Exhibit 99.1
|
CONTACT: |
Tere Miller |
Vice President, Corporate Communications |
760-741-2111 ext. 177 |
REALTY INCOME ANNOUNCES
SECOND QUARTER AND MID-YEAR OPERATING RESULTS
ESCONDIDO, CALIFORNIA, July 31, 2003. Realty Income Corporation (Realty Income), The Monthly Dividend Company® (NYSE: O) today announced operating results for the second quarter and six months ended June 30, 2003.
COMPANY HIGHLIGHTS:
(For the quarter ended June 30, 2003)
• Revenue increased 8.0% to $36.5 million
• Funds from Operations (FFO) increased 3.9% to $23.9 million
• FFO per diluted common share decreased 1.4% to $0.68
• Same store rents increased 1.4% to $30.9 million
• Portfolio occupancy increased to 98.7%
• Invested $34.5 million in 25 additional properties at an average 11.1% lease rate
• Increased the monthly dividend amount for the 23rd consecutive quarter to an annual rate of $2.37 per share
• Paid the 395th consecutive monthly dividend through June 2003
Financial Results
Revenue Increases
Realty Income’s revenue for the second quarter ended June 30, 2003 increased 8.0% to $36.5 million as compared to $33.8 million for the same quarter ended June 30, 2002.
Revenue for the six months ended June 30, 2003 increased 8.3% to $72.0 million as compared to $66.5 million for the same period in 2002.
Funds from Operations
FFO for the quarter ended June 30, 2003 increased 3.9% to $23.9 million as compared to $23.0 million for the same quarter in 2002. On a diluted per common share basis, FFO decreased 1.4% to $0.68 per share compared to $0.69 per share for the same period in 2002.
FFO for the six months ended June 30, 2003 increased 5.5% to $47.9 million as compared to $45.4 million for the same period one year ago. On a diluted per common share basis, FFO was unchanged at $1.37 per share for both periods ended June 30, 2003 and 2002.
The Company considers FFO to be an appropriate supplemental measure of a Real Estate Investment Trust’s (REITs) operating performance as it is based on net income analyses of property portfolio performance that excludes non-cash items such as depreciation. FFO is an alternative non-GAAP measure that is also considered to be a good indicator of a company’s ability to pay dividends. (See reconciliation of FFO to net income on page six.)
1
Net Income Available to Common Stockholders
Net income available to common stockholders for the quarter ended June 30, 2003 was $18.2 million as compared to $16.0 million for the same period in 2002. On a diluted per common share basis, net income was $0.52 per share for the three months ended June 30, 2003 as compared to $0.48 per share for the same period in 2002.
The calculation to determine net income for a real estate company includes gains and losses from the sale of investment properties. The amount of gains and losses vary from quarter to quarter according to the timing of property sales. This variance can significantly impact net income.
Excluding the gain on sales of investment properties and income from discontinued operations during the second quarter of each year, income from operations available to common stockholders increased by $0.01 to $0.45 per share in 2003 as compared to $0.44 per share in 2002, on a diluted per common share basis.
Net income available to common stockholders for the six months ended June 30, 2003 was $33.8 million as compared to $31.9 million for the same period in 2002. On a diluted per common share basis, net income was unchanged at $0.96 per share for the six months ended June 30, 2003 and 2002.
Excluding the gain on sales of investment properties and income from discontinued operations during the first six months of each year, income from operations available to common stockholders increased by $0.02 to $0.89 per share in 2003 as compared to $0.87 per share for the same period in 2002, on a diluted per common share basis.
Dividend Information
In June 2003, Realty Income announced the 23rd consecutive quarterly increase in the amount of the monthly dividend on its common stock. This marked the 25th increase in the amount of the dividend since the Company’s listing on the New York Stock Exchange in 1994 and the 395th consecutive dividend paid. The amount of the monthly dividend was increased to $0.1975 per share from $0.19625 per share for an annualized dividend amount of $2.37 per share. The Company continues its 33-year history of declaring and paying common stock dividends on a monthly basis.
Real Estate Portfolio Update
As of June 30, 2003, Realty Income’s portfolio of freestanding, single-tenant retail properties consisted of 1,250 properties located in 48 states, leased to 81 retail chains doing business in 26 retail industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 11.0 years.
Portfolio Management Activities
The Company’s portfolio of retail real estate, owned primarily under 15- to 20-year net leases, continues to perform well and provide dependable lease revenue supporting the payment of monthly dividends. As of June 30, 2003, portfolio occupancy was 98.7% with only 16 properties available for lease out of 1,250 properties in the portfolio.
