NYSE$O

Realty Income Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Realty Income reported strong Q3 2021 results, marked by growth in net income, normalized FFO, and AFFO per share. The company invested significantly in properties, including a debut transaction in Continental Europe, and completed the merger with VEREIT, Inc.

Realty Income announced positive operating results for Q3 2021. Net income per share increased to $0.34, normalized FFO per share increased to $0.89, and AFFO per share increased to $0.91. The company invested $1.61 billion in 308 properties and completed the merger with VEREIT, Inc.

  • Net income per share increased to $0.34, compared to $0.07 for the three months ended September 30, 2020.
  • Normalized FFO per share increased 8.5% to $0.89, compared to the three months ended September 30, 2020.
  • AFFO per share increased 12.3% to $0.91, compared to the three months ended September 30, 2020.
  • Invested $1.61 billion in 308 properties and properties under development or expansion, including $532.5 million in Europe.

Headline financials

Total Revenue

$492M

Previous: $405M+21.6%
EPS (adj)

$0.91

Previous: $0.81+12.3%
Capital Expenditures

-$3.73B

Previous: -$1.3B-187.4%
Free Cash Flow

-$3.59B

Previous: -$1.27B-182.0%
Net Income

$135M

Previous: $22.9M+489.4%
Operating Income

$407M

Previous: $254M+60.2%
Gross Profit

$462M

Previous: $379M+21.9%
Cash & Equivalents

$517M

Previous: $725M-28.7%
Total Assets

$23.7B

Previous: $19.8B+19.8%
Stock-Based Comp

$4.32M

Previous: $3.02M+42.9%

Revenue & EPS history

Realty Income · Revenue · Quarterly

$492M

Q3 2021+21.6%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Realty Income is increasing its 2021 AFFO per share guidance to $3.55 - $3.60 and introducing 2022 AFFO per share guidance of $3.84 - $3.97, assuming the consummation of the spin-off as anticipated on November 12th.

Tailwinds

  • Increased 2021 AFFO per share guidance to $3.55 - $3.60, representing 5.5% annual growth based on the midpoint.
  • Increased acquisition guidance of over $5 billion.
  • Introducing 2022 AFFO per share guidance of $3.84 - $3.97, representing 9.2% annual growth based on the midpoint.
  • Same store rent growth ~ 2.0%
  • Occupancy over 98%

Headwinds

  • Net income and Normalized FFO guidance does not include any one-time charges associated with future debt redemptions.
  • Cash G&A expenses (% of revenues) 4.0% - 4.5%
  • Property expenses (non-reimbursable) (% of revenues) 1.5% - 1.8%
  • Income tax expenses ~ $30 million
  • Does not include any estimated merger-related costs for the remainder of 2021.

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro