Realty Income Corporation · NYSE:O
Realty Income — Q2 2025 Earnings Presentation
68 slides from Realty Income's earnings presentation, Aug 6, 2025
Slide 1: Earnings Release & Supplemental Information Q2 2025
Earnings Release & Supplemental Information Q2 2025 An S&P 500 Dividend Aristocrats® index member
Slide 2: Realty Income Announces Operating Results
REALTY INCOME ANNOUNCES OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2025 SAN DIEGO, CALIFORNIA, August 6, 2025....Realty Income Corporation (Realty Income, NYSE: O), The Monthly Dividend Company®, today announced operating results for the three and six months ended June 30, 2025. A
Slide 3: Select Financial Results
Select Financial Results The following summarizes our select financial results (dollars in millions, except per share data): Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 Total revenue $ 1,410.4 $ 1,339.4 $ 2,790.9 $ 2,599.9 Net income available to common stockholders (1)
Slide 4: Real Estate Portfolio Update
Real Estate Portfolio Update As of June 30, 2025, we owned or held interests in 15,606 properties, which were leased to 1,630 clients doing business in 91 industries. Our diversified portfolio of commercial properties under long-term, net lease agreements is actively managed with a weighted average
Slide 5: Investment Summary
Investment Summary The following table summarizes our investments in the U.S. and Europe for the periods indicated below: Initial Weighted Leasable Weighted Average Number of Investment Square Feet Average Term Properties ($ in millions) (in thousands) Cash Yield (1) (Years) Three months ended June
Slide 6: Same Store Rental Revenue
Same Store Rental Revenue The following summarizes our same store rental revenue for 14,622 properties under lease for the three and six months ended June 30, 2025, respectively (dollars in millions): Three months ended Six months ended June 30, June 30, % Increase 2025 2024 2025 2024 Three Months S
Slide 7: Guidance
Guidance Summarized below are approximate estimates of the key components of our 2025 earnings guidance: Revised 2025 Prior 2025 YTD Actuals at Guidance Guidance(1) 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 adju
Slide 8: Conference Call Information
Conference Call Information In conjunction with the release of our operating results, we will host a conference call on August 6, 2025 at 2:00 p.m. PDT to discuss the operating results. To access the conference call, dial (833) 816-1264 (United States) or (412) 317-5632 (International). When prompte
Slide 9: Investor Relations
Investor Relations: Steve Bakke Senior Vice President, Corporate Finance +1 858 284 5425 sbakke@realtyincome.com Kelsey Mueller Vice President, Investor Relations +1 858 284 5023 kmueller@realtyincome.com -8-
Slide 10: Consolidated Statements of Income
CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited) Three months ended Six months ended June 30, June 30, 2025 2024 2025 2024 REVENUE Rental (including reimbursements) (1) $ 1,338,188 $ 1,284,728 $ 2,651,245 $ 2,492,897 Other 72,190 54,715 139,638 107,031 Total rev
Slide 11: Funds From Operations (FFO) and Normalized FFO
FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FUNDS FROM OPERATIONS (Normalized FFO) (in thousands, except per share amounts) (unaudited) FFO and Normalized FFO are non-GAAP financial measures. Please see the Glossary for our definitions and explanations of how we utilize these metrics. Three months en
Slide 12: Adjusted Funds From Operations (AFFO)
ADJUSTED FUNDS FROM OPERATIONS (AFFO) (in thousands, except per share amounts) (unaudited) AFFO is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize this metric. Certain prior period amounts have been reclassified to conform to the current
Slide 13: Historical FFO and AFFO