Same store rents on 1,032 properties under lease during the three months ended June 30, 2003 and 2002 increased 1.4% to $30.90 million from $30.47 million in 2002. Same store rents on 1,032 properties under lease during the six months ended June 30, 2003 and 2002 increased 1.0% to $61.64 million compared to $61.02 million in 2002.
Property Acquisitions
During the second quarter, Realty Income invested $34.5 million in 25 new properties and properties under development with an initial weighted average contractual lease yield of 11.1%. The new properties are located in five states and are 100% leased under net-lease agreements with an initial average lease length of 20 years. They are leased to four different retail chains in four industries: automotive service, convenience store, sporting goods and travel plaza. In addition, Crest Net Lease, Inc., a subsidiary of the Company, invested $2.5 million in one new property.
During the six months ended June 30, 2003, Realty Income invested $67.5 million in 67 new properties and properties under development with an initial average contractual lease yield of 11.0%. The new properties are located in ten states and are 100% leased under net-lease agreements with an initial average lease length of 20.2 years. They are leased to eight different retail chains in five industries: automotive service, convenience store, restaurant, sporting goods and travel plaza. In addition, Crest Net Lease, Inc., a subsidiary of the Company, invested $3.8 million in two new properties and properties under development.
2
Property Dispositions
Realty Income continues to successfully execute its asset disposition program. The objective of the program is to sell assets when the Company believes the reinvestment of the sales proceeds will generate higher returns, enhance the credit quality of the Company’s real estate portfolio or increase the average lease length.
During the quarter ended June 30, 2003, Realty Income sold ten properties for $5.5 million, which resulted in a gain on sales of $2.6 million. The properties sold consisted of: five child care properties, three restaurants, one home improvement store, and one other property. The proceeds were, or will be, used to pay down the Company’s acquisition credit facility and invest in new properties.
During the first six months of 2003, Realty Income sold 14 properties for $9.7 million, which resulted in a gain on sales of $2.7 million. The properties sold consisted of: six child care properties, five restaurants, two home improvement stores and one other property.
Other Activities
Crest Net Lease
Crest Net Lease Inc. is a wholly-owned subsidiary of Realty Income focused on acquiring and subsequently marketing net-leased properties for sale. During the second quarter ended June 30, 2003, Crest sold one property for $1.5 million and reported a gain on sale of $296,000. During the quarter Crest also invested $2.5 million in one new property.
For the six months ended June 30, 2003, Crest sold three properties for $4.2 million and reported a gain on sales of $572,000. During this same period Crest invested $3.8 million in two new properties and properties under development. As of June 30, 2003, Crest carried an inventory of $4.7 million in properties held for sale.
Management’s goal is for Crest to carry an average inventory of between $20 to $25 million in properties. The subsidiary generates an earnings spread on the difference between the lease payments it receives on the properties held in inventory and the cost of the capital used to acquire the properties. It is management’s belief that at this level of inventory, earnings will more than cover the ongoing operating expenses of Crest.
Crest’s contribution to Realty Income’s FFO depends on the timing and number of Crest’s property sales, if any, in a given period. During the second quarter and first half of 2003 Crest generated $157,000 and $242,000, or $0.004 and $0.01, respectively, per diluted common share in FFO for Realty Income as compared to $901,000 and $1.3 million, or $0.03 and $0.04, during the same periods in 2002.
CEO Comments on Mid-Year Operating Results
Commenting on Realty Income’s financial results and real estate operations, Tom A. Lewis, Chief Executive Officer, stated, “We are on track to achieve our performance goals for 2003. To summarize, our portfolio of 1,250 properties continues to perform well with occupancy at 98.7%, just 16 properties available for lease, and a weighted average remaining lease length in the portfolio of 11.0 years. Revenues during the quarter were higher as a result of same store rent increases of 1.4% and acquisitions made during the last twelve months. FFO per share for the second quarter of 2003 was $0.01 lower than the same period in 2002 because Crest Net Lease’ contribution to Realty Income’s FFO per share, derived from buying and selling properties, was $0.03 lower in comparison to the same period for the prior year. Excluding Crest’s activities, FFO per share for the core portfolio increased by $0.02 per share for the quarter. So far this year we have increased the dividend two times and have paid, as of the end of the quarter, 395 consecutive monthly dividends to our shareholders.
