Press Release Details

Jul 24, 2014

Operating Results For Second Quarter And First Six Months Of 2014 Announced By Realty Income

ESCONDIDO, Calif., July 24, 2014 /PRNewswire/ -- Realty Income Corporation (Realty Income), The Monthly Dividend Company® (NYSE: O), today announced operating results for the second quarter ended June 30, 2014. Access to this document is available at www.realtyincome.com. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.

COMPANY HIGHLIGHTS:

For the quarter ended June 30, 2014 (as compared to the same quarterly period in 2013):

  • Revenue increased 22.6% to $228.6 million as compared to $186.4 million
  • Net income available to common stockholders per share was $0.23
  • FFO available to common stockholders increased 21.1% to $142.4 million
  • FFO per share increased 6.7% to $0.64
  • AFFO available to common stockholders increased 22.1% to $141.2 million
  • AFFO per share increased 8.5% to $0.64
  • Same store rents increased 1.4% to $130.5 million
  • Portfolio occupancy increased to 98.3% from 98.2%
  • Invested $405.1 million in 73 new properties and properties under development or expansion
  • Increased the monthly dividend in June for the 76th time and for the 67th consecutive quarter
  • Dividends paid per common share increased 0.6%
  • Generated net proceeds of $528.6 million in a 13.8 million share common stock offering in April
  • Generated net proceeds of $346.6 million in a 3.875% senior unsecured notes offering in June

Real Estate Portfolio Update Financial Results

Revenue 
Revenue, for the quarter ended June 30, 2014, increased 22.6% to $228.6 million as compared to $186.4 million, for the same quarter in 2013. Revenue, for the six months ended June 30, 2014, increased 24.4% to $450.2 million as compared to $362.0 million, for the same period in 2013.

Net Income Available to Common Stockholders
Net income available to common stockholders, for the quarter ended June 30, 2014, was $51.4 million as compared to $46.0 million, for the same quarter in 2013. Net income per share, for the quarter ended June 30, 2014, was $0.23, which is unchanged from the same quarter in 2013.

Net income available to common stockholders, for the six months ended June 30, 2014, was $98.6 million as compared to $108.7 million, for the same period in 2013. Net income per share, for the six months ended June 30, 2014, was $0.46 as compared to $0.59, for the same period in 2013. Net income available to common stockholders in the first six months of 2013 was impacted by an unusually large gain on sale of real estate, which represents $0.19 per share. 

The calculation to determine net income for a real estate company includes impairments and/or gains from property sales. Impairments and/or gains on property sales vary from quarter to quarter. This variance can significantly impact net income and period to period comparisons.

Funds From Operations Available to Common Stockholders (FFO)
FFO, for the quarter ended June 30, 2014, increased 21.1% to $142.4 million as compared to $117.6 million, for the same quarter in 2013. FFO per share, for the quarter ended June 30, 2014, increased 6.7% to $0.64 as compared to $0.60, for the same quarter in 2013.

FFO, for the six months ended June 30, 2014, increased 25.1% to $276.9 million as compared to $221.3 million, for the same period in 2013. FFO per share, for the six months ended June 30, 2014, increased 7.5% to $1.29 as compared to $1.20, for the same period in 2013.

Adjusted Funds From Operations Available to Common Stockholders (AFFO)
AFFO, for the quarter ended June 30, 2014, increased 22.1% to $141.2 million as compared to $115.6 million, for the same quarter in 2013. AFFO per share, for the quarter ended June 30, 2014, increased 8.5% to $0.64 as compared to $0.59, for the same quarter in 2013.

AFFO, for the six months ended June 30, 2014, increased 24.7% to $273.8 million as compared to $219.5 million, for the same period in 2013. AFFO per share, for the six months ended June 30, 2014, increased 7.6% to $1.28 as compared to $1.19, for the same period in 2013.

The company considers FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust's (REIT's) operating performance. Realty Income defines FFO consistent with the National Association of Real Estate Investment Trust's (NAREIT's) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate, reduced by gains on sales of investment properties and extraordinary items. FFO, for the first six months of 2013, has also been normalized to add back merger-related costs for the acquisition of ARCT. AFFO further adjusts FFO for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company's ongoing operating performance. See the reconciliations of net income available to common stockholders to FFO and AFFO on page six. 

Dividend Information 
In June 2014, Realty Income announced the 67th consecutive quarterly dividend increase, which is the 76th increase in the amount of the dividend since the company's listing on the New York Stock Exchange in 1994. The annualized dividend amount, as of June 30, 2014, was approximately $2.194 per share. The amount of monthly dividends paid per share increased 0.6% to $0.547 in the second quarter of 2014 compared to $0.544 for the same period in 2013. In addition, through June 30, 2014, the company has paid 527 consecutive monthly dividends and over $3.0 billion in total dividends since 1969. Realty Income has a dividend reinvestment and stock purchase program that can be accessed at www.realtyincome.com. The program is administered by Wells Fargo Shareowner Services.

Other Activities Real Estate Portfolio Update

As of June 30, 2014, Realty Income's portfolio of freestanding, single-tenant properties consisted of 4,263 properties located in 49 states and Puerto Rico, leased to 228 commercial tenants doing business in 47 industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 10.6 years.

Portfolio Management Activities
The company's portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provide dependable lease revenue supporting the payment of monthly dividends. As of June 30, 2014, portfolio occupancy was 98.3% with 74 properties available for lease out of a total of 4,263 properties in the portfolio, as compared to 98.2% portfolio occupancy, or 68 properties available for lease, as of June 30, 2013.

Since March 31, 2014, when we reported 73 properties available for lease, we had 40 lease expirations, re-leased 37 properties and sold two properties. Of the 37 properties re-leased during the second quarter of 2014, 36 properties were re-leased to either existing or new tenants without vacancy, and one was re-leased to a new tenant after a period of vacancy. The annual new rent on these leases was $5.2 million, as compared to the previous rent on these same properties of $5.0 million.

Rent Increases
During the quarter ended June 30, 2014, same store rents, on 2,774 properties under lease, increased 1.4% to $130.5 million, as compared to $128.7 million, for the same quarter in 2013. For the six months ended June 30, 2014, same store rents, on 2,774 properties under lease, increased 1.4% to $261.5 million, as compared to $257.8 million, for the same period in 2013.

Property Acquisitions
During the second quarter of 2014, Realty Income invested $405.1 million in 73 new properties and properties under development or expansion, located in 27 states. These properties are 100% leased with a weighted average lease term of approximately 10.6 years and an initial average lease yield of 7.3%. The tenants occupying the new properties operate in 22 industries, and the property types consist of 75.9% retail, 14.6% office, 5.2% industrial and distribution, and 4.3% manufacturing, based on rental revenue. Approximately 55% of the revenue generated for acquisitions during the second quarter of 2014 is from investment grade tenants.

