Realty Income Announces Operating Results for the Three Months and Year Ended December 31, 2024

02.24.2025

	Three months ended December 31,		Years ended December 31,
	2024	2023	2024	2023
Total revenue	$ 1,340.3	$ 1,076.3	$ 5,271.1	$ 4,079.0
Net income available to common stockholders^{(1) (2)}	$ 199.6	$ 218.4	$ 847.9	$ 872.3
Net income per share	$ 0.23	$ 0.30	$ 0.98	$ 1.26
Funds from operations available to common stockholders (FFO)⁽³⁾	$ 897.9	$ 713.7	$ 3,467.7	$ 2,822.1
FFO per share	$ 1.02	$ 0.98	$ 4.01	$ 4.07
Normalized funds from operations available to common stockholders (Normalized FFO)⁽³⁾	$ 888.7	$ 723.6	$ 3,564.0	$ 2,836.6
Normalized FFO per share	$ 1.01	$ 1.00	$ 4.12	$ 4.09
Adjusted funds from operations available to common stockholders (AFFO)⁽³⁾	$ 921.9	$ 731.0	$ 3,621.4	$ 2,774.9
AFFO per share	$ 1.05	$ 1.01	$ 4.19	$ 4.00

⁽¹⁾	The calculation to determine net income attributable to common stockholders includes provisions for impairment, gain on sales of real estate, and foreign currency gain and loss. These items can vary from quarter to quarter and can significantly impact net income available to common stockholders and period to period comparisons.
⁽²⁾	Our financial results during the three months and year ended December 31, 2024 were impacted by the following: (i) merger, transaction, and other costs, net of $(9.2) million and $96.3 million, respectively, and (ii) provisions for impairment of $143.0 million and $425.8 million, respectively.
⁽³⁾	FFO, Normalized FFO, and AFFO are non-GAAP financial measures. Normalized FFO is based on FFO and adjusted to exclude merger, transaction, and other costs, net and AFFO further adjusts Normalized FFO for unique revenue and expense items. Please see the Glossary for our definitions and explanations of how we utilize these metrics. Please see pages 9 and 10 herein for reconciliations to the most directly comparable GAAP measure.

Three months ended December 31, 2024
Properties available for lease at September 30, 2024	196
Lease expirations ⁽¹⁾	286
Re-leases to same client	(197)
Re-leases to new client	(24)
Vacant dispositions	(56)
Properties available for lease at December 31, 2024	205

Year ended December 31, 2024
Properties available for lease at December 31, 2023	193
Lease expirations ⁽¹⁾	928
Re-leases to same client	(638)
Re-leases to new client	(56)
Vacant dispositions	(222)
Properties available for lease at December 31, 2024	205

	Number of Properties	Investment ($ in millions)	Leasable Square Feet (in thousands)	Initial Weighted Average Cash Yield ⁽¹⁾	Weighted Average Term (Years)
Three months ended December 31, 2024
Acquisitions - U.S. real estate	200	$ 988.6	1,165	6.4 %	14.1
Acquisitions - Europe real estate	33	327.6	1,806	6.8 %	7.5
Total real estate acquisitions	233	$ 1,316.2	2,971	6.5 %	12.4
Real estate properties under development ⁽²⁾	75	149.4	4,776	7.6 %	14.7
Other investments ⁽³⁾	—	254.2	—	10.1 %	6.0
Total investments ⁽⁴⁾	308	$ 1,719.8	7,747	7.1 %	11.3

Year ended December 31, 2024
Acquisitions - U.S. real estate	287	$ 1,402.9	3,535	6.7 %	13.9
Acquisitions - Europe real estate	62	1,072.0	4,263	7.5 %	6.9
Total real estate acquisitions	349	$ 2,474.9	7,798	7.0 %	10.7
Real estate properties under development⁽²⁾	197	757.1	7,458	7.4 %	15.0
Other investments ⁽³⁾	—	631.7	—	8.9 %	6.0
Total investments ⁽⁵⁾	546	$ 3,863.7	15,256	7.4 %	10.6

