Exhibit 99.1
RECORD OPERATING RESULTS FOR FIRST QUARTER 2013
ANNOUNCED BY REALTY INCOME
ESCONDIDO, CALIFORNIA, April 25, 2013...Realty Income Corporation (Realty Income), The Monthly Dividend Company® (NYSE: O), today announced record operating results for the first quarter ended March 31, 2013. Access to this document is available at www.realtyincome.com. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.
COMPANY HIGHLIGHTS:
For the quarter ended March 31, 2013 (as compared to the same quarterly period in 2012):
· Revenue increased 52.9% to $171.7 million as compared to $112.3 million
· Net income available to common stockholders per share was $0.36
· Normalized FFO available to common stockholders increased 72.8% to $104.9 million
· Normalized FFO per share increased 32.6% to $0.61
· AFFO available to common stockholders increased 56.9% to $104.0 million
· AFFO per share increased 20.0% to $0.60
· Same store rents increased 1.5% to $111.0 million
· Portfolio occupancy increased to 97.7% from 96.6%
· Invested $128 million in 27 new properties and properties under development or expansion
· Acquired American Realty Capital Trust (ARCT) adding 515 additional properties for $3.2 billion
· Increased the annualized dividend amount 19.2%, or $0.35, to $2.171 per share in January
· Increased the monthly dividend again in March for the 71st time and for the 62nd consecutive quarter
· Dividends paid per common share increased 17.6%
· Issued 17,250,000 common shares for net proceeds of approximately $755 million
Financial Results
Revenue
Revenue, for the quarter ended March 31, 2013, increased 52.9% to $171.7 million as compared to $112.3 million for the same quarter in 2012.
Net Income Available to Common Stockholders
Net income available to common stockholders, for the quarter ended March 31, 2013, was $61.3 million as compared to $26.1 million for the same quarter in 2012. Net income per share, for the quarter ended March 31, 2013, was $0.36 as compared to $0.20 for the same quarter in 2012.
The calculation to determine net income for a real estate company includes impairments and/or gains from the sales of investment properties. Impairments and/or gains on property sales vary from quarter to quarter. This variance can significantly impact net income.
FFO Available to Common Stockholders
Funds from Operations (FFO), for the quarter ended March 31, 2013, increased 53.0% to $92.9 million as compared to $60.7 million for the same quarter in 2012. FFO per share, for the quarter ended March 31, 2013, increased 17.4% to $0.54 as compared to $0.46 for the same quarter in 2012.
Normalized FFO Available to Common Stockholders
Normalized Funds from Operations, which is based on FFO adjusted to add back ARCT merger-related costs, for the quarter ended March 31, 2013, increased 72.8% to $104.9 million as compared to $60.7 million for the same quarter in 2012. Normalized FFO per share, for the quarter ended March 31, 2013, increased 32.6% to $0.61 as compared to $0.46 for the same quarter in 2012.
AFFO Available to Common Stockholders
Adjusted Funds from Operations (AFFO), for the quarter ended March 31, 2013, increased 56.9% to $104.0 million as compared to $66.3 million for the same quarter in 2012. AFFO per share, for the quarter ended March 31, 2013, increased 20.0% to $0.60 as compared to $0.50 for the same quarter in 2012.
The company considers FFO, normalized FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust’s (REIT’s) operating performance. Realty Income defines FFO consistent with the National Association of Real Estate Investment Trust’s (NAREIT’s) definition as net income available to common stockholders plus depreciation and amortization of real estate assets, plus impairments of real estate, reduced by gains on sales of investment properties and extraordinary items. Normalized FFO adds back merger-related costs for our acquisition of ARCT. AFFO further adjusts Normalized FFO for unique revenue and expense items, which are not pertinent to the measurement of our ongoing operating performance. See our reconciliation of net income available to common stockholders to FFO, normalized FFO and AFFO on page seven.
Dividend Information
On January 22, 2013, Realty Income increased the amount of the annualized dividend 19.2%. The new dividend amount represented an annualized increase of $0.35 per share, to $2.171 per share, as compared to the prior annualized dividend amount of $1.821 per share.
In March 2013, Realty Income announced the 62nd consecutive quarterly dividend increase, which is the 71st increase in the amount of the dividend since the company’s listing on the New York Stock Exchange in 1994. The annualized dividend amount, as of March 31, 2013, was approximately $2.175 per share. The amount of the monthly dividends paid increased 17.6% to $0.514 per share in the first quarter of 2013 from $0.437 per share for the same period in 2012. In addition, through March 31, 2013, the company has paid 512 consecutive monthly dividends and over $2.4 billion in total dividends since 1969. Realty Income has a dividend reinvestment and stock purchase program that can be accessed at www.realtyincome.com. The program is administered by Wells Fargo Shareowner Services.
Real Estate Portfolio Update
As of March 31, 2013, Realty Income’s portfolio of freestanding, single-tenant properties consisted of 3,525 properties located in 49 states and Puerto Rico, leased to 195 commercial enterprises doing business in 46 industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 11.1 years.
Portfolio Management Activities
The company’s portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provide dependable lease revenue supporting the payment of monthly dividends. As of March 31, 2013, portfolio occupancy was 97.7% with 81 properties available for lease out of a total of 3,525 properties in the portfolio, as compared to 96.6% portfolio occupancy for the same period in 2012.
Rent Increases
During the quarter ended March 31, 2013, same store rents on 2,407 properties under lease increased 1.5% to $111.05 million, as compared to $109.37 million for the same quarter in 2012.
Property Acquisitions
During the first quarter of 2013, Realty Income invested $128 million in 27 new properties and properties under development or expansion located in 16 states. These properties are 100% leased with a weighted average lease term of 13.8 years and an initial average lease yield of 7.9%. The company also completed the acquisition of ARCT, adding 515 properties, for $3.2 billion, to the company’s real estate portfolio. The combined total investment in real estate during the first quarter of 2013 is $3.3 billion.
Realty Income maintains a $1.0 billion unsecured acquisition credit facility, which is used to fund property acquisitions in the near term. As of March 31, 2013, the company had borrowing capacity of approximately $883 million on its credit facility.
Property Dispositions
Realty Income continued to successfully execute its asset disposition program in the first quarter of 2013. The objective of this 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, increase the average lease length, and/or decrease tenant or industry concentration.
During the quarter ended March 31, 2013, Realty Income sold 17 properties for $60.0 million, with a gain on sales of $38.6 million, as compared to five properties sold for $3.6 million, with a gain on sales of $611,000, during the same quarter in 2012.
