Realty Income Corporation · NYSE:O
Realty Income — Investor Presentation (2024)
34 slides from Realty Income's investor presentation, 2024
Slide 1: Real Estate Partner to The World's Leading Companies
Real Estate Partner to The World’s Leading Companies
Slide 2: Safe Harbor For Forward-Looking Statements
Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. When used in th
Slide 3: Realty Income Investment Thesis
Realty Income Investment Thesis Growth • Company Overview………..………………………….. 4 Positive total operational return in • Growth……………………………………………………... 13 29 of 29 years as a • Income…………………………………………………..…. 19 public company • Stability……………………………………………………. 22 • Why Now?...................................
Slide 4: Company Overview
Company Overview -=
Slide 5: Realty Income's Value Proposition
Realty Income’s Value Proposition Proven Performance, Increasing Dividends, Fortified Stability and Thoughtful Growth Since 1994 NYSE Listing Track Record Consistent Favorable Credit Positioned for of Returns Dividends Ratings Continued Growth 14.1% 4.3% A3 / Stable ~$14 Trillion Compound Annual Tot
Slide 6: Proven Returns Underpinned by the Stability of Real Estate
Proven Returns Underpinned by the Stability of Real Estate Realty Income total shareholder return of 5,021% since 1996 An $8,000 investment in 1,000 shares of Realty Income common stock at the time of the company’s 1994 NYSE listing has produced: • $30,765 of dividend payments, 35% of total capital
Slide 7: Who We Are
Who We Are What is a triple net lease? Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the world's leading companies. Founded in 1969, we invest in diversified • Client is responsible for certain property expenses commercial real estate and have a portfolio of over 15,450 prop
Slide 8: What We Offer
What We Offer Consistent Returns with Limited Downside Volatility Comparative Medians: TOP S&P DOW JONES CONSUMER (as of September 30, 2024) S&P 500 DIVIDEND INDUSTRIAL STAPLE ARISTOCRATS FIRMS(6) TOTAL OPERATIONAL RETURN 8% 9% 8% 7% 7% (2014-2023 CAGR) (1) DOWNSIDE VOLATILITY 0% 19% 15% 19% 19% (TO
Slide 9: The Power of Single-Tenant Net Lease Real Estate
The Power of Single-Tenant Net Lease Real Estate Typical Attributes of Real Estate Subsectors (1) Vacant units Vacancies can Vacant units Client pays Client is Lease can be sold be re-leased to can property taxes responsible for contracts lack individually variety of uses immediately be and all prop
Slide 10: Evolution of the Realty Income Business Model
Evolution of the Realty Income Business Model Realty Income’s expansion into new verticals has significantly increased the size of our total addressable market Realty Income’s diversified TAM portfolio aims to maximize rate Expanding Total $13.9tn of return for the specified level of risk Addressabl
Slide 11: Total Operational Return Stability: Proven Performance Across Economic Cycles
Total Operational Return Stability: Proven Performance Across Economic Cycles Produced positive Total Operational Return each year since listing in 1994 ~6% Historical Avg. ~5% Historical Avg. AFFO ~11% Historical Avg. Total Dividend Yield per Share CAGR Operational Return(2) Delivered consistent pe
Slide 12: Attractive Risk/Reward vs. S&P
Attractive Risk/Reward vs. S&P 500 S&P 500 Members: Total Operational Return vs. Downside Volatility (2014-2023)(1)(2) Return CAGR(3): 8.1% 30% Downside Volatility: 0.0% Realty Income has delivered attractive returns with no TOTAL OPERATIONAL RETURN CAGR SINCE 2014 20% downside volatility over the p
Slide 13: Growth
Consistent Mid-Single Digit Earnings Growth Earnings growth, comprised of both external sources and internal cash flow growth, is an important component of Realty Income’s total operational return to stockholders Growth 13
Slide 14: Highly Selective Investment Strategy
Highly Selective Investment Strategy From Over a Decade of Sourcing (2010-2024)(1): $614bn Sourced Volume 8% of Sourced Volume has been Acquired $49bn Investment Volume (1) Total sourced and investment volume calculated from 2010 through 3Q 2024. Growth 14
Slide 15: Refined Investment Criteria Across Verticals
Refined Investment Criteria Across Verticals Realty Income’s investment criteria can be applied across industries, property types and geographies Property Client • Long-term lease • Leading operator with embedded growth in respective industry • Attractive, high-quality • Non-discretionary, low Strat
Slide 16: Earnings Growth Has Accelerated with Size and Scale
Earnings Growth Has Accelerated with Size and Scale Average AFFO Per Share Growth 6.3% Growth supported by new geographies and new verticals(1) 4.5% 2023 Total Investments $9.5bn 1996-2012 2013-2023 2012 Total Investments Average $1.2bn Enterprise Value: ~$3bn ~$32bn International Industrial US Indu
Slide 17: Platform Creates Opportunities to Execute Large Transactions
Platform Creates Opportunities to Execute Large Transactions Six Why Unique RealtyTransactions Income Totaling over $6 Billion in 2023 illustrates Realty Income’s: (1) • Deep sourcing expertise across a broad scope of property types, industries, and geographies provides a competitive advantage to gr
Slide 18: Portfolio Strength Offers Dependable Cash Flow
