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Following Acquisition, Realty Income Corp. Net Income per Share Up 24%

By Patrick Morris – Feb 13, 2014 at 11:37AM

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With $4.7 billion of acquisitions in 2013, Realty Income saw its revenue jump 62% in the fourth quarter, and its per-share adjusted funds from operations rise 13%.

Today Realty Income (O 1.64%) reported its net income per share rose from $0.21 in the fourth quarter of 2012 to $0.26 per share in 2013. For the full year its net income per share was up from $0.86 in 2012 to $1.06 in 2013, representing a gain of 23%.

Total revenue at Realty Income was up 62% in the fourth quarter, but this gain was partially attributable to the $3.2 billion acquisition of American Realty Capital Trust, which was closed in January 2013. In addition, the company issued 9.8 million in new common shares in the fourth quarter, from which it generated net proceeds of approximately $378 million.

"We are pleased to report record results for the fourth quarter and for 2013," noted CEO John Case in a statement. "Record earnings growth also allowed us to increase the dividends paid per share to our shareholders in 2013 by 21.2%, the largest increase in the company's history."

The adjusted funds from operations (AFFO), which adjusts earnings for merger related costs and other one-time revenue or expenses, rose 13% in the fourth quarter. For the full year of 2013, AFFO rose from $2.06 per share to $2.41 per share, a gain of 17%.

Case also highlighted that the company had $1.5 billion in property acquisitions in 2013, excluding the $3.2 billion acquisition of American Realty Capital Trust. It now operates approximately 3,900 properties, an increase of approximately 30% over its holdings at the end of 2012. In addition, its leasable square footage is up by more than 65%, from 37.7 million to 62.2 million square feet.

The company concluded by noting it anticipates that its funds from operations will range between $2.53 and $2.58 per share this year, which would represent a 5% to 7% increase over 2013 levels. 


Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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