“Dividend dependability is, we believe, critical to our shareholders as is a steadily increasing income in a low interest rate environment. Fundamental to achieving these important shareholder objectives is our commitment to maintaining a conservative balance sheet, stable real estate performance and a high occupancy rate. The continued positive performance of our real estate portfolio during challenging economic times combined with a consistently healthy balance sheet has provided us with the cash flow allowing us to increase the amount of the monthly dividend for 23 consecutive quarters and 25 times since becoming a public company in 1994. We attribute the strength of our portfolio to the fact that we own properties leased to retail chains selling basic human needs goods and services at relatively low prices. This is a retail focus that has served us well during a variety of economic environments over the years.
“Our ability to regularly increase the amount of the monthly dividend is also driven by continued growth in the real estate portfolio. The goal for property acquisitions in 2003 remains at $150 million in new properties for Realty
3
Income and Crest, with initial average lease rates in excess of 10.0%. We are optimistic about our prospects for positive performance in all Company operations for the remainder of the year.”
Earnings Commentary
Realty Income’s FFO per common share has historically tended to be stable and fairly predictable because of the long-term leases that are the primary source of the Company’s revenue. There are, however, several factors that can cause FFO per common share to vary from levels that have been anticipated by the Company. These factors include, but are not limited to, changes in interest rates, occupancy rates, periodically accessing the capital markets, the level of property acquisitions and dispositions, lease rollovers, the general real estate market, the economy, and the operations of Crest Net Lease.
2003 Estimates
Management estimates that FFO per common share for 2003 should range from $2.86 to $2.91 per share, which would equate to an increase of approximately 2% to 4% over 2002 FFO per common share of $2.80. FFO for 2003 is based on an estimated diluted net income per share range of $2.04 to $2.09 adjusted (in accordance with the National Association of Real Estate Investment Trust’s (NAREIT) definition of FFO) for real estate depreciation of $0.96, provision for impairment losses of $0.01 and gain on sales of investment properties of $0.15.
Management estimates Crest Net Lease, Inc. will generate between $0.05 to $0.06 per share of FFO during 2003. Crest’s primary business is the purchase and sale of properties for a profit. These sales may occur at various times during the course of the year, which could cause FFO in certain quarters to fluctuate from normal levels.
The Company does not intend to provide quarterly estimates of FFO. Absent changes in annual FFO guidance, at the end of each quarter, it may be presumed that the Company’s overall estimate for the year has not changed.
Forward-Looking Statements
Statements in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the Company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, the availability of capital to finance planned growth, property acquisitions and the timing of these acquisitions, and the profitability of the Company’s subsidiary, Crest Net Lease, as described in the Company’s filings with the Securities and Exchange Commission. Consequently, such forward-looking statements should be regarded solely as reflections of the Company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.