Other Activities
Acquisition of American Realty Capital Trust (ARCT)
On January 22, 2013, Realty Income completed the acquisition of ARCT that was approved by both Realty Income and ARCT shareholders at their shareholder meetings held on January 16, 2013. The combined company has been trading under the ticker symbol “O” on the New York Stock Exchange since the opening of the market on January 23, 2013.
Common Stock Offering
On March 11, 2013, Realty Income issued 17,250,000 common shares for net proceeds of approximately $755 million. The offering was upsized from the original 10,000,000 share offering amount, and an additional 2,250,000 shares were purchased by the underwriters upon the exercise of their over-allotment option. Net proceeds were used to repay borrowings under the company’s $1.0 billion credit facility. Any remaining proceeds were used for other general corporate purposes, including additional acquisitions and the repayment of other debt.
Note Repayment
Realty Income repaid all of its March 2013 $100 million 5.375% notes outstanding, issued in March 2003, at a price equal to 100% of the principal amount plus accrued and unpaid interest.
Direct Stock Purchase and Dividend Reinvestment Plan (the “Stock Plan”)
During the first quarter of 2013, Realty Income issued 18,237 common shares via its Stock Plan generating gross proceeds of approximately $811,000 during the quarter.
CEO Comments on Operating Results
Commenting on Realty Income’s financial results and real estate operations, Chief Executive Officer, Tom A. Lewis said, “The first quarter of 2013 was the best quarter for operations in our 44-year history. We are pleased to report significant increases in all facets of the company’s operations during the quarter, including continued strength in the performance of our real estate portfolio, with occupancy increasing to 97.7% and a record level of acquisition activity.”
“The key drivers in our first quarter operating results are: 1) the $1.16 billion in acquisitions completed in 2012, providing significant revenue increases during the quarter; 2) the immediately accretive rental revenue from the ARCT acquisition of 515 net-leased properties for $3.2 billion, and; 3) $128 million invested in 27 new properties and properties under development, during the first quarter, at an average initial lease yield of 7.9%. The rental revenue from the combined $4.4 billion in property acquisitions should benefit our operating performance for many years to come. Importantly, consistent with our strategic focus on continuing to increase the overall credit quality of our real estate portfolio, the majority of the properties acquired are leased to investment grade-rated tenants.”
“We were also successful in accessing the capital markets during the quarter, generating net proceeds of approximately $755 million in a March common stock offering that was upsized from the original offering of 10 million shares to over 17 million common shares issued. The proceeds from this offering allowed us to pay down our $1.0 billion acquisition credit facility, which we had used to provide a portion of the capital required to complete the ARCT acquisition. We have excellent liquidity heading into the rest of the year, with over $850 million available on our acquisition credit facility to make additional investments from an active transaction pipeline we are experiencing.”
“For our shareholders that rely on monthly dividend income, the most notable events during the quarter were the two increases in the amount of our dividend, resulting in our annualized dividend moving from $1.821 per share to $2.175 per share. These increases contributed to the dividends we paid during the first quarter, growing over 17%, as compared to the first quarter in 2012. We have also been able to continue our record of increasing the dividend every quarter, with the 62nd consecutive quarterly increase declared in March. Given the difficulty income oriented investors face in generating adequate yield today, we are pleased that our operations continue to provide our shareholders with an increasing dividend.”
“With respect to the completion of our acquisition of ARCT, we added 515 properties leased to 69 tenants doing business in 28 industries, and 75% of the properties are leased to investment grade-rated tenants. The transaction has taken the company to an enterprise value of approximately $13 billion and an equity market capitalization of approximately $9 billion. As evidenced by our operating results, this acquisition was immediately accretive to our earnings. We are pleased to have completed this acquisition and integrated these properties into our portfolio in a timely fashion.”
FFO Commentary
Realty Income’s FFO per 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 share to vary from levels that have been anticipated by the company. These factors include, but are not limited to, changes in interest rates and occupancy rates, periodically accessing the capital markets, the level and timing of property and entity acquisitions and dispositions, integration of the acquired ARCT properties including the finalization of purchase price allocations, lease rollovers, the general real estate market, and the economy.
2013 Earnings Estimates
Normalized FFO is based on FFO adjusted to add back ARCT merger-related costs. The Normalized 2013 FFO and AFFO estimates are as follows (excluding the costs associated with the ARCT transaction):
Normalized FFO per share for 2013 should range from $2.32 to $2.38 per share, an increase of 14.9% to 17.8% over the Normalized 2012 FFO per share of $2.02. Normalized FFO per share for 2013 is based on an estimated net income per share range of $0.95 to $1.01, plus estimated real estate depreciation of $1.60 and reduced by potential estimated gains on sales of investment properties of $0.23 per share (in accordance with NAREIT’s definition of FFO).
AFFO per share for 2013 should range from $2.33 to $2.39 per share, an increase of 13.1% to 16.0% over the 2012 AFFO per share of $2.06. The AFFO per share estimate for 2013 is based on adding back items to FFO, that reduce net income, totaling approximately $0.12, and deducting capitalized expenditures and straight-line rent revenue items totaling approximately $0.10, for a net increase of $0.01 to $0.02 over Normalized FFO.
About Realty Income
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 March 31, 2013, the company had paid 512 consecutive monthly dividends throughout its 44-year operating history. The monthly income is supported by the cash flows from over 3,500 properties owned under long-term lease agreements with 195 leading regional and national commercial enterprises. The company is an active buyer of net-leased properties nationwide. Additional information about the company can be obtained from the corporate website at www.realtyincome.com or www.twitter.com/realtyincome.
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, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, integration of the ARCT acquisition, and the outcome of any legal proceedings to which the company is a party, as described in the company’s filings with the Securities and Exchange Commission. Consequently, 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.
Note to Editors: Realty Income press releases are available via the internet at http://www.realtyincome.com/invest/newsroom-library/press-releases.shtml.
