Press Release Details

Feb 17, 2015

Operating Results For Fourth Quarter And 2014 Announced By Realty Income

SAN DIEGO, Feb. 17, 2015 /PRNewswire/ -- Realty Income Corporation (Realty Income) (NYSE: O), The Monthly Dividend Company®, today announced operating results for the fourth quarter ended December 31, 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.

Realty Income Corporation - The Monthly Dividend Company.

COMPANY HIGHLIGHTS:

For the quarter ended December 31, 2014 (as compared to the same quarterly period in 2013):

  • Revenue increased 14.5% to $247.6 million as compared to $216.2 million
  • Net income available to common stockholders per share was $0.32
  • FFO available to common stockholders increased 15.3% to $143.7 million
  • FFO per share increased 4.9% to $0.64
  • AFFO available to common stockholders increased 15.7% to $145.4 million
  • AFFO per share increased 4.8% to $0.65
  • Same store rents increased 1.7%
  • Portfolio occupancy increased to 98.4% from 98.2%
  • Invested $158.0 million in 82 new properties and properties under development or expansion
  • Increased the monthly dividend in December for the 78th time and for the 69th consecutive quarter
  • Dividends paid per common share increased 0.5%

For the year ended December 31, 2014 (as compared to 2013):

  • Revenue increased 19.6% to $933.5 million as compared to $780.2 million
  • Net income available to common stockholders per share was $1.04
  • FFO available to common stockholders increased 21.8% to $562.9 million
  • FFO per share increased 7.1% to $2.58
  • AFFO available to common stockholders increased 21.3% to $561.7 million
  • AFFO per share increased 6.6% to $2.57
  • Same store rents increased 1.5%
  • Invested $1.4 billion in 506 new properties and properties under development or expansion
  • Dividends paid per common share increased 2.1%
  • Raised gross proceeds of $1.3 billion in permanent and long-term capital to fund real estate acquisitions

Event subsequent to December 31, 2014:

  • Increased the annualized dividends paid per common share by 3.0% from $2.201 to $2.268 in January 2015

CEO Comments on Operating Results
"We are pleased to report excellent operating performance for the fourth quarter and for 2014 with AFFO per share increasing by 4.8% to $0.65 during the quarter, and 6.6% to $2.57 during the year," said John P. Case, Realty Income's Chief Executive Officer. "This earnings growth allowed us to increase dividends paid per share by 2.1% in 2014, and another 3.0% this month. Our company was recognized in January 2015 for its track record of outstanding, long-term dividend growth. Realty Income was added to the exclusive S&P High Yield Dividend Aristocrats® index for increasing our dividend every year for 20 years."

"During the year, we completed $1.4 billion in acquisitions, which makes this our second most acquisitive year in the company's history. These properties had an attractive initial average lease yield of 7.1% and weighted average remaining lease term of 12.8 years. We continued to remain selective in our investment activity, acquiring 5.8% of the $24.3 billion of sourced acquisitions opportunities during the year. We funded the 2014 investments by issuing $1.3 billion in permanent and long-term capital, of which more than half was equity. Additionally, as of February 13, 2015, we have approximately $1.12 billion available on our credit facility to fund future acquisitions. Given the healthy volume of acquisitions opportunities we are currently seeing, we are raising our acquisitions guidance for 2015 from $500 million - $800 million to $700 million - $1 billion."

"Our existing portfolio of over 4,300 properties continues to perform well. In 2014, we experienced one of our most active years for lease rollover. We re-leased 203 properties with expiring leases to either existing or new tenants, recapturing 99.3% of expiring rent. We realized same store rent increases of 1.7% for the fourth quarter and 1.5% for 2014. We also sold 46 properties for $107 million realizing a 6.9% cap rate on the leased properties sold and an 11.6% unlevered internal rate of return on all properties sold. Our proactive approach to portfolio management resulted in occupancy increasing to 98.4% at the end of 2014, the highest it's been since 2007." 

Financial Results
Revenue

Revenue for the quarter ended December 31, 2014 increased 14.5% to $247.6 million, as compared to $216.2 million for the same quarter in 2013. Revenue for 2014 increased 19.6% to $933.5 million, as compared to $780.2 million for 2013.

Net Income Available to Common Stockholders
Net income available to common stockholders for the quarter ended December 31, 2014 was $71.0 million, as compared to $53.9 million for the same quarter in 2013. Net income per share for the quarter ended December 31, 2014 was $0.32, as compared to $0.26 for the same quarter in 2013.

Net income available to common stockholders for 2014 was $227.6 million, as compared to $203.6 million for 2013. Net income per share in 2014 was $1.04, as compared to $1.06 for 2013.

Net income available to common stockholders per share for 2014 was impacted by a $6.0 million non-cash redemption charge on the shares of the 6.75% Monthly Income Class E Cumulative Redeemable Preferred Stock, or Class E preferred stock, that were redeemed in October 2014, which represents $0.03 net income per share. This charge is for the excess in redemption value over the carrying value of the Class E preferred stock and represents the original issuance cost that was paid in 2006. Net income available to common stockholders for 2013 was impacted by an unusually large gain on sale of real estate, which represented $0.18 per share.

The calculation to determine net income for a real estate company includes impairments and/or gains on 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 (FFO) Available to Common Stockholders
FFO for the quarter ended December 31, 2014 increased 15.3% to $143.7 million, as compared to $124.6 million for the same quarter in 2013. FFO per share for the quarter ended December 31, 2014 increased 4.9% to $0.64, as compared to $0.61 for the same quarter in 2013.