Realty Income is The Monthly Dividend Company®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. As of June 30, 2003, the Company had paid 395 consecutive monthly dividends throughout its 34-year operating history. The monthly income is supported by the cash flows from over 1,200 retail properties owned under long-term lease agreements with leading regional and national retail chains. The Company is an active buyer of net-leased retail properties nationwide.
Note to Editors:
Realty Income press releases are available at no charge by calling our toll-free investor hotline number: 888-811-2001, or via the internet at http://www.realtyincome.com/Investing/News.html
4
CONSOLIDATED STATEMENTS OF INCOME
For the three and six months ended June 30, 2003 and 2002
(dollars in thousands, except per share amounts)
|
| Three Months |
| Three Months |
| Six Months |
| Six Months |
| ||||
REVENUE |
|
|
|
|
|
|
|
|
| ||||
Rental |
| $ | 36,179 |
| $ | 32,604 |
| $ | 71,311 |
| $ | 64,930 |
|
Gain on sales of real estate acquired for resale |
| 296 |
| 1,126 |
| 572 |
| 1,491 |
| ||||
Interest and other |
| 30 |
| 52 |
| 141 |
| 82 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
| 36,505 |
| 33,782 |
| 72,024 |
| 66,503 |
| ||||
EXPENSES |
|
|
|
|
|
|
|
|
| ||||
Interest |
| 6,618 |
| 5,803 |
| 12,582 |
| 11,408 |
| ||||
Depreciation and amortization |
| 8,265 |
| 7,416 |
| 16,271 |
| 14,673 |
| ||||
General and administrative |
| 2,707 |
| 2,348 |
| 5,454 |
| 4,737 |
| ||||
Property |
| 604 |
| 525 |
| 1,257 |
| 1,134 |
| ||||
Income taxes |
| 256 |
| 598 |
| 422 |
| 886 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
| 18,450 |
| 16,690 |
| 35,986 |
| 32,838 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from operations |
| 18,055 |
| 17,092 |
| 36,038 |
| 33,665 |
| ||||
Gain on sales of investment properties |
| — |
| — |
| — |
| 340 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from continuing operations |
| 18,055 |
| 17,092 |
| 36,038 |
| 34,005 |
| ||||
Income from discontinued operations |
| 2,535 |
| 1,353 |
| 2,585 |
| 2,734 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
| 20,590 |
| 18,445 |
| 38,623 |
| 36,739 |
| ||||
Preferred stock dividends |
| (2,428 | ) | (2,428 | ) | (4,856 | ) | (4,856 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income available to common stockholders |
| $ | 18,162 |
| $ | 16,017 |
| $ | 33,767 |
| $ | 31,883 |
|
|
|
|
|
|
|
|
|
|
| ||||
Funds from operations (FFO) |
| $ | 23,903 |
| $ | 22,987 |
| $ | 47,906 |
| $ | 45,370 |
|
|
|
|
|
|
|
|
|
|
| ||||
Per share information for common stockholders: |
|
|
|
|
|
|
|
|
| ||||
FFO, basic and diluted from: |
|
|
|
|
|
|
|
|
| ||||
FFO before Crest Net contribution |
| $ | 0.68 |
| $ | 0.66 |
| $ | 1.36 |
| $ | 1.33 |
|
Crest Net Lease |
| 0.00 |
| 0.03 |
| 0.01 |
| 0.04 |
| ||||
Total FFO |
| $ | 0.68 |
| $ | 0.69 |
| $ | 1.37 |
| $ | 1.37 |
|
Income from operations |
|
|
|
|
|
|
|
|
| ||||
Basic and diluted |
| $ | 0.45 |
| $ | 0.44 |
| $ | 0.89 |
| $ | 0.87 |
|
Net income |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 0.52 |
| 0.48 |
| 0.97 |
| 0.96 |
| ||||
Diluted |
| 0.52 |
| 0.48 |
| 0.96 |
| 0.96 |
| ||||
Cash dividends paid |
| 0.589 |
| 0.574 |
| 1.174 |
| 1.144 |
|
5
FUNDS FROM OPERATIONS
For the three and six months ended June 30, 2003 and 2002
(dollars in thousands, except per share amounts)
|
| Three Months |
| Three Months |
| Six Months |
| Six Months |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income available to common stockholders |
| $ | 18,162 |
| $ | 16,017 |
| $ | 33,767 |
| $ | 31,883 |
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
| 8,265 |
| 7,416 |
| 16,271 |
| 14,673 |
| ||||
Discontinued operations |
| 54 |
| 223 |
| 141 |
| 470 |
| ||||
Depreciation of furniture, fixtures & equipment |
| (28 | ) | (34 | ) | (57 | ) | (67 | ) | ||||
Provision for impairment losses: |