Please Contact:
Tere H. Miller
Vice President, Corporation Communications
(760) 741-2111, x1177
CONSOLIDATED STATEMENTS OF INCOME
For the three months ended March 31, 2013 and 2012
(dollars in thousands, except per share amounts - unaudited)
|
| 2013 |
| 2012 |
| |||
REVENUE |
|
|
|
|
| |||
Rental |
| $ | 170,304 |
| $ | 112,053 |
| |
Other |
| 1,391 |
| 252 |
| |||
|
|
|
|
|
| |||
Total revenue |
| 171,695 |
| 112,305 |
| |||
|
|
|
|
|
| |||
EXPENSES |
|
|
|
|
| |||
Depreciation and amortization |
| 69,808 |
| 34,578 |
| |||
Interest |
| 41,468 |
| 28,952 |
| |||
General and administrative |
| 11,613 |
| 9,168 |
| |||
Property |
| 3,772 |
| 2,155 |
| |||
Income taxes |
| 671 |
| 405 |
| |||
Merger-related costs |
| 12,030 |
| -- |
| |||
|
|
|
|
|
| |||
Total expenses |
| 139,362 |
| 75,258 |
| |||
|
|
|
|
|
| |||
Income from continuing operations |
| 32,333 |
| 37,047 |
| |||
Income from discontinued operations |
| 39,480 |
| 2,216 |
| |||
|
|
|
|
|
| |||
Net income |
| 71,813 |
| 39,263 |
| |||
Net income attributable to non-controlling interests |
| (9 | ) |
| -- |
| ||
Net income attributable to Realty Income Corporation |
| 71,804 |
| 39,263 |
| |||
Preferred stock dividends |
| (10,482 | ) | (9,496 | ) | |||
Excess of redemption value over carrying value of |
| -- |
| (3,696 | ) | |||
|
|
|
|
|
| |||
Net income available to common stockholders |
| $ | 61,322 |
| $ | 26,071 |
| |
|
|
|
|
|
| |||
Funds from operations available to common stockholders (FFO) |
| $ | 92,887 |
| $ | 60,695 |
| |
Normalized funds from operations available to common stockholders (normalized FFO) |
| $ | 104,917 |
| $ | 60,695 |
| |
Adjusted funds from operations available to common stockholders (AFFO) |
| $ | 103,956 |
| $ | 66,294 |
| |
|
|
|
|
|
| |||
Per share information for common stockholders: |
|
|
|
|
| |||
|
|
|
|
|
| |||
Income from continuing operations, basic and diluted |
| $ | 0.13 |
| $ | 0.18 |
| |
Net income, basic and diluted |
| $ | 0.36 |
| $ | 0.20 |
| |
FFO, basic and diluted |
| $ | 0.54 |
| $ | 0.46 |
| |
Normalized FFO, basic and diluted |
| $ | 0.61 |
| $ | 0.46 |
| |
AFFO: |
|
|
|
|
| |||
Basic |
| $ | 0.61 |
| $ | 0.50 |
| |
Diluted |
| $ | 0.60 |
| $ | 0.50 |
| |
Cash dividends paid per common share |
| $ | 0.514 |
| $ | 0.437 |
| |
FUNDS FROM OPERATIONS (FFO)
(dollars in thousands, except per share amounts)
|
| Three Months |
| Three Months |
| ||||||
Net income available to common stockholders |
|
| $ | 61,322 |
|
| $ | 26,071 |
| ||
Depreciation and amortization: |
|
|
|
|
|
|
| ||||
Continuing operations |
|
| 69,808 |
|
| 34,578 |
| ||||
Discontinued operations |
|
| 96 |
|
| 724 |
| ||||
Depreciation allocated to noncontrolling interest |
|
| (175 | ) |
| --- |
| ||||
Depreciation of furniture, fixtures & equipment |
|
| (61 | ) |
| (67 | ) | ||||
Provisions for impairment on Realty Income |
|
| 456 |
|
| -- |
| ||||
Gain on sales of investment properties, |
|
| (38,559 | ) |
|
|
| (611 | ) |
| |
FFO available to common stockholders |
|
| 92,887 |
|
| 60,695 |
| ||||
Merger-related costs |
|
| 12,030 |
|
|
| -- |
| |||
Normalized FFO available to common stockholders |
|
| $ | 104,917 |
|
|
| 60,695 |
| ||
FFO per common share, basic and diluted |
|
| $ | 0.54 |
|
| $ | 0.46 |
| ||
Normalized FFO per common share, basic and diluted |
|
| $ | 0.61 |
|
| $ | 0.46 |
| ||
Dividends paid to common stockholders |
|
| $ | 84,977 |
|
| $ | 58,192 |
| ||
Normalized FFO in excess of dividends paid to |
|
| $ | 19,940 |
|
| $ | 2,503 |
| ||
Weighted average number of common shares used for |
|
|
|
|
|
|
| ||||
Basic |
|
| 171,659,191 |
|
| 132,577,100 |
| ||||
Diluted |
|
| 172,053,880 |
|
| 132,703,954 |
| ||||
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 real estate assets, plus impairments of real estate assets, reduced by gains on sales of investment properties and extraordinary items. We define normalized FFO, a non-GAAP measure, as FFO excluding the ARCT merger-related costs.
ADJUSTED FUNDS FROM OPERATIONS (AFFO)
(dollars in thousands, except per share amounts)
Most companies in our industry use a similar measurement to AFFO, but they may use the term “CAD” (for Cash Available for Distribution) or “FAD” (for Funds Available for Distribution).
|
| Three Months |
| Three Months |
| ||||||
Net income available to common stockholders |
|
| $ | 61,322 |
|
| $ | 26,071 |
| ||
Cumulative adjustments to calculate normalized FFO(1) |
|
| 43,595 |
|
| 34,624 |
| ||||
Normalized FFO available to common stockholders |
|
| 104,917 |
|
| 60,695 |
| ||||
Excess of redemption value over carrying value of |
|
| -- |
|
| 3,696 |
| ||||
Amortization of share-based compensation |
|
| 3,845 |
|
| 2,956 |
| ||||
Amortization of deferred financing costs(2) |
|
| 1,458 |
|
| 630 |
| ||||
Amortization of net mortgage premiums |
|
| (1,947 | ) |
| (97 | ) | ||||
Capitalized leasing costs and commissions |
|
| (413 | ) |
| (266 | ) | ||||
Capitalized building improvements |
|
| (1,265 | ) |
| (793 | ) | ||||
Other adjustments(3) |
|
| (2,639 | ) |
|
| (527 | ) |
| ||
Total AFFO available to common stockholders |
|
| $ | 103,956 |
|
| $ | 66,294 |
| ||
AFFO per common share: |
|
|
|
|
|
|
| ||||
Basic |
|
| $ | 0.61 |
|
| $ | 0.50 |
| ||
Diluted |
|
| $ | 0.60 |
|
| $ | 0.50 |
| ||
Dividends paid to common stockholders |
|
| $ | 84,977 |
|
| $ | 58,192 |
| ||
AFFO in excess of dividends paid to |
|
| $ | 18,979 |
|
| $ | 8,102 |
| ||
(1) See FFO and normalized FFO calculation above for reconciling items.
(2) Includes the amortization of costs incurred and capitalized when our notes were issued in March 2003, November 2003, March 2005, September 2005, September 2006, September 2007, June 2010, June 2011 and October 2012. Additionally, this includes the amortization of deferred financing costs incurred and capitalized in connection with our assumption of the mortgages payable and the issuance of our term loan, along with non-cash interest expense related to our swaps. The deferred financing costs are being amortized over the lives of the respective mortgages and term loan. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included.