FFO for 2014 increased 21.8% to $562.9 million, as compared to $462.0 million for the same period in 2013. FFO per share in 2014 increased 7.1% to $2.58, as compared to $2.41 for 2013.

FFO per share for 2014 was impacted by a $6.0 million non-cash redemption charge on the Class E preferred shares that were redeemed in October 2014, which represents $0.03 per share.

Adjusted Funds From Operations (AFFO) Available to Common Stockholders
AFFO for the quarter ended December 31, 2014 increased 15.7% to $145.4 million, as compared to $125.7 million for the same quarter in 2013. AFFO per share for the quarter ended December 31, 2014 increased 4.8% to $0.65, as compared to $0.62 for the same quarter in 2013.

AFFO for 2014 increased 21.3% to $561.7 million, as compared to $463.1 million for 2013. AFFO per share for 2014 increased 6.6% to $2.57, as compared to $2.41 for 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 quarter and year ended December 31, 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 reconciliation of net income available to common stockholders to FFO and AFFO on page six. 

Dividend Information
In December 2014, Realty Income announced the 69th consecutive quarterly dividend increase, which is the 78th 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 December 31, 2014, was approximately $2.201 per share. The amount of monthly dividends paid per share increased 2.1% to $2.192 in 2014 compared to $2.147 per share in 2013. In addition, through December 31, 2014, the company has paid 533 consecutive monthly dividends and over $3.2 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.

Real Estate Portfolio Update
As of December 31, 2014, Realty Income's portfolio of freestanding, single-tenant properties consisted of 4,327 properties located in 49 states and Puerto Rico, leased to 234 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 10.2 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 December 31, 2014, portfolio occupancy was 98.4% with 70 properties available for lease out of a total of 4,327 properties in the portfolio, as compared to 98.2% portfolio occupancy, or 70 properties available for lease, as of December 31, 2013.

Since September 30, 2014, when we reported 74 properties available for lease, we had 54 lease expirations, re-leased 50 properties and sold eight vacant properties. Of the 50 properties re-leased during the fourth quarter of 2014, 40 properties were re-leased to existing tenants without vacancy, four were re-leased to new tenants without vacancy, and six were re-leased to a new tenant after a period of vacancy. The annual new rent on these re-leases was $5.3 million, as compared to the previous rent of $5.4 million on these same properties.

Rent Increases
During the quarter ended December 31, 2014, same store rents on 2,728 properties under lease increased 1.7% to $129.9 million, as compared to $127.7 million for the same quarter in 2013. During 2014, same store rents on 2,728 properties under lease increased 1.5% to $513.4 million, as compared to $505.7 million for 2013.

Property Acquisitions
During the fourth quarter of 2014, Realty Income invested $158.0 million in 82 new properties and properties under development or expansion, located in 26 states. These properties are 100% leased with a weighted average lease term of approximately 14.6 years and an initial average lease yield of 7.1%. The tenants occupying the new properties operate in 19 industries, and the property types consist of 87.3% retail and 12.7% industrial and distribution, based on rental revenue. Approximately 32% of the revenue generated from acquisitions during the fourth quarter of 2014 is from investment grade tenants.

During 2014, Realty Income invested approximately $1.4 billion in 506 new properties and properties under development or expansion. The new properties are located in 42 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 32 industries, and the property types consist of 85.7% retail, 6.6% industrial and distribution, 6.4% office, and 1.3% manufacturing, based on rental revenue. Approximately 66% of the revenue generated from the 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 December 31, 2014, $1.28 billion was available on the credit facility to fund additional acquisitions.

Property Dispositions
During the quarter ended December 31, 2014, Realty Income sold 18 properties for $53.7 million, with a gain on sales of $25.3 million, as compared to 22 properties sold for $28.0 million, with a gain on sales of $14.3 million, during the same quarter in 2013.

During 2014, Realty Income sold 46 properties for $107.2 million, with a gain on sales of $42.1 million, as compared to 75 properties sold for $134.2 million, with a gain on sales of $64.7 million, during 2013.

Other Recent Activities
2015 Dividend Increase
In January 2015, Realty Income increased the amount of the annualized dividend by 3.0%. The new dividend represents an annualized dividend of $2.268 per share, as compared to the prior annualized dividend amount of $2.201 per share. The new monthly dividend amount of $0.189 was paid on February 17, 2015 to shareholders of record on February 2, 2015.

Redeemed All Outstanding Shares of 6.75% Monthly Income Class E Preferred Stock in October 2014
In October 2014, Realty Income redeemed all 8,800,000 outstanding shares of our Class E preferred stock. The shares were redeemed at $25 per share (par), plus accrued and unpaid dividends to the redemption date of October 24, 2014. 

Direct Stock Purchase and Dividend Reinvestment Plan Activities
During the fourth quarter of 2014, Realty Income issued 2,236,294 common shares via its Stock Plan, generating gross proceeds of approximately $101.9 million. For 2014, Realty Income issued 3,527,166 common shares via its Stock Plan, generating gross proceeds of approximately $158.5 million.

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.

2015 Earnings Estimates
FFO per share for 2015 should range from $2.67 to $2.72 per share, an increase of 3.5% to 5.4% over 2014 FFO per share of $2.58. FFO per share for 2015 is based on a net income per share range of $0.97 to $1.02, plus estimated real estate depreciation of $1.77 per share, and reduced by potential estimated gains on sales of investment properties of $0.07 per share (in accordance with NAREIT's definition of FFO). 