|
|
|
|
|
|
|
|
| ||||
Discontinued operations |
| — |
| 670 |
| 500 |
| 830 |
| ||||
Gain on sales of investment properties: |
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
| — |
| — |
| — |
| (340 | ) | ||||
Discontinued operations |
| (2,550 | ) | (1,305 | ) | (2,716 | ) | (2,079 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Funds from operations |
| $ | 23,903 |
| $ | 22,987 |
| $ | 47,906 |
| $ | 45,370 |
|
|
|
|
|
|
|
|
|
|
| ||||
Dividends paid to common stockholders |
| $ | 20,612 |
| $ | 19,114 |
| $ | 41,062 |
| $ | 37,934 |
|
|
|
|
|
|
|
|
|
|
| ||||
FFO in excess of dividends |
| $ | 3,291 |
| $ | 3,873 |
| $ | 6,844 |
| $ | 7,436 |
|
|
|
|
|
|
|
|
|
|
| ||||
FFO per common share, basic and diluted |
| $ | 0.68 |
| $ | 0.69 |
| $ | 1.37 |
| $ | 1.37 |
|
Weighted average number of common shares used for computation per share: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 35,009,554 |
| 33,310,413 |
| 34,987,332 |
| 33,178,176 |
| ||||
Diluted |
| 35,059,608 |
| 33,368,359 |
| 35,032,944 |
| 33,230,817 |
|
FUNDS FROM OPERATIONS GENERATED BY CREST NET LEASE
For the three and six months ended June 30, 2003 and 2002
(dollars in thousands, except per share amounts)
Gains from the sales of real estate acquired for resale |
| $ | 296 |
| $ | 1,126 |
| $ | 572 |
| $ | 1,491 |
|
Rent and other revenue |
| 134 |
| 481 |
| 229 |
| 956 |
| ||||
Interest expense |
| (72 | ) | (144 | ) | (149 | ) | (219 | ) | ||||
General and administrative expense |
| (71 | ) | (88 | ) | (243 | ) | (284 | ) | ||||
Property expenses |
| (10 | ) | — |
| (16 | ) | (42 | ) | ||||
Income taxes |
| (120 | ) | (474 | ) | (151 | ) | (638 | ) | ||||
Funds from operations contributed by Crest Net |
| $ | 157 |
| $ | 901 |
| $ | 242 |
| $ | 1,264 |
|
FFO per common share, basic and diluted |
| $ | 0.004 |
| $ | 0.03 |
| $ | 0.01 |
| $ | 0.04 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total FFO |
| $ | 23,903 |
| $ | 22,987 |
| $ | 47,906 |
| $ | 45,370 |
|
Less FFO contributed by Crest Net |
| (157 | ) | (901 | ) | (242 | ) | (1,264 | ) | ||||
FFO before Crest Net contribution |
| $ | 23,746 |
| $ | 22,086 |
| $ | 47,664 |
| $ | 44,106 |
|
FFO before Crest Net contribution per common share basic and diluted |
| $ | 0.68 |
| $ | 0.66 |
| $ | 1.36 |
| $ | 1.33 |
|
We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust’s definition, as net income available to common stockholders, plus depreciation and amortization of assets uniquely significant to the real estate industry, reduced by gains and increased by losses on (i) sales of investment property and provisions for impairment and (ii) extraordinary items.
6
CONSOLIDATED BALANCE SHEETS
As of June 30, 2003 and December 31, 2002
(dollars in thousands, except per share amounts)
|
| 2003 |
| 2002 |
| ||
ASSETS |
|
|
|
|
| ||
Real estate, at cost: |
|
|
|
|
| ||
Land |
| $ | 488,912 |
| $ | 467,488 |
|
Buildings and improvements |
| 842,568 |
| 818,412 |
| ||
|
| 1,331,480 |
| 1,285,900 |
| ||
|
|
|
|
|
| ||
Less accumulated depreciation and amortization |
| (260,988 | ) | (254,250 | ) | ||
|
|
|
|
|
| ||
Net real estate held for investment |
| 1,070,492 |
| 1,031,650 |
| ||
Real estate held for sale, net |
| 11,845 |
| 6,528 |
| ||
Net real estate |
| 1,082,337 |
| 1,038,178 |
| ||
Cash and cash equivalents |
| 4,719 |
| 8,921 |
| ||
Accounts receivable |
| 3,279 |
| 4,408 |
| ||
Goodwill, net |
| 17,206 |
| 17,206 |
| ||
Other assets |
| 11,573 |
| 11,517 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 1,119,114 |
| $ | 1,080,230 |
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
Distributions payable |
| $ | 6,916 |
| $ | 6,801 |
|
Accounts payable and accrued expenses |
| 7,393 |
| 5,047 |
| ||
Other liabilities |
| 6,085 |
| 6,227 |