HISTORICAL FFO AND AFFO (in thousands, except per share amounts) (unaudited) For the three months ended June 30, 2025 2024 2023 2022 2021 Net income available to common stockholders $ 196,919 $ 256,804 $ 195,415 $ 223,207 $ 124,479 Depreciation and amortization, net of furniture, fixtures and equipm
Slide 14: 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
Slide 15: Adjusted Free Cash Flow
Adjusted Free Cash Flow (in thousands) (unaudited) Adjusted Free Cash Flow and Annualized Adjusted Free Cash Flow are non-GAAP financial measures. Please see the Glossary for our definition and an explanation of how we utilize these metrics. Six months ended June 30, 2025 2024 Net cash provided by o
Slide 16: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) 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
Slide 17: Glossary
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 measure to help make investment decisions among cert
Slide 18: Glossary (Continued)
GLOSSARY (Continued) Net Debt/Annualized Adjusted EBITDAre, a ratio used by management as a measure of leverage, is calculated as net debt (which we define as total debt per our consolidated balance sheet, excluding deferred financing costs and net premiums and discounts, but including our proportio
Slide 19: Supplemental Operating & Financial Data Q2 2025
Exhibit 99.2 Supplemental Operating & Financial Data Q2 2025 An S&P 500 Dividend Aristocrats® index member
Slide 20: Forward-Looking Statements
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 of the Securities Act of 1933, as amended, and Sec
Slide 21: Table of Contents
Table of Contents Highlights Transaction Summary Earnings Guidance 4 Corporate Overview 25 Investment Summary 37 Earnings Guidance 26 Disposition Summary 6 Highlights 12 Summary Financial Information 27 Development Activity Analyst Coverage 38 Analyst Coverage Financial Summary Real Estate Portfolio
Slide 22: Corporate Overview
Corporate Overview CORPORATE PROFILE ONE TEAM SENIOR MANAGEMENT Realty Income (NYSE: O), an S&P 500 company, is real estate partner to the Neil M. Abraham Shannon Kehle world's leading companies®. Founded in 1969, we serve our clients as a full- EVP, Chief Strategy Officer and EVP, Chief People Offi
Slide 23: Corporate Overview
Corporate Overview As of June 30, 2025 Property Type(1) 15,606 346 1,630 79.9% 14.6% 3.1% properties million square feet clients retail industrial gaming leasable space 91 $5.17B(2) $81B(3) 98.6%(4) 9.0 industries Annualized Base enterprise value occupancy years Rent weighted average remaining lease
Slide 24: Highlights
Highlights Financial Overview (in USD) (1) Net Income per Share (Diluted) AFFO per Share (Diluted) $0.29 $0.30 $0.28 $0.23 $1.06 $1.05 $1.05 $1.06 $1.05 $0.22 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 (1) Net Debt and Preferred Stock to (1) Total Operational Ret
Slide 25: Highlights (Continued)
Highlights (Continued) Portfolio Overview (USD in thousands) (1) Number of Properties Gross Asset Value 15,621 15,606 $79,568 $76,216 Europe $63,851 13,458 $54,577 U.K. $47,087 12,237 International Domestic Domestic Domestic U.K. 11,136 International Europe Domestic Current quarter Europe Current qu
Slide 26: Highlights (Continued)
Highlights (Continued) Operational Metrics Adjusted EBITDA Margin (1)(3) Cash G&A Margin (2)(3) (Adjusted EBITDA as % of total revenue) (Cash G&A as % of total revenue) 94.3% 95.1% 94.9% 94.9% 93.6% 4.1% 3.7% 3.1% 2.9% 3.0% 2021 2022 2023 2024 YTD 2025 2021 2022 2023 2024 YTD 2025 Property Expenses
Slide 27: Highlights (Continued)
Highlights (Continued) Company Metrics (in USD) Annualized Dividends Declared Per Share Annualized Dividend Yield 5.9% $3.228 5.6% $3.168 5.4% $3.078 $2.958 $2.982 4.7% 4.1% Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q2 2025 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q2 2025 (1) Same Store Rental Revenue Growth Net Debt
Slide 28: Highlights (Continued)
