Realty Income Corporation · NYSE:O
Realty Income — Q4 2024 Earnings Presentation
31 slides from Realty Income's earnings presentation, Feb 24, 2025
Slide 1: Supplemental Operating & Financial Data Q4 2024
SUPPLEMENTAL OPERATING & FINANCIAL DATA Q4 2024 An S&P 500 company S&P 500 Dividend Aristocrats® index member Exhibit 99.2
Slide 2: Table of Contents
Q4 2024 Supplemental Operating & Financial Data 2 Table of Contents Corporate Overview 3 Financial Summary Consolidated Statements of Income 4 Funds From Operations (FFO) and Normalized Funds From Operations (Normalized FFO) 5 Adjusted Funds From Operations (AFFO) 6 Consolidated Balance Sheets 7 Deb
Slide 3: Corporate Overview
Q4 2024 Supplemental Operating & Financial Data 3 One Team Senior Management Neil M. Abraham, EVP, Chief Strategy Officer, Realty Income International - President Michelle Bushore, EVP, Chief Legal Officer, General Counsel and Secretary Mark E. Hagan, EVP, Chief Investment Officer Shannon Kehle, EVP
Slide 4: Consolidated Statements of Income
Q4 2024 Supplemental Operating & Financial Data 4 Three months ended December 31, Years ended December 31, 2024 2023 2024 2023 REVENUE Rental (including reimbursable) (1) $ 1,279,698 $ 1,028,710 $ 5,043,748 $ 3,958,150 Other 60,601 47,575 227,394 120,843 Total revenue 1,340,299 1,076,285 5,271,142 4
Slide 5: FFO and Normalized FFO
Q4 2024 Supplemental Operating & Financial Data 5 FFO and Normalized FFO (1) (in thousands, except per share amounts) (unaudited) 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 pr
Slide 6: Adjusted Funds From Operations (AFFO)
Q4 2024 Supplemental Operating & Financial Data 6 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 7: Consolidated Balance Sheets
Q4 2024 Supplemental Operating & Financial Data 7 Consolidated Balance Sheets (in thousands, except per share amounts) (unaudited) December 31, 2024 December 31, 2023 ASSETS Real estate held for investment, at cost: Land $ 17,320,520 $ 14,929,310 Buildings and improvements 40,974,535 34,657,094 Tota
Slide 8: Debt Summary
Q4 2024 Supplemental Operating & Financial Data 8 Debt Summary as of December 31, 2024 (dollars in thousands) Maturity Dates Carrying Value (USD) % of Debt Interest Rate (1) Weighted Average Years Until Maturity Credit Facility and Commercial Paper (2) Credit Facility June 2026 $ 1,062,906 4.0 % 4.4
Slide 9: Debt Maturities
Q4 2024 Supplemental Operating & Financial Data 9 Debt Maturities as of December 31, 2024 (dollars in millions) Principal Due Credit Facility and Commercial Paper (1) Unsecured Term Loans Mortgages Payable Senior Unsecured Notes and Bonds Proportionate Share of Unconsolidated Entities Debt Total Wei
Slide 10: Debt Summary by Currency
Q4 2024 Supplemental Operating & Financial Data 10 Debt Summary by Currency as of December 31, 2024 (dollars in millions) Credit Facility and Commercial Paper Unsecured Term Loans Mortgages Payable Senior Unsecured Notes and Bonds Proportionate Share of Unconsolidated Entities Debt Total Weighted Av
Slide 11: Capitalization & Financial Ratios
Q4 2024 Supplemental Operating & Financial Data 11 Capitalization & Financial Ratios (dollars in thousands, except as otherwise noted) Cash and Cash Equivalents $ 444,962 Availability under Credit Facility 3,187,094 Unsettled ATM Forwards 91,826 Less: Commercial Paper Borrowings (67,295) $ 3,656,587
Slide 12: Adjusted EBITDAre & Coverage Ratios
Q4 2024 Supplemental Operating & Financial Data 12 Adjusted EBITDAre & Coverage Ratios (dollars in thousands) (unaudited) Reconciliation of Net Income to Adjusted EBITDAre and Pro Forma Adjusted EBITDAre (1) Three months ended December 31, 2024 Net income $ 201,350 Interest 268,149 Income taxes 20,1
Slide 13: Debt Covenants
Q4 2024 Supplemental Operating & Financial Data 13 Debt Covenants 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, are presented to investo
Slide 14: Investment Summary
Q4 2024 Supplemental Operating & Financial Data 14 Investment Summary Number of Properties Investment ($ in millions) Cash Income ($ in millions) (1) Leasable Square Feet (in thousands) Initial Weighted Average Cash Yield (2) Weighted Average Term (Years) Q4 2024 Acquisitions - U.S. real estate 200
Slide 15: Disposition Summary
Q4 2024 Supplemental Operating & Financial Data 15 Disposition Summary (dollars in thousands) Number of Properties (1) Net Book Value (1) Net Sales Proceeds (1) Net Cash Capitalization Rate (2) Q4 2024 Occupied 24 $ 74,619 $ 87,936 7.3 % Vacant 56 38,481 50,149 Total real estate dispositions 80 $ 11
Slide 16: Development Activity
Q4 2024 Supplemental Operating & Financial Data 16 Development Activity (1) (dollars in thousands) Retail Number of Properties Investment to Date Estimated Remaining Investment Total Commitment Percent Funded Percent Leased (2) New development (3) 46 $ 132,312 $ 177,844 $ 310,156 (4) 43 % 100 % Deve
Slide 17: Our Top Clients / Client Diversification
Q4 2024 Supplemental Operating & Financial Data 17 Our Top 20 Clients Our 20 largest clients based on percentage of total annualized contractual rent, which does not give effect to deferred rent or interest earned on loans and preferred equity investments, at December 31, 2024, include the following
Slide 18: Top 10 Industries
Q4 2024 Supplemental Operating & Financial Data 18 (1)Top 10 Industries Percentage of Total Portfolio Annualized Contractual Rent As of Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2022 2021 2020 Convenience Stores 10.2% 10.2% 8.6% 9.1% 11.9% Grocery 10.1 11.4 10.0 10.2 9.8 Dollar Stores 6.4 7.