During the six months ended June 30, 2014, Realty Income invested approximately $1.06 billion in 402 new properties and properties under development or expansion. The new properties are located in 39 states and are 100% leased with a weighted average lease term of approximately 12.8 years and an initial average lease yield of 7.1%. The tenants occupying the new properties operate in 24 industries, and the property types consist of 83.0% retail, 8.5% office, 6.8% industrial and distribution, and 1.7% manufacturing, based on rental revenue. Approximately 73% of the revenue generated from the year-to-date 2014 acquisitions is from investment grade tenants.

Realty Income maintains a $1.5 billion unsecured acquisition credit facility, which is used to fund property acquisitions in the near term. As of June 30, 2014, approximately $1.43 billion was available on the credit facility to fund additional acquisitions.

Property Dispositions
During the quarter ended June 30, 2014, Realty Income sold six properties for $7.0 million, with a gain on sales of $2.0 million, as compared to 17 properties sold for $23.7 million, with a gain on sales of $5.7 million, during the same quarter in 2013.

During the six months ended June 30, 2014, Realty Income sold 17 properties for $19.7 million, with a gain on sales of $5.8 million, as compared to 34 properties sold for $83.7 million, with a gain on sales of $44.3 million, during the same period in 2013.

Other Activities

Issued 13.8 Million Shares in an Upsized Common Share Offering
On April 1, 2014, Realty Income issued 13.8 million common shares, raising net proceeds of approximately $528.6 million, which were used to repay a portion of the borrowings under the company's acquisition credit facility.

Direct Stock Purchase and Dividend Reinvestment Plan
During the second quarter of 2014, Realty Income issued 1,174,837 common shares via its Plan, generating gross proceeds of approximately $52.1 million. During the first six months of 2014, Realty Income issued 1,240,305 common shares via its Plan, generating gross proceeds of approximately $54.4 million.

Issued $350 Million of 3.875% Senior Unsecured Notes Due 2024
On June 25, 2014, Realty Income issued $350 million of 3.875% senior unsecured notes due 2024. The public offering price for the notes was 99.956% of the principal amount for an effective yield to maturity of 3.88%. The net proceeds of approximately $346.6 million from the offering were used to repay a portion of the borrowings outstanding under the company's acquisition credit facility.

CEO Comments on Operating Results

Commenting on Realty Income's results and real estate operations, Chief Executive Officer, John P. Case, said, "We are pleased with our second quarter operating results as we continued to see healthy acquisition volumes and consistently positive performance in our portfolio. Our disciplined and selective investment strategy continued to drive earnings and dividend growth. FFO per share increased by 6.7% to $0.64 and AFFO per share increased 8.5% to $0.64. With the payment of our June 2014 dividend, we achieved a company milestone, surpassing $3 billion in dividends paid to our shareholders over the company's 45-year operating history."

"During the quarter, we completed $405.1 million in acquisitions at an initial average lease yield of 7.3% and a weighted average lease term of 10.6 years. Our investment activity this quarter was balanced between our two principal investment segments: non-investment grade retail properties which accounted for more than 40% of acquisitions and investment grade retail/non-retail properties. Of the total acquisitions this quarter, $228.6 million represented the remaining balance of the previously announced transaction with Inland Diversified Real Estate Trust, Inc. The $503 million Inland transaction is now closed in its entirety. This year we have completed $1.06 billion in property level acquisitions, which is a record amount for the first half of any year in the company's history. Our investment spreads remain well above their historical averages." 

"Our occupancy at the end of the second quarter was 98.3%, and our year-to-date same store rent increased by 1.4% from the same period a year ago. Our portfolio remains quite diversified with no tenant, industry, or state accounting for more than 5.2%, 10.2% or 10.3% of rental revenue, respectively."

"To support our growth activities, we raised just under $1 billion in permanent and long-term capital during the quarter. At the end of the quarter, we had a $70 million balance on the credit facility giving the company more than $1.4 billion available to fund future investment activity."

"Given our robust level of acquisitions during the first half of the year, we now estimate our 2014 acquisitions will be approximately $1.4 billion versus our previous estimate of $1.2 billion. With this year-to-date acquisition activity and the improved visibility we have on our operations, we are raising our 2014 FFO per share guidance from $2.53 - $2.58 to $2.59 - $2.62. We are also tightening and raising the midpoint of our 2014 AFFO per share guidance from $2.53 - $2.58 to $2.55 - $2.57."

FFO and AFFO Commentary
Realty Income's FFO and AFFO per share has historically tended to be stable and fairly predictable because of the long-term leases that are the primary source of the company's revenue. There are, however, several factors that can cause FFO and AFFO per share to vary from levels that have been anticipated by the company. These factors include, but are not limited to, changes in interest rates and occupancy rates, periodically accessing the capital markets, the level and timing of property and entity acquisitions and dispositions, lease rollovers, the general real estate market, and the economy.

2014 Earnings Estimates
FFO per share for 2014 should range from $2.59 to $2.62, an increase of 7.5% to 8.7% over 2013 FFO (normalized to exclude 2013 ARCT merger-related costs) per share of $2.41. FFO per share for 2014 is based on a net income per share range of $0.90 to $0.93, plus estimated real estate depreciation of $1.74 per share, and reduced by potential estimated gains on sales of investment properties of $0.05 per share (in accordance with NAREIT's definition of FFO). 

AFFO per share for 2014 should range from $2.55 to $2.57, an increase of 5.8% to 6.6% over the 2013 AFFO per share of $2.41. AFFO further adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of the company's ongoing operating performance.

About Realty Income
Realty Income is The Monthly Dividend Company®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. As of June 30, 2014, the company had paid 527 consecutive monthly dividends throughout its 45-year operating history. The monthly income is supported by the cash flows from over 4,200 properties owned under long-term lease agreements with 228 leading regional and national commercial tenants. The company is an active buyer of net-leased properties nationwide. Additional information about the company can be obtained from the corporate website at www.realtyincome.com or www.twitter.com/realtyincome.

About Realty Income Forward-Looking Statements
Statements in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, which may cause the company's actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, and the outcome of any legal proceedings to which the company is a party, as described in the company's filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company's current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made. 

Note to Editors: Realty Income press releases are available via the internet at http://www.realtyincome.com/invest/newsroom-library/press-releases.shtml.