Highlights (Continued) Capital Deployment – Investment Activity (USD in millions) Real Estate Acquisitions Development Investments $8,187 $1,497 $7,184 $6,168 International International $808 $757 Domestic Domestic Domestic Domestic International International $2,475 Current year $1,897 Current year
Slide 29: Capital Deployment – Initial Weighted Average Cash Yields
Highlights (Continued) Capital Deployment – Initial Weighted Average Cash Yields(1) Real Estate Acquisitions Development Investments 7.4% 7.3% 7.0% 7.0% 7.0% 6.8% 6.0% 6.0% 5.5% 5.3% 2021 2022 2023 2024 YTD 2025 2021 2022 2023 2024 YTD 2025 (2) Other Investments Total Investments 7.4% 7.3% 7.1% 8.7%
Slide 30: Summary Financial Information
Summary Financial Information (USD in millions) Three Months Ended June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 2024 2023 2023 2023 Capital Deployment Investment Activity Real estate acquisitions $ 871 $ 1,026 $ 1,316 $
Slide 31: Summary Financial Information (Continued)
Summary Financial Information (Continued) (USD in millions) As of June 30, March 31, December 31, September 30, June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 2024 2023 2023 2023 Portfolio Highlights Number of properties 15,606 15,627 15,621 15,457 15,450 15,485 13,4
Slide 32: Consolidated Statements of Income
Consolidated Statements of Income (USD in thousands, except per share amounts) (unaudited) 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 T
Slide 33: FFO and Normalized FFO
FFO and Normalized FFO(1) (USD and shares 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 presented is information regarding dis
Slide 34: AFFO
AFFO(1) (USD and shares 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 Normalized FFO and AFFO. Also presented is information regarding distributions paid t
Slide 35: AFFO (Continued)
AFFO(1) (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 metric. (2) Refer to the reconciling items for Normalized FFO presented
Slide 36: Consolidated Balance Sheets
Consolidated Balance Sheets (USD and shares in thousands, except per share amounts) (unaudited) 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,
Slide 37: Capitalization & Financial Ratios
Capitalization & Financial Ratios as of June 30, 2025 (USD and shares in thousands, except per share data) Total Capitalization Consolidated at Pro-Rata Principal Share(1) Foreign Currency Exposure Debt ($) ($) Senior Unsecured Notes and Bonds 25,198,035 25,198,035 Unsecured Term Loans 1,956,659 1,9
Slide 38: Debt Summary
Debt Summary as of June 30, 2025 (USD in thousands) Pro-Rata Share(1) Consolidated Debt End of Period Weighted Principal Total Debt Principal Interest Rate(2) Average Years To Maturity Dates ($) ($) (%) Maturity Senior Unsecured Notes and Bonds 49 series of senior unsecured notes and bonds 2025 - 20
Slide 39: Debt Summary by Currency
Debt Summary by Currency as of June 30, 2025 (USD in millions) Pro-Rata Share(1) Revolvers and Unsecured Mortgages Senior Unsecured Proportionate Share of End of Period Commercial Paper Term Loans Payable Notes and Bonds Joint Venture Debt(1) Total Debt Principal Interest Rate(2) Currency ($) ($) ($
Slide 40: Debt Maturities
Debt Maturities as of June 30, 2025 (USD in millions) Pro-Rata Share(1) Proportionate Share of Joint Venture Fixed End of Period Consolidated Fixed Rate Debt Consolidated Variable Rate Debt Rate Debt(1) Interest Rate(2) Senior Total Unsecured Unsecured Consolidated Year Term Mortgages Notes and RI C
Slide 41: Adjusted EBITDAre & Coverage Ratios
Adjusted EBITDAre & Coverage Ratios (USD in thousands) (unaudited) RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAre DEBT SERVICE & FIXED CHARGE COVERAGE AND PRO FORMA ADJUSTED EBITDAre(1) Three months ended 4.7x 4.6x 4.7x 4.7x 4.5x June 30, 2025 Net income $ 199,011 Interest 283,824 Income taxes 24
Slide 42: Debt Covenants
Debt Covenants As of June 30, 2025 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 investors to show our ability to incur