AFFO per share for 2015 should range from $2.66 to $2.71 per share, an increase of 3.5% to 5.4% over the 2014 AFFO per share of $2.57. 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.

Conference Call Information
In conjunction with Realty Income's quarterly results, the company will host a conference call on February 18, 2015 at 11:30 a.m. PST to discuss the operating results. To access the conference, dial (888) 505-4375. When prompted, provide the access code: 1871553. Shareholders may also access a telephone replay of the conference call by calling (888) 203-1112 and entering the access code: 1871553. The telephone replay will be available through March 4, 2015. A live webcast will be available in listen-only mode by clicking on the webcast link at www.realtyincome.com. A replay of the conference call webcast will be available approximately two hours after the conclusion of the live broadcast. The webcast replay will be available through March 4, 2015. No access code is required for this replay.

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 December 31, 2014, the company had paid 533 consecutive monthly dividends throughout its 46-year operating history. The monthly income is supported by the cash flows from over 4,300 properties owned under long-term lease agreements with 234 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.

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. 

 

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts)

                                       
   

Three Months

     

Three Months

     

Twelve Months

     

Twelve Months

 
   

Ended 12/31/14

     

Ended 12/31/13

     

Ended 12/31/14

     

Ended 12/31/13

 

REVENUE

 

(unaudited)

                     

Rental

 

$

230,635

     

$

204,999

     

$

893,457

     

$

748,218

 

Tenant reimbursements

   

16,246

       

9,324

       

37,118

       

24,944

 

Other

   

692

       

1,840

       

2,930

       

7,047

 
                                       

Total revenue

   

247,573

       

216,163

       

933,505

       

780,209

 
                                       

EXPENSES

                                     

Depreciation and amortization

   

96,537

       

85,293

       

374,661

       

306,769

 

Interest

   

59,120

       

50,775

       

216,366

       

181,442

 

General and administrative

   

15,586

       

16,525

       

51,085

       

56,881

 

Property (including reimbursable)

   

20,397

       

13,059

       

53,871

       

38,851

 

Income taxes

   

1,103

       

579

       

3,461

       

2,350

 

Provisions for impairment

   

1,450

       

-

       

4,126

       

290

 

Merger-related costs

   

-

       

138

       

-

       

13,013

 
                                       

Total expenses

   

194,193

       

166,369

       

703,570

       

599,596

 
                                       

Gain on sales of real estate

   

24,994

       

-

       

39,205

       

-

 

Income from continuing operations

78,374

       

49,794

       

269,140

       

180,613

 

Income (loss) from discontinued operations

 

(297)

       

14,840

       

2,800

       

65,670

 
                                       

Net income

   

78,077

       

64,634

       

271,940

       

246,283

 

Net income attributable to noncontrolling interests

 

(289)

       

(298)

       

(1,305)

       

(719)

 
                                       

Net income attributable to the Company

77,788

       

64,336

       

270,635

       

245,564

 

Preferred stock dividends

   

(6,770)

       

(10,482)

       

(37,062)

       

(41,930)

 

Excess of redemption value over carrying value of

                               

preferred shares redeemed

   

-

       

-

       

(6,015)

       

-

 
                                       

Net income available to common stockholders

$

71,018

     

$

53,854

     

$

227,558

     

$

203,634

 
                                       

Funds from operations available to

                                 

common stockholders (FFO)

 

$

143,706

     

$

124,630

     

$

562,889

     

$

462,030

 

Adjusted funds from operations available to

                               

common stockholders (AFFO)

 

$

145,394

     

$

125,700

     

$

561,661

     

$

463,139

 
                                       

Per share information for common stockholders:

                               

Income from continuing operations,

                               

basic and diluted

 

$

0.32

     

$

0.19

     

$

1.03

     

$

0.72

 
                                       

Net income, basic and diluted

 

$

0.32

     

$

0.26

     

$

1.04

     

$

1.06

 
                                       

FFO, basic and diluted

 

$

0.64

     

$

0.61

     

$

2.58

     

$

2.41

 
                                       

AFFO:

                                     

Basic

 

$

0.65

     

$

0.62

     

$

2.57

     

$

2.42

 

Diluted

 

$

0.65

     

$

0.62

     

$

2.57

     

$

2.41

 
                                       

Cash dividends paid per common share

$

0.549

     

$

0.546

     

$

2.192

     

$

2.147

 

 

 

 

 

 

 

 

FUNDS FROM OPERATIONS (FFO)

(dollars in thousands, except per share amounts)

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. (1)

     

Three Months

   

Three Months

   

Year

   

Year

 
     

Ended 12/31/14

   

Ended 12/31/13

   

Ended 12/31/14

   

Ended 12/31/13

 
                                   

Net income available to common stockholders

 

$

71,018

   

$

53,854

   

$

227,558

   

$

203,634

 

Depreciation and amortization:

                               
 

Continuing operations

   

96,537

     

85,293

     

374,661

     

306,769

 
 

Discontinued operations

   

-

     

36

     

-

     

1,626

 

Depreciation of furniture, fixtures and equipment

   

(161)

     

(86)

     

(482)

   

(288)

 

Provisions for impairment on investment properties:

                               
 

Continuing operations

   

1,450

     

-

     

4,126

     

290

 
 

Discontinued operations

   

510

     

-

     

510

     

2,738

 

Gain on sale of investment properties:

                               
 

Continuing operations

   

(24,994)

     

-

     

(39,205)

   

-

 
 

Discontinued operations

   

(276)

     

(14,276)

     

(2,883)

   

(64,743)

 