(3) Includes straight-line rent revenue, and the amortization of above and below-market leases.
HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
(dollars in thousands, except per share amounts)
For the three months ended March 31, |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Net income available to common stockholders |
| $ | 61,322 |
| $ | 26,071 |
| $ | 29,936 |
| $ | 24,142 |
| $ | 24,021 |
| ||||
Depreciation and amortization |
| 69,668 |
| 35,235 |
| 26,791 |
| 23,213 |
| 22,911 |
| |||||||||
Provisions for impairment on Realty Income |
| 456 |
| -- |
| 200 |
| 34 |
| -- |
| |||||||||
Gain on sales of investment properties |
| (38,559 | ) |
| (611 | ) |
| (129 | ) |
| (703 | ) |
| (198 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
FFO |
| 92,887 |
| 60,695 |
| 56,798 |
| 46,686 |
| 46,734 |
| |||||||||
Merger-related costs |
| 12,030 |
| -- |
| -- |
| -- |
| -- |
| |||||||||
Normalized FFO |
| $ | 104,917 |
| $ | 60,695 |
| $ | 56,798 |
| $ | 46,686 |
| $ | 46,734 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Normalized FFO per diluted share |
| $ | 0.61 |
| $ | 0.46 |
| $ | 0.48 |
| $ | 0.45 |
| $ | 0.45 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Normalized FFO |
| $ | 104,917 |
| $ | 60,695 |
| $ | 56,798 |
| $ | 46,686 |
| $ | 46,734 |
| ||||
Add (less) FFO contributed by Crest |
| (261 | ) |
| (161 | ) |
| (180 | ) |
| (206 | ) |
| 125 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Normalized FFO before Crest contribution |
| $ | 104,656 |
| $ | 60,534 |
| $ | 56,618 |
| $ | 46,480 |
| $ | 46,859 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Normalized FFO components, per diluted share(1): |
|
|
|
|
|
|
|
|
|
|
| |||||||||
FFO before Crest contribution |
| $ | 0.61 |
| $ | 0.46 |
| $ | 0.48 |
| $ | 0.45 |
| $ | 0.45 |
| ||||
Crest FFO contribution |
| $ | 0.00 |
| $ | 0.00 |
| $ | 0.00 |
| $ | 0.00 |
| $ | 0.00 |
| ||||
Normalized FFO |
| $ | 0.61 |
| $ | 0.46 |
| $ | 0.48 |
| $ | 0.45 |
| $ | 0.45 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
AFFO |
| $ | 103,956 |
| $ | 66,294 |
| $ | 58,239 |
| $ | 47,615 |
| $ | 47,675 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
AFFO per diluted share |
| $ | 0.60 |
| $ | 0.50 |
| $ | 0.49 |
| $ | 0.46 |
| $ | 0.46 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Cash dividends paid per share |
| $ | 0.514 |
| $ | 0.437 |
| $ | 0.433 |
| $ | 0.429 |
| $ | 0.425 |
| ||||
Weighted average diluted shares outstanding |
| 172,053,880 |
| 132,703,954 |
| 119,109,044 |
| 103,686,440 |
| 103,445,044 |
| |||||||||
(1) The above FFO per share amounts have been rounded to the nearest two decimals and, as such, the individual amounts may not add up to the “Total FFO” amount.
CONSOLIDATED BALANCE SHEETS
As of March 31, 2013 and December 31, 2012
(dollars in thousands)
|
| 2013 |
| 2012 |
| |||
|
| (unaudited) |
|
|
| |||
ASSETS |
|
|
|
|
| |||
Real estate, at cost: |
|
|
|
|
| |||
Land |
| $ | 2,453,696 |
| $ | 1,999,820 |
| |
Buildings and improvements |
| 6,185,550 |
| 3,920,865 |
| |||
Total real estate, at cost |
| 8,639,246 |
| 5,920,685 |
| |||
Less accumulated depreciation and amortization |
| (946,828 | ) |
| (897,767 | ) | ||
|
|
|
|
|
| |||
Net real estate held for investment |
| 7,692,418 |
| 5,022,918 |
| |||
Real estate held for sale, net |
| 10,499 |
| 19,219 |
| |||
Net real estate |
| 7,702,917 |
| 5,042,137 |
| |||
Cash and cash equivalents |
| 4,159 |
| 5,248 |
| |||
Accounts receivable, net |
| 24,594 |
| 21,659 |
| |||
Acquired lease intangible assets, net |
| 848,666 |
| 242,125 |
| |||
Goodwill |
| 15,975 |
| 16,945 |
| |||
Other assets, net |
| 167,292 |
| 115,249 |
| |||
|
|
|
|
|
| |||
Total assets |
| $ | 8,763,603 |
| $ | 5,443,363 |
| |
|
|
|
|
|
| |||
LIABILITIES AND EQUITY |
|
|
|
|
| |||
Distributions payable |
| $ | 39,113 |
| $ | 23,745 |
| |
Accounts payable and accrued expenses |
| 51,724 |
| 70,426 |
| |||
Acquired lease intangible liabilities, net |
| 103,141 |
| 26,471 |
| |||
Other liabilities, net |
| 27,496 |
| 26,059 |
| |||
Lines of credit payable |
| 116,600 |
| 158,000 |
| |||
Mortgages payable, net |
| 764,140 |
| 175,868 |
| |||
Term loan |
| 70,000 |
| -- |
| |||
Notes payable |
| 2,450,000 |
| 2,550,000 |
| |||
|
|
|
|
|
| |||
Total liabilities |
| 3,622,214 |
| 3,030,569 |
| |||
|
|
|
|
|
| |||
Stockholders’ equity: |
|
|
|
|
| |||
Preferred stock and paid in capital |
| 609,363 |
| 609,363 |
| |||
Common stock and paid in capital |
| 5,325,854 |
| 2,572,092 |
| |||
Distributions in excess of net income |
| (807,626 | ) |
| (768,661 | ) | ||
|
|
|
|
|
| |||
Total stockholders’ equity |
| 5,127,591 |
| 2,412,794 |
| |||
Non-controlling interests |
| 13,798 |
| -- |
| |||
|
|
|
|
|
| |||
Total equity |
| 5,141,389 |
| 2,412,794 |
| |||
|
|
|
|
|
| |||
Total liabilities and equity |
| $ | 8,763,603 |
| $ | 5,443,363 |
| |