Slide 43: Investment Summary
Investment Summary (USD in millions) Initial Weighted Weighted Leasable Average Cash Average Number of Investment Cash Income(1) Square Feet Yield(2) Term Properties ($) ($) (in thousands) (%) (Years) Acquisitions U.S. real estate 24 221.6 15.4 741 7.0 20.9 Europe real estate 15 649.1 44.1 4,562 7.2
Slide 44: Disposition Summary
Disposition Summary (USD in thousands) Net Book Value Net Sales Proceeds Net Cash Capitalization Rate(1) (2) Number of Properties ($) ($) (%) Occupied 9 14,302 16,586 9.2 Q2 Vacant 64 63,973 100,255 2025 Total real estate dispositions 73 78,275 116,841 Occupied 15 40,137 45,742 8.2 YTD Vacant 113 10
Slide 45: Development Activity
Development Activity (USD in thousands) Retail Q2 2025 YTD 2025 Ending CIP(2) Forecasted Q2 2025 Placed in YTD 2025 Placed in as of Remaining Total Investment(1) Service Investment(1) Service 6/30/2025 Investment Commitment New development(3) $ 43,280 $ 90,774 $ 107,974 $ 170,334 $ 52,493 $ 121,996
Slide 46: Client Diversification
Client Diversification OUR TOP 20 CLIENTS Our 20 largest clients based on percentage of Annualized Base Rent, which does not give effect to deferred rent or interest earned on loans and preferred equity investments, at June 30, 2025, include the following: Percentage of Percentage of Annualized Inve
Slide 47: Investment Grade Clients
Investment Grade Clients(1) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Number of Investment Grade Leases 6,464 6,499 6,355 6,384 6,914 Percentage of Annualized Base Rent from Investment 33.9 % 34.3 % 32.4 % 32.1 % 36.0 % Grade Clients(1)(2) 13.6% Non-Investment G
Slide 48: Top Industries
Top 20 Industries PERCENTAGE OF TOTAL PORTFOLIO ANNUALIZED BASE RENT(1) 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 Automoti
Slide 49: Geographic Diversification
Geographic Diversification(1) As of June 30, 2025 PRESENCE IN ALL 50 U.S. STATES, THE U.K., AND SEVEN OTHER COUNTRIES IN EUROPE MIDWEST NORTHEAST 4,056 20.9% 1,045 9.5% Properties Total ABR Properties Total ABR MID-ATLANTIC 1,472 7.7% PACIFIC NORTHWEST Properties Total ABR 234 1.7% Properties Total
Slide 50: Property Type Composition
Property Type Composition (USD and square footage in thousands) Percentage of Annualized Percentage of Annualized Annualized Base Rent as of Base Rent as of June 30, Base Rent from Investment June 30, 2025(2) 2025(2) Grade Clients(3) Property Type Number of Properties Leasable Square Feet(1) ($) (%)
Slide 51: Same Store Rental Revenue
Same Store Rental Revenue(1)(2) (USD in thousands) Top 3 Industries Contributing to the Change(3) Q2 2025 Same Store Rental Revenue Three months ended June 30, Number of properties 14,622 2025 2024 Industry ($) ($) $ Change % Change Q2 2025 $ 1,166,683 Q2 2024 $ 1,154,028 Grocery $ 128,366 $ 126,255
Slide 52: Same Store Rental Revenue (Continued)
Same Store Rental Revenue(1) (Continued) (USD in thousands) SAME STORE RENTAL REVENUE BY PROPERTY TYPE Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Property Type ($) ($) $ Change % Change ($) ($) $ Change % Change Retail 930,698 922,995 7,703 0.8 1,863,030 1,843,592 19,4
Slide 53: Leasing Activity
Leasing Activity (dollars in thousands) Allocation Based on Number of Leases Q2 2025 Re-leased to Re-leased to 7% Same Client New Client Re-leasing Totals New Client 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
Slide 54: Lease Expirations
Lease Expirations (USD in thousands) OUR LEASES HAVE A WEIGHTED AVERAGE REMAINING LEASE TERM OF APPROXIMATELY 9.0 YEARS (ASSUMING NO EXERCISE OF LEASE OPTIONS). Total Portfolio(1)(2) Annualized Percentage of Annualized Base Rent as of Expiring Leases Base Rent(3) June 30, 2025(3) (%) Year Retail Non
Slide 55: Earnings Guidance
Earnings Guidance Summarized below are approximate estimates of the key components of our 2025 earnings guidance: YTD Actuals at Revised 2025 Guidance Prior 2025 Guidance(1) 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 $1.40 O