⁽¹⁾	Initial Weighted Average Cash Yield is a supplemental operating measure. Cash Income used in the calculation of Initial Weighted Average Cash Yield for investments for the three months and year ended December 31, 2024 includes $0.3 million and $1.5 million, respectively, received as settlement credits as reimbursement of free rent periods. Please see the Glossary for our definitions of Initial Weighted Average Cash Yield and Cash Income.
⁽²⁾	The three months ended December 31, 2024 includes £36.1 million of Sterling-denominated investments, €21.2 million of Euro-denominated investments, and $7.8 million of investments in unconsolidated joint ventures, converted at the applicable exchange rates on the funding dates. The year ended December 31, 2024 includes £86.6 million of Sterling-denominated investments, €60.1 million of Euro-denominated investments, and $66.5 million of investments in unconsolidated joint ventures, converted at the applicable exchange rates on the funding dates.
⁽³⁾	The three months and year ended December 31, 2024 include £200.0 million and £500.0 million, respectively, of Sterling-denominated investments in senior secured notes.
⁽⁴⁾	Clients we have invested in are 95.7% retail, 4.2% industrial, and 0.1% other based on cash income. Approximately 57% of the annualized cash income generated from acquisitions was from investment grade rated clients, their subsidiaries or affiliated companies at the date of acquisition. Please see the Glossary for our definition of Investment Grade Clients and Cash Income.
⁽⁵⁾	Clients we have invested in are 89.9% retail, 8.6% industrial, and 1.5% other based on cash income. Approximately 38% of the annualized cash income generated from acquisitions was from investment grade rated clients, their subsidiaries or affiliated companies at the date of acquisition.

	Three months ended December 31, 2024	Year ended December 31, 2024
Properties sold	80	294
Net sales proceeds	$ 138.1	$ 589.5
Gain on sale of real estate	$ 25.0	$ 117.3

Net income per share ⁽¹⁾			$1.52 - $1.58
Real estate depreciation per share			$2.68
Other adjustments per share ⁽²⁾			$0.02
AFFO per share ⁽³⁾			$4.22 - $4.28
Same store rent growth			Approx 1.0%
Occupancy			Over 98%
Cash G&A expenses (% of revenues) ⁽⁴⁾⁽⁵⁾			Approx 3.0%
Property expenses (non-reimbursable) (% of revenues) ⁽⁴⁾			1.4% - 1.7%
Income tax expenses			$80 - $90 million
Investment volume			Approx $4.0 billion

⁽¹⁾ Net income per share excludes impairments and future foreign currency or derivative gains or losses due to the inherent unpredictability of forecasting these items.
⁽²⁾Includes gain on sales of properties and merger, transaction, and other costs, net.
⁽³⁾AFFO per share excludes merger, transaction, and other costs, net.
⁽⁴⁾Revenue excludes contractually obligated reimbursements by our clients. Cash G&A expenses exclude stock-based compensation expense.
⁽⁵⁾G&A expenses inclusive of stock-based compensation expense as a percentage of rental revenue, excluding reimbursements, is expected to be approximately 3.4% - 3.7% in 2025.

CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)