Realty Income Performance vs. Major Stock Indices
|
|
|
|
|
| Equity |
| Dow Jones |
|
|
|
|
| NASDAQ |
| ||||||
|
| Realty Income |
| REIT Index(1) |
| Industrial Average |
| S&P 500 |
| Composite |
| ||||||||||
|
| Dividend |
| Total |
| Dividend |
| Total |
| Dividend |
| Total |
| Dividend |
| Total |
| Dividend |
| Total |
|
|
| Yield |
| Return(2) |
| Yield |
| Return(3) |
| Yield |
| Return(3) |
| Yield |
| Return(3) |
| Yield |
| Return(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/18 to 12/31/94 |
| 10.5% |
| 10.8% |
| 7.7% |
| 0.0% |
| 2.9% |
| (1.6% | ) | 2.9% |
| (1.2% | ) | 0.5% |
| (1.7% | ) |
1995 |
| 8.3% |
| 42.0% |
| 7.4% |
| 15.3% |
| 2.4% |
| 36.9% |
| 2.3% |
| 37.6% |
| 0.6% |
| 39.9% |
|
1996 |
| 7.9% |
| 15.4% |
| 6.1% |
| 35.3% |
| 2.2% |
| 28.9% |
| 2.0% |
| 23.0% |
| 0.2% |
| 22.7% |
|
1997 |
| 7.5% |
| 14.5% |
| 5.5% |
| 20.3% |
| 1.8% |
| 24.9% |
| 1.6% |
| 33.4% |
| 0.5% |
| 21.6% |
|
1998 |
| 8.2% |
| 5.5% |
| 7.5% |
| (17.5% | ) | 1.7% |
| 18.1% |
| 1.3% |
| 28.6% |
| 0.3% |
| 39.6% |
|
1999 |
| 10.5% |
| (8.7% | ) | 8.7% |
| (4.6% | ) | 1.3% |
| 27.2% |
| 1.1% |
| 21.0% |
| 0.2% |
| 85.6% |
|
2000 |
| 8.9% |
| 31.2% |
| 7.5% |
| 26.4% |
| 1.5% |
| (4.7% | ) | 1.2% |
| (9.1% | ) | 0.3% |
| (39.3% | ) |
2001 |
| 7.8% |
| 27.2% |
| 7.1% |
| 13.9% |
| 1.9% |
| (5.5% | ) | 1.4% |
| (11.9% | ) | 0.3% |
| (21.1% | ) |
2002 |
| 6.7% |
| 26.9% |
| 7.1% |
| 3.8% |
| 2.6% |
| (15.0% | ) | 1.9% |
| (22.1% | ) | 0.5% |
| (31.5% | ) |
2003 |
| 6.0% |
| 21.0% |
| 5.5% |
| 37.1% |
| 2.3% |
| 28.3% |
| 1.8% |
| 28.7% |
| 0.6% |
| 50.0% |
|
2004 |
| 5.2% |
| 32.7% |
| 4.7% |
| 31.6% |
| 2.2% |
| 5.6% |
| 1.8% |
| 10.9% |
| 0.6% |
| 8.6% |
|
2005 |
| 6.5% |
| (9.2% | ) | 4.6% |
| 12.2% |
| 2.6% |
| 1.7% |
| 1.9% |
| 4.9% |
| 0.9% |
| 1.4% |
|
2006 |
| 5.5% |
| 34.8% |
| 3.7% |
| 35.1% |
| 2.5% |
| 19.0% |
| 1.9% |
| 15.8% |
| 0.8% |
| 9.5% |
|
2007 |
| 6.1% |
| 3.2% |
| 4.9% |
| (15.7% | ) | 2.7% |
| 8.8% |
| 2.1% |
| 5.5% |
| 0.8% |
| 9.8% |
|
2008 |
| 7.3% |
| (8.2% | ) | 7.6% |
| (37.7% | ) | 3.6% |
| (31.8% | ) | 3.2% |
| (37.0% | ) | 1.3% |
| (40.5% | ) |
2009 |
| 6.6% |
| 19.3% |
| 3.7% |
| 28.0% |
| 2.6% |
| 22.6% |
| 2.0% |
| 26.5% |
| 1.0% |
| 43.9% |
|
2010 |
| 5.1% |
| 38.6% |
| 3.5% |
| 27.9% |
| 2.6% |
| 14.0% |
| 1.9% |
| 15.1% |
| 1.2% |
| 16.9% |
|
2011 |
| 5.0% |
| 7.3% |
| 3.8% |
| 8.3% |
| 2.8% |
| 8.3% |
| 2.3% |
| 2.1% |
| 1.3% |
| (1.8% | ) |
2012 |
| 4.5% |
| 20.1% |
| 3.5% |
| 19.7% |
| 3.0% |
| 10.2% |
| 2.5% |
| 16.0% |
| 2.6% |
| 15.9% |
|
YTD Q1 2013 |
| 4.8% |
| 14.1% |
| 3.3% |
| 8.1% |
| 2.3% |
| 12.0% |
| 2.0% |
| 10.6% |
| 1.1% |
| 8.2% |
|
Compounded |
|
|
| 18.0% |
|
|
| 11.3% |
|
|
| 9.9% |
|
|
| 8.8% |
|
|
| 8.2% |
|
Note: All of these dividend yields are calculated as annualized dividend based on last dividend paid in applicable time period divided by the closing price as of period end. Dividend yield sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream/Thomson Financial.
(1) FTSE NAREIT US Equity REIT Index, as per NAREIT website.
(2) Calculated as the difference between the closing stock price as of period end, less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price as of end of previous period. Does not include reinvestment of dividends.
(3) Includes reinvestment of dividends. Sources: NAREIT website and Factset.
(4) Price only index, does not include dividends. Source: Factset.
(5) All of these Compounded Average Annual Total Return rates are calculated in the same manner: from Realty Income’s NYSE listing on October 18, 1994 through March 31, 2013, and assuming reinvestment of dividends, except for NASDAQ. Past performance does not guarantee future performance. Realty Income presents this data for informational purposes only and makes no representation about its future performance or how it will compare in performance to other indices in the future.
Property Type Diversification
The following table sets forth certain property type information regarding Realty Income’s property portfolio as of March 31, 2013 (dollars in thousands):
|
|
| Approximate | Rental Revenue for | Percentage of | ||||
| Number of |
| Leasable | the Quarter Ended | Rental | ||||
Property Type | Properties |
| Square Feet | March 31, 2013(1) | Revenue | ||||
Retail | 3,390 |
|
| 33,083,200 |
| $ 134,874 |
| 79.1 | % |
Distribution | 64 |
|
| 14,892,900 |
| 18,140 |
| 10.6 |
|
Office | 34 |
|
| 2,040,700 |
| 7,834 |
| 4.6 |
|
Agriculture | 15 |
|
| 184,500 |
| 5,145 |
| 3.0 |
|
Manufacturing | 10 |
|
| 3,117,100 |
| 4,215 |
| 2.5 |
|
Industrial | 12 |
|
| 383,200 |
| 378 |
| 0.2 |
|
Totals | 3,525 |
|
| 53,701,600 |
| $ 170,586 |
| 100.0 | % |
(1) Includes rental revenue for all properties owned by Realty Income at March 31, 2013, including revenue from properties reclassified as discontinued operations of $303. Excludes revenue of $21 from properties owned by Crest.