Merger-related costs (1)

   

-

     

138

     

-

     

13,013

 

FFO adjustments allocable to noncontrolling interests

   

(378)

     

(329)

     

(1,396)

   

(1,009)

 
                                   

FFO available to common stockholders

 

$

143,706

   

$

124,630

   

$

562,889

   

$

462,030

 
                                   

FFO per common share, basic and diluted

 

$

0.64

   

$

0.61

   

$

2.58

   

$

2.41

 

Distributions paid to common stockholders

 

$

122,521

   

$

110,678

   

$

479,256

   

$

409,222

 

FFO in excess of distributions paid to

                               

common stockholders

 

$

21,185

   

$

13,952

   

$

83,633

   

$

52,808

 
                                   

Weighted average number of common shares used for FFO:

                         
 

Basic

 

223,034,266

   

203,303,124

   

218,390,885

   

191,754,857

 
 

Diluted

 

223,262,633

   

203,326,838

   

218,450,863

   

191,781,622

 
                                   

(1)

FFO for the three and twelve months ended December 31, 2013, has been normalized to exclude ARCT merger-related costs.

 
 

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

   

Year

   

Year

 
     

Ended 12/31/14

   

Ended 12/31/13

   

Ended 12/31/14

   

Ended 12/31/13

 
                                   

Net income available to common stockholders

 

$

71,018

   

$

53,854

   

$

227,558

   

$

203,634

 

Cumulative adjustments to calculate FFO (1)

   

72,688

     

70,776

     

335,331

     

258,396

 

FFO available to common stockholders

   

143,706

     

124,630

     

562,889

     

462,030

 

Provisions for impairment on Crest properties

   

-

     

308

     

-

     

308

 

Excess of redemption value over carrying value

                               

of Class E preferred share redemption

   

-

     

-

     

6,015

     

-

 

Amortization of share-based compensation

   

4,306

     

6,550

     

11,959

     

20,785

 

Amortization of deferred financing costs (2)

   

1,328

     

1,219

     

4,804

     

4,436

 

Amortization of net mortgage premiums

   

(2,147)

     

(2,522)

     

(9,208)

   

(9,481)

 

(Gain) loss on early extinguishment of mortgage debt

   

99

     

-

     

(3,428)

   

-

 

(Gain) loss on interest rate swaps

   

940

     

(188)

     

1,349

     

(878)

 

Capitalized leasing costs and commissions

   

(167)

     

(137)

     

(821)

   

(1,280)

 

Capitalized building improvements

   

(1,328)

     

(2,468)

     

(5,210)

   

(7,227)

 

Straight-line rent

   

(3,108)

     

(3,631)

     

(14,872)

   

(13,742)

 

Amortization of above and below-market leases

   

1,650

     

1,939

     

8,024

     

8,188

 

Other adjustments (3)

   

115

     

-

     

160

     

-

 

AFFO available to common stockholders

 

$

145,394

   

$

125,700

   

$

561,661

   

$

463,139

 
                                   

AFFO per common share:

                               
 

Basic

 

$

0.65

   

$

0.62

   

$

2.57

   

$

2.42

 
 

Diluted

 

$

0.65

   

$

0.62

   

$

2.57

   

$

2.41

 

Distributions paid to common stockholders

 

$

122,521

   

$

110,678

   

$

479,256

   

$

409,222

 

AFFO in excess of distributions paid to

                               

common stockholders

 

$

22,873

   

$

15,022

   

$

82,405

   

$

53,917

 
                                   

Weighted average number of common shares used for AFFO:

                         
 

Basic

 

223,034,266

   

203,303,124

   

218,390,885

   

191,754,857

 
 

Diluted

 

223,262,633

   

203,326,838

   

218,450,863

   

191,781,622

 

(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, June 2014 and September 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.

(3)

Includes adjustments allocable to both non-controlling interests and capital lease obligations.

 

HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(dollars in thousands, except per share amounts)

                               

For the three months ended December 31,

2014

   

2013

   

2012

   

2011

   

2010

 
                               

Net income available to common stockholders

$

71,018

 

$

53,854

 

$

28,542

 

$

34,941

 

$

31,814

 

Depreciation and amortization

 

96,376

   

85,243

   

42,428

   

34,314

   

25,045

 

Provisions for impairment on investment properties

1,960

   

-

   

4,472

   

27

   

42

 

Gain on sales of investment properties

(25,270)

   

(14,276)

   

(3,863)

   

(1,205)

   

(4,392)

 

Merger-related costs

 

-

   

138

   

2,404

   

-

   

-

 

FFO adjustments allocable to noncontrolling interests

 

(378)

   

(329)

   

-

   

-

   

-

 
                               

FFO

$

143,706

 

$

124,630

 

$

73,983

 

$

68,077

 

$

52,509

 
                               

FFO per diluted share

$

0.64

 

$

0.61

 

$

0.56

 

$

0.51

 

$

0.47

 
                               

AFFO

$

145,394

 

$

125,700

 

$

72,892

 

$

68,524

 

$

53,327

 
                               

AFFO per diluted share

$

0.65

 

$

0.62

 

$

0.55

 

$

0.52

 

$

0.48

 
                               

Cash dividends paid per share

$

0.549

 

$

0.546

 

$

0.454

 

$

0.436

 

$

0.432

 

Weighted average diluted shares outstanding

223,262,633

 

203,326,838

 

132,979,552

 

132,609,319

 

112,067,874

 
                               

For the year ended December 31,

 

2014

   

2013

   

2012

   

2011

   

