NYSE$O

Realty Income Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Announced operating results, demonstrating strong performance and strategic investments.

Realty Income reported strong operating results for the three months ended March 31, 2022, with net income per share of $0.34 and normalized FFO per share increasing by 41.7% to $1.02. The company invested $1.56 billion in 213 properties and properties under development, including $796.4 million in Europe. Realty Income also signed a definitive agreement to acquire the Encore Boston Harbor Resort and Casino for $1.7 billion.

  • Net income per share was $0.34.
  • Normalized FFO per share increased 41.7% to $1.02 compared to the same period last year.
  • Invested $1.56 billion in 213 properties and properties under development or expansion.
  • Signed a definitive agreement to acquire the Encore Boston Harbor Resort and Casino for $1.7 billion.

Headline financials

Total Revenue

$807M

Previous: $443M+82.3%
EPS (adj)

$0.98

Previous: $0.86+14.0%
Capital Expenditures

-$1.56B

Previous: -$1.03B-51.3%
Free Cash Flow

-$1.36B

Previous: -$932M-45.5%
Net Income

$199M

Previous: $95.9M+107.8%
Operating Income

$709M

Previous: $387M+83.0%
Gross Profit

$755M

Previous: $414M+82.2%
Cash & Equivalents

$152M

Previous: $184M-17.6%
Total Assets

$44.1B

Previous: $21B+110.0%
Stock-Based Comp

$5M

Previous: $3.7M+35.3%

Revenue & EPS history

Realty Income · Revenue · Quarterly

$807M

Q1 2022+82.3%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Realty Income provided approximate estimates of the key components of its 2022 earnings guidance, including net income per share of $1.08 to $1.25, normalized FFO per share of $3.88 to $4.05, and AFFO per share of $3.84 to $3.97.

Tailwinds

  • Net income per share: $1.08 to $1.25
  • Real estate depreciation and impairments per share: $2.83
  • Gains on sales of properties per share: $(0.03)
  • Normalized FFO per share: $3.88 to $4.05
  • AFFO per share: $3.84 to $3.97

Headwinds

  • Same store rent growth: ~ 1.5%
  • Occupancy: ~ 98%
  • Cash G&A expenses (% of revenues): 3.5% - 4.0%
  • Property expenses (non-reimbursable) (% of revenues): 1.5% - 2.0%
  • Income tax expenses: $45 to $50 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-1.2%

Avg return

30 days after

38%

25 / 65 earnings

Positive

+6.7%

Q4 2015

Best reaction

-5.1%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-2.5%-4.2%
Q4 2025+0.6%+1.6%-8.8%
Q3 2025-2.9%-2.3%+0.0%
Q2 2025+0.3%+1.3%+4.2%
Q1 2025-0.3%-0.4%-1.9%
Q4 2024-1.9%-0.5%-2.0%
Q3 2024-0.1%-2.3%-4.6%
Q2 2024+1.9%+2.1%+5.7%
Q1 2024-0.4%-0.5%-2.2%
Q4 2023+0.7%+1.2%+0.3%
Q3 2023-0.3%-1.6%+7.6%
Q2 2023-3.2%-1.1%-7.5%
Q1 2023+0.9%+2.2%-2.8%
Q4 2022-0.9%-1.7%-10.4%
Q3 2022-0.9%+1.5%+1.1%
Q2 2022-0.5%+0.6%-7.0%
Q1 2022-0.8%-4.6%-0.5%
Q4 2021-2.1%+1.2%+0.2%
Q3 2021+0.8%+0.5%-4.8%
Q2 2021+0.2%+0.5%+3.0%
Q1 2021-0.1%-1.5%+2.1%
Q4 2020+2.1%-1.4%+3.5%
Q3 2020+2.4%+0.2%+5.0%
Q2 2020+3.0%+4.4%+5.8%
Q1 2020+0.5%+5.9%+16.2%
Q4 2019+1.9%+2.2%-41.0%
Q3 2019-3.5%-5.9%-6.3%
Q2 2019-0.3%+3.8%+9.2%
Q1 2019+0.3%-0.1%+0.1%
Q4 2018-0.5%-0.7%+3.8%
Q3 2018-0.3%+0.1%+4.4%
Q2 2018+2.0%+3.3%+5.0%
Q1 2018+0.4%+0.6%+1.3%
Q4 2017-0.2%+2.4%-0.1%
Q3 2017-2.8%-1.4%+2.6%
Q2 2017+0.9%-0.6%+1.1%
Q1 2017-1.4%-2.9%-8.2%
Q4 2016+2.2%+2.6%-3.3%
Q3 2016-5.1%-4.9%-9.2%
Q2 2016+0.8%+2.9%-6.2%
Q1 2016-1.4%
Q4 2015+6.7%
Q3 2015-1.3%
Q2 2015+0.4%
Q1 2015-4.2%
Q4 2014+1.2%
Q3 2014+3.0%
Q2 2014-1.3%
Q1 2014-0.6%
Q4 2013+1.3%
Q3 2013-1.6%
Q2 2013-0.3%
Q1 2013+0.8%
Q4 2012-0.2%
Q3 2012-2.8%
Q2 2012-0.9%
Q1 2012-0.5%
Q4 2011-1.0%
Q3 2011-1.9%
Q2 2011-2.5%
Q1 2011-1.3%
Q4 2010-0.2%
Q3 2010-2.4%
Q2 2010-1.6%
Q1 2010-1.2%

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