	Three months ended December 31,		Years ended December 31,
	2024	2023	2024	2023
REVENUE
Rental (including reimbursable) ⁽¹⁾	$ 1,279,698	$ 1,028,710	$ 5,043,748	$ 3,958,150
Other	60,601	47,575	227,394	120,843
Total revenue	1,340,299	1,076,285	5,271,142	4,078,993
EXPENSES
Depreciation and amortization	606,671	475,856	2,395,644	1,895,177
Interest	268,149	208,313	1,016,955	730,423
Property (including reimbursable)	96,309	81,883	377,675	316,964
General and administrative	49,114	38,015	176,895	144,536
Provisions for impairment	142,966	27,281	425,833	87,082
Merger, transaction, and other costs, net	(9,176)	9,932	96,292	14,464
Total expenses	1,154,033	841,280	4,489,294	3,188,646
Gain on sales of real estate	24,985	5,992	117,275	25,667
Foreign currency and derivative gain (loss), net	535	(18,371)	3,420	(13,414)
Equity in earnings of unconsolidated entities	2,353	2,135	7,793	2,546
Other income, net	7,313	10,804	23,606	23,789
Income before income taxes	221,452	235,565	933,942	928,935
Income taxes	(20,102)	(15,803)	(66,601)	(52,021)
Net income	201,350	219,762	867,341	876,914
Net income attributable to noncontrolling interests	(1,738)	(1,357)	(6,569)	(4,605)
Net income attributable to the Company	199,612	218,405	860,772	872,309
Preferred stock dividends	—	—	(7,763)	—
Excess of redemption value over carrying value of preferred shares redeemed	—	—	(5,116)	—
Net income available to common stockholders	$ 199,612	$ 218,405	$ 847,893	$ 872,309
Funds from operations available to common stockholders (FFO)	$ 897,917	$ 713,716	$ 3,467,659	$ 2,822,138
Normalized funds from operations available to common stockholders (Normalized FFO)	$ 888,741	$ 723,648	$ 3,563,951	$ 2,836,602
Adjusted funds from operations available to common stockholders (AFFO)	$ 921,920	$ 731,034	$ 3,621,437	$ 2,774,870
Amounts available to common stockholders per common share:
Net income, basic and diluted	$ 0.23	$ 0.30	$ 0.98	$ 1.26
FFO per common share:
Basic	$ 1.03	$ 0.98	$ 4.02	$ 4.08
Diluted	$ 1.02	$ 0.98	$ 4.01	$ 4.07
Normalized FFO per common share:
Basic	$ 1.01	$ 1.00	$ 4.13	$ 4.10
Diluted	$ 1.01	$ 1.00	$ 4.12	$ 4.09
AFFO per common share:
Basic	$ 1.05	$ 1.01	$ 4.20	$ 4.01
Diluted	$ 1.05	$ 1.01	$ 4.19	$ 4.00
Cash dividends paid per common share	$ 0.7905	$ 0.7680	$ 3.1255	$ 3.0510

FUNDS FROM OPERATIONS (FFO) AND NORMALIZED FUNDS FROM OPERATIONS (Normalized FFO) (in thousands, except per share amounts) (unaudited)

FFO and Normalized FFO are non-GAAP financial measures. Please see the Glossary for our definitions and explanations of how we utilize these metrics.

	Three months ended December 31,		Years ended December 31,
	2024	2023	2024	2023

Net income available to common stockholders	$ 199,612	$ 218,405	$ 847,893	$ 872,309
Depreciation and amortization	606,671	475,856	2,395,644	1,895,177
Depreciation of furniture, fixtures and equipment	(952)	(583)	(2,857)	(2,239)
Provisions for impairment of real estate	110,480	22,407	319,032	82,208
Gain on sales of real estate	(24,985)	(5,992)	(117,275)	(25,667)
Proportionate share of adjustments for unconsolidated entities	8,418	4,670	29,124	4,205
FFO adjustments allocable to noncontrolling interests	(1,327)	(1,047)	(3,902)	(3,855)
FFO available to common stockholders	$ 897,917	$ 713,716	$ 3,467,659	$ 2,822,138
FFO allocable to dilutive noncontrolling interests	2,209	1,386	6,611	5,552
Diluted FFO	$ 900,126	$ 715,102	$ 3,474,270	$ 2,827,690

FFO available to common stockholders	$ 897,917	$ 713,716	$ 3,467,659	$ 2,822,138
Merger, transaction, and other costs, net ⁽¹⁾	(9,176)	9,932	96,292	14,464
Normalized FFO available to common stockholders	$ 888,741	$ 723,648	$ 3,563,951	$ 2,836,602
Normalized FFO allocable to dilutive noncontrolling interests	2,209	1,386	6,611	5,552
Diluted Normalized FFO	$ 890,950	$ 725,034	$ 3,570,562	$ 2,842,154

