||
Subsequent event | 1.750% notes, issued in July 2021 and due in 2033 | Notes payable | ||||||
Subsequent Event [Line Items] | ||||||
Face amount of loan | £ | £ 350,000,000 | |||||
Stated interest rate (as a percent) | 1.75% | |||||
Public offering price (as a percent) | 99.842% | |||||
Effective yield (as a percent) | 1.757% |