Realty Income Corporation · NYSE:O
Realty Income — Q3 2016 Earnings Presentation
26 slides from Realty Income's earnings presentation, Oct 26, 2016
Slide 1: Q3 2016 Supplemental Operating & Financial Data – Table of Contents
Corporate Overview 3 Financial Summary Consolidated Statements Of Income 4 Funds From Operations (FFO) 5 Adjusted Funds From Operations (AFFO) 6 Consolidated Balance Sheets 7 Debt Summary 8 Debt Maturities 9 Capitalization & Financial Ratios 10 EBITDA & Coverage Ratios 11 Debt Covenants 12 Transacti
Slide 2: Corporate Overview
Senior Management John P. Case, Chief Executive Officer Sumit Roy, President and Chief Operating Officer Paul M. Meurer, Executive VP, Chief Financial Officer and Treasurer Michael R. Pfeiffer, Executive VP, General Counsel and Secretary Neil M. Abraham, Executive VP, Chief Investment Officer Credit
Slide 3: Consolidated Statements Of Income
Consolidated Statements Of Income (dollars in thousands, except per share amounts) 4 Q3 2016 Supplemental Operating & Financial Data (unaudited) (unaudited) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 REVENUE Rental $ 265,332 $ 247,578 $ 782,189 $ 724,131 Ten
Slide 4: Funds From Operations (FFO)
Funds From Operations (FFO) (dollars in thousands, except per share amounts) 5 Q3 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO. Also presented is information
Slide 5: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) (dollars in thousands, except per share amounts) 6 Q3 2016 Supplemental Operating & Financial Data The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and AFFO. Also prese
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets (dollars in thousands , except per share amounts) 7 Q3 2016 Supplemental Operating & Financial Data September 30, 2016 December 31, 2015 ASSETS (unaudited) Real estate, at cost: Land $ 3,527,734 $ 3,286,004 Buildings and improvements 9,624,689 9,010,778 Total real estate,
Slide 7: Debt Summary
Debt Summary (dollars in thousands) 8 Q3 2016 Supplemental Operating & Financial Data Principal Interest Weighted Balance as of Rate as of Average Years Maturity Date September 30, 2016 % of Debt September 30, 2016 until Maturity Credit Facility Credit Facility (1) June 30, 2019 $ 1,082,000 20.5% 1.
Slide 8: Debt Maturities
Debt Maturities (dollars in millions) 9 Q3 2016 Supplemental Operating & Financial Data Debt Maturities Year of Credit Term Senior Unsecured Mortgages Weighted Average Maturity Facility Loan Notes and Bonds Payable Total Interest Rate (1) 2016 $ - $ - $ - $ 36.3 $ 36.3 5.71% 2017 - - 175.0 109.4 284
Slide 9: Capitalization & Financial Ratios
Capital Structure as of September 30, 2016 Capitalization & Financial Ratios (dollars in thousands , except per share amounts) 10 Q3 2016 Supplemental Operating & Financial Data Liquidity as of September 30, 2016 Cash on Hand $ 29,801 Availability under Credit Facility (3) 918,000 $ 947,801 (3) As o
Slide 10: EBITDA & Coverage Ratios
Debt Service Coverage (2) Fixed Charge Coverage (3) EBITDA & Coverage Ratios (dollars in thousands) 11 Q3 2016 Supplemental Operating & Financial Data Reconciliation of Net Income to EBITDA (1) Three months ended September 30, 2016 Net income $ 77,202 Interest 52,952 Income taxes 894 Depreciation an
Slide 11: Debt Covenants
Debt Covenants 12 Q3 2016 Supplemental Operating & Financial Data As of September 30, 2016 The following is a summary of the key financial covenants for our senior unsecured notes and bonds, as defined and calculated per their terms. These calculations, which are not based on U.S. GAAP measurements,
Slide 12: Investment Summary
First Quarter 2016 Number of Properties Investment Cash Rents Leasable Square Feet Cash Capitalization Rate (1) Weighted Average Lease Term (Years) New Property Acquisitions (2) 80 $ 300,523 $ 19,708 877,997 6.6% 16.3 Properties under Development (3) 23 52,118 3,547 853,273 6.8% 13.1 Total Real Esta
Slide 13: Disposition Summary
First Quarter 2016 Number of Properties Original Investment Net Book Value Net Proceeds Cash Capitalization Rate (1) Occupied 2 $ 3,455 $ 2,535 $ 3,377 6.9% Vacant 9 12,511 6,148 7,661 - Total Real Estate Dispositions 11 $ 15,966 $ 8,683 $ 11,038 The unlevered internal rate of return on properties s