2010

 
                               

Net income available to common stockholders

$

227,558

 

$

203,634

 

$

114,538

 

$

132,779

 

$

106,531

 

Depreciation and amortization

 

374,179

   

308,107

   

151,058

   

121,941

   

95,858

 

Provisions for impairment on investment properties

4,636

   

3,028

   

5,139

   

405

   

213

 

Gain on sales of investment properties

(42,088)

   

(64,743)

   

(9,873)

   

(5,733)

   

(8,676)

 

Merger-related costs

 

-

   

13,013

   

7,899

   

-

   

-

 

FFO adjustments allocable to noncontrolling interests

 

(1,396)

   

(1,009)

   

-

   

-

   

-

 
                               

FFO

$

562,889

 

$

462,030

 

$

268,761

 

$

249,392

 

$

193,926

 
                               

FFO per diluted share

$

2.58

 

$

2.41

 

$

2.02

 

$

1.98

 

$

1.83

 
                               

AFFO

$

561,661

 

$

463,139

 

$

274,183

 

$

253,372

 

$

197,256

 
                               

AFFO per diluted share

$

2.57

 

$

2.41

 

$

2.06

 

$

2.01

 

$

1.86

 
                               

Cash dividends paid per share

$

2.192

 

$

2.147

 

$

1.772

 

$

1.737

 

$

1.722

 

Weighted average diluted shares outstanding

218,450,863

 

191,781,622

 

132,884,933

 

126,189,399

 

105,942,721

 

 

REALTY INCOME CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2014 and 2013

(dollars in thousands, except per share data)

             
   

2014

   

2013

 

ASSETS

           

Real estate, at cost:

           

Land

$

3,046,372

 

$

2,791,147

 

Buildings and improvements

 

8,107,199

   

7,108,328

 

Total real estate, at cost

 

11,153,571

   

9,899,475

 

Less accumulated depreciation and amortization

 

(1,386,871)

   

(1,114,888)

 

Net real estate held for investment

 

9,766,700

   

8,784,587

 

Real estate held for sale, net

 

14,840

   

12,022

 

Net real estate

 

9,781,540

   

8,796,609

 

Cash and cash equivalents

 

3,852

   

10,257

 

Accounts receivable, net

 

64,386

   

39,323

 

Acquired lease intangible assets, net

 

1,039,724

   

935,459

 

Goodwill

 

15,470

   

15,660

 

Other assets, net

 

107,650

   

127,133

 

Total assets

$

11,012,622

 

$

9,924,441

 
             

LIABILITIES AND EQUITY

           

Distributions payable

$

43,675

 

$

41,452

 

Accounts payable and accrued expenses

 

123,287

   

102,511

 

Acquired lease intangible liabilities, net

 

220,469

   

148,250

 

Other liabilities

 

53,145

   

44,030

 

Line of credit payable

 

223,000

   

128,000

 

Term loan

 

70,000

   

70,000

 

Mortgages payable, net

 

852,575

   

783,360

 

Notes payable, net

 

3,785,372

   

3,185,480

 

Total liabilities

 

5,371,523

   

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, 16,350,000 shares issued and

           

outstanding as of December 31, 2014 and 25,150,000 shares issued

           

and outstanding as of December 31, 2013

 

395,378

   

609,363

 

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

           

370,100,000 shares authorized, 224,881,192 shares issued and

           

outstanding as of December 31, 2014 and 207,485,073 shares issued

           

and outstanding at December 31, 2013

 

6,464,987

   

5,767,878

 

Distributions in excess of net income

 

(1,246,964)

   

(991,794)

 

Total stockholders' equity

 

5,613,401

   

5,385,447

 

Noncontrolling interests

 

27,698

   

35,911

 

Total equity

 

5,641,099

   

5,421,358

 

Total liabilities and equity

$

11,012,622

 

$

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

%

2014

4.6

%

 

33.7

%

 

3.6

%

 

28.0

%

 

2.3

%

 

10.0

%

 

2.0

%

 

13.7

%

 

1.3

%

 

13.4

%

                                                             

Compounded Average

Annual Total Return (5)

17.1

%

       

11.4

%

       

10.3

%

       

9.7

%

       

9.4

%

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 December 31, 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 December 31, 2014 (dollars in thousands):

                       
         

  Approximate

 

Rental Revenue for

   

Percentage of

 
     

Number of

 

      Leasable

 

the Quarter Ended

   

Rental

 

Property Type

 

Properties

 

   Square Feet

 

December 31, 2014

(1)

 

Revenue

 

Retail

 

4,172

 

47,122,600

 

$

180,529

   

78.5

%

Industrial and distribution

 

82

 

16,137,500

   

23,610

   

10.3

 

Office

 

44

 

3,414,900

   

15,081

   

6.5

 

Manufacturing

 

14

 

3,875,200

   

5,616

   

2.4

 

Agriculture

 

15

 

184,500

   

5,267

   

2.3

 

Totals

 

4,327

 

70,734,700

 

$

230,103

   

100.0

%

(1)

Includes rental revenue for all properties owned by Realty Income at December 31, 2014.  Excludes revenue of $44 from properties owned by Crest and $488 from sold properties that were included in continuing operations.