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts - unaudited)

                                       
   

Three Months

     

Three Months

     

Six Months

     

Six Months

 
   

Ended 6/30/14

     

Ended 6/30/13

     

Ended 6/30/14

     

Ended 6/30/13

 

REVENUE

                                     

Rental

 

$

221,868

     

$

180,089

     

$

435,989

     

$

347,887

 

Tenant reimbursements

   

6,169

       

4,485

       

12,597

       

10,512

 

Other

   

609

       

1,869

       

1,632

       

3,566

 
                                       

Total revenue

   

228,646

       

186,443

       

450,218

       

361,965

 
                                       

EXPENSES

                                     

Depreciation and amortization

   

92,894

       

73,906

       

182,864

       

140,655

 

Interest

   

52,712

       

39,232

       

104,432

       

80,831

 

General and administrative

   

11,587

       

12,088

       

24,473

       

23,716

 

Property (including reimbursable)

   

10,127

       

7,754

       

20,704

       

17,326

 

Income taxes

   

570

       

624

       

1,661

       

1,201

 

Provisions for impairment

   

499

       

290

       

2,182

       

290

 

Merger-related costs

   

-

       

605

       

-

       

12,635

 
                                       

Total expenses

   

168,389

       

134,499

       

336,316

       

276,654

 
                                       

Gain on sales of real estate

   

1,964

       

-

       

3,236

       

-

 

Income from continuing operations

62,221

       

51,944

       

117,138

       

85,311

 

Income from discontinued operations

 

20

       

4,572

       

3,097

       

44,432

 
                                       

Net income

   

62,241

       

56,516

       

120,235

       

129,743

 

Net income attributable to noncontrolling interests

 

(339)

       

(77)

       

(671)

       

(86)

 
                                       

Net income attributable to the Company

61,902

       

56,439

       

119,564

       

129,657

 

Preferred stock dividends

   

(10,482)

       

(10,482)

       

(20,965)

       

(20,965)

 
                                       

Net income available to common stockholders

$

51,420

     

$

45,957

     

$

98,599

     

$

108,692

 
                                       

Funds from operations available to

                                 

common stockholders (FFO)

 

$

142,409

     

$

117,565

(1)

   

$

276,910

     

$

221,253

(1)

Adjusted funds from operations available to

                               

common stockholders (AFFO)

 

$

141,178

     

$

115,584

     

$

273,822

     

$

219,547

 
                                       

Per share information for common stockholders:

                                   

Income from continuing operations,

                               

basic and diluted

 

$

0.23

     

$

0.21

     

$

0.45

     

$

0.35

 
                                       

Net income, basic and diluted

 

$

0.23

     

$

0.23

     

$

0.46

     

$

0.59

 
                                       

FFO, basic and diluted

 

$

0.64

     

$

0.60

(1)

   

$

1.29

     

$

1.20

(1)

                                       

AFFO:

                                     

Basic

 

$

0.64

     

$

0.59

     

$

1.28

     

$

1.20

 

Diluted

 

$

0.64

     

$

0.59

     

$

1.28

     

$

1.19

 
                                       

Cash dividends paid per common share

$

0.547

     

$

0.544

     

$

1.094

     

$

1.057

 
                                       

(1) Normalized to exclude ARCT merger-related costs

                               
                                 

FUNDS FROM OPERATIONS (FFO)

(dollars in thousands, except per share amounts)

                                   
     

Three Months

   

Three Months

   

Six Months

   

Six Months

 
     

Ended 6/30/14

   

Ended 6/30/13

   

Ended 6/30/14

   

Ended 6/30/13

 
                                   

Net income available to common stockholders

 

$

51,420

   

$

45,957

   

$

98,599

   

$

108,692

 

Depreciation and amortization:

                               
 

Continuing operations

   

92,894

     

73,906

     

182,864

     

140,655

 
 

Discontinued operations

   

-

     

632

     

-

     

1,146

 

Depreciation of furniture, fixtures and equipment

   

(104)

     

(67)

     

(196)

   

(128)

 

Provisions for impairment on investment properties:

                               
 

Continuing operations

   

499

     

290

     

2,182

     

290

 
 

Discontinued operations

   

-

     

2,206

     

-

     

2,662

 

Gain on sale of investment properties:

                               
 

Continuing operations

   

(1,964)

     

-

     

(3,236)

   

-

 
 

Discontinued operations

   

-

     

(5,744)

     

(2,607)

   

(44,304)

 

Merger-related costs (1)

   

-

     

605

     

-

     

12,635

 

FFO adjustments allocable to noncontrolling interests

   

(336)

     

(220)

     

(696)

   

(395)

 
                                   

FFO available to common stockholders

 

$

142,409

   

$

117,565

   

$

276,910

   

$

221,253

 
                                   

FFO per common share

 

$

0.64

   

$

0.60

   

$

1.29

   

$

1.20

 

Distributions paid to common stockholders

 

$

121,229

   

$

106,692

   

$

234,643

   

$

191,669

 

FFO in excess of distributions paid to

                               

common stockholders

 

$

21,180

   

$

10,873

   

$

42,267

   

$

29,584

 
                                   

Weighted average number of common shares used for FFO:

                             
 

Basic

 

220,979,955

   

195,574,014

   

214,039,692

   

183,714,191

 
 

Diluted

 

221,043,619

   

195,759,091

   

214,089,629

   

183,873,647

 
                                   

(1)

FFO for the three and six months ended June 30, 2013, has been normalized to exclude ARCT merger-related costs.

     
                                   

We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust's definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, reduced by gains on sales of investment properties and extraordinary items.

                                   

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

(dollars in thousands, except per share amounts)

                                   

We define AFFO as FFO adjusted for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company's ongoing operating performance.  Most companies in our industry use a similar measurement to AFFO, but they may use the term "CAD" (for Cash Available for Distribution) or "FAD" (for Funds Available for Distribution).

