NYSE$O

Realty Income Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Realty Income reported operating results for the second quarter of 2021.

Realty Income announced operating results for the three months ended June 30, 2021, with net income per share of $0.33 and normalized FFO and AFFO per share of $0.88. The company invested $1.13 billion in 156 properties and properties under development or expansion, including $591.8 million in United Kingdom (U.K.) properties.

  • Net income per share was $0.33.
  • Normalized FFO and AFFO per share were $0.88.
  • Invested $1.13 billion in 156 properties and properties under development or expansion, including $591.8 million in United Kingdom (U.K.) properties.
  • Raised $457.5 million from the sale of common stock, primarily through our At-The-Market (ATM) program.

Headline financials

Total Revenue

$464M

Previous: $415M+12.0%
EPS (adj)

$0.88

Previous: $0.86+2.3%
Capital Expenditures

-$2.12B

Previous: -$637M-232.4%
Free Cash Flow

-$1.99B

Previous: -$529M-276.7%
Net Income

$124M

Previous: $108M+15.4%
Operating Income

$377M

Previous: $378M-0.4%
Gross Profit

$433M

Previous: $415M+4.3%
Cash & Equivalents

$231M

Previous: $35.3M+554.0%
Total Assets

$22B

Previous: $19.1B+15.1%
Stock-Based Comp

$4.47M

Previous: $4.88M-8.4%

Revenue & EPS history

Realty Income · Revenue · Quarterly

$464M

Q2 2021+12%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Realty Income estimates Normalized FFO per share for 2021 of $3.37 to $3.46 and AFFO per share for 2021 of $3.53 to $3.59. They also anticipate acquisition volume to be around $4.5 billion with occupancy over 98%.

Tailwinds

  • Same store rent growth 1.5% - 2.0%
  • Occupancy over 98%
  • Acquisition volume ~ $4.5 billion
  • Net income per share $1.32 to $1.41
  • AFFO per share $3.53 to $3.59

Headwinds

  • Real estate depreciation and impairments per share $2.11
  • Gains on sales of properties per share $(0.09)
  • Merger-related costs (actual) $0.03
  • Cash G&A expenses (% of revenues) ~ 4.5%
  • Property expenses (non-reimbursable) (% of revenues) 1.5% - 1.8%

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 Q2 2021

Historical avgQ2 2021

-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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