Realty Income Corporation · NYSE:O
Realty Income — Investor Presentation (November 2024)
16 slides from Realty Income's investor presentation, November 2024
Slide 1: Private Capital
Private Capital REAL ESTATE PARTNER TO THE WORLD’S LEADING COMPANIES November 2024
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: Private Capital A Natural Evolution
Leverages Realty Income’s core strengths, including expertise in 1 net sourcing, underwriting, and value-maximizing a vast portfolio of lease real estate Private Capital 2 Cultivates an additive source of attractive, consistently priced equity in private markets ten times larger than public markets(
Slide 4: Private Capital Fund Parameters
Private Capital Fund Parameters Realty Income plans to: • Operate an infinite life, open-ended fund • Focus on net lease properties in the U.S. • Target institutional investors • Maintain a meaningful co-investment in the fund • Reduce seed portfolio ownership interest over time through third-party
Slide 5: Leverages Realty Income’s Core Strengths
Leverages Realty Income’s 1 Core Strengths 5
Slide 6: Leveraging Realty Income’s Core Strengths
Leveraging Realty Income’s Core Strengths Sourcing Investing Managing • Realty Income has sourced • 55-year track record • Core competency in $600+ billion in investment underwriting corporate credit maintaining and maximizing opportunities since 2010 and real estate the value of a vast portfolio •
Slide 7: Operational Efficiency Highlights Economies of Scale
Operational Efficiency Highlights Economies of Scale Scaled platform with over 450 employees(1) enables expansion into private capital at limited incremental cost Realty Income G&A as a Realty Income Gross Real Estate Realty Income G&A asPercentage a Percentage of of Rental Revenue(2) Realty Income
Slide 8: Cultivates Deep Alternative Equity Source
Cultivates Deep 2 Alternative Equity Source 8
Slide 9: Vast Capital Allocated to U.S. Private Real Estate
Vast Capital Allocated to U.S. Private Real Estate $1.9T Public REIT Ownership $18.8T U.S. Private Real Estate $20.7T U.S. Commercial Real Estate Market(1) Realty Income’s fund initiative creates an opportunity to access a deep pool of alternative equity, with private sources currently representing
Slide 10: Access to Alternative Equity
Access to Alternative Equity Private capital expected to compliment Realty HISTORICAL HistoricalEQUITY Equity BETAS Betas (1) Income's leading access to REIT public capital 1.1x Realty Income • O’s stock price beta is generally lower than the broader Public REIT Median 0.9x public REIT universe • Ho
Slide 11: Widens Investment Aperture
3 Widens Investment Aperture 11
Slide 12: Enhanced Access to Capital to Address Ample Investment Opportunities
Enhanced Access to Capital to Address Ample Investment Opportunities $1.5 Trillion $2.0 Trillion Freestanding Industrial Retail(1) $0.4 Trillion $0.3 Trillion Data Center Gaming(3) Development(4) $1.1 Trillion Consumer Centric $0.1 Trillion Existing $5.4 Trillion Medical(2) Data Centers Total Addres
Slide 13: Enhanced Unit-Level Investment Economics
Enhanced Unit-Level Investment Economics ILLUSTRATIVE EXAMPLE: ENHANCED RETURNS FOR REALTY INCOME THROUGH FUND INVESTMENTS “STANDALONE” ASSUMPTIONS +260 bps 12.8% Cap rate: 7.5% Investment Spread LTV: 35% 10.1% 8.8% REIT Ownership: 100% 7.5% With every dollar of Fees to Realty Income: 0 STANDALONE F
Slide 14: Generates Value through Investment Management
Generates Value through 4 Investment Management 14
Slide 15: Value Creation: Investment Managers Garner Premium Multiples
Value Creation: Investment Managers Garner Premium Multiples Consensus Enterprise Value to EBITDA(1) Asset Managers trade 24.3x at premium multiples Asset Manager Consensus EBITDA multiples are eight turns greater than 16.3x the public REIT average 15.3x Realty Income’s expansion into investment man
Slide 16: Realty Income: The Monthly Dividend Company
REALTY (INCOME The Monthly Dividend Company”
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