                                   
     

Three Months

   

Three Months

   

Six Months

   

Six Months

 
     

Ended 6/30/14

   

Ended 6/30/13

   

Ended 6/30/14

   

Ended 6/30/13

 
                                   

Net income available to common stockholders

 

$

51,420

   

$

45,957

   

$

98,599

   

$

108,692

 

Cumulative adjustments to calculate FFO (1)

   

90,989

     

71,608

     

178,311

     

112,561

 

FFO available to common stockholders

   

142,409

     

117,565

     

276,910

     

221,253

 

Amortization of share-based compensation

   

2,752

     

3,653

     

5,449

     

7,498

 

Amortization of deferred financing costs (2)

   

1,165

     

1,015

     

2,241

     

2,021

 

Amortization of net mortgage premiums

   

(3,009)

     

(2,494)

     

(5,394)

   

(4,441)

 

(Gain) loss on interest rate swaps

   

984

     

(1,738)

     

1,042

     

(1,286)

 

Capitalized leasing costs and commissions

   

(275)

     

(361)

     

(467)

   

(774)

 

Capitalized building improvements

   

(1,090)

     

(1,255)

     

(2,267)

   

(2,520)

 

Straight-line rent

   

(3,977)

     

(3,250)

     

(7,913)

   

(6,454)

 

Amortization of above and below-market leases

   

2,213

     

2,429

     

4,207

     

4,223

 

AFFO adjustments allocable to noncontrolling interests

   

6

     

20

     

14

     

27

 

AFFO available to common stockholders

 

$

141,178

   

$

115,584

   

$

273,822

   

$

219,547

 
                                   

AFFO per common share:

                               
 

Basic

 

$

0.64

   

$

0.59

   

$

1.28

   

$

1.20

 
 

Diluted

 

$

0.64

   

$

0.59

   

$

1.28

   

$

1.19

 

Distributions paid to common stockholders

 

$

121,229

   

$

106,692

   

$

234,643

   

$

191,669

 

AFFO in excess of distributions paid to

                               

common stockholders

 

$

19,949

   

$

8,892

   

$

39,179

   

$

27,878

 
                                   

Weighted average number of common shares used for AFFO:

                           
 

Basic

 

220,979,955

   

195,574,014

   

214,039,692

   

183,714,191

 
 

Diluted

 

221,043,619

   

195,759,091

   

214,089,629

   

183,873,647

 
                                   

(1)

See FFO calculation above for reconciling items.

                                   

(2)

Includes the amortization of costs incurred and capitalized when our notes were issued in March 2003, November 2003, March 2005, September 2005, September 2006, September 2007, June 2010, June 2011, October 2012, July 2013 and June 2014. Additionally, this includes the amortization of deferred financing costs incurred and capitalized in connection with our assumption of our mortgages payable and the issuance of our term loan. The deferred financing costs are being amortized over the lives of the respective mortgages and term loan. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included.

 

HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)

                               

For the three months ended June 30,

 

2014

   

2013

   

2012

   

2011

   

2010

 
                               

Net income available to common stockholders

$

51,420

 

$

45,957

 

$

32,950

 

$

33,185

 

$

24,985

 

Depreciation and amortization

 

92,790

   

74,471

   

35,571

   

29,000

   

23,469

 

Provisions for impairment on investment properties

499

   

2,496

   

-

   

10

   

53

 

Gain on sales of investment properties

(1,964)

   

(5,744)

   

(3,354)

   

(1,251)

   

(1,663)

 

Merger-related costs

 

-

   

605

   

-

   

-

   

-

 

FFO adjustments allocable to noncontrolling interests

 

(336)

   

(220)

   

-

   

-

   

-

 
                               

FFO (1)

$

142,409

 

$

117,565

 

$

65,167

 

$

60,944

 

$

46,844

 
                               

FFO per diluted share (1)

$

0.64

 

$

0.60

 

$

0.49

 

$

0.48

 

$

0.45

 
                               

AFFO

$

141,178

 

$

115,584

 

$

66,499

 

$

62,370

 

$

47,730

 
                               

AFFO per diluted share

$

0.64

 

$

0.59

 

$

0.50

 

$

0.49

 

$

0.46

 
                               

Cash dividends paid per share

$

0.547

 

$

0.544

 

$

0.437

 

$

0.434

 

$

0.430

 

Weighted average diluted shares outstanding

221,043,619

 

195,759,091

 

132,828,540

 

126,202,047

 

103,765,828

 
                               

For the six months ended June 30,

 

2014

   

2013

   

2012

   

2011

   

2010

 
                               

Net income available to common stockholders

$

98,599

 

$

108,692

 

$

59,022

 

$

63,120

 

$

49,127

 

Depreciation and amortization

 

182,668

   

141,673

   

70,806

   

55,791

   

46,682

 

Provisions for impairment on investment properties

2,182

   

2,952

   

-

   

210

   

87

 

Gain on sales of investment properties

(5,843)

   

(44,304)

   

(3,965)

   

(1,379)

   

(2,366)

 

Merger-related costs

 

-

   

12,635

   

-

   

-

   

-

 

AFFO adjustments allocable to noncontrolling interests

 

(696)

   

(395)

   

-

   

-

   

-

 
                               

FFO (1)

$

276,910

 

$

221,253

 

$

125,863

 

$

117,742

 

$

93,530

 
                               

FFO per diluted share (1)

$

1.29

 

$

1.20

 

$

0.95

 

$

0.96

 

$

0.90

 
                               

AFFO

$

273,822

 

$

219,547

 

$

132,793

 

$

120,610

 

$

95,344

 
                               

AFFO per diluted share

$

1.28

 

$

1.19

 

$

1.00

 

$

0.98

 

$

0.92

 
                               

Cash dividends paid per share

$

1.094

 

$

1.057

 

$

0.874

 

$

0.866

 

$

0.859

 

Weighted average diluted shares outstanding

214,089,629

 

183,873,647

 

132,785,213

 

122,691,418

 

103,778,609

 

(1)

FFO for the three and six months ended June 30, 2013, has been normalized to exclude ARCT merger-related costs.

 

REALTY INCOME CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2014 and December 31, 2013

(dollars in thousands, except per share data)

             
   

2014

   

2013

 

ASSETS

 

(unaudited)

       

Real estate, at cost:

           

Land

$

2,991,946

 

$

2,791,147

 

Buildings and improvements

 

7,869,046

   

7,108,328

 

Total real estate, at cost

 

10,860,992

   

9,899,475

 

Less accumulated depreciation and amortization

 

(1,249,461)

   

(1,114,888)

 

Net real estate held for investment

 

9,611,531

   

8,784,587

 

Real estate held for sale, net

 

9,598

   

12,022

 

Net real estate

 

9,621,129

   

8,796,609

 

Cash and cash equivalents

 

8,908

   

10,257

 

Accounts receivable, net

 

43,751

   

39,323

 

Acquired lease intangible assets, net

 

1,048,139

   

935,459

 

Goodwill

 

15,556

   

15,660

 

Other assets, net

 

74,919

   

127,133

 

Total assets

$

10,812,402

 

$

9,924,441

 
             

LIABILITIES AND EQUITY

           

Distributions payable

$

44,353

 

$

41,452

 

Accounts payable and accrued expenses

 

98,973

   

102,511

 

Acquired lease intangible liabilities, net

 

174,769

   

148,250

 

Other liabilities

 

36,682

   

44,030

 

Line of credit payable

 

70,800

   

128,000

 

Term loan

 

70,000

   

70,000

 

