Realty Income Corporation · NYSE:O
Realty Income — Q1 2025 Earnings Presentation
51 slides from Realty Income's earnings presentation, May 5, 2025
Slide 1: Supplemental Operating & Financial Data Q1 2025
Supplemental Operating & Financial Data An S&P 500 Dividend Aristocrats® index member Q1 2025 Exhibit 99.2
Slide 2: Forward-Looking Statements
Q1 2025 Supplemental Operating & Financial Data 2 Forward-Looking Statements March 31, 2025 FORWARD-LOOKING STATEMENTS This Supplemental Operating & Financial Data contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Secur
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
Q1 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 invest in diversified commercial real estate and, as of March 31, 2025, have a portfolio o
Slide 5: Corporate Overview
Q1 2025 Supplemental Operating & Financial Data 5 98.5%(4) occupancy Corporate Overview As of March 31, 2025 (1) Based on total Annualized Base Rent. 2.5% of total Annualized Base Rent is from other property types. Total Annualized Base Rent is a supplemental operating measure. Please see the Glossa
Slide 6: Highlights: Financial Overview
Q1 2025 Supplemental Operating & Financial Data 6 Highlights Financial Overview (in USD) Net Income per Share (Diluted) $0.16 $0.29 $0.30 $0.23 $0.28 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Debt and Preferred Stock to Annualized Pro Forma Adjusted EBITDAre 5.5x 5.3x 5.4x 5.4x 5.4x Q1 2024 Q2 202
Slide 7: Highlights: Portfolio Overview
Q1 2025 Supplemental Operating & Financial Data 7 Highlights (Continued) Portfolio Overview (USD in thousands) Number of Properties Domestic International Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q1 2025 15,621 13,458 12,237 Occupancy (by number of properties) 98.5% 99.0% 98.6% 98.7% 98.5% Q4 2021 Q4 2022 Q4
Slide 8: Highlights: Operational Metrics
Q1 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% 95.1% 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% 2.9% 2021 2022 2
Slide 9: Highlights: Company Metrics
Q1 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 $3.222 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q1 2025 Annualized Dividend Yield 4.1% 4.7% 5.4% 5.9% 5.6% Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q1 2
Slide 10: Highlights: Capital Deployment – Investment Activity
Q1 2025 Supplemental Operating & Financial Data 10 Highlights (Continued) Capital Deployment – Investment Activity (USD in millions) Real Estate Acquisitions Domestic International 2021 2022 2023 2024 YTD 2025 $7,184 $8,187 $6,168 Development Investments Domestic International 2021 2022 2023 2024 YT
Slide 11: Highlights: Capital Deployment – Initial Weighted Average Cash Yields
Q1 2025 Supplemental Operating & Financial Data 11 Highlights (Continued) Capital Deployment – Initial Weighted Average Cash Yields(1) Other Investments —% —% 8.7% 8.9% 10.2% 2021 2022 2023 2024 YTD 2025 Real Estate Acquisitions 5.5% 6.0% 7.0% 7.0% 7.0% 2021 2022 2023 2024 YTD 2025 Development Inves
Slide 12: Summary Financial Information
Q1 2025 Supplemental Operating & Financial Data 12 Summary Financial Information (USD in millions) Three Months Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Capital Deployment Investment Activ
Slide 13: Summary Financial Information (Continued)
Q1 2025 Supplemental Operating & Financial Data 13 Summary Financial Information (Continued) (USD in millions) As of March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Portfolio Highlights Number of prope
Slide 14: Consolidated Statements of Income
Q1 2025 Supplemental Operating & Financial Data 14 Three months ended March 31, 2025 2024 ($) ($) REVENUE Rental (including reimbursements) 1,313,057 1,208,169 Other 67,448 52,316 Total revenue 1,380,505 1,260,485 EXPENSES Depreciation and amortization 608,935 581,064 Interest 268,374 240,614 Proper
Slide 15: Funds From Operations and Normalized FFO
Q1 2025 Supplemental Operating & Financial Data 15 The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to FFO and Normalized FFO. Also presented is information regarding distributions paid to common stockholders and
Slide 16: Adjusted Funds From Operations (AFFO)
Q1 2025 Supplemental Operating & Financial Data 16 The following is a reconciliation of net income available to common stockholders (which we believe is the most comparable GAAP measure) to Normalized FFO and AFFO. Also presented is information regarding distributions paid to common stockholders and
Slide 17: AFFO (Continued) footnotes
Q1 2025 Supplemental Operating & Financial Data 17 (1) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition of this term and an explanation of how we utilize this metric. (2) Refer to the reconciling items for Normalized FFO presented on the "FFO and Normalized FFO" page.
