Realty Income Corporation · NYSE:O
Realty Income — Q2 2025 Earnings Presentation
50 slides from Realty Income's earnings presentation, Aug 6, 2025
Slide 1: Supplemental Operating & Financial Data Q2 2025
Supplemental Operating & Financial Data An S&P 500 Dividend Aristocrats® index member Q2 2025 Exhibit 99.2
Slide 2: Forward-Looking Statements
Q2 2025 Supplemental Operating & Financial Data 2 Forward-Looking Statements June 30, 2025 FORWARD-LOOKING STATEMENTS This Supplemental Operating & Financial Data presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A
Slide 3: Table of Contents
5 Table of Contents Highlights 4 Corporate Overview 6 Highlights 12 Summary Financial Information Financial Summary 14 Consolidated Statements of Income 15 Funds From Operations (FFO) and Normalized Funds From Operations (Normalized FFO) 16 Adjusted Funds From Operations (AFFO) 18 Consolidated Balan
Slide 4: Corporate Overview
Q2 2025 Supplemental Operating & Financial Data 4 Corporate Overview CORPORATE PROFILE Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the world's leading companies®. Founded in 1969, we serve our clients as a full- service real estate capital provider. As of June 30, 2025, we
Slide 5: Corporate Overview
Q2 2025 Supplemental Operating & Financial Data 5 98.6%(4) occupancy Corporate Overview As of June 30, 2025 (1) Based on Annualized Base Rent. 2.4% of Annualized Base Rent is from other property types. Annualized Base Rent is a supplemental operating measure. Please see the Glossary for our definiti
Slide 6: Highlights: Financial Overview
Q2 2025 Supplemental Operating & Financial Data 6 Highlights Financial Overview (in USD) Net Income per Share (Diluted) $0.29 $0.30 $0.23 $0.28 $0.22 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Debt and Preferred Stock to Annualized Pro Forma Adjusted EBITDAre 5.3x 5.4x 5.4x 5.4x 5.5x Q2 2024 Q3 202
Slide 7: Highlights: Portfolio Overview
Q2 2025 Supplemental Operating & Financial Data 7 Highlights (Continued) Portfolio Overview (USD in thousands) Number of Properties 11,136 12,237 13,458 15,621 15,606 Domestic International Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q2 2025 Occupancy (by number of properties) 98.5% 99.0% 98.6% 98.7% 98.6% Q4 2
Slide 8: Highlights: Operational Metrics
Q2 2025 Supplemental Operating & Financial Data 8 Highlights (Continued) Operational Metrics Adjusted EBITDA Margin (Adjusted EBITDA as % of total revenue) 93.6% 94.3% 95.1% 94.9% 94.9% 2021 2022 2023 2024 YTD 2025 Cash G&A Margin (Cash G&A as % of total revenue) 4.1% 3.7% 3.1% 2.9% 3.0% 2021 2022 2
Slide 9: Highlights: Company Metrics
Q2 2025 Supplemental Operating & Financial Data 9 Highlights (Continued) Company Metrics (in USD) Annualized Dividends Declared Per Share $2.958 $2.982 $3.078 $3.168 $3.228 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q2 2025 Annualized Dividend Yield 4.1% 4.7% 5.4% 5.9% 5.6% Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q2 2
Slide 10: Highlights: Capital Deployment – Investment Activity
Q2 2025 Supplemental Operating & Financial Data 10 Highlights (Continued) Capital Deployment – Investment Activity (USD in millions) Real Estate Acquisitions $6,168 $8,187 $7,184 $2,475 $1,897 Domestic International 2021 2022 2023 2024 YTD 2025 Development Investments $243 $808 $1,497 $757 $224 Dome
Slide 11: Highlights: Initial Weighted Average Cash Yields
Q2 2025 Supplemental Operating & Financial Data 11 Highlights (Continued) Capital Deployment – Initial Weighted Average Cash Yields(1) Other Investments —% —% 8.7% 8.9% 8.8% 2021 2022 2023 2024 YTD 2025 Real Estate Acquisitions 5.5% 6.0% 7.0% 7.0% 7.0% 2021 2022 2023 2024 YTD 2025 Development Invest
Slide 12: Summary Financial Information
Q2 2025 Supplemental Operating & Financial Data 12 Summary Financial Information (USD in millions) Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Capital Deployment Investment Activi
Slide 13: Summary Financial Information (Continued)