Mortgages payable, net

 

916,454

   

783,360

 

Notes payable, net

 

3,535,957

   

3,185,480

 

Total liabilities

 

4,947,988

   

4,503,083

 
             

Commitments and contingencies

           
             

Stockholders' equity:

           

Preferred stock and paid in capital, par value $0.01 per share,

           

69,900,000 shares authorized and 25,150,000 shares issued and

           

outstanding as of June 30, 2014 and December 31, 2013

 

609,363

   

609,363

 

Common stock and paid in capital, par value $0.01 per share,

           

370,100,000 shares authorized, 222,623,256 shares issued and

           

outstanding as of June 30, 2014 and 207,485,073 shares issued

           

and outstanding at December 31, 2013

 

6,357,084

   

5,767,878

 

Distributions in excess of net income

 

(1,130,746)

   

(991,794)

 

Total stockholders' equity

 

5,835,701

   

5,385,447

 

Noncontrolling interests

 

28,713

   

35,911

 

Total equity

 

5,864,414

   

5,421,358

 

Total liabilities and equity

$

10,812,402

 

$

9,924,441

 
             

 

Realty Income Performance vs. Major Stock Indices

                                             
               

Equity

                         

NASDAQ

   

Realty Income

 

REIT Index (1)

 

DJIA

 

S&P 500

 

Composite

   

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

   

yield

 

return (2)

 

yield

 

return (3)

 

yield

 

return (3)

 

yield

 

return (3)

 

yield

 

return (4)

                                                             

10/18 to 12/31/1994

10.5

%

 

10.8

%

 

7.7

%

 

0.0

%

 

2.9

%

 

(1.6%)

   

2.9

%

 

(1.2%)

   

0.5

%

 

(1.7%)

 

1995

8.3

%

 

42.0

%

 

7.4

%

 

15.3

%

 

2.4

%

 

36.9

%

 

2.3

%

 

37.6

%

 

0.6

%

 

39.9

%

1996

7.9

%

 

15.4

%

 

6.1

%

 

35.3

%

 

2.2

%

 

28.9

%

 

2.0

%

 

23.0

%

 

0.2

%

 

22.7

%

1997

7.5

%

 

14.5

%

 

5.5

%

 

20.3

%

 

1.8

%

 

24.9

%

 

1.6

%

 

33.4

%

 

0.5

%

 

21.6

%

1998

8.2

%

 

5.5

%

 

7.5

%

 

(17.5%)

   

1.7

%

 

18.1

%

 

1.3

%

 

28.6

%

 

0.3

%

 

39.6

%

1999

10.5

%

 

(8.7%)

   

8.7

%

 

(4.6%)

   

1.3

%

 

27.2

%

 

1.1

%

 

21.0

%

 

0.2

%

 

85.6

%

2000

8.9

%

 

31.2

%

 

7.5

%

 

26.4

%

 

1.5

%

 

(4.7%)

   

1.2

%

 

(9.1%)

   

0.3

%

 

(39.3%)

 

2001

7.8

%

 

27.2

%

 

7.1

%

 

13.9

%

 

1.9

%

 

(5.5%)

   

1.4

%

 

(11.9%)

   

0.3

%

 

(21.1%)

 

2002

6.7

%

 

26.9

%

 

7.1

%

 

3.8

%

 

2.6

%

 

(15.0%)

   

1.9

%

 

(22.1%)

   

0.5

%

 

(31.5%)

 

2003

6.0

%

 

21.0

%

 

5.5

%

 

37.1

%

 

2.3

%

 

28.3

%

 

1.8

%

 

28.7

%

 

0.6

%

 

50.0

%

2004

5.2

%

 

32.7

%

 

4.7

%

 

31.6

%

 

2.2

%

 

5.6

%

 

1.8

%

 

10.9

%

 

0.6

%

 

8.6

%

2005

6.5

%

 

(9.2%)

   

4.6

%

 

12.2

%

 

2.6

%

 

1.7

%

 

1.9

%

 

4.9

%

 

0.9

%

 

1.4

%

2006

5.5

%

 

34.8

%

 

3.7

%

 

35.1

%

 

2.5

%

 

19.0

%

 

1.9

%

 

15.8

%

 

0.8

%

 

9.5

%

2007

6.1

%

 

3.2

%

 

4.9

%

 

(15.7%)

   

2.7

%

 

8.8

%

 

2.1

%

 

5.5

%

 

0.8

%

 

9.8

%

2008

7.3

%

 

(8.2%)

   

7.6

%

 

(37.7%)

   

3.6

%

 

(31.8%)

   

3.2

%

 

(37.0%)

   

1.3

%

 

(40.5%)

 

2009

6.6

%

 

19.3

%

 

3.7

%

 

28.0

%

 

2.6

%

 

22.6

%

 

2.0

%

 

26.5

%

 

1.0

%

 

43.9

%

2010

5.1

%

 

38.6

%

 

3.5

%

 

27.9

%

 

2.6

%

 

14.0

%

 

1.9

%

 

15.1

%

 

1.2

%

 

16.9

%

2011

5.0

%

 

7.3

%

 

3.8

%

 

8.3

%

 

2.8

%

 

8.3

%

 

2.3

%

 

2.1

%

 

1.3

%

 

(1.8%)

 

2012

4.5

%

 

20.1

%

 

3.5

%

 

19.7

%

 

3.0

%

 

10.2

%

 

2.5

%

 

16.0

%

 

2.6

%

 

15.9

%

2013

5.8

%

 

(1.8%)

   

3.9

%

 

2.9

%

 

2.3

%

 

29.6

%

 

2.0

%

 

32.4

%

 

1.4

%

 

38.3

%

Q2 YTD 2014

4.9

%

 

21.9

%

 

3.5

%

 

16.2

%

 

2.3

%

 

2.7

%

 

2.0

%

 

7.1

%

 

1.2

%

 

5.5

%

                                                             

Compounded Average

Annual Total Return (5)

17.0

%

       

11.1

%

       

10.2

%

       

9.6

%

       

9.3

%

                                                             

 Note:   All of these dividend yields are calculated as annualized dividends based on the last dividend paid in applicable time period divided by the closing price as of period end.  Dividend yield sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream / Thomson Financial.

                                                             

(1)

FTSE NAREIT US Equity REIT Index, as per NAREIT website.

(2)

Calculated as the difference between the closing stock price as of period end less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price as of end of previous period.  Does not include reinvestment of dividends for the annual percentages.

(3)

Includes reinvestment of dividends.  Source:  NAREIT website and Factset.

(4)

Price only index, does not include dividends.  Source:  Factset.