 

Tenant Diversification

 

The largest tenants based on percentage of total portfolio rental revenue at December 31, 2014 include the following:

                   

Tenant

   

Number of Properties

       

% of Revenue

                     

Walgreens

   

120

       

5.4

%

 

FedEx

   

38

       

5.1

%

 

Dollar General

   

502

       

4.9

%

 

LA Fitness

   

46

       

4.6

%

 

Family Dollar

   

454

       

4.5

%

 

BJ's Wholesale Clubs

   

15

       

2.8

%

 

AMC Theatres

   

20

       

2.7

%

 

Diageo

   

17

       

2.6

%

 

Regal Cinemas

   

23

       

2.3

%

 

Northern Tier Energy/Super America

   

134

       

2.2

%

 

CVS Pharmacy

   

55

       

2.1

%

 

Rite Aid

   

58

       

1.9

%

 

TBC Corporation

   

149

       

1.9

%

 

Circle K

   

168

       

1.8

%

 

The Pantry

   

144

       

1.6

%

 

Walmart/Sam's Club

   

19

       

1.4

%

 

NPC International

   

202

       

1.4

%

 

GPM Investments/Fas Mart

   

136

       

1.4

%

 

FreedomRoads/Camping World

   

18

       

1.2

%

 

Smart & Final

   

36

       

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

 

December 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

2014

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

Retail industries

                                           

Apparel stores

2.2

%

     

2.0

%

 

1.9

%

 

1.7

%

 

1.4

%

 

1.2

%

 

1.1

%

Automotive collision services

0.8

       

0.8

   

0.8

   

1.1

   

0.9

   

1.0

   

1.1

 

Automotive parts

1.4

       

1.3

   

1.2

   

1.0

   

1.2

   

1.4

   

1.5

 

Automotive service

1.8

       

1.8

   

2.1

   

3.1

   

3.7

   

4.7

   

4.8

 

Automotive tire services

3.1

       

3.2

   

3.6

   

4.7

   

5.6

   

6.4

   

6.9

 

Book stores

*

       

*

   

*

   

0.1

   

0.1

   

0.1

   

0.2

 

Child care

2.2

       

2.2

   

2.8

   

4.5

   

5.2

   

6.5

   

7.3

 

Consumer electronics

0.3

       

0.3

   

0.3

   

0.5

   

0.5

   

0.6

   

0.7

 

Convenience stores

9.8

       

10.1

   

11.2

   

16.3

   

18.5

   

17.1

   

16.9

 

Crafts and novelties

0.5

       

0.5

   

0.5

   

0.3

   

0.2

   

0.3

   

0.3

 

Dollar stores

9.5

       

9.6

   

6.2

   

2.2

   

-

   

-

   

-

 

Drug stores

9.5

       

9.5

   

8.1

   

3.5

   

3.8

   

4.1

   

4.3

 

Education

0.4

       

0.4

   

0.4

   

0.7

   

0.7

   

0.8

   

0.9

 

Entertainment

0.5

       

0.5

   

0.6

   

0.9

   

1.0

   

1.2

   

1.3

 

Equipment services

0.1

       

0.1

   

0.1

   

0.1

   

0.2

   

0.2

   

0.2

 

Financial services

1.4

       

1.4

   

1.5

   

0.2

   

0.2

   

0.2

   

0.2

 

General merchandise

1.4

       

1.2

   

1.1

   

0.6

   

0.6

   

0.8

   

0.8

 

Grocery stores

3.1

       

3.0

   

2.9

   

3.7

   

1.6

   

0.9

   

0.7

 

Health and fitness

7.0

       

7.0

   

6.3

   

6.8

   

6.4

   

6.9

   

5.9

 

Health care

1.0

       

1.1

   

1.1

   

-

   

-

   

-

   

-

 

Home furnishings

0.7

       

0.7

   

0.9

   

1.0

   

1.1

   

1.3

   

1.3

 

Home improvement

2.1

       

1.7

   

1.6

   

1.5

   

1.7

   

2.0

   

2.2

 

Jewelry

0.1

       

0.1

   

0.1

   

-

   

-

   

-

   

-

 

Motor vehicle dealerships

1.5

       

1.6

   

1.6

   

2.1

   

2.2

   

2.6

   

2.7

 

Office supplies

0.4

       

0.4

   

0.5

   

0.8

   

0.9

   

0.9

   

1.0

 

Pet supplies and services

0.7

       

0.7

   

0.8

   

0.6

   

0.7

   

0.9

   

0.9

 

Restaurants - casual dining

4.2

       

4.3

   

5.1

   

7.3

   

10.9

   

13.4

   

13.7

 

Restaurants - quick service

3.8

       

3.7

   

4.4

   

5.9

   

6.6

   

7.7

   

8.3

 

Shoe stores

0.1

       

0.1

   

0.1

   

0.1

   

0.2

   

0.1

   

-

 

Sporting goods

1.6

       

1.6

   

1.7

   

2.5

   

2.7

   

2.7

   

2.6

 

Theaters

5.3

       

5.3

   

6.2

   

9.4

   

8.8

   

8.9

   

9.2

 

Transportation services

0.1

       

0.1

   

0.1

   

0.2

   

0.2

   

0.2

   

0.2

 

Wholesale clubs

4.1

       

4.1

   

3.9

   

3.2

   

0.7

   

-

   

-

 

Other

*

       

*

   

0.1

   

0.1

   

0.1

   

0.3

   

1.1

 

Retail industries

80.7

%

     

80.4

%

 

79.8

%

 

86.7

%

 

88.6

%

 

95.4

%

 

98.3

%

 

 

Industry Diversification (continued)

 
   

Percentage of  Rental Revenue(1)

   

For the

                                   
   

Quarter Ended

 

For the Years Ended

   

December 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

   

2014

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

Non-retail industries

                                           
 

Aerospace

1.2

       