Industry Diversification
The following table sets forth certain information regarding Realty Income’s property portfolio classified according to the business of the respective tenants, expressed as a percentage of our total rental revenue:
|
| Percentage of Rental Revenue(1) |
| |||||||||||||
|
| For the Quarter |
| For the Years Ended |
| |||||||||||
|
| Ended |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| |
Retail Industries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Apparel stores |
| 2.0% |
| 1.7% |
| 1.4% |
| 1.2% |
| 1.1% |
| 1.1% |
| 1.2% |
| |
Automotive collision services |
| 0.9 |
| 1.1 |
| 0.9 |
| 1.0 |
| 1.1 |
| 1.0 |
| 1.1 |
| |
Automotive parts |
| 1.1 |
| 1.0 |
| 1.2 |
| 1.4 |
| 1.5 |
| 1.6 |
| 2.1 |
| |
Automotive service |
| 2.3 |
| 3.1 |
| 3.7 |
| 4.7 |
| 4.8 |
| 4.8 |
| 5.2 |
| |
Automotive tire services |
| 4.0 |
| 4.7 |
| 5.6 |
| 6.4 |
| 6.9 |
| 6.7 |
| 7.3 |
| |
Book stores |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.2 |
| 0.2 |
| 0.2 |
| |
Business services |
| -- |
| * |
| * |
| * |
| * |
| * |
| 0.1 |
| |
Child care |
| 3.2 |
| 4.5 |
| 5.2 |
| 6.5 |
| 7.3 |
| 7.6 |
| 8.4 |
| |
Consumer electronics |
| 0.3 |
| 0.5 |
| 0.5 |
| 0.6 |
| 0.7 |
| 0.8 |
| 0.9 |
| |
Convenience stores |
| 12.0 |
| 16.3 |
| 18.5 |
| 17.1 |
| 16.9 |
| 15.8 |
| 14.0 |
| |
Crafts and novelties |
| 0.6 |
| 0.3 |
| 0.2 |
| 0.3 |
| 0.3 |
| 0.3 |
| 0.3 |
| |
Dollar stores |
| 5.6 |
| 2.2 |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Drug stores |
| 6.0 |
| 3.5 |
| 3.8 |
| 4.1 |
| 4.3 |
| 4.1 |
| 2.7 |
| |
Education |
| 0.5 |
| 0.7 |
| 0.7 |
| 0.8 |
| 0.9 |
| 0.8 |
| 0.8 |
| |
Entertainment |
| 0.7 |
| 0.9 |
| 1.0 |
| 1.2 |
| 1.3 |
| 1.2 |
| 1.4 |
| |
Equipment services |
| 0.1 |
| 0.1 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| |
Financial services |
| 1.4 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| |
General merchandise |
| 0.9 |
| 0.6 |
| 0.6 |
| 0.8 |
| 0.8 |
| 0.8 |
| 0.7 |
| |
Grocery stores |
| 3.2 |
| 3.7 |
| 1.6 |
| 0.9 |
| 0.7 |
| 0.7 |
| 0.7 |
| |
Health and fitness |
| 6.0 |
| 6.8 |
| 6.4 |
| 6.9 |
| 5.9 |
| 5.6 |
| 5.1 |
| |
Home furnishings |
| 0.9 |
| 1.0 |
| 1.1 |
| 1.3 |
| 1.3 |
| 2.4 |
| 2.6 |
| |
Home improvement |
| 1.3 |
| 1.5 |
| 1.7 |
| 2.0 |
| 2.2 |
| 2.1 |
| 2.4 |
| |
Jewelry |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Motor vehicle dealerships |
| 1.9 |
| 2.1 |
| 2.2 |
| 2.6 |
| 2.7 |
| 3.2 |
| 3.1 |
| |
Office supplies |
| 0.5 |
| 0.8 |
| 0.9 |
| 0.9 |
| 1.0 |
| 1.0 |
| 1.1 |
| |
Pet supplies and services |
| 0.4 |
| 0.6 |
| 0.7 |
| 0.9 |
| 0.9 |
| 0.8 |
| 0.9 |
| |
Restaurants - casual dining |
| 5.6 |
| 7.3 |
| 10.9 |
| 13.4 |
| 13.7 |
| 14.3 |
| 14.9 |
| |
Restaurants - quick service |
| 4.9 |
| 5.9 |
| 6.6 |
| 7.7 |
| 8.3 |
| 8.2 |
| 6.6 |
| |
Shoe stores |
| 0.1 |
| 0.1 |
| 0.2 |
| 0.1 |
| -- |
| -- |
| -- |
| |
Sporting goods |
| 1.8 |
| 2.5 |
| 2.7 |
| 2.7 |
| 2.6 |
| 2.3 |
| 2.6 |
| |
Theaters |
| 6.7 |
| 9.4 |
| 8.8 |
| 8.9 |
| 9.2 |
| 9.0 |
| 9.0 |
| |
Transportation services |
| 0.1 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| 0.2 |
| |
Video rental |
| -- |
| 0.0 |
| 0.0 |
| 0.2 |
| 1.0 |
| 1.1 |
| 1.7 |
| |
Wholesale clubs |
| 3.5 |
| 3.2 |
| 0.7 |
| -- |
| -- |
| -- |
| -- |
| |
Other |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| |
Retail Industries |
| 78.8% |
| 86.7% |
| 88.6% |
| 95.4% |
| 98.3% |
| 98.2% |
| 97.8% |
| |
Industry Diversification (continued)
|
| Percentage of Rental Revenue(1) |
| |||||||||||||
|
| For the Quarter |
| For the Years Ended |
| |||||||||||
|
| Ended |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| March 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| Dec 31, |
| |
|
| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
| |
Non-retail Industries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Aerospace |
| 0.9 |
| 0.9 |
| 0.5 |
| -- |
| -- |
| -- |
| -- |
| |
Beverages |
| 3.6 |
| 5.1 |
| 5.6 |
| 3.0 |
| -- |
| -- |
| -- |
| |
Consumer appliances |
| 0.6 |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Consumer goods |
| 1.0 |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Crafts and novelties |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Diversified industrial |
| 0.1 |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Equipment services |
| 0.3 |
| 0.3 |
| 0.2 |
| -- |
| -- |
| -- |
| -- |
| |
Financial services |
| 0.5 |
| 0.4 |
| 0.3 |
| -- |
| -- |
| -- |
| -- |
| |
Food processing |
| 1.6 |
| 1.3 |
| 0.7 |
| -- |
| -- |
| -- |
| -- |
| |
Government services |
| 1.3 |
| 0.1 |
| 0.1 |
| 0.1 |
| 0.1 |
| -- |
| -- |
| |
Health care |
| 1.8 |
| * |
| * |
| -- |
| -- |
| -- |
| -- |
| |
Home furnishings |
| 0.2 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Home improvement |
| 0.3 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Insurance |
| 0.1 |
| * |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Machinery |
| 0.2 |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Other manufacturing |
| 0.4 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Packaging |
| 1.0 |
| 0.7 |
| 0.4 |
| -- |
| -- |
| -- |
| -- |
| |
Paper |
| 0.2 |
| 0.1 |
| 0.1 |
| -- |
| -- |
| -- |
| -- |
| |
Pet supplies and services |
| 0.4 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Shoe stores |
| 0.8 |
| -- |
| -- |
| -- |
| -- |
| -- |
| -- |
| |
Telecommunications |
| 0.7 |
| 0.8 |
| 0.7 |
| -- |
| -- |
| -- |
| -- |
| |
Transportation services |
| 5.1 |
| 2.2 |
| 1.6 |
| -- |
| -- |
| -- |
| -- |
| |
Other |
| 0.0 |
| 1.0 |
| 1.2 |
| 1.5 |
| 1.6 |
| 1.8 |
| 2.2 |
| |
Non-retail Industries |
| 21.2% |
| 13.3% |
| 11.4% |
| 4.6% |
| 1.7% |
| 1.8% |
| 2.2% |
| |
Totals |
| 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 as discontinued operations. Excludes revenue from properties owned by Crest.
