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SAN DIEGO, Nov. 4, 2019 /PRNewswire/ -- Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the third quarter and nine months ended September 30, 2019. 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 September 30, 2019:
CEO Comments
"Our operating and financial performance continues to drive favorable results," said Sumit Roy, Realty Income's President and Chief Executive Officer. "We invested approximately $412 million during the quarter which, combined with the previously announced portfolio acquisition from CMFT, brings us to over $3.0 billion of acquisitions announced year-to-date."
"Our balance sheet is well-positioned to capitalize on continued activity in our investment pipeline. We raised approximately $572 million of equity during the third quarter primarily through our ATM program, ending the quarter with full availability on our $3.0 billion revolving credit facility, $236 million of cash on hand, and a net debt-to-EBITDA ratio of 5.0x."
Select Financial Results
The following summarizes our select financial results (dollars in millions, except per share data):
Dividend IncreasesIn September 2019, Realty Income announced the 88th consecutive quarterly dividend increase, which is the 103rd increase in the amount of the dividend since the company's listing on the New York Stock Exchange (NYSE) in 1994. The annualized dividend amount as of September 30, 2019 was $2.724 per share. The amount of monthly dividends paid per share increased 3.0% to $0.680 in the third quarter of 2019, as compared to $0.660 for the same quarter of 2018. During the third quarter of 2019, the company distributed $216.2 million in common dividends to shareholders, representing 81.5% of its AFFO of $265.4 million.
Real Estate Portfolio Update
As of September 30, 2019, Realty Income's portfolio consisted of 5,964 freestanding, primarily single-tenant properties located in 49 U.S. states, Puerto Rico and the United Kingdom, leased to 274 different commercial tenants, and doing business in 49 industries. The properties are leased under long-term, net lease agreements with a weighted average remaining lease term of 9.3 years. The company's portfolio of commercial real estate, owned primarily under long-term net leases, continues to perform well and provides dependable rental revenue supporting the payment of monthly dividends. As of September 30, 2019, portfolio occupancy was 98.3% with 102 properties available for lease out of the 5,964, as compared to 98.3% as of June 30, 2019 and 98.8% as of September 30, 2018.
Changes in Occupancy
Investments in Real EstateThe following table summarizes our acquisitions in the U.S. and U.K. for the periods indicated below:
Rent IncreasesThe following summarizes our same store rents on 4,836 properties under lease (dollars in millions):
Property DispositionsThe following summarizes our property dispositions (dollars in millions):
Liquidity and Capital Markets
Capital RaisingDuring the quarter ended September 30, 2019, Realty Income raised $572.4 million from the sale of common stock at a weighted average price of $74.41 per share.
Credit FacilityRealty Income has an unsecured credit facility, which is comprised of a $3.0 billion revolving credit facility, with an initial term that expires in March 2023 (subject to two six-month options to extend), and a $250.0 million term loan due March 2024. The revolving credit facility also has a $1.0 billion expansion feature. In August 2019, the credit facility was amended to allow for borrowings under the revolving credit facility in up to 14 currencies, including U.S. Dollars. Other terms of the credit agreement, including maturity dates of the revolver and term loans, LIBOR spreads and participating banks, are unchanged by the amendment. As of September 30, 2019, we had no outstanding borrowings under our revolving credit facility.
2019 Earnings Guidance
We estimate AFFO per share for 2019 of $3.29 to $3.34. AFFO adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of Realty Income's ongoing operating performance.
We estimate FFO per share for 2019 of $3.26 to $3.31. FFO per share for 2019 is based on a net income per share range of $1.32 to $1.37, plus estimated real estate depreciation and impairments of $2.00 per share, and reduced by potential estimated gains on sales of investment properties of $0.06 per share (in accordance with NAREIT's definition of FFO).
Additional earnings guidance detail can be found in Realty Income's supplemental materials available on Realty Income's corporate website at www.realtyincome.com/investors/financial-information/quarterly-results.
Conference Call Information
In conjunction with the release of Realty Income's operating results, the company will host a conference call on November 5, 2019 at 11:30 a.m. PT to discuss the results. To access the conference, dial (877) 701-6180. When prompted, provide the conference ID 4192518.
A telephone replay of the conference call can also be accessed by calling (800) 585-8367 and entering the passcode 4192518. The telephone replay will be available through November 19, 2019. A live webcast will be available in listen-only mode by clicking on the webcast link on the company's home page or in the investors section at www.realtyincome.com.
A replay of the conference call webcast will be available approximately two hours after the conclusion of the live broadcast. The webcast replay will be available through November 19, 2019. No access code is required for this replay.
Supplemental Materials
Supplemental materials on third quarter and year-to-date 2019 operating results are available on Realty Income's corporate website at www.realtyincome.com/investors/financial-information/quarterly-results.
About Realty Income
Realty Income, The Monthly Dividend Company®, is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,900 real estate properties owned under long-term lease agreements with commercial tenants. To date, the company has declared 592 consecutive common stock monthly dividends throughout its 50-year operating history and increased the dividend 103 times since Realty Income's public listing in 1994 (NYSE: O). Additional information about the company can be obtained from the corporate website at www.realtyincome.com.
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 and foreign 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, changes in foreign currency exchange rates, property acquisitions and the timing of these acquisitions, charges for property impairments, 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.
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SOURCE Realty Income Corporation