1.2

   

1.2

   

0.9

   

0.5

   

-

   

-

 
 

Beverages

2.7

       

2.8

   

3.3

   

5.1

   

5.6

   

3.0

   

-

 
 

Consumer appliances

0.5

       

0.5

   

0.6

   

0.1

   

-

   

-

   

-

 
 

Consumer goods

0.9

       

0.9

   

1.0

   

0.1

   

-

   

-

   

-

 
 

Crafts and novelties

0.1

       

0.1

   

0.1

   

-

   

-

   

-

   

-

 
 

Diversified industrial

0.6

       

0.5

   

0.2

   

0.1

   

-

   

-

   

-

 
 

Electric utilities

0.1

       

0.1

   

*

   

-

   

-

   

-

   

-

 
 

Equipment services

0.5

       

0.5

   

0.4

   

0.3

   

0.2

   

-

   

-

 
 

Financial services

0.4

       

0.4

   

0.5

   

0.4

   

0.3

   

-

   

-

 
 

Food processing

1.3

       

1.4

   

1.5

   

1.3

   

0.7

   

-

   

-

 
 

General merchandise

0.3

       

0.3

   

-

   

-

   

-

   

-

   

-

 
 

Government services

1.2

       

1.3

   

1.4

   

0.1

   

0.1

   

0.1

   

0.1

 
 

Health care

0.7

       

0.7

   

0.8

   

*

   

*

   

-

   

-

 
 

Home furnishings

0.2

       

0.2

   

0.2

   

-

   

-

   

-

   

-

 
 

Insurance

0.1

       

0.1

   

0.1

   

*

   

-

   

-

   

-

 
 

Machinery

0.2

       

0.2

   

0.2

   

0.1

   

-

   

-

   

-

 
 

Other manufacturing

0.7

       

0.7

   

0.6

   

-

   

-

   

-

   

-

 
 

Packaging

0.8

       

0.8

   

0.9

   

0.7

   

0.4

   

-

   

-

 
 

Paper

0.1

       

0.1

   

0.2

   

0.1

   

0.1

   

-

   

-

 
 

Shoe stores

0.7

       

0.8

   

0.9

   

-

   

-

   

-

   

-

 
 

Telecommunications

0.7

       

0.7

   

0.7

   

0.8

   

0.7

   

-

   

-

 
 

Transportation services

5.1

       

5.1

   

5.3

   

2.2

   

1.6

   

-

   

-

 
 

Other

0.2

       

0.2

   

0.1

   

1.0

   

1.2

   

1.5

   

1.6

 
                                               
 

Non-retail industries

19.3

%

     

19.6

%

 

20.2

%

 

13.3

%

 

11.4

%

 

4.6

%

 

1.7

%

 

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 4,238 net leased, single-tenant properties as of December 31, 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

Dec 31,

   

Rental

 

of Leases

Dec 31,

 

Rental

 

of Leases

Dec 31,

 

Rental

 

Year

 

Retail

 

Non-Retail

 

Sq. Feet

2014

(2) 

Revenue

 

Expiring

2014

 

Revenue

 

Expiring

2014

 

Revenue

 
                                                         

2015

 

142

 

-

 

784,600

 

$

3,058

   

1.4

%

68

 

$

1,554

 

0.7

%

74

 

$

1,504

 

0.7

%

2016

 

203

 

1

 

1,236,800

   

4,719

   

2.1

 

121

   

2,823

 

1.3

 

83

   

1,896

 

0.8

 

2017

 

207

 

1

 

2,160,200

   

6,667

   

2.9

 

49

   

2,954

 

1.3

 

159

   

3,713

 

1.6

 

2018

 

286

 

10

 

4,024,800

   

11,913

   

5.3

 

169

   

8,347

 

3.7

 

127

   

3,566

 

1.6

 

2019

 

238

 

11

 

3,934,400

   

13,429

   

5.9

 

169

   

11,242

 

4.9

 

80

   

2,187

 

1.0

 

2020

 

133

 

12

 

3,818,800

   

10,473

   

4.6

 

105

   

9,256

 

4.1

 

40

   

1,217

 

0.5

 

2021

 

186

 

13

 

5,493,600

   

14,486

   

6.4

 

188

   

13,907

 

6.1

 

11

   

579

 

0.3

 

2022

 

225

 

18

 

7,441,700

   

15,136

   

6.7

 

221

   

14,480

 

6.4

 

22

   

656

 

0.3

 

2023

 

352

 

20

 

6,475,800

   

21,741

   

9.6

 

359

   

21,073

 

9.3

 

13

   

668

 

0.3

 

2024

 

179

 

10

 

3,280,000

   

9,552

   

4.2

 

184

   

9,390

 

4.1

 

5

   

162

 

0.1

 

2025

 

311

 

10

 

4,256,100

   

17,994

   

7.9

 

300

   

17,393

 

7.6

 

21

   

601

 

0.3

 

2026

 

234

 

4

 

3,214,500

   

12,354

   

5.4

 

234

   

12,252

 

5.4

 

4

   

102

 

*

 

2027

 

467

 

3

 

5,238,400

   

18,820

   

8.3

 

468

   

18,781

 

8.3

 

2

   

39

 

*

 

2028

 

284

 

5

 

6,037,700

   

16,178

   

7.1

 

287

   

16,122

 

7.1

 

2

   

56

 

*

 

2029

 

320

 

3

 

4,973,500

   

12,961

   

5.7

 

317

   

12,789

 

5.6

 

6

   

172

 

0.1

 

2030 - 2043

 

317

 

33

 

6,795,400

   

37,525

   

16.5

 

347

   

37,493

 

16.5

 

3

   

32

 

*

 

Totals

 

4,084

 

154

 

69,166,300

 

$

227,006

   

100.0

%

3,586

 

$

209,856

 

92.4

%

652

 

$

17,150

 

7.6

%

*

Less than 0.1%

                                                         

(1)

Excludes 19 multi-tenant properties and 70 vacant properties. The lease expirations for properties under construction are based on the estimated date of completion of those properties.