                                                             

(5)

All of these Compounded Average Annual Total Return rates are calculated in the same manner: from Realty Income's NYSE listing on October 18, 1994 through June 30, 2014, and (except for NASDAQ) assuming reinvestment of dividends. Past Performance does not guarantee future performance.  Realty Income presents this data for informational purposes only and makes no representation about its future performance or how it will compare in performance to other indices in the future.

 

Property Type Diversification

The following table sets forth certain property type information regarding Realty Income's property portfolio as of June 30, 2014 (dollars in thousands):

 
         

   Approximate

 

Rental Revenue for

   

Percentage of

 
     

Number of

 

      Leasable

 

the Quarter Ended

   

Rental

 

Property Type

 

Properties

 

   Square Feet

 

June 30, 2014

(1)

Revenue

 

Retail

 

4,102

 

45,327,100

 

$

172,153

   

77.7

%

Industrial and distribution

 

86

 

16,278,800

   

23,463

   

10.6

 

Office

 

46

 

3,519,900

   

15,004

   

6.8

 

Manufacturing

 

14

 

3,875,200

   

5,607

   

2.5

 

Agriculture

 

15

 

184,500

   

5,209

   

2.4

 

Totals

 

4,263

 

69,185,500

 

$

221,436

   

100.0

%

                         

(1)

Includes rental revenue for all properties owned by Realty Income at June 30, 2014, including revenue from properties reclassified as discontinued operations of $18.  Excludes revenue of $44 from properties owned by Crest and $406 from sold properties that were included in continuing operations.

 
                         

 

Tenant Diversification

The largest tenants based on percentage of total portfolio rental revenue at June 30, 2014 include the following:

 
                 

Tenant

 

Number of Properties

       

% of Revenue

                 

Walgreens

 

111

       

5.2

%

FedEx

 

38

       

5.0

%

Dollar General

 

502

       

5.0

%

LA Fitness

 

45

       

4.6

%

Family Dollar

 

450

       

4.5

%

BJ's Wholesale Clubs

 

15

       

2.9

%

AMC Theatres

 

20

       

2.8

%

Diageo

 

17

       

2.7

%

Northern Tier Energy/Super America

134

       

2.3

%

Regal Cinemas

 

20

       

2.1

%

Rite Aid

 

58

       

2.0

%

CVS Pharmacy

 

49

       

1.9

%

The Pantry

 

145

       

1.7

%

Circle K

 

150

       

1.6

%

Walmart/Sam's Club

 

19

       

1.5

%

GPM Investments/Fas Mart

 

141

       

1.4

%

NPC International

 

202

       

1.4

%

TBC Corporation

 

70

       

1.3

%

Smart & Final

 

36

       

1.2

%

FreedomRoads/Camping World

 

18

       

1.2

%

 

Industry Diversification

The following table sets forth certain information regarding Realty Income's property portfolio classified according to the business of the respective tenants, expressed as a percentage of our total rental revenue:

 
 

Percentage of  Rental Revenue(1)

 

For the

                                   
 

Quarter Ended

 

For the Years Ended

 

June 30,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

Retail industries

                                           

Apparel stores

1.9

%

   

1.9

%

 

1.7

%

 

1.4

%

 

1.2

%

 

1.1

%

 

1.1

%

Automotive collision services

0.8

       

0.8

   

1.1

   

0.9

   

1.0

   

1.1

   

1.0

 

Automotive parts

1.2

       

1.2

   

1.0

   

1.2

   

1.4

   

1.5

   

1.6

 

Automotive service

1.8

       

2.1

   

3.1

   

3.7

   

4.7

   

4.8

   

4.8

 

Automotive tire services

3.2

       

3.6

   

4.7

   

5.6

   

6.4

   

6.9

   

6.7

 

Book stores

*

       

*

   

0.1

   

0.1

   

0.1

   

0.2

   

0.2

 

Child care

2.3

       

2.8

   

4.5

   

5.2

   

6.5

   

7.3

   

7.6

 

Consumer electronics

0.3

       

0.3

   

0.5

   

0.5

   

0.6

   

0.7

   

0.8

 

Convenience stores

10.2

       

11.2

   

16.3

   

18.5

   

17.1

   

16.9

   

15.8

 

Crafts and novelties

0.5

       

0.5

   

0.3

   

0.2

   

0.3

   

0.3

   

0.3

 

Dollar stores

9.8

       

6.2

   

2.2

   

-

   

-

   

-

   

-

 

Drug stores

9.5

       

8.1

   

3.5

   

3.8

   

4.1

   

4.3

   

4.1

 

Education

0.4

       

0.4

   

0.7

   

0.7

   

0.8

   

0.9

   

0.8

 

Entertainment

0.6

       

0.6

   

0.9

   

1.0

   

1.2

   

1.3

   

1.2

 

Equipment services

0.1

       

0.1

   

0.1

   

0.2

   

0.2

   

0.2

   

0.2

 

Financial services

1.4

       

1.5

   

0.2

   

0.2

   

0.2

   

0.2

   

0.2

 

General merchandise

1.2

       

1.1

   

0.6

   

0.6

   

0.8

   

0.8

   

0.8

 

Grocery stores

3.0

       

2.9

   

3.7

   

1.6

   

0.9

   

0.7

   

0.7

 

Health and fitness

7.0

       

6.3

   

6.8

   

6.4

   

6.9

   

5.9

   

5.6

 

Health care

1.1

       

1.1

   

-

   

-

   

-

   

-

   

-

 

Home furnishings

0.7

       

0.9

   

1.0

   

1.1

   

1.3

   

1.3

   

2.4

 

Home improvement

1.3

       

1.6

   

1.5

   

1.7

   

2.0

   

2.2

   

2.1

 

Jewelry

0.1

       

0.1

   

-

   

-

   

-

   

-

   

-

 

Motor vehicle dealerships

1.5

       

1.6

   

2.1

   

2.2

   

2.6

   

2.7

   

3.2

 

Office supplies

0.4

       

0.5

   

0.8

   

0.9

   

0.9

   

1.0

   

1.0

 

Pet supplies and services

0.7

       

0.8

   

0.6

   

0.7

   

0.9

   

0.9

   

0.8

 

Restaurants - casual dining

4.3

       

5.1

   

7.3

   

10.9

   

13.4

   

13.7

   

14.3

 

Restaurants - quick service

3.5

       

4.4

   

5.9

   

6.6

   

7.7

   

8.3

   

8.2

 

Shoe stores

0.1

       

0.1

   

0.1

   

0.2

   

0.1

   

-

   

-

 

Sporting goods

1.7

       

1.7

   

2.5

   

2.7

   

2.7

   

2.6

   

2.3

 