Tenant Diversification
The largest tenants based on percentage of total portfolio rental revenue at March 31, 2013 include the following:
Fed-Ex |
| 5.7% |
| Regal Cinemas |
| 2.4% |
L.A. Fitness |
| 4.5% |
| Dollar General |
| 2.0% |
Family Dollar |
| 3.5% |
| The Pantry |
| 2.0% |
AMC Theatres |
| 3.5% |
| Rite Aid |
| 1.9% |
Diageo |
| 3.3% |
| NPC International/Pizza Hut |
| 1.7% |
BJ’s Wholesale Clubs |
| 3.2% |
| CVS Pharmacy |
| 1.7% |
Walgreens |
| 2.9% |
| Smart & Final |
| 1.5% |
Northern Tier Energy/Super America |
| 2.8% |
|
|
|
|
Lease Expirations
The following table sets forth certain information regarding Realty Income’s property portfolio regarding the timing of the lease term expirations (excluding rights to extend a lease at the option of the tenant) on our 3,430 net leased, single-tenant properties as of March 31, 2013 (dollars in thousands):
|
| Total Portfolio |
|
| Initial Expirations(3) |
| Subsequent Expirations(4) |
| ||||||||||||||||
Year |
| Number |
| Approx. |
| Rental |
| % of |
|
| Number |
| Rental |
| % of |
| Number |
| Rental |
| % of |
| ||
2013 |
| 139 |
| 1,020,300 |
| $ 3,458 |
| 2.0% |
|
| 34 |
| $1,073 |
| 0. | 6% |
| 105 |
| $ 2,385 |
| 1.4 | % | |
2014 |
| 159 |
| 1,101,400 |
| 3,864 |
| 2.3 |
|
| 54 |
| 1,769 |
| 1. | 1 |
| 105 |
| 2,095 |
| 1.2 |
| |
2015 |
| 162 |
| 875,900 |
| 3,921 |
| 2.3 |
|
| 67 |
| 2,014 |
| 1. | 2 |
| 95 |
| 1,907 |
| 1.1 |
| |
2016 |
| 180 |
| 930,500 |
| 4,177 |
| 2.5 |
|
| 117 |
| 2,423 |
| 1. | 4 |
| 63 |
| 1,754 |
| 1.1 |
| |
2017 |
| 165 |
| 1,942,200 |
| 5,494 |
| 3.2 |
|
| 45 |
| 2,944 |
| 1. | 7 |
| 120 |
| 2,550 |
| 1.5 |
| |
2018 |
| 223 |
| 3,099,400 |
| 8,882 |
| 5.2 |
|
| 161 |
| 7,027 |
| 4. | 1 |
| 62 |
| 1,855 |
| 1.1 |
| |
2019 |
| 163 |
| 2,732,700 |
| 9,076 |
| 5.4 |
|
| 152 |
| 8,594 |
| 5. | 1 |
| 11 |
| 482 |
| 0.3 |
| |
2020 |
| 102 |
| 3,280,200 |
| 7,591 |
| 4.5 |
|
| 91 |
| 7,236 |
| 4. | 3 |
| 11 |
| 355 |
| 0.2 |
| |
2021 |
| 180 |
| 5,059,500 |
| 12,006 |
| 7.1 |
|
| 172 |
| 11,496 |
| 6. | 8 |
| 8 |
| 510 |
| 0.3 |
| |
2022 |
| 193 |
| 6,970,700 |
| 12,466 |
| 7.4 |
|
| 185 |
| 12,238 |
| 7. | 2 |
| 8 |
| 228 |
| 0.2 |
| |
2023 |
| 313 |
| 3,943,600 |
| 15,239 |
| 9.0 |
|
| 304 |
| 14,687 |
| 8. | 7 |
| 9 |
| 552 |
| 0.3 |
| |
2024 |
| 95 |
| 1,921,100 |
| 5,245 |
| 3.1 |
|
| 95 |
| 5,245 |
| 3. | 1 |
| -- |
| -- |
| 0.0 |
| |
2025 |
| 289 |
| 3,352,000 |
| 15,563 |
| 9.2 |
|
| 284 |
| 15,436 |
| 9. | 1 |
| 5 |
| 127 |
| 0.1 |
| |
2026 |
| 232 |
| 3,307,400 |
| 10,923 |
| 6.4 |
|
| 229 |
| 10,840 |
| 6. | 4 |
| 3 |
| 83 |
| * |
| |
2027 |
| 436 |
| 4,245,100 |
| 14,331 |
| 8.5 |
|
| 434 |
| 14,291 |
| 8. | 5 |
| 2 |
| 40 |
| * |
| |
2028-2043 |
| 399 |
| 8,611,600 |
| 37,006 |
| 21.9 |
|
| 392 |
| 36,860 |
| 21. | 8 |
| 7 |
| 146 |
| 0.1 |
| |
Totals |
| 3,430 |
| 52,393,600 |
| $169,242 |
| 100.0% |
|
| 2,816 |
| $154,173 |
| 91. | 1% |
| 614 |
| $ 15,069 |
| 8.9 | % | |
* Less than 0.1%
(1) Excludes 14 multi-tenant properties and 81 vacant unleased properties, two of which are multi-tenant properties. The lease expirations for properties under construction are based on the estimated date of completion of those properties.