Q2 2025 Supplemental Operating & Financial Data 13 Summary Financial Information (Continued) (USD in millions) As of June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Portfolio Highlights Number of proper
Slide 14: Consolidated Statements of Income
Q2 2025 Supplemental Operating & Financial Data 14 Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 ($) ($) ($) ($) REVENUE Rental (including reimbursements) 1,338,188 1,284,728 2,651,245 2,492,897 Other 72,190 54,715 139,638 107,031 Total revenue 1,410,378 1,339,443 2,790,8
Slide 15: Funds From Operations and Normalized FFO
Q2 2025 Supplemental Operating & Financial Data 15 The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and Normalized FFO. Also presented is information regarding distributions paid to common stockholders and
Slide 16: Adjusted Funds From Operations (AFFO)
Q2 2025 Supplemental Operating & Financial Data 16 The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to Normalized FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and
Slide 17: AFFO (Continued)
Q2 2025 Supplemental Operating & Financial Data 17 (1) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition of this term and an explanation of how we utilize this metric. (2) Refer to the reconciling items for Normalized FFO presented on the "FFO and Normalized FFO" page.
Slide 18: Consolidated Balance Sheets
Q2 2025 Supplemental Operating & Financial Data 18 June 30, 2025 December 31, 2024 ($) ($) ASSETS Real estate held for investment, at cost: Land 18,047,444 17,320,520 Buildings and improvements 42,694,467 40,974,535 Total real estate held for investment, at cost 60,741,911 58,295,055 Less accumulate
Slide 19: Capitalization & Financial Ratios
Q2 2025 Supplemental Operating & Financial Data 19 Capitalization & Financial Ratios as of June 30, 2025 (USD and shares in thousands, except per share data) Debt Consolidated Principal ($) Total at Pro-Rata Share(1) ($) Senior Unsecured Notes and Bonds 25,198,035 25,198,035 Unsecured Term Loans 1,9
Slide 20: Debt Summary
Q2 2025 Supplemental Operating & Financial Data 20 Debt Summary as of June 30, 2025 (USD in thousands) Pro-Rata Share(1) Maturity Dates Consolidated Debt Principal ($) Total Debt Principal ($) End of Period Interest Rate(2) (%) Weighted Average Years To Maturity Senior Unsecured Notes and Bonds 49 s
Slide 21: Debt Summary by Currency
Q2 2025 Supplemental Operating & Financial Data 21 Debt Summary by Currency as of June 30, 2025 (USD in millions) Pro-Rata Share(1) Currency Revolvers and Commercial Paper ($) Unsecured Term Loans ($) Mortgages Payable ($) Senior Unsecured Notes and Bonds ($) Proportionate Share of Joint Venture Deb
Slide 22: Debt Maturities
Q2 2025 Supplemental Operating & Financial Data 22 Debt Maturities as of June 30, 2025 (USD in millions) Pro-Rata Share(1) Consolidated Fixed Rate Debt Consolidated Variable Rate Debt Proportionate Share of Joint Venture Fixed Rate Debt(1) End of Period Interest Rate(2) Year Principal Due Unsecured
Slide 23: Adjusted EBITDAre & Coverage Ratios
Q2 2025 Supplemental Operating & Financial Data 23 Adjusted EBITDAre & Coverage Ratios (USD in thousands) (unaudited) Three months ended June 30, 2025 Net income $ 199,011 Interest 283,824 Income taxes 24,065 Depreciation and amortization 647,849 Provisions for impairment 143,363 Merger, transaction
Slide 24: Debt Covenants
Q2 2025 Supplemental Operating & Financial Data 24 Required Actuals In Compliance Limitation on incurrence of total debt ≤ 60% of adjusted assets 42.0% ✓ Limitation on incurrence of secured debt ≤ 40% of adjusted assets 0.2% ✓ Debt service and fixed charge coverage (trailing 12 months)(1) ≥ 1.5x 4.5
Slide 25: Investment Summary
Q2 2025 Supplemental Operating & Financial Data 25 Number of Properties Investment ($) Cash Income(1) ($) Leasable Square Feet (in thousands) Initial Weighted Average Cash Yield(2) (%) Weighted Average Term (Years) Acquisitions Q2 2025 U.S. real estate 24 221.6 15.4 741 7.0 20.9 Europe real estate 1