Slide 18: Consolidated Balance Sheets
Q1 2025 Supplemental Operating & Financial Data 18 March 31, 2025 December 31, 2024 ($) ($) ASSETS Real estate held for investment, at cost: Land 17,724,549 17,320,520 Buildings and improvements 41,693,098 40,974,535 Total real estate held for investment, at cost 59,417,647 58,295,055 Less accumulat
Slide 19: Capitalization & Financial Ratios
Q1 2025 Supplemental Operating & Financial Data 19 Capitalization & Financial Ratios as of March 31, 2025 (USD and shares in thousands, except per share data) Debt Consolidated Principal ($) Total at Pro-Rata Share(1) ($) Senior Unsecured Notes and Bonds 23,157,503 23,157,503 Unsecured Term Loans 2,
Slide 20: Debt Summary
Q1 2025 Supplemental Operating & Financial Data 20 Debt Summary as of March 31, 2025 (USD in thousands) Pro-Rata Share(1) Maturity Dates Consolidated Debt Principal ($) Total Debt Principal ($) End of Period Interest Rate(2) (%) Weighted Average Years To Maturity Senior Unsecured Notes and Bonds 47
Slide 21: Debt Summary by Currency
Q1 2025 Supplemental Operating & Financial Data 21 Debt Summary by Currency as of March 31, 2025 (USD in millions) Pro-Rata Share(1) Currency Revolver and Commercial Paper ($) Unsecured Term Loans ($) Mortgages Payable ($) Senior Unsecured Notes and Bonds ($) Proportionate Share of Joint Venture Deb
Slide 22: Debt Maturities
Q1 2025 Supplemental Operating & Financial Data 22 Debt Maturities as of March 31, 2025 (USD in millions) Pro-Rata Share(3) Consolidated Fixed Rate Debt Consolidated Variable Rate Debt Proportionate Share of Joint Venture Fixed Rate Debt(3) End of Period Interest Rate(4) Year Principal Due Unsecured
Slide 23: Adjusted EBITDAre & Coverage Ratios
Q1 2025 Supplemental Operating & Financial Data 23 Adjusted EBITDAre & Coverage Ratios (USD in thousands) (unaudited) Three months ended March 31, 2025 Net income $ 251,462 Interest 268,374 Income taxes 15,657 Depreciation and amortization 608,935 Provisions for impairment 116,589 Merger, transactio
Slide 24: Debt Covenants
Q1 2025 Supplemental Operating & Financial Data 24 Required Actuals In Compliance Limitation on incurrence of total debt ≤ 60% of adjusted assets 41.4% ✓ Limitation on incurrence of secured debt ≤ 40% of adjusted assets 0.2% ✓ Debt service and fixed charge coverage (trailing 12 months)(1) ≥ 1.5x 4.7
Slide 25: Investment Summary
Q1 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 Q1 2025 U.S. real estate 34 201.6 13.9 1,038 6.9 12.2 Europe real estate
Slide 26: Disposition Summary
Q1 2025 Supplemental Operating & Financial Data 26 Number of Properties Net Book Value ($) Net Sales Proceeds ($) Net Cash Capitalization Rate(1) (%) Q1 2025 Occupied 6 25,835 29,156 7.6 Vacant 49 44,201 63,417 Total real estate dispositions 55 70,036 92,573 Disposition Summary (USD in thousands) Ne
Slide 27: Development Activity
Q1 2025 Supplemental Operating & Financial Data 27 Development Activity (USD in thousands) Retail Beginning CIP(1) as of 1/1/2025 Q1 2025 Investment(2) Q1 2025 Placed in Service Ending CIP(1) as of 3/31/2025 Forecasted Remaining Investment Total Commitment New development(3) $ 114,853 $ 64,694 $ 79,
Slide 28: Client Diversification
Q1 2025 Supplemental Operating & Financial Data 28 Ranking Client Number of Leases Percentage of Total Annualized Base Rent(1) (%) Investment Grade Ratings (S&P/ Moody's/Fitch) 1 7-Eleven 825 3.4 A/Baa2/ 2 Dollar General 1,754 3.3 BBB/Baa3/ 3 Walgreens 402 3.2 — 4 Dollar Tree / Family Dollar 1,364 3
Slide 29: Investment Grade Clients
Q1 2025 Supplemental Operating & Financial Data 29 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Number of Investment Grade Leases 6,499 6,355 6,384 6,914 6,809 Percentage of Total Annualized Base Rent from Investment Grade Clients(1)(2) 34.3 % 32.4 % 32.1 % 36.0 %
Slide 30: Top 20 Industries
Q1 2025 Supplemental Operating & Financial Data 30 As of March 31, 2025 December 31, 2024 (%) (%) Grocery 10.3 10.1 Convenience Stores 9.9 10.2 Dollar Stores 6.3 6.4 Home Improvement 6.3 6.0 Restaurants-Quick Service 4.9 4.9 Drug Stores 4.6 4.7 Automotive Service 4.5 4.5 Health and Fitness 4.3 4.3 R
Slide 31: Geographic Diversification
Q1 2025 Supplemental Operating & Financial Data 31 Geographic Diversification(1) As of March 31, 2025 (1) Based on Annualized Base Rent ("ABR"). Please see the Glossary for our definition of Annualized Base Rent. BALANCED PRESENCE IN ALL 50 U.S. STATES, THE U.K., AND SIX OTHER COUNTRIES IN EUROPE MI
Slide 32: Property Type Composition
Q1 2025 Supplemental Operating & Financial Data 32 Property Type Number of Properties Leasable Square Feet(1) Total Annualized Base Rent as of March 31, 2025(2) ($) Percentage of Total Annualized Base Rent as of March 31, 2025(2) (%) Percentage of Annualized Base Rent from Investment Grade Clients(3
Slide 33: Same Store Rental Revenue