Slide 14: Top Tenants
Top 20 Tenants Our 20 largest tenants based on percentage of total portfolio annualized rental revenue at September 30, 2016 include the following: Investment Grade Tenants (2) : Number of Properties 1,780 Percentage of Annualized Rents 45% Percentage of Leases with Rental Increases, Based on Revenu
Slide 15: Industry Diversification
* Less than 0.1% Industry Diversification 17 Q3 2016 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations. Percentage of Rental Revenue (1) For the Q
Slide 16: Industry Diversification (Cont'd)
Industry Diversification (Cont’d) 18 Q3 2016 Supplemental Operating & Financial Data * Less than 0.1% (1) Includes rental revenue for all properties owned at the end of each period presented, including revenue from properties reclassified as discontinued operations. Percentage of Rental Revenue (1)
Slide 17: Geographic Diversification
* Less than 0.1% (1) Includes rental revenue for all properties owned at September 30, 2016. Excludes rental revenue of $266 from sold properties. EXPIRATIONS (dollars in thousands) Geographic Diversification (dollars in thousands) 19 Q3 2016 Supplemental Operating & Financial Data Approximate Renta
Slide 18: Property Type Composition
Property Type Composition (dollars in thousands) 20 Q3 2016 Supplemental Operating & Financial Data (1) Includes rental revenue for all properties owned at September 30, 2016. Excludes rental revenue of $266 from sold properties. (2) Refer to footnote 2 on page 16 for our definition of investment gr
Slide 19: Third Quarter 2016 Same Store Rental Revenue
Top 3 Industries Contributing to the Change Quarter ended Quarter ended Net % Change Industry September 30, 2016 September 30, 2015 Change by Industry Convenience Stores $ 22,757 $ 22,256 $ 501 2.3 % Theaters 12,286 11,866 420 3.5 % Health and Fitness 14,879 14,705 174 1.2 % Third Quarter 2016 Same
Slide 20: Same Store Rental Revenue (Cont'd)
Same Store Rental Revenue (Cont’d)(dollars in thousands) 22 Q3 2016 Supplemental Operating & Financial Data Same Store Rental Revenue by Property Type Third Quarter 2016 Quarter ended Quarter ended Net % Change by Contribution by Property Type September 30, 2016 September 30, 2015 Change Property Ty
Slide 21: Occupancy
By Property Occupied Properties 4,621 Total Properties 4,703 Occupancy 98.3% By Square Footage Occupied Square Footage 79,501,636 Total Square Footage 80,570,546 Occupancy 98.7% By Rental Revenue (Economic Occupancy) Quarterly Rental Revenue $ 261,738,190 Quarterly Vacant Rental Revenue $ 3,297,388
Slide 22: Leasing Activity
Allocation Based on Number of Leases Leasing Activity (dollars in thousands) 24 Q3 2016 Supplemental Operating & Financial Data Re-leased to New Tenant Q3 2016 Re-leased to Without After a Period Re-leasing Totals Same Tenant Vacancy of Vacancy Prior Cash Rents $ 3,907 $ 1,986 $ 848 $ 6,741 New Cash
Slide 23: Expirations
25 * Less than 0.1% (1) This table sets forth the timing of remaining lease term expirations on our 4,600 net leased, single-tenant properties as of September 30, 2016 and their contribution to rental revenue for the quarter ended September 30, 2016. Excludes 22 multi-tenant properties and 82 vacant
Slide 24: Earnings Guidance
26 We estimate FFO per share for 2016 of $2.83 to $2.88. We estimate AFFO per share for 2016 of $2.87 to $2.89, an increase of 4.7% to 5.5% over 2015 AFFO per share of $2.74. Summarized below are approximate estimates of the key components of the company’s 2016 earnings guidance: Earnings Guidance Q
Slide 25: Analyst Coverage
27 Q3 2016 Supplemental Operating & Financial Data Realty Income Corporation is covered by the analysts at the firms listed above. This list may not be complete and is subject to change. Please note that any opinions, estimates or forecasts regarding Realty Income Corporation's performance made by t
Slide 26: Analyst Coverage
Analyst Coverage copia com DA Dados Emad Sones (oloman Sac ney Mentgomar Seat 18. Mergan Laderbig Thalmann Msi UF Secre (USA) Miao Secrtes USA ne. Morgue Sate, Mornings Oppenberer Fayond ames ‘Sei wets 50 fuMtigan ‘eho Jseoh Jetey Pe Seen Huang ‘Simon Yara Pip Deeice Savon Bete ‘oddstender@esfroacom