Realty Income Corporation · NYSE:O
Realty Income — Q1 2025 Earnings Presentation
24 slides from Realty Income's earnings presentation, May 5, 2025
Slide 1: Quarterly Investor Presentation
Quarterly Investor Presentation REAL ESTATE PARTNER TO THE WORLD’S LEADING COMPANIES® May 2025
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 is the Global Leader in a Fragmented Net Lease Sector
Realty Income is the Global Leader in a Fragmented Net Lease Sector SIZE, SCALE AND QUALITY GROWING GLOBAL PRESENCE 7th largest ~$80B ~$5.05B A3 /A- global REIT(2) enterprise annualized credit ratings by with properties value base rent Moody’s & S&P in 8 countries and approximately 56 15,627 ~34% $5
Slide 4: Track Record of Attractive Total Return Through Consistent Earnings and Dividend Growth
Track Record of Attractive Total Return Through Consistent Earnings and Dividend Growth PROVEN TRACK STABILITY AND GROWTH RECORD OF RETURNS OF EARNINGS 13.6% 0.5 29 of 29 5.5% Compound Annual Beta vs. S&P 500 Years of Positive Median Annual Total Return Since Since 1994 NYSE Total Operational AFFO P
Slide 5: 1Q Results & 2025 Outlook
1Q Results & 2025 Outlook 5
Slide 6: First Quarter Results Reflect Strength, Consistency & Resilience
First Quarter Results Reflect Strength, Consistency & Resilience Performance in the First Quarter Underscores Ability to Deliver Reliable Performance Amid Uncertainty • Invested $1.4 billion at an initial weighted average cash yield of 7.5%, including $893 million deployed in Europe at an initial we
Slide 7: 2025 Guidance
2025 Guidance 2025 Guidance(1) Reference: Prior Guidance(2) NET INCOME PER SHARE(3) $1.40 to $1.46 $1.52 to $1.58 REAL ESTATE DEPRECIATION PER SHARE $2.70 $2.68 OTHER ADJUSTMENTS PER SHARE(4) $0.12 $0.02 AFFO PER SHARE(5) $4.22 to $4.28 $4.22 to $4.28 SAME STORE RENT GROWTH Approximately 1.0% Approx
Slide 8: Stable Growth in a Variety of Interest Rate Environments
Stable Growth in a Variety of Interest Rate Environments On average, Realty Income has generated ~5% AFFO growth and ~11% total operational return(1) in a variety of interest rate environments since publicly listing in 1994 10-YR TREASURY YIELD Average 10-yr Treasury Yield 2009 - 2022: 2.3% Average
Slide 9: Operations
Operations 9
Slide 10: Diversified & High-Quality Portfolio
Diversified & High-Quality Portfolio INDUSTRY DIVERSIFICATION – TOP 10 INDUSTRIES % of Annualized Base Rent(1) Grocery 10.3% CLIENT DIVERSIFICATION – TOP 20 CLIENTS Convenience Stores % of Total Annualized Base Rent(1)(2) 9.9% Denotes IG- Rated Client(3) Dollar Stores 6.3% Home Improvement 6.3% 7-El
Slide 11: Demonstrated Stability Across Market Cycles, Driven by Size, Scale & Diversification
Demonstrated Stability Across Market Cycles, Driven by Size, Scale & Diversification Minimal historical credit loss underpinned by high-quality & diverse portfolio with deep platform expertise PROPERTY FUNGIBILITY ANNUALIZED BASE RENT(1) Focus on high-quality real estate in good locations enhances o
Slide 12: Historically Stable Cash Flows Supported by High-Quality Real Estate Portfolio
Historically Stable Cash Flows Supported by High-Quality Real Estate Portfolio CONSISTENCY BY DESIGN: Careful underwriting at acquisition Strategy of owning “mission critical” locations Long initial lease term Diversified client industries with strong fundamentals Strong underlying real estate quali