| ||
Line of credit payable |
| 52,100 |
| 109,700 |
| ||
Notes payable |
| 330,000 |
| 230,000 |
| ||
|
|
|
|
|
| ||
Total liabilities |
| 402,494 |
| 357,775 |
| ||
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
| ||
Preferred stock and paid in capital, par value $1.00 per share, 20,000,000 shares authorized, 4,125,700 shares issued and outstanding |
| 99,368 |
| 99,368 |
| ||
Common stock and paid in capital, par value $1.00 per share, 100,000,000 shares authorized, 35,018,368 and 34,874,827 shares issued and outstanding in 2003 and 2002, respectively |
| 857,393 |
| 855,818 |
| ||
Distributions in excess of net income |
| (240,141 | ) | (232,731 | ) | ||
|
|
|
|
|
| ||
Total stockholders’ equity |
| 716,620 |
| 722,455 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ equity |
| $ | 1,119,114 |
| $ | 1,080,230 |
|
7
The following table sets forth certain information regarding our properties classified according to the business of the respective tenants, expressed as a percentage of our total rental revenue:
|
| Percentage of Rental Revenue (1) |
| ||||||||||||||
Industry |
| For the |
|
|
| ||||||||||||
Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel Stores |
| 2.1 | % | 2.3 | % | 2.4 | % | 2.4 | % | 3.8 | % | 4.1 | % | 0.7 | % | — | % |
Automotive Collision Services |
| 0.1 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
Automotive Parts |
| 7.0 |
| 7.6 |
| 8.3 |
| 8.3 |
| 8.6 |
| 7.8 |
| 9.1 |
| 10.5 |
|
Automotive Service |
| 8.3 |
| 7.0 |
| 5.7 |
| 5.8 |
| 6.6 |
| 7.5 |
| 6.4 |
| 4.8 |
|
Book Stores |
| 0.4 |
| 0.4 |
| 0.4 |
| 0.5 |
| 0.5 |
| 0.6 |
| 0.5 |
| — |
|
Business Services |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
|
| * | — |
| — |
|
Child Care |
| 18.8 |
| 20.8 |
| 23.9 |
| 24.7 |
| 25.3 |
| 29.2 |
| 35.9 |
| 42.0 |
|
Consumer Electronics |
| 3.2 |
| 3.3 |
| 4.0 |
| 4.9 |
| 4.4 |
| 5.4 |
| 6.5 |
| 0.9 |
|
Convenience Stores |
| 12.6 |
| 9.1 |
| 8.4 |
| 8.4 |
| 7.2 |
| 6.1 |
| 5.5 |
| 4.6 |
|
Craft & Novelty |
| 0.5 |
| 0.4 |
| 0.4 |
| 0.4 |
| 0.4 |
|
| * | — |
| — |
|
Drug Stores |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.1 |
| — |
| — |
|
Entertainment |
| 2.7 |
| 2.3 |
| 1.8 |
| 2.0 |
| 1.2 |
| — |
| — |
| — |
|
General Merchandise |
| 0.5 |
| 0.5 |
| 0.6 |
| 0.6 |
| 0.6 |
|
| * | — |
| — |
|
Grocery Stores |
| 0.3 |
| 0.5 |
| 0.6 |
| 0.6 |
| 0.5 |
|
| * | — |
| — |
|
Health & Fitness |
| 3.7 |
| 3.8 |
| 3.6 |
| 2.4 |
| 0.6 |
| 0.1 |
| — |
| — |
|
Home Furnishings |
| 4.9 |
| 5.4 |
| 6.0 |
| 5.8 |
| 6.5 |
| 7.8 |
| 5.6 |
| 4.4 |
|
Home Improvement |
| 1.1 |
| 1.2 |
| 1.3 |
| 2.0 |
| 3.6 |
|
| * | — |
| — |
|
Office Supplies |
| 2.0 |
| 2.1 |
| 2.2 |
| 2.3 |
| 2.6 |
| 3.0 |
| 1.7 |
| — |
|
Pet Supplies & Services |
| 1.6 |
| 1.7 |
| 1.6 |
| 1.5 |
| 1.1 |
| 0.6 |
| 0.2 |
| — |
|
Private Education |
| 1.3 |
| 1.3 |
| 1.5 |
| 1.4 |
| 1.2 |
| 0.9 |
| — |
| — |
|
Restaurants |
| 12.2 |
| 13.5 |
| 12.2 |
| 12.3 |
| 13.3 |
| 16.2 |
| 19.8 |
| 24.4 |
|
Shoe Stores |
| 1.0 |
| 0.8 |
| 0.7 |
| 0.8 |
| 1.1 |
| 0.8 |
| 0.2 |
| — |
|
Sporting Goods |
| 3.9 |
| 4.1 |
| 0.9 |
| — |
| — |
| — |
| — |
| — |
|
Theaters |
| 4.1 |
| 3.9 |
| 4.3 |
| 2.7 |
| 0.6 |
| — |
| — |
| — |
|
Travel Plazas |
| 0.4 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
Video Rental |
| 3.3 |
| 3.3 |
| 3.7 |
| 3.9 |
| 4.3 |
| 3.8 |
| 0.6 |
| — |
|
Other |
| 3.7 |
| 4.4 |
| 5.2 |
| 6.0 |
| 5.7 |
| 6.0 |
| 7.3 |
| 8.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
| 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* Less than 0.1%
(1) Includes rental revenue for all properties owned by Realty Income at the end of each period presented (including revenue from properties reclassified to discontinued operations) and excludes properties owned by our subsidiary, Crest Net.
