Realty Income Corp Reports Record Adjusted Funds From Operations

Realty Income (NYSE: O  ) announced after the market closed today its funds from operation rose by 8.3% to $0.65 per share in the first quarter. In total its funds from operations rose by nearly 30% to $134.5 million as a result of significant gains recognized from the acquisitions it made throughout 2013, including American Realty Capital Trust.

Revenue at Realty Income rose from $176 million to $222 million, a gain of 26%. The company recognized a benefit from its acquisitions, which resulted in its single-tenant properties growing from 3,525 to 4,208, a gain of 19.5%, it also saw its occupancy rate rise to 98.3%, its highest level since 2007.

The adjusted funds from operations, which factors out acquisition and other adjustments, reached a record of $0.64 per share, a gain of almost 7% over its results in the first quarter of last year. The company also highlighted that its adjusted funds from operations has risen by almost 40% from $0.46 per share seen in the first quarter of 2010. Its dividend has risen by 28% since 2010, from $0.43 to $0.55.

The company has also been aggressively acquiring and property and issuing shares, as its shares rose from 172 million in the first quarter of last year to 207 million in the most recent quarter, growing by 35 million shares, or 20%. The company also noted it issued an addition 13.8 million shares on April 1 of this year to repay a credit agreement related to its acquisitions.

In the first quarter the company made $656 million of acquisitions, spanning 35 states and involved with 22 different tenants. This was the second highest total dollar value of acquisitions in a quarter in the history of Realty Income.

"Acquisitions again contributed to these positive first quarter results. We are pleased to have continued to add to the portfolio's credit quality and diversification through these acquisitions," noted the CEO of Realty Income, John Case, in the company's earnings announcement. He concluded by remarking, "we are well positioned with ample liquidity to fund 2014 acquisitions activity."

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2940182, ~/Articles/ArticleHandler.aspx, 9/1/2015 12:28:58 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Patrick Morris

After a few stints in banking and corporate finance, Patrick joined the Motley Fool as a writer covering the financial sector. He's scaled back his everyday writing a bit, but he's always happy to opine on the latest headline news surrounding Berkshire Hathaway, Warren Buffett and all things personal finance.

Today's Market

updated Moments ago Sponsored by:
DOW 16,177.04 -350.99 -2.12%
S&P 500 1,932.14 -40.04 -2.03%
NASD 4,691.12 -85.39 -1.79%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 12:05 PM
O $43.95 Down -0.74 -1.66%
Realty Income Corp… CAPS Rating: ****