FFO per common share:
Basic	$ 1.03	$ 0.98	$ 4.02	$ 4.08
Diluted	$ 1.02	$ 0.98	$ 4.01	$ 4.07
Normalized FFO per common share:
Basic	$ 1.01	$ 1.00	$ 4.13	$ 4.10
Diluted	$ 1.01	$ 1.00	$ 4.12	$ 4.09
Distributions paid to common stockholders	$ 691,861	$ 556,114	$ 2,691,719	$ 2,111,793
FFO available to common stockholders in excess of distributions paid to common stockholders	$ 206,056	$ 157,602	$ 775,940	$ 710,345
Normalized FFO available to common stockholders in excess of distributions paid to common stockholders	$ 196,880	$ 167,534	$ 872,232	$ 724,809
Weighted average number of common shares used for FFO and Normalized FFO:
Basic	875,710	724,598	862,959	692,298
Diluted	879,649	726,859	865,842	694,819

ADJUSTED FUNDS FROM OPERATIONS (AFFO) (in thousands, except per share amounts) (unaudited)

AFFO is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize this metric. Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on previously reported AFFO.

	Three months ended December 31,		Years ended December 31,
	2024	2023	2024	2023
Net income available to common stockholders	$ 199,612	$ 218,405	$ 847,893	$ 872,309
Cumulative adjustments to calculate Normalized FFO ⁽¹⁾	689,129	505,243	2,716,058	1,964,293
Normalized FFO available to common stockholders	888,741	723,648	3,563,951	2,836,602
Excess of redemption value over carrying value of preferred shares redeemed	—	—	5,116	—
Amortization of share-based compensation	9,821	6,073	32,741	26,227
Amortization of net debt discounts (premiums) and deferred financing costs	5,500	(10,127)	15,361	(44,568)
Amortization of acquired interest rate swap value ⁽²⁾	3,710	—	13,935	—
Non-cash change in allowance for credit losses ⁽³⁾	32,486	4,874	106,801	4,874
Leasing costs and commissions	(2,661)	(3,010)	(8,558)	(9,878)
Recurring capital expenditures	(199)	(141)	(402)	(331)
Straight-line rent and expenses, net	(35,510)	(27,891)	(171,887)	(141,130)
Amortization of above and below-market leases, net	14,817	17,134	55,870	79,101
Deferred tax expense	3,552	—	3,552	—
Proportionate share of adjustments for unconsolidated entities	(308)	932	(2,078)	932
Other adjustments ⁽⁴⁾	1,971	19,542	7,035	23,041
AFFO available to common stockholders	$ 921,920	$ 731,034	$ 3,621,437	$ 2,774,870
AFFO allocable to dilutive noncontrolling interests	2,186	1,370	6,599	5,540
Diluted AFFO	$ 924,106	$ 732,404	$ 3,628,036	$ 2,780,410
AFFO per common share:
Basic	$ 1.05	$ 1.01	$ 4.20	$ 4.01
Diluted	$ 1.05	$ 1.01	$ 4.19	$ 4.00
Distributions paid to common stockholders	$ 691,861	$ 556,114	$ 2,691,719	$ 2,111,793
AFFO available to common stockholders in excess of distributions paid to common stockholders	$ 230,059	$ 174,920	$ 929,718	$ 663,077
Weighted average number of common shares used for AFFO:
Basic	875,710	724,598	862,959	692,298
Diluted	879,649	726,859	865,842	694,819

⁽¹⁾	See Normalized FFO calculations on page 9 for reconciling items.
⁽²⁾	Includes the amortization of the purchase price allocated to interest rate swaps acquired in the Spirit merger.
⁽³⁾	Credit losses primarily relate to the impairment of financing receivables.
⁽⁴⁾	Includes non-cash foreign currency losses (gains) from remeasurement to USD, mark-to-market adjustments on investments and derivatives that are non-cash in nature, straight-line payments from cross-currency swaps, obligations related to financing lease liabilities, adjustments allocable to noncontrolling interests, and gains and losses on the sale of loans receivable.