8
The following table sets forth certain information regarding the timing of the initial lease term expirations (excluding extension options) on our 1,175 net leased, single-tenant retail properties as of June 30, 2003
(dollars in thousands):
Year |
| Number of |
| Rental Revenue |
| Percentage of |
| |
2003 |
| 71 |
| $ | 1,404 |
| 4.0 | % |
2004 |
| 123 |
| 2,538 |
| 7.3 |
| |
2005 |
| 75 |
| 1,378 |
| 4.0 |
| |
2006 |
| 88 |
| 1,956 |
| 5.6 |
| |
2007 |
| 120 |
| 2,122 |
| 6.1 |
| |
2008 |
| 75 |
| 1,609 |
| 4.6 |
| |
2009 |
| 30 |
| 709 |
| 2.0 |
| |
2010 |
| 42 |
| 921 |
| 2.7 |
| |
2011 |
| 35 |
| 1,303 |
| 3.7 |
| |
2012 |
| 49 |
| 1,521 |
| 4.4 |
| |
2013 |
| 72 |
| 3,201 |
| 9.2 |
| |
2014 |
| 36 |
| 1,638 |
| 4.7 |
| |
2015 |
| 32 |
| 836 |
| 2.4 |
| |
2016 |
| 14 |
| 378 |
| 1.1 |
| |
2017 |
| 21 |
| 1,297 |
| 3.7 |
| |
2018 |
| 17 |
| 517 |
| 1.5 |
| |
2019 |
| 50 |
| 2,271 |
| 6.5 |
| |
2020 |
| 10 |
| 916 |
| 2.6 |
| |
2021 |
| 95 |
| 3,617 |
| 10.4 |
| |
2022 |
| 96 |
| 2,427 |
| 7.0 |
| |
2023 |
| 67 |
| 1,170 |
| 3.4 |
| |
2024 |
| 2 |
| 97 |
| 0.3 |
| |
2026 |
| 2 |
| 93 |
| 0.3 |
| |
2033 |
| 3 |
| 324 |
| 0.9 |
| |
2034 |
| 2 |
| 208 |
| 0.6 |
| |
2037 |
| 3 |
| 338 |
| 1.0 |
| |
|
|
|
|
|
|
|
| |
Totals |
| 1,230 |
| $ | 34,789 |
| 100.0 | % |
(1) Excludes properties owned by our subsidiary, Crest Net. The lease expirations for properties under construction are based on the estimated date of completion of those properties.
(2) Includes rental revenue of $131 from properties reclassified to discontinued operations and excludes revenue of $1,323 from four multi-tenant properties, revenue of $64 from 16 single-tenant properties vacant and unleased at June 30, 2003 and revenue of $134 from properties owned by our subsidiary, Crest Net.
9
The following table sets forth certain state-by-state information regarding Realty Income’s property portfolio as of June 30, 2003 (dollars in thousands):
State |
| Number of |
| Percent |
| Approximate |
| Rental Revenue |
| Percentage of |
| |
Alabama |
| 14 |
| 100 | % | 137,600 |
| $ | 346 |
| 1.0 | % |
Alaska |
| 2 |
| 100 |
| 128,500 |
| 251 |
| 0.7 |
| |
Arizona |
| 35 |
| 94 |
| 240,700 |
| 961 |
| 2.7 |
| |
Arkansas |
| 8 |
| 100 |
| 48,800 |
| 241 |
| 0.7 |
| |
California |
| 60 |
| 100 |
| 989,900 |
| 3,537 |
| 9.8 |
| |
Colorado |
| 44 |
| 98 |
| 275,100 |
| 1,043 |
| 2.9 |
| |
Connecticut |
| 16 |
| 100 |
| 245,600 |
| 924 |
| 2.5 |
| |
Delaware |
| 16 |
| 100 |
| 29,100 |
| 339 |
| 0.9 |
| |
Florida |
| 89 |
| 100 |
| 1,247,700 |
| 3,695 |
| 10.2 |
| |
Georgia |
| 70 |
| 100 |
| 539,900 |
| 1,696 |