Theaters

5.2

       

6.2

   

9.4

   

8.8

   

8.9

   

9.2

   

9.0

 

Transportation services

0.1

       

0.1

   

0.2

   

0.2

   

0.2

   

0.2

   

0.2

 

Wholesale clubs

4.2

       

3.9

   

3.2

   

0.7

   

-

   

-

   

-

 

Other

0.1

       

0.1

   

0.1

   

0.1

   

0.3

   

1.1

   

1.2

 

Retail industries

80.2

%

   

79.8

%

 

86.7

%

 

88.6

%

 

95.4

%

 

98.3

%

 

98.2

%

 

Industry Diversification (continued)

 
   

Percentage of  Rental Revenue(1)

   

For the

                                   
   

Quarter Ended

 

For the Years Ended

   

June 30,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

   

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Non-retail industries

                                           
 

Aerospace

1.2

       

1.2

   

0.9

   

0.5

   

-

   

-

   

-

 
 

Beverages

2.8

       

3.3

   

5.1

   

5.6

   

3.0

   

-

   

-

 
 

Consumer appliances

0.5

       

0.6

   

0.1

   

-

   

-

   

-

   

-

 
 

Consumer goods

0.9

       

1.0

   

0.1

   

-

   

-

   

-

   

-

 
 

Crafts and novelties

0.1

       

0.1

   

-

   

-

   

-

   

-

   

-

 
 

Diversified industrial

0.5

       

0.2

   

0.1

   

-

   

-

   

-

   

-

 
 

Electric utilities

0.1

       

*

   

-

   

-

   

-

   

-

   

-

 
 

Equipment services

0.5

       

0.4

   

0.3

   

0.2

   

-

   

-

   

-

 
 

Financial services

0.4

       

0.5

   

0.4

   

0.3

   

-

   

-

   

-

 
 

Food processing

1.4

       

1.5

   

1.3

   

0.7

   

-

   

-

   

-

 
 

General merchandise

0.4

       

-

   

-

   

-

   

-

   

-

   

-

 
 

Government services

1.3

       

1.4

   

0.1

   

0.1

   

0.1

   

0.1

   

-

 
 

Health care

0.7

       

0.8

   

*

   

*

   

-

   

-

   

-

 
 

Home furnishings

0.2

       

0.2

   

-

   

-

   

-

   

-

   

-

 
 

Home improvement

0.1

       

-

   

-

   

-

   

-

   

-

   

-

 
 

Insurance

0.1

       

0.1

   

*

   

-

   

-

   

-

   

-

 
 

Machinery

0.1

       

0.2

   

0.1

   

-

   

-

   

-

   

-

 
 

Other manufacturing

0.7

       

0.6

   

-

   

-

   

-

   

-

   

-

 
 

Packaging

0.8

       

0.9

   

0.7

   

0.4

   

-

   

-

   

-

 
 

Paper

0.1

       

0.2

   

0.1

   

0.1

   

-

   

-

   

-

 
 

Shoe stores

0.8

       

0.9

   

-

   

-

   

-

   

-

   

-

 
 

Telecommunications

0.7

       

0.7

   

0.8

   

0.7

   

-

   

-

   

-

 
 

Transportation services

5.1

       

5.3

   

2.2

   

1.6

   

-

   

-

   

-

 
 

Other

0.3

       

0.1

   

1.0

   

1.2

   

1.5

   

1.6

   

1.8

 
 

Non-retail industries

19.8

%

   

20.2

%

 

13.3

%

 

11.4

%

 

4.6

%

 

1.7

%

 

1.8

%

 

Totals

100.0

%

     

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

                                               

*

Less than 0.1%

                                               

(1)

Includes rental revenue for all properties owned by Realty Income at the end of each period presented, including revenue from properties reclassified as discontinued operations. Excludes revenue from properties owned by Crest Net Lease, Inc., or Crest.

 

Lease Expirations

The following table sets forth certain information regarding Realty Income's property portfolio regarding the timing of the lease term expirations (excluding rights to extend a lease at the option of the tenant) on our 4,169 net leased, single-tenant properties as of June 30, 2014 (dollars in thousands):

 

Total Portfolio(1)

Initial Expirations(3)

Subsequent Expirations(4)

               

Rental

         

Rental

       

Rental

     
               

Revenue

         

Revenue

       

Revenue

     
               

for the

         

for the

       

for the

     
   

Number

   

Quarter

   

% of

   

Quarter

 

 % of

   

Quarter

 

 % of

 
   

of Leases

 

Approx.

Ended

   

Total

 

Number

Ended

 

Total

 

Number

Ended

 

Total

 
   

   Expiring

 

Leasable

Jun 30,

   

Rental

 

of Leases

Jun 30,

 

Rental

 

of Leases

Jun 30,

 

Rental

 

Year

 

Retail

 

Non-Retail

 

Sq. Feet

2014

(2) 

Revenue

 

Expiring

2014

 

Revenue

 

Expiring

2014

 

Revenue

 
                                                         

2014

 

85

 

-

 

634,100

 

$

2,045

   

1.0

%

22

 

$

795

 

0.4

%

63

 

$

1,250

 

0.6

%

2015

 

172

 

-

 

866,600

   

3,693

   

1.7

 

67

   

1,520

 

0.7

 

105

   

2,173

 

1.0

 

2016

 

201

 

1

 

1,220,100

   

4,629

   

2.1

 

121

   

2,835

 

1.3

 

81

   

1,794

 

0.8

 

2017

 

187

 

2

 

2,116,500

   

6,031

   

2.8

 

49

   

3,050

 

1.4

 

140

   

2,981

 

1.4

 

2018

 

273

 

10

 

3,480,500

   

10,881

   

5.0

 

165

   

7,658

 

3.5

 

118

   

3,223

 

1.5

 

2019

 

214

 

11

 

3,599,800

   

11,619

   

5.3

 

167

   

10,001

 

4.6

 

58

   

1,618

 

0.7

 

2020

 

108

 

12

 

3,706,300

   

9,616

   

4.4

 

105

   

8,875

 

4.1

 

15

   

741

 

0.3

 

2021

 

184

 

13

 

5,487,900

   

14,332

   

6.6

 

187

   

13,780

 

6.3

 

10

   

552

 

0.3

 

2022

 

220

 

19

 

7,529,200

   

15,391

   

7.0

 

223

   

14,978

 

6.8

 

16

   

413

 

0.2

 

2023

 

344

 

22

 

6,561,600

   

20,875

   

9.5

 

353

   

20,203

 

9.2

 

13

   

672

 

0.3

 

2024

 

154

 

11

 

2,816,200

   

8,606

   

3.9

 