Slide 56: Analyst Coverage
Analyst Coverage EQUITY RESEARCH Baird Wes Golladay wgolladay@rwbaird.com (216) 737-7510 Bank of America Securities Jana Galan jana.galan@bofa.com (646) 855-5042 BMO Capital Markets Eric Borden eric.borden@bmo.com (347) 213-9706 BNP Paribas Exane Nate Crossett nate.crossett@exanebnpparibas.com (646)
Slide 57: Glossary
Glossary Adjusted EBITDAre. The National Association of Real Estate Investment Trusts (Nareit) established an EBITDA metric for real estate companies (i.e., EBITDA for real estate, or EBITDAre) it believed would provide investors with a consistent measure to help make investment decisions among cert
Slide 58: Glossary (Continued)
Glossary (Continued) Cash Income represents expected rent for real estate acquisitions as well as rent to be received upon completion of the properties under development. For unconsolidated entities, this represents our pro rata share of the cash income. For loans receivable and preferred equity inv
Slide 59: Glossary (Continued)
Glossary (Continued) Normalized Funds from Operations Available to Common Stockholders (Normalized FFO), a non-GAAP financial measure, is FFO excluding merger, transaction, and other costs, net. Pro-Rata Share represents our proportionate economic ownership of our joint ventures, which is derived by
Slide 60: Appendix
Appendix (USD in thousands) (unaudited) RECONCILIATION OF NET DEBT AND PREFERRED STOCK TO ANNUALIZED PRO FORMA ADJUSTED EBITDAre(1) Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 ($) ($) ($) ($) ($) Net income 199,011 251,462 201,350 271,124 260,96
Slide 61: Appendix (Continued)
Appendix (Continued) (USD and shares in thousands, except per share amounts) (unaudited) RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO DILUTED AFFO(1) AND DILUTED AFFO PER SHARE Certain prior period amounts have been reclassified to conform to the current period presentation. Thes
Slide 62: Appendix (Continued)*
Appendix (Continued)* (USD and shares in thousands, except per share amounts) (unaudited) RECONCILIATION OF NET INCOME AVAILABLE TO COMMON STOCKHOLDERS TO DILUTED AFFO(1) AND DILUTED AFFO PER SHARE Years ended December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 December 31, 2020
Slide 63: Appendix (Continued)
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 metric. (2) Refer to the reconciling items for Normalized FFO presented
Slide 64: Appendix (Continued)
Appendix (Continued) (USD in thousands) (unaudited) RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA MARGIN(1) Six months ended Years ended June 30, 2025 December 31, 2024 December 31, 2023 December 31, 2022 December 31, 2021 ($) ($) ($) ($) ($) Net income 450,473 867,341 876,914 872,416 360,747 Inte
Slide 65: Appendix (Continued)
Appendix (Continued) (USD in thousands) (unaudited) RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA MARGIN(1) Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 ($) ($) ($) ($) ($) Net income 199,011 251,462 201,350 271,124 260,968 Interest 283,824 268
Slide 66: Appendix (Continued)
Appendix (Continued) (USD in thousands) (unaudited) RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA MARGIN(1) 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 240,614 208,313 184,121 183,857 Incom
Slide 67: Appendix (Continued)
Appendix (Continued) (USD in thousands) (unaudited) RECONCILIATION OF CASH G&A(1) MARGIN Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 ($) ($) ($) ($) General and administrative 49,329 44,044 49,114 41,869 Share-based compensation 8,110 5,899 9,821 6,401 Cash G
Slide 68: Appendix (Continued)
Appendix (Continued) (USD in thousands) (unaudited) RECONCILIATION OF PROPERTY EXPENSES (NON-REIMBURSEMENTS)(% OF TOTAL REVENUE)(1) Three months ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 ($) ($) ($) ($) Property (including reimbursements) 107,422 106,681 96,309 92,154 T