(2) Includes rental revenue of $303 from properties reclassified as discontinued operations and excludes revenue of $1,344 from 14 multi-tenant properties and from 81 vacant and unleased properties at March 31, 2013. Excludes revenue of $21 from four properties owned by Crest.
(3) Represents leases to the initial tenant of the property that are expiring for the first time.
(4) Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-tenanted.
Geographic Diversification
The following table sets forth certain state-by-state information regarding Realty Income’s property portfolio as of March 31, 2013 (dollars in thousands):
State |
| Number of |
| Percent |
| Approximate |
| Rental Revenue for |
| Percentage of |
Alabama |
| 87 |
| 97% |
| 659,000 |
| $ 2,414 |
| 1.4% |
Alaska |
| 2 |
| 100 |
| 128,500 |
| 307 |
| 0.2 |
Arizona |
| 101 |
| 97 |
| 1,080,100 |
| 4,578 |
| 2.7 |
Arkansas |
| 29 |
| 93 |
| 540,100 |
| 910 |
| 0.5 |
California |
| 149 |
| 100 |
| 4,005,600 |
| 18,828 |
| 11.0 |
Colorado |
| 66 |
| 97 |
| 594,200 |
| 2,317 |
| 1.4 |
Connecticut |
| 24 |
| 100 |
| 468,000 |
| 2,071 |
| 1.2 |
Delaware |
| 16 |
| 100 |
| 29,500 |
| 392 |
| 0.2 |
Florida |
| 234 |
| 98 |
| 2,457,600 |
| 10,002 |
| 5.9 |
Georgia |
| 177 |
| 95 |
| 2,346,300 |
| 6,810 |
| 4.0 |
Hawaii |
| -- |
| -- |
| -- |
| -- |
| -- |
Idaho |
| 14 |
| 93 |
| 97,500 |
| 425 |
| 0.3 |
Illinois |
| 131 |
| 100 |
| 3,379,700 |
| 8,576 |
| 5.0 |
Indiana |
| 91 |
| 98 |
| 909,200 |
| 4,133 |
| 2.4 |
Iowa |
| 35 |
| 91 |
| 2,680,100 |
| 2,918 |
| 1.7 |
Kansas |
| 75 |
| 97 |
| 1,549,500 |
| 2,853 |
| 1.7 |
Kentucky |
| 37 |
| 97 |
| 603,300 |
| 2,271 |
| 1.3 |
Louisiana |
| 65 |
| 100 |
| 620,600 |
| 2,083 |
| 1.2 |
Maine |
| 5 |
| 100 |
| 67,800 |
| 336 |
| 0.2 |
Maryland |
| 32 |
| 100 |
| 1,113,500 |
| 3,464 |
| 2.0 |
Massachusetts |
| 81 |
| 94 |
| 690,700 |
| 2,829 |
| 1.7 |
Michigan |
| 96 |
| 100 |
| 861,300 |
| 2,595 |
| 1.5 |
Minnesota |
| 156 |
| 100 |
| 1,141,900 |
| 7,129 |
| 4.2 |
Mississippi |
| 83 |
| 94 |
| 834,800 |
| 2,176 |
| 1.3 |
Missouri |
| 108 |
| 99 |
| 1,727,100 |
| 5,786 |
| 3.4 |
Montana |
| 2 |
| 50 |
| 30,000 |
| 49 |
| * |
Nebraska |
| 26 |
| 100 |
| 381,800 |
| 1,109 |
| 0.7 |
Nevada |
| 18 |
| 100 |
| 366,300 |
| 1,184 |
| 0.7 |
New Hampshire |
| 18 |
| 100 |
| 280,300 |
| 1,125 |
| 0.7 |
New Jersey |
| 63 |
| 97 |
| 403,900 |
| 2,438 |
| 1.4 |
New Mexico |
| 21 |
| 100 |
| 166,800 |
| 497 |
| 0.3 |
New York |
| 78 |
| 99 |
| 1,947,600 |
| 8,745 |
| 5.1 |
North Carolina |
| 113 |
| 96 |
| 1,013,000 |
| 3,997 |
| 2.3 |
North Dakota |
| 7 |
| 100 |
| 66,000 |
| 103 |
| 0.1 |
Ohio |
| 180 |
| 97 |
| 4,449,000 |
| 8,783 |
| 5.2 |
Oklahoma |
| 65 |
| 98 |
| 1,041,900 |
| 2,169 |
| 1.3 |
Oregon |
| 24 |
| 100 |
| 455,200 |
| 1,346 |
| 0.8 |
Pennsylvania |
| 146 |
| 99 |
| 1,671,800 |
| 6,391 |
| 3.7 |
Rhode Island |
| 3 |
| 100 |
| 11,000 |
| 37 |
| * |
South Carolina |
| 118 |
| 97 |
| 710,000 |
| 3,655 |
| 2.1 |
South Dakota |
| 11 |
| 100 |
| 133,500 |
| 243 |
| 0.1 |
Tennessee |
| 146 |
| 97 |
| 1,662,200 |
| 4,158 |
| 2.4 |
Texas |
| 366 |
| 98 |
| 5,209,400 |
| 16,925 |
| 9.9 |
Utah |
| 11 |
| 100 |
| 737,900 |
| 1,021 |
| 0.6 |
Vermont |
| 5 |
| 100 |
| 78,200 |
| 357 |
| 0.2 |
Virginia |
| 121 |
| 97 |
| 2,480,900 |
| 6,120 |
| 3.6 |
Washington |
| 36 |
| 97 |
| 372,100 |
| 1,193 |
| 0.7 |
West Virginia |
| 11 |
| 100 |
| 252,000 |
| 713 |
| 0.4 |
Wisconsin |
| 35 |
| 94 |
| 1,145,500 |
| 1,796 |
| 1.1 |
Wyoming |
| 3 |
| 100 |
| 21,100 |
| 64 |
| 0.1 |
Puerto Rico |
| 4 |
| 100 |
| 28,300 |
| 165 |
| 0.1 |
Totals/Average |
| 3,525 |
| 98% |
| 53,701,600 |
| $ 170,586 |
| 100.0% |
* Less than 0.1%
(1)Includes rental revenue for all properties owned by Realty Income at March 31, 2013, including revenue from properties reclassified as discontinued operations of $303. Excludes revenue of $21 from properties owned by Crest.