164

   

8,570

 

3.9

 

1

   

36

 

*

 

2025

 

296

 

10

 

4,201,900

   

18,124

   

8.3

 

299

   

17,873

 

8.2

 

7

   

251

 

0.1

 

2026

 

233

 

5

 

3,514,700

   

12,651

   

5.7

 

235

   

12,568

 

5.7

 

3

   

83

 

*

 

2027

 

462

 

2

 

4,901,800

   

16,080

   

7.4

 

462

   

16,040

 

7.4

 

2

   

40

 

*

 

2028

 

282

 

5

 

5,989,800

   

16,082

   

7.3

 

285

   

16,027

 

7.3

 

2

   

55

 

*

 

2029 - 2043

 

596

 

35

 

10,966,500

   

48,241

   

22.0

 

623

   

48,034

 

21.9

 

8

   

207

 

0.1

 

Totals

 

4,011

 

158

 

67,593,500

 

$

218,896

   

100.0

%

3,527

 

$

202,807

 

92.7

%

642

 

$

16,089

 

7.3

%

                                                         

*

Less than 0.1%

                                                         

(1)

Excludes 20 multi-tenant properties and 74 vacant properties, one of which is a multi-tenant property. The lease expirations for properties under construction are based on the estimated date of completion of those properties.

                                                         

(2)

Includes rental revenue of $18 from properties reclassified as discontinued operations and excludes revenue of $2,540 from 20 multi-tenant properties and from 74 vacant properties at June 30, 2014, $406 from sold properties included in continuing operations and $44 from properties owned by Crest.

                                                         

(3)

Represents leases to the initial tenant of the property that are expiring for the first time.

                                                         

(4)

Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-tenanted.

 

Geographic Diversification

The following table sets forth certain state-by-state information regarding Realty Income's property portfolio as of June 30, 2014 (dollars in thousands):

 
         

Approximate

 

Rental Revenue for

 

Percentage of

 
   

Number of

Percent

 

Leasable

 

 the Quarter Ended

 

Rental

 

State

Properties

Leased

 

Square Feet

 

June 30, 2014

(1)

Revenue

 

Alabama            

127

98

%

1,029,300

 

$

3,428

 

1.5

%

Alaska             

2

100

 

128,500

   

307

 

0.1

 

Arizona            

114

96

 

1,409,800

   

5,741

 

2.6

 

Arkansas           

53

98

 

782,600

   

1,655

 

0.7

 

California         

165

99

 

5,112,300

   

22,717

 

10.3

 

Colorado           

72

99

 

1,045,400

   

2,951

 

1.3

 

Connecticut        

25

96

 

536,900

   

2,281

 

1.0

 

Delaware           

17

100

 

78,300

   

541

 

0.2

 

Florida            

320

99

 

3,363,700

   

13,555

 

6.1

 

Georgia            

233

98

 

3,029,200

   

9,428

 

4.3

 

Hawaii             

--

--

 

--

   

--

 

--

 

Idaho              

12

100

 

87,000

   

433

 

0.2

 

Illinois           

160

99

 

4,406,500

   

12,681

 

5.7

 

Indiana            

106

99

 

1,172,800

   

5,271

 

2.4

 

Iowa               

35

94

 

2,751,700

   

3,326

 

1.5

 

Kansas             

82

99

 

1,638,200

   

3,443

 

1.6

 

Kentucky           

56

98

 

902,200

   

3,131

 

1.4

 

Louisiana          

87

98

 

944,300

   

2,786

 

1.3

 

Maine

9

100

 

126,400

   

837

 

0.4

 

Maryland           

33

100

 

772,000

   

4,203

 

1.9

 

Massachusetts      

83

96

 

758,000

   

3,425

 

1.5

 

Michigan           

106

98

 

1,009,400

   

3,285

 

1.5

 

Minnesota          

155

100

 

1,153,200

   

7,350

 

3.3

 

Mississippi        

121

98

 

1,551,500

   

3,800

 

1.7

 

Missouri           

133

98

 

2,568,400

   

8,047

 

3.6

 

Montana            

1

100

 

5,400

   

13

 

*

 

Nebraska           

31

100

 

708,700

   

1,750

 

0.8

 

Nevada             

22

95

 

413,000

   

1,289

 

0.6

 

New Hampshire      

20

100

 

320,100

   

1,467

 

0.7

 

New Jersey         

66

98

 

562,900

   

3,350

 

1.5

 

New Mexico         

29

100

 

277,400

   

638

 

0.3

 

New York           

87

95

 

2,203,500

   

10,587

 

4.8

 

North Carolina     

149

99

 

1,508,100

   

5,689

 

2.6

 

North Dakota       

7

100

 

66,000

   

118

 

0.1

 

Ohio               

213

98

 

5,058,200

   

12,118

 

5.5

 

Oklahoma           

124

99

 

1,583,700

   

3,814

 

1.7

 

Oregon             

25

100

 

525,400

   

1,844

 

0.8

 

Pennsylvania       

147

99

 

1,800,600

   

7,071

 

3.2

 

Rhode Island       

4

100

 

157,200

   

929

 

0.4

 

South Carolina     

134

99

 

1,011,100

   

4,389

 

2.0

 

South Dakota       

11

100

 

133,500

   

244

 

0.1

 

Tennessee          

194

96

 

3,005,500

   

5,946

 

2.7

 

Texas              

434

98

 

7,801,800

   

21,387

 

9.7

 

Utah               

13

100

 

749,000

   

1,337

 

0.6

 

Vermont            

6

100

 

100,700

   

492

 

0.2

 

Virginia           

140

97

 

2,628,600

   

6,979

 

3.2

 

Washington         

38

100

 

415,300

   

1,575

 

0.7

 

West Virginia      

12

100

 

261,200

   

883

 

0.4

 

Wisconsin          

43

95

 

1,481,600

   

2,693

 

1.2

 

Wyoming            

3

100

 

21,100

   

63

 

*

 

Puerto Rico

4

100

 

28,300

   

149

 

0.1

 

Totals\Average

4,263

98

%

69,185,500

 

$

221,436

 

100.0

%

                       

*

Less than 0.1%

                   
                       

(1)

Includes rental revenue for all properties owned by Realty Income at June 30, 2014, including revenue from properties reclassified as discontinued operations of $18.  Excludes revenue of $44 from properties owned by Crest and $406 from sold properties that were included in continuing operations.

Logo - http://photos.prnewswire.com/prnh/20130507/MM09486LOGO

SOURCE Realty Income Corporation

CONTACT: Paul M. Meurer, Executive Vice President, Chief Financial Officer & Treasurer, (760) 741-2111 ext. 1109

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