HISTORICAL FFO AND AFFO (in thousands, except per share amounts) (unaudited)

For the three months ended December 31,	2024	2023	2022	2021	2020
Net income available to common stockholders	$ 199,612	$ 218,405	$ 227,265	$ 4,041	$ 117,931
Depreciation and amortization, net of furniture, fixtures and equipment	605,719	475,273	437,638	332,877	174,888
Provisions for impairment of real estate	110,480	22,407	9,481	7,990	23,790
Gain on sales of real estate	(24,985)	(5,992)	(9,346)	(20,402)	(22,667)
Proportionate share of adjustments for unconsolidated entities	8,418	4,670	—	1,931	—
FFO adjustments allocable to noncontrolling interests	(1,327)	(1,047)	(530)	(274)	(242)
FFO available to common stockholders	$ 897,917	$ 713,716	$ 664,508	$ 326,163	$ 293,700
Merger, transaction, and other costs, net	(9,176)	9,932	903	137,332	—
Normalized FFO available to common stockholders	$ 888,741	$ 723,648	$ 665,411	$ 463,495	$ 293,700
FFO per diluted share	$ 1.02	$ 0.98	$ 1.05	$ 0.63	$ 0.83
Normalized FFO per diluted share	$ 1.01	$ 1.00	$ 1.05	$ 0.89	$ 0.83
AFFO available to common stockholders	$ 921,920	$ 731,034	$ 633,967	$ 486,047	$ 297,654
AFFO per diluted share	$ 1.05	$ 1.01	$ 1.00	$ 0.94	$ 0.84
Cash dividends paid per common share	$ 0.7905	$ 0.7680	$ 0.7440	$ 0.7180	$ 0.7020
Weighted average diluted shares outstanding - FFO, Normalized FFO and AFFO	879,649	726,859	635,637	519,438	355,051

For the year ended December 31,	2024	2023	2022	2021	2020
Net income available to common stockholders	$ 847,893	$ 872,309	$ 869,408	$ 359,456	$ 395,486
Depreciation and amortization, net of furniture, fixtures and equipment	2,392,787	1,892,938	1,668,375	896,809	676,450
Provisions for impairment of real estate	319,032	82,208	25,860	38,967	147,232
Gain on sales of real estate	(117,275)	(25,667)	(102,957)	(55,798)	(76,232)
Proportionate share of adjustments for unconsolidated entities	29,124	4,205	12,812	1,931	—
FFO adjustments allocable to noncontrolling interests	(3,902)	(3,855)	(1,605)	(785)	(817)
FFO available to common stockholders	$ 3,467,659	$ 2,822,138	$ 2,471,893	$ 1,240,580	$ 1,142,119
Merger, transaction, and other costs, net	96,292	14,464	13,897	167,413	—
Normalized FFO available to common stockholders	$ 3,563,951	$ 2,836,602	$ 2,485,790	$ 1,407,993	$ 1,142,119
FFO per diluted share	$ 4.01	$ 4.07	$ 4.04	$ 2.99	$ 3.31
Normalized FFO per diluted share	$ 4.12	$ 4.09	$ 4.06	$ 3.39	$ 3.31
AFFO available to common stockholders	$ 3,621,437	$ 2,774,870	$ 2,401,359	$ 1,488,753	$ 1,172,626
AFFO per diluted share	$ 4.19	$ 4.00	$ 3.92	$ 3.59	$ 3.39
Cash dividends paid per common share	$ 3.1255	$ 3.0510	$ 2.9670	$ 2.8330	$ 2.7940
Weighted average diluted shares outstanding - FFO	865,842	694,819	613,473	414,770	345,878
Weighted average diluted shares outstanding - Normalized FFO and AFFO	865,842	694,819	613,473	415,270	345,878

ADJUSTED EBITDAre (dollars in thousands) (unaudited)

Adjusted EBITDAre, Annualized Adjusted EBITDAre, Pro Forma Adjusted EBITDAre, Annualized Pro Forma Adjusted EBITDAre, Net Debt/Annualized Adjusted EBITDAre, and Net Debt/Annualized Pro Forma Adjusted EBITDAre are non-GAAP financial measures. Please see the Glossary for our definition and an explanation of how we utilize these metrics.