Slide 13: Proven Track Record of Value-Add Asset and Portfolio Management
Proven Track Record of Value-Add Asset and Portfolio Management Lease Expiration Schedule(1) Provides Visibility into Future Cash Flows MAXIMIZING REAL ESTATE VALUE: Weighted average lease 43.2% Strategic management of rollovers term of 9.1 years Proactively addressing portfolio “watch list” Resolve
Slide 14: Investments
Investments 14
Slide 15: Scalable, Accretive, and Diversifying: The Power of Net Lease Breadth
Scalable, Accretive, and Diversifying: The Power of Net Lease Breadth Proven Execution of New Initiatives Has Enhanced Margins, Reduced Risk, and Bolstered Growth Current Size by Vertical(1) Stable EBITDA margin Includes $4.8B of reflects consistent Retail Multi-Tenant fundamentals as the platform N
Slide 16: Realty Income's External Growth Opportunities Are Broad and Diverse
Realty Income’s External Growth Opportunities International opportunities have added nearly 30% to Realty Income’s sourcing volume since 2019 are Broad and Diverse SOURCED VOLUME $95 in $ billions $85 INTERNATIONAL UNITED STATES $64 $57 $59 $39 $43 $32 $28 $30 $32 $24 $23 $13 $17 $6 2010 2011 2012 2
Slide 17: Investment Strategy Illustration: Returns Must Exceed Long-Term WACC
Investment Strategy Illustration: Returns Must Exceed Long-Term WACC WACC viewpoint balances near-term earnings per share growth with long-term value accretion LONG-TERM KEY ASSUMPTIONS & CALCULATION: KEY ASSUMPTIONS & CALCULATION: Weighted Average Cost of Capital LONG-TERM COST OF EQUITY LONG-TERM
Slide 18: Diversifying Capital Sources to Capture Abundant Opportunities
Diversifying Capital Sources to Capture Abundant Opportunities Figures shown for 2020 to 2024: ~$335B Sourced Volume EXPANDING CAPITAL SOURCES ~9% • From 2020 to 2024, we sourced approximately $335B of potential investment opportunities, selectively of sourced volume acquired acquiring ~$31B • Our a
Slide 19: Balance Sheet
Balance Sheet 19
Slide 20: Strong Balance Sheet – One of Ten S&P REITs with Two A3/A- Ratings or Better
Strong Balance Sheet – One of Ten S&P 500 REITs with Two A3/A- Ratings or Better Commercial Paper CURRENT DEBT MATURITY PROFILE(1) EUR Denominated Notes in millions GBP Denominated Notes Term Loan $4,769 Revolver Mortgages Unsecured Notes $3,063 Pro-Rata UJV Debt $2,863 $2,807 $2,501 $2,395 $2,269 $
Slide 21: Significant Liquidity and Low Borrowing Costs Support Enhanced Financial Flexibility
Significant Liquidity and Low Borrowing Costs Support Enhanced Financial Flexibility $3,133 $1,855 in millions Liquidity(1)(2) Debt obligations through 2025(3) As of April 29, 2025, our credit facility was recast and expanded to an aggregate $5.38B in multi-currency Revolver Excess (1) unsecured fac
Slide 22: Appendix
Appendix 22
Slide 23: Adjusted Funds From Operations (AFFO)
Adjusted Funds From Operations (AFFO) (in thousands, except per share data) (1) See Normalized FFO calculations on page 9 for reconciling items. (2) Includes the amortization of the purchase price allocated to interest rate swaps acquired in the Spirit Realty Capital, Inc. merger. (3) Credit losses
Slide 24: Adjusted EBITDAre
Adjusted EBITDAre (dollars in thousands) (unaudited) Adjusted EBITDAre, Annualized Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized Pro Forma Adjusted EBITDAre, Net Debt/Annualized Adjusted EBITDAre, Net Debt/Annualized Pro Forma Adjusted EBITDAre, Net Debt and Preferred Stock/ Annualized