| 4.7 |
| |
Idaho |
| 11 |
| 100 |
| 52,000 |
| 187 |
| 0.5 |
| |
Illinois |
| 38 |
| 100 |
| 301,200 |
| 1,071 |
| 3.0 |
| |
Indiana |
| 27 |
| 100 |
| 150,100 |
| 526 |
| 1.4 |
| |
Iowa |
| 10 |
| 100 |
| 67,600 |
| 174 |
| 0.5 |
| |
Kansas |
| 21 |
| 100 |
| 190,000 |
| 556 |
| 1.5 |
| |
Kentucky |
| 13 |
| 100 |
| 43,600 |
| 276 |
| 0.8 |
| |
Louisiana |
| 7 |
| 100 |
| 47,100 |
| 181 |
| 0.5 |
| |
Maryland |
| 19 |
| 100 |
| 156,600 |
| 865 |
| 2.4 |
| |
Massachusetts |
| 30 |
| 100 |
| 138,300 |
| 727 |
| 2.0 |
| |
Michigan |
| 13 |
| 100 |
| 81,600 |
| 291 |
| 0.8 |
| |
Minnesota |
| 20 |
| 90 |
| 224,700 |
| 511 |
| 1.4 |
| |
Mississippi |
| 21 |
| 100 |
| 174,000 |
| 426 |
| 1.2 |
| |
Missouri |
| 34 |
| 100 |
| 225,200 |
| 744 |
| 2.1 |
| |
Montana |
| 2 |
| 100 |
| 30,000 |
| 74 |
| 0.2 |
| |
Nebraska |
| 10 |
| 100 |
| 91,200 |
| 295 |
| 0.8 |
| |
Nevada |
| 10 |
| 100 |
| 100,700 |
| 406 |
| 1.1 |
| |
New Hampshire |
| 6 |
| 100 |
| 23,900 |
| 149 |
| 0.4 |
| |
New Jersey |
| 23 |
| 100 |
| 110,800 |
| 978 |
| 2.7 |
| |
New Mexico |
| 5 |
| 100 |
| 46,000 |
| 87 |
| 0.2 |
| |
New York |
| 24 |
| 100 |
| 265,600 |
| 1,395 |
| 3.8 |
| |
North Carolina |
| 39 |
| 97 |
| 207,200 |
| 1,005 |
| 2.8 |
| |
North Dakota |
| 1 |
| 100 |
| 22,000 |
| 16 |
|
| * | |
Ohio |
| 73 |
| 99 |
| 467,900 |
| 1,604 |
| 4.4 |
| |
Oklahoma |
| 17 |
| 100 |
| 94,300 |
| 347 |
| 1.0 |
| |
Oregon |
| 18 |
| 100 |
| 206,000 |
| 488 |
| 1.3 |
| |
Pennsylvania |
| 50 |
| 100 |
| 291,000 |
| 1,177 |
| 3.2 |
| |
Rhode Island |
| 1 |
| 100 |
| 3,500 |
| 29 |
| 0.1 |
| |
South Carolina |
| 46 |
| 96 |
| 136,900 |
| 932 |
| 2.6 |
| |
South Dakota |
| 1 |
| 100 |
| 6,500 |
| 25 |
| 0.1 |
| |
Tennessee |
| 35 |
| 100 |
| 253,100 |
| 892 |
| 2.5 |
| |
Texas |
| 151 |
| 98 |
| 1,195,900 |
| 3,476 |
| 9.6 |
| |
Utah |
| 7 |
| 86 |
| 43,300 |
| 104 |
| 0.3 |
| |
Vermont |
| 1 |
| 100 |
| 2,500 |
| 22 |
| 0.1 |
| |
Virginia |
| 51 |
| 100 |
| 369,600 |
| 1,869 |
| 5.2 |
| |
Washington |
| 39 |
| 97 |
| 256,900 |
| 740 |
| 2.0 |
| |
West Virginia |
| 2 |
| 100 |
| 16,800 |
| 40 |
| 0.1 |
| |
Wisconsin |
| 16 |
| 88 |
| 162,300 |
| 384 |
| 1.1 |
| |
Wyoming |
| 4 |
| 100 |
| 20,100 |
| 74 |
| 0.2 |
| |
Totals/Average |
| 1,250 |
| 99 | % | 10,158,900 |
| $ | 36,176 |
| 100.0 | % |
* Less than 0.1%
(1) Excludes properties owned by our subsidiary, Crest Net.
(2) Includes rental revenue for all properties owned by Realty Income at June 30, 2003 (including revenue from properties reclassified to discontinued operations of $131) and excludes revenue of $134 from properties owned by Crest Net.
10