	Three months ended December 31,
	2024	2023
Net income	$ 201,350	$ 219,762
Interest	268,149	208,313
Income taxes	20,102	15,803
Depreciation and amortization	606,671	475,856
Provisions for impairment	142,966	27,281
Merger, transaction, and other costs, net	(9,176)	9,932
Gain on sales of real estate	(24,985)	(5,992)
Foreign currency and derivative (gain) loss, net	(535)	18,371
Proportionate share of adjustments from unconsolidated entities	18,991	14,983
Quarterly Adjusted EBITDAre	$ 1,223,533	$ 984,309
Annualized Adjusted EBITDAre ⁽¹⁾	$ 4,894,132	$ 3,937,236
Annualized Pro Forma Adjustments	$ 79,143	$ 74,919
Annualized Pro Forma Adjusted EBITDAre	$ 4,973,275	$ 4,012,155
Total debt per the consolidated balance sheet, excluding deferred financing costs and net premiums and discounts	$ 26,510,798	$ 21,480,869
Proportionate share of unconsolidated entities debt, excluding deferred financing costs	659,190	659,190
Less: Cash and cash equivalents	(444,962)	(232,923)
Net Debt⁽²⁾	$ 26,725,026	$ 21,907,136
Net Debt/Annualized Adjusted EBITDAre	5.5x	5.6x
Net Debt/Annualized Pro Forma Adjusted EBITDAre	5.4x	5.5x

⁽¹⁾	We calculate Annualized Adjusted EBITDAre by multiplying the Quarterly Adjusted EBITDAre by four.
⁽²⁾	Net Debt is total debt per our consolidated balance sheets, excluding deferred financing costs and net premiums and discounts, but including our proportionate share of debt from unconsolidated entities, less cash and cash equivalents.

Adjusted Free Cash Flow (in thousands) (unaudited)

Adjusted Free Cash Flow is a non-GAAP financial measure. Please see the Glossary for our definition and an explanation of how we utilize this metric.

	Years ended December 31,
	2024	2023
Net cash provided by operating activities	$ 3,573,276	$ 2,958,769
Non-recurring capital expenditures	(113,786)	(49,701)
Distributions paid to common stockholders	(2,691,719)	(2,111,793)
Distributions paid to preferred stockholders	(7,763)	—
Merger, transaction, and other costs, net ⁽¹⁾	71,541	14,464
Increase in net working capital	(30,689)	(174,007)
Lease termination fees	(21,062)	(5,016)
Adjusted Free Cash Flow	$ 779,798	$ 632,716

CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited)

	December 31, 2024	December 31, 2023
ASSETS
Real estate held for investment, at cost:
Land	$ 17,320,520	$ 14,929,310
Buildings and improvements	40,974,535	34,657,094
Total real estate held for investment, at cost	58,295,055	49,586,404
Less accumulated depreciation and amortization	(7,381,083)	(6,072,118)
Real estate held for investment, net	50,913,972	43,514,286
Real estate and lease intangibles held for sale, net	94,979	31,466
Cash and cash equivalents	444,962	232,923
Accounts receivable, net	877,668	710,536
Lease intangible assets, net	6,322,992	5,017,907
Goodwill	4,932,199	3,731,478
Investment in unconsolidated entities	1,229,699	1,172,118
Other assets, net	4,018,568	3,368,643
Total assets	$ 68,835,039	$ 57,779,357

LIABILITIES AND EQUITY
Distributions payable	$ 238,045	$ 195,222
Accounts payable and accrued expenses	759,416	738,526
Lease intangible liabilities, net	1,635,770	1,406,853
Other liabilities	923,128	811,650
Line of credit payable and commercial paper	1,130,201	764,390
Term loans, net	2,358,417	1,331,841
Mortgages payable, net	80,784	821,587
Notes payable, net	22,657,592	18,602,319
Total liabilities	$ 29,783,353	$ 24,672,388
Stockholders' equity:
Common stock and paid in capital, par value $0.01 per share, 1,300,000 shares authorized, 891,511 and 752,460 shares issued and outstanding as of December 31, 2024 and 2023, respectively	$ 47,451,068	$ 39,629,709
Distributions in excess of net income	(8,648,559)	(6,762,136)
Accumulated other comprehensive income	38,229	73,894
Total stockholders' equity	$ 38,840,738	$ 32,941,467
Noncontrolling interests	210,948	165,502
Total equity	$ 39,051,686	$ 33,106,969
Total liabilities and equity	$ 68,835,039	$ 57,779,357