Q1 2025 Supplemental Operating & Financial Data 33 Q1 2025 Same Store Rental Revenue Number of properties 14,702 Square footage(2) 310,277 Q1 2025 $ 1,149,376 Q1 2024 $ 1,135,127 $ change $ 14,249 % change 1.3 % Top 3 Industries Contributing to the Change(3) Three months ended March 31, Industry 202
Slide 34: Same Store Rental Revenue Reconciliation
Q1 2025 Supplemental Operating & Financial Data 34 Three months ended March 31, 2025 2024 ($) ($) Rental revenue (including reimbursements) 1,313,057 1,208,169 Constant currency adjustment(3) 5,394 2,493 Straight-line rent and other non-cash adjustments 3,148 (6,155) Contractually obligated reimburs
Slide 35: Leasing Activity
Q1 2025 Supplemental Operating & Financial Data 35 Q1 2025 Re-leased to Same Client Re-leased to New Client Re-leasing Totals Prior cash rents $ 42,328 $ 2,154 $ 44,482 New cash rents* $ 42,114 $ 4,102 $ 46,216 Recapture rate 99.5 % 190.4 % 103.9 % Number of leases 178 16 194 Average months vacant —
Slide 36: Lease Expirations
Q1 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 March 31, 2025. Leases on our multi-clie
Slide 37: Earnings Guidance
Q1 2025 Supplemental Operating & Financial Data 37 Earnings Guidance Revised 2025 Guidance Prior 2025 Guidance(1) YTD Actuals at March 31, 2025 Net income per share(2) $1.40 - $1.46 $1.52 - $1.58 $0.28 Real estate depreciation per share $2.70 $2.68 $0.68 Other adjustments per share(3) $0.12 $0.02 $0
Slide 38: Analyst Coverage
Q1 2025 Supplemental Operating & Financial Data 38 Baird Wes Golladay wgolladay@rwbaird.com (216) 737-7510 Bank of America Securities Jana Galan jana.galan@bofa.com (646) 855-5042 BMO Capital Markets Eric Borden eric.borden@bmo.com (347) 213-9706 BNP Paribas Exane Nate Crossett nate.crossett@exanebn
Slide 39: Glossary
Q1 2025 Supplemental Operating & Financial Data 39 Adjusted EBITDAre. The National Association of Real Estate Investment Trusts (Nareit) established an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) it believed would provide investors with a consistent measure to
Slide 40: Glossary (Continued)
Q1 2025 Supplemental Operating & Financial Data 40 Cash Income represents expected rent for real estate acquisitions as well as rent to be received upon completion of the properties under development. For unconsolidated entities, this represents our pro rata share of the cash income. For loans recei
Slide 41: Glossary (Continued)
Q1 2025 Supplemental Operating & Financial Data 41 Normalized Funds from Operations Available to Common Stockholders (Normalized FFO), a non-GAAP financial measure, is FFO excluding merger, transaction, and other costs, net. Pro-Rata Share represents our proportionate economic ownership of our joint
Slide 42: Appendix
Q1 2025 Supplemental Operating & Financial Data 42 Appendix (USD in thousands) (unaudited) Table of Contents ↪ Three months ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 ($) ($) ($) ($) ($) Net income 251,462 201,350 271,124 260,968 133,899 Interest 268,374 2
Slide 43: Appendix (Continued)
Q1 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 March 31, 202
Slide 44: Appendix (Continued)
Q1 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 ($) ($) ($) ($) ($) Net income availab
Slide 45: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 45 Table of Contents ↪ Appendix (Continued) (USD and shares in thousands, except per share amounts) (unaudited) (1) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition of this term and an explanation of how we utilize this
Slide 46: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 46 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Years ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 ($) ($) ($) ($) Net income 867,341 876,914 872,416 360,747 Interest 1,016,955 730,423 465,223
Slide 47: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 47 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 ($) ($) ($) ($) ($) Net income 251,462 201,350 271,124 260,968 133,899 Intere
Slide 48: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 48 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 ($) ($) ($) ($) Net income 219,762 233,877 197,153 226,122 Interest 208,313 184,121 183,857
Slide 49: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 49 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Years ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 ($) ($) ($) ($) General and administrative 176,895 144,536 138,459 96,980 Share-based compens
Slide 50: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 50 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 ($) ($) ($) ($) ($) General and administrative 44,044 49,114 41,869 45,070 40
Slide 51: Appendix (Continued)
Q1 2025 Supplemental Operating & Financial Data 51 Appendix (Continued) (USD in thousands) (unaudited) Table of Contents ↪ Three months ended December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 ($) ($) ($) ($) General and administrative 38,015 35,525 36,829 34,167 Share-based compensat