Slide 26: Disposition Summary
Q2 2025 Supplemental Operating & Financial Data 26 Number of Properties Net Book Value ($) Net Sales Proceeds ($) Net Cash Capitalization Rate(1) (2) (%) Q2 2025 Occupied 9 14,302 16,586 9.2 Vacant 64 63,973 100,255 Total real estate dispositions 73 78,275 116,841 YTD 2025 Occupied 15 40,137 45,742
Slide 27: Development Activity
Q2 2025 Supplemental Operating & Financial Data 27 Development Activity (USD in thousands) Retail Q2 2025 Investment(1) Q2 2025 Placed in Service YTD 2025 Investment(1) YTD 2025 Placed in Service Ending CIP(2) as of 6/30/2025 Forecasted Remaining Investment Total Commitment New development(3) $ 43,2
Slide 28: Client Diversification
Q2 2025 Supplemental Operating & Financial Data 28 Ranking Client Number of Leases Percentage of Annualized Base Rent(1) (%) Investment Grade Ratings (S&P/ Moody's/Fitch) 1 7-Eleven 825 3.4 A/Baa2/- 2 Dollar General 1,762 3.2 BBB/Baa3/- 3 Walgreens 400 3.2 — 4 Dollar Tree / Family Dollar 1,362 2.9 B
Slide 29: Investment Grade Clients
Q2 2025 Supplemental Operating & Financial Data 29 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Number of Investment Grade Leases 6,464 6,499 6,355 6,384 6,914 Percentage of Annualized Base Rent from Investment Grade Clients(1)(2) 33.9 % 34.3 % 32.4 % 32.1 % 36.0 %
Slide 30: Top 20 Industries
Q2 2025 Supplemental Operating & Financial Data 30 As of June 30, 2025 December 31, 2024 (%) (%) Grocery 10.7 10.1 Convenience Stores 9.8 10.2 Home Improvement 6.4 6.0 Dollar Stores 6.2 6.4 Restaurants-Quick Service 4.9 4.9 Drug Stores 4.6 4.7 Health and Fitness 4.4 4.3 Automotive Service 4.3 4.5 Re
Slide 31: Geographic Diversification
Q2 2025 Supplemental Operating & Financial Data 31 Geographic Diversification(1) As of June 30, 2025 (1) Based on Annualized Base Rent ("ABR"). Please see the Glossary for our definition of Annualized Base Rent. PRESENCE IN ALL 50 U.S. STATES, THE U.K., AND SEVEN OTHER COUNTRIES IN EUROPE MIDWEST 4,
Slide 32: Property Type Composition
Q2 2025 Supplemental Operating & Financial Data 32 Property Type Number of Properties Leasable Square Feet(1) Annualized Base Rent as of June 30, 2025(2) ($) Percentage of Annualized Base Rent as of June 30, 2025(2) (%) Percentage of Annualized Base Rent from Investment Grade Clients(3) (%) Retail 1
Slide 33: Same Store Rental Revenue
Q2 2025 Supplemental Operating & Financial Data 33 Q2 2025 Same Store Rental Revenue Number of properties 14,622 Q2 2025 $ 1,166,683 Q2 2024 $ 1,154,028 $ change $ 12,655 % change 1.1 % YTD 2025 Same Store Rental Revenue Number of properties 14,622 YTD 2025 $ 2,333,674 YTD 2024 $ 2,305,213 $ change
Slide 34: Same Store Rental Revenue Reconciliation
Q2 2025 Supplemental Operating & Financial Data 34 Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 ($) ($) ($) ($) Rental revenue (including reimbursements) 1,338,188 1,284,728 2,651,245 2,492,897 Constant currency adjustment(3) 6,758 14,995 33,702 28,063 Straight-line rent
Slide 35: Leasing Activity
Q2 2025 Supplemental Operating & Financial Data 35 Q2 2025 Re-leased to Same Client Re-leased to New Client Re-leasing Totals Prior cash rents $ 88,418 $ 5,215 $ 93,633 New cash rents* $ 89,586 $ 7,250 $ 96,836 Recapture rate 101.3 % 139.0 % 103.4 % Number of leases 323 23 346 Average months vacant
Slide 36: Lease Expirations
Q2 2025 Supplemental Operating & Financial Data 36 (1) This table sets forth the timing of remaining lease term expirations in our portfolio (excluding rights to extend a lease at the option of the client) and their contributions to Annualized Base Rent as of June 30, 2025. Leases on our multi-clien
Slide 37: Earnings Guidance
Q2 2025 Supplemental Operating & Financial Data 37 Earnings Guidance Revised 2025 Guidance Prior 2025 Guidance(1) YTD Actuals at June 30, 2025 Net income per share(2) $1.29 - $1.33 $1.40 - $1.46 $0.50 Real estate depreciation per share $2.72 $2.70 $1.40 Other adjustments per share(3) $0.23 $0.12 $0.