                                                         

(2)

Excludes revenue of $3,097 from 19 multi-tenant properties and from 70 vacant properties at December 31, 2014, $488 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 December 31, 2014 (dollars in thousands):

 
         

Approximate

 

Rental Revenue for

 

Percentage of

 
   

Number of

Percent

 

Leasable

 

 the Quarter Ended

 

Rental

 

State

Properties

Leased

 

Square Feet

 

December 31, 2014

(1)

Revenue

 

Alabama            

128

98

%

1,039,500

 

$

3,485

 

1.5

%

Alaska             

3

100

 

275,900

   

503

 

0.2

 

Arizona            

113

96

 

1,577,700

   

6,212

 

2.7

 

Arkansas           

53

98

 

782,600

   

1,660

 

0.7

 

California         

164

100

 

5,221,500

   

24,029

 

10.4

 

Colorado           

72

97

 

1,045,400

   

3,929

 

1.7

 

Connecticut        

25

96

 

536,900

   

2,564

 

1.1

 

Delaware           

17

100

 

78,300

   

632

 

0.3

 

Florida            

321

99

 

3,331,400

   

13,522

 

5.9

 

Georgia            

237

98

 

3,362,200

   

10,085

 

4.4

 

Hawaii             

--

--

 

--

   

--

 

--

 

Idaho              

12

100

 

87,000

   

457

 

0.2

 

Illinois           

163

99

 

4,590,800

   

12,933

 

5.6

 

Indiana            

133

100

 

1,332,700

   

5,491

 

2.4

 

Iowa               

35

94

 

2,751,700

   

3,400

 

1.5

 

Kansas             

84

99

 

1,467,400

   

3,181

 

1.4

 

Kentucky           

57

96

 

925,900

   

3,166

 

1.4

 

Louisiana          

89

99

 

1,011,200

   

2,940

 

1.3

 

Maine

10

100

 

145,300

   

894

 

0.4

 

Maryland           

34

100

 

791,100

   

4,404

 

1.9

 

Massachusetts      

81

98

 

751,100

   

3,486

 

1.5

 

Michigan           

114

98

 

1,118,000

   

3,673

 

1.6

 

Minnesota          

155

100

 

1,209,600

   

7,421

 

3.2

 

Mississippi        

122

98

 

1,566,100

   

3,882

 

1.7

 

Missouri           

137

97

 

2,776,000

   

8,177

 

3.5

 

Montana            

1

100

 

5,400

   

13

 

*

 

Nebraska           

31

100

 

708,700

   

1,758

 

0.8

 

Nevada             

22

95

 

413,000

   

1,289

 

0.6

 

New Hampshire      

20

100

 

320,100

   

1,511

 

0.7

 

New Jersey         

67

99

 

577,300

   

3,604

 

1.6

 

New Mexico         

31

100

 

302,500

   

897

 

0.4

 

New York           

86

98

 

2,198,700

   

10,938

 

4.7

 

North Carolina     

148

99

 

1,524,600

   

5,711

 

2.5

 

North Dakota       

7

100

 

66,000

   

118

 

*

 

Ohio               

216

98

 

5,179,600

   

12,327

 

5.4

 

Oklahoma           

123

99

 

1,450,600

   

3,660

 

1.6

 

Oregon             

25

100

 

525,400

   

1,957

 

0.9

 

Pennsylvania       

147

99

 

1,792,400

   

7,235

 

3.1

 

Rhode Island       

4

100

 

157,200

   

808

 

0.3

 

South Carolina     

132

99

 

970,100

   

4,413

 

1.9

 

South Dakota       

11

100

 

133,500

   

244

 

0.1

 

Tennessee          

197

96

 

2,584,600

   

6,423

 

2.8

 

Texas              

439

98

 

8,136,900

   

22,309

 

9.7

 

Utah               

15

100

 

760,000

   

1,398

 

0.6

 

Vermont            

5

100

 

98,000

   

480

 

0.2

 

Virginia           

141

99

 

2,872,700

   

7,139

 

3.1

 

Washington         

38

97

 

415,300

   

1,768

 

0.8

 

West Virginia      

12

100

 

261,200

   

984

 

0.4

 

Wisconsin          

43

98

 

1,456,200

   

2,781

 

1.2

 

Wyoming            

3

100

 

21,100

   

63

 

*

 

Puerto Rico

4

100

 

28,300

   

149

 

0.1

 

Totals\Average

4,327

98

%

70,734,700

 

$

230,103

 

100.0

%

*

Less than 0.1%

                       

(1)

Includes rental revenue for all properties owned by Realty Income at December 31, 2014.  Excludes revenue of $44 from properties owned by Crest and $488 from sold properties that were included in continuing operations.

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

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/operating-results-for-fourth-quarter-and-2014-announced-by-realty-income-300037182.html

SOURCE Realty Income Corporation

For further information: Jonathan Pong, CFA, CPA, Associate Vice President, Capital Markets, (858) 284-5177

v
(Pricing delayed 20 minutes)