ESCONDIDO, Calif., July 24, 2014 /PRNewswire/ -- Realty Income
Corporation (Realty Income), The Monthly