Slide 38: Analyst Coverage
Q2 2025 Supplemental Operating & Financial Data 38 Baird Wes Golladay wgolladay@rwbaird.com (216) 737-7510 Bank of America Securities Jana Galan jana.galan@bofa.com (646) 855-5042 BMO Capital Markets Eric Borden eric.borden@bmo.com (347) 213-9706 BNP Paribas Exane Nate Crossett nate.crossett@exanebn
Slide 39: Glossary
Q2 2025 Supplemental Operating & Financial Data 39 Adjusted EBITDAre. The National Association of Real Estate Investment Trusts (Nareit) established an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) it believed would provide investors with a consistent measure to
Slide 40: Glossary (Continued)
Q2 2025 Supplemental Operating & Financial Data 40 Cash Income represents expected rent for real estate acquisitions as well as rent to be received upon completion of the properties under development. For unconsolidated entities, this represents our pro rata share of the cash income. For loans recei
Slide 41: Glossary (Continued)
Q2 2025 Supplemental Operating & Financial Data 41 Normalized Funds from Operations Available to Common Stockholders (Normalized FFO), a non-GAAP financial measure, is FFO excluding merger, transaction, and other costs, net. Pro-Rata Share represents our proportionate economic ownership of our joint
Slide 42: Appendix
Q2 2025 Supplemental Operating & Financial Data 42 Appendix (USD in thousands) (unaudited) Table of Contents ↪ Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 ($) ($) ($) ($) ($) Net income 199,011 251,462 201,350 271,124 260,968 Interest 283,824 26
Slide 43: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 43 Appendix (Continued) (USD and shares in thousands, except per share amounts) (unaudited) Table of Contents ↪ RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO DILUTED AFFO(1) AND DILUTED AFFO PER SHARE Three months ended June 30, 2025
Slide 44: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 44 Appendix (Continued)* (USD and shares in thousands, except per share amounts) (unaudited) Table of Contents ↪ Years ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020 ($) ($) ($) ($) ($) Net income availa
Slide 45: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 45 Table of Contents ↪ Appendix (Continued) (USD and shares in thousands, except per share amounts) (unaudited) (1) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition of this term and an explanation of how we utilize this
Slide 46: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 46 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Six months ended Years ended June 30, 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 ($) ($) ($) ($) ($) Net income 450,473 867,341 876,914 872,416
Slide 47: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 47 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 ($) ($) ($) ($) ($) Net income 199,011 251,462 201,350 271,124 260,968 Interes
Slide 48: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 48 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 ($) ($) ($) ($) Net income 133,899 219,762 233,877 197,153 Interest 240,614 208,313 184,121
Slide 49: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 49 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Six months ended Years ended June 30, 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 ($) ($) ($) ($) ($) General and administrative 93,373 176,895
Slide 50: Appendix (Continued)
Q2 2025 Supplemental Operating & Financial Data 50 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ RECONCILIATION OF PROPERTY EXPENSES (NON-REIMBURSEMENTS)(% OF TOTAL REVENUE)(1) (1) Total revenue excluding client reimbursements. Three months ended June 30, 2025 March 31, 202