Portfolio Strength Offers Dependable Cash Flow High-quality clients, properties, and geographies support consistent and dependable rent growth within existing portfolio 2.8% Annual Same Store Rent Growth(1) 1.8% 1.9% 1.5% 1.6% 1.4% 1.3% 1.4% 1.3% 1.1% 1.2% Average 1.0% 0.9% 1.0% 0.8% 0.7% 0.6% 0.4%
Slide 19: Income
Attractive Income Potential As “The Monthly Dividend Company®,” consistent and steady dividend increases remain at the forefront of Realty Income’s business model Income 19
Slide 20: Dividend Growth
Dividend Growth Strong dividend track record: 30 consecutive years of rising dividends Current Annualized Dividend per Share(2) $3.162 652 108 monthly dividends consecutive quarterly declared increases +4.3% Compound Annual Dividend S&P 500 Dividend Growth Rate(2) Aristocrats® Index Member(1) (1) Th
Slide 21: The Power of Dividends
The Power of Dividends $17,536 $7,977 $27,536 A $10,000 investment made in Realty Income 10 years ago has resulted in: gained since original value in 2024 investment A 96% increase in the value of the original investment $19,559 80% of the original investment paid back as dividend income $10,000 $17
Slide 22: Proven Stability Underpinned by Key Differentiators
Proven Stability Underpinned by Key Differentiators 01 Stability Portfolio Diversification Diversification across geography, client mix, industry, and property type helps insulate Realty Income’s portfolio from idiosyncratic risks 02 Underwriting Discipline Realty Income focuses on high quality prop
Slide 23: Fortified Portfolio with Purposeful Geographic Diversity
Fortified Portfolio with Purposeful Geographic Diversity Realty Income’s portfolio of more than 15,450 properties is highly diversified across all 50 U.S. states, the U.K., and six other countries in Europe Midwest Geographic diversity mitigates risks associated with 4,007 localized consumer trends,
Slide 24: Portfolio is Unconstrained by Property Type & Industry
Portfolio is Unconstrained by Property Type & Industry Property Type(1) Industry(1) Focus on non-discretionary, low price point, service-oriented Retail is at the foundation of the portfolio, with room for new net lease structure growth verticals Grocery 10.4% Convenience 9.4% Retail 79.4% Dollar st
Slide 25: Partnering with the World's Leading Companies
Partnering with the World’s Leading Companies Realty Income’s portfolio of clients are leaders in their industries, spanning categories such as grocery, drug stores, convenience, and gaming Top 15 Clients by Percentage of Total Portfolio Annualized Contractual Rent(1) 3.3% 3.3% 3.1% 2.5% A diverse p
Slide 26: Diversified Real Estate Portfolio Supports Cash Flow Stability
Diversified Real Estate Portfolio Supports Cash Flow Stability Historical Bad Debt as a Percentage of Total Revenue(1) 3.1% Portfolio quality evident in through-cycle performance: ~90% 37bps (including 2020’s COVID impact) of total rent is resilient to economic downturns 23bps (excluding 2020’s COVI
Slide 27: Size & Scale Offers Financing Breadth, Depth, and Diversification
Size & Scale Offers Financing Breadth, Depth, and Diversification Gross Real Estate Asset Value(1) Adjusted EBITDA Margin Gross RE Value 94.9% ($bn, log scale) $100bn 82.5% $58 Billion 1994 2000 2006 2012 2018 2024 YTD S&P / Moody’s Credit Rating Progression(2) Realty Income’s single-A credit rating
Slide 28: Strong Balance Sheet and Single-A Credit Ratings Afford Financial Flexibility
Strong Balance Sheet and Single-A Credit Favorable Credit Ratings Long-term Unsecured Debt Rating Ratings Afford Financial Flexibility A3 / Stable A- / Stable Well-staggered maturity profile and diversity of debt capital sources bolsters financial resilience Current Debt Maturity Profile(1) (in mill
Slide 29: Why Now?
Why Now? 29
Slide 30: Attractive Risk-Adjusted Return Opportunity
Attractive Risk-Adjusted Return Opportunity Total Operational Return vs. S&P 500 Index Median(1) 10.5% 10.4% 10-Year Current Historical Differential: Differential: ~60bps 9.8%(2) ~150bps 9.0% For 2024, Realty Income’s total operational return differential vs. the S&P 500 median is ~90bps favorable t
Slide 31: Investment Proposition
Investment Proposition Why Realty Why Realty Income Income Growth: 29 of 29 years of positive total operational return since public listing in 1994 S&P 500 Dividend Aristocrat with 29 Income: consecutive years of dividend increases Proven and consistent results in a Stability: variety of economic en
Slide 32: Appendix
Appendix 32
Slide 33: 2023: Six Unique Transactions Totalling $6 Billion
2023: Six Unique Transactions Totalling $6 Billion EG Group CIM Group Bellagio • High-quality convenience stores in the • 185 single-tenant retail and industrial • Las Vegas Strip’s iconic property and an northeast properties AAA 5-Diamond Resort • Acquired 415 property portfolio • Aggregate 4.6 mil
Slide 34: Committed to Advancing Sustainability Strategy
Committed to Advancing Sustainability Strategy As real estate partner to the world’s leading companies, Realty Income’s thoughtful collaborations with clients and strategic partners allow the company to adopt sustainable practices across the value chain to contribute to a more equitable, inclusive,