NYSE$O

Realty Income Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Realty Income reported operating results, demonstrating strong performance driven by a diverse and high-quality portfolio.

Realty Income announced its Q2 2023 operating results, with key highlights including a net income of $195.4 million, normalized FFO of $688.3 million, and AFFO of $671.7 million. The company invested $3.1 billion in 710 properties and raised $2.2 billion from the sale of common stock. Realty Income also increased its acquisitions guidance to over $7 billion.

  • Net income available to common stockholders was $195.4 million, or $0.29 per share.
  • Normalized FFO available to common stockholders was $688.3 million, or $1.02 per share.
  • AFFO available to common stockholders was $671.7 million, or $1.00 per share.
  • Invested $3.1 billion in 710 properties at an initial weighted average cash lease yield of 6.9%.

Headline financials

Total Revenue

$1.02B

Previous: $810M+25.8%
EPS (adj)

$1.00

Previous: $0.97+3.1%
Capital Expenditures

-$4.72B

Previous: -$3.21B-47.0%
Free Cash Flow

-$4.52B

Previous: -$2.99B-51.4%
Net Income

$195M

Previous: $223M-12.5%
Operating Income

$858M

Previous: $714M+20.2%
Gross Profit

$925M

Previous: $758M+21.9%
Cash & Equivalents

$254M

Previous: $173M+46.8%
Total Assets

$54B

Previous: $45B+20.1%
Stock-Based Comp

$7.62M

Previous: $6.64M+14.8%

Revenue & EPS history

Realty Income · Revenue · Quarterly

$1.02B

Q2 2023+25.8%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

Realty Income provided revised 2023 earnings guidance, expecting normalized FFO per share between $4.07 and $4.15 and AFFO per share between $3.96 and $4.01. The company anticipates same-store rent growth over 1.25%, occupancy over 98%, and acquisition volume over $7.0 billion.

Tailwinds

  • Normalized FFO per share is expected to be between $4.07 and $4.15.
  • AFFO per share is projected to be between $3.96 and $4.01.
  • Same-store rent growth is anticipated to be over 1.25%.
  • Occupancy is expected to remain over 98%.
  • Acquisition volume is projected to exceed $7.0 billion.

Headwinds

  • Net income per share is expected to be between $1.20 and $1.28.
  • Real estate depreciation and impairments per share are estimated at $2.90.
  • Other adjustments per share are projected at $(0.03).
  • Income tax expenses are estimated between $55 to $65 million.
  • Cash G&A expenses (% of revenues) 2.9% - 3.4%

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 2023

Historical avgQ2 2023

-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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