Slide 19: Industry Diversification
Q4 2024 Supplemental Operating & Financial Data 19 Percentage of Total Portfolio Annualized Contractual Rent As of Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2022 2021 2020 United States Aerospace 0.3% 0.3% 0.4% 0.4% 0.6% Apparel stores 1.6 1.4 1.4 1.5 1.3 Automotive collision services 1.2 1.
Slide 20: Industry Diversification (continued)
Q4 2024 Supplemental Operating & Financial Data 20 Percentage of Total Portfolio Annualized Contractual Rent As of Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, 2024 2023 2022 2021 2020 Motor vehicle dealerships 1.7 1.6 1.4 1.3 1.6 Other manufacturing 0.8 0.5 0.5 0.5 0.4 Packaging 0.7 0.6 0.5 0.6 0.9 Pet
Slide 21: Geographic Diversification
Q4 2024 Supplemental Operating & Financial Data 21 Geographic Diversification Balanced presence in all 50 U.S. states, the U.K., and six other countries in Europe Top Ten Regions Based on Total Portfolio Annualized Contractual Rent United Kingdom 11.7% Texas 10.2% Florida 5.4% California 5.0% Illino
Slide 22: Property Type Composition
Q4 2024 Supplemental Operating & Financial Data 22 Property Type Composition (dollars in thousands) Property Type Number of Properties Approximate Leasable Square Feet (1) Total Portfolio Annualized Contractual Rent as of December 31, 2024 Percentage of Total Portfolio Annualized Contractual Rent as
Slide 23: Same Store Rental Revenue
Q4 2024 Supplemental Operating & Financial Data 23 Q4 2024 Same Store Rental Revenue Number of properties 13,397 Square footage (2) 268,823,947 Q4 2024 $ 992,785 Q4 2023 $ 985,238 Change (in dollars) $ 7,547 Change (percent) 0.8 % YTD 2024 Same Store Rental Revenue Number of properties 11,479 Square
Slide 24: Same Store Rental Revenue (Cont'd)
Q4 2024 Supplemental Operating & Financial Data 24 Same Store Rental Revenue (1) (Cont'd) (dollars in thousands) Three months ended December 31, Years ended December 31, Property Type 2024 2023 $ Change % Change 2024 2023 $ Change % Change Retail $ 792,189 $ 788,247 $ 3,942 0.5 % $ 2,714,005 $ 2,710
Slide 25: Occupancy
Q4 2024 Supplemental Operating & Financial Data 25 By Property Occupied properties (1) 15,412 Total properties (1) 15,617 Occupancy 98.7 % By Square Footage Occupied square footage (1) 335,777,818 Total square footage (1) 339,361,416 Occupancy 98.9 % By Rental Revenue (Economic Occupancy) Quarterly
Slide 26: Leasing Activity
Q4 2024 Supplemental Operating & Financial Data 26 Leasing Activity (dollars in thousands) Q4 2024 Re-leased to New Client Re-leased to Without After a Period Re-leasing Same Client Vacancy of Vacancy Totals Prior cash rents $ 45,989 $ 2,069 $ 791 $ 48,849 New cash rents* $ 48,504 $ 2,191 $ 1,792 $
Slide 27: Lease Expirations
Q4 2024 Supplemental Operating & Financial Data 27 (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 contractual rent as of December 31, 2024. Leases on our
Slide 28: Earnings Guidance
Q4 2024 Supplemental Operating & Financial Data 28 Earnings Guidance Summarized below are approximate estimates of the key components of our 2025 earnings guidance: Net income per share (1) $1.52 - $1.58 Real estate depreciation per share $2.68 Other adjustments per share (2) $0.02 AFFO per share (3
Slide 29: Analyst Coverage
Q4 2024 Supplemental Operating & Financial Data 29 Analyst Coverage Equity Research Baird Wes Golladay wgolladay@rwbaird.com (216) 737-7510 Bank of America Securities Joshua Dennerlein joshua.dennerlein@bofa.com (646) 855-1681 BMO Capital Markets Eric Borden eric.borden@bmo.com (347) 213-9706 BNP Pa
Slide 30: Glossary
Q4 2024 Supplemental Operating & Financial Data 30 Glossary 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 m
Slide 31: Glossary (Cont'd)
Q4 2024 Supplemental Operating & Financial Data 31 Glossary (Cont'd) Funds From Operations (FFO), a non-GAAP financial measure, consistent with the Nareit definition, is net income available to common stockholders, plus depreciation and amortization of real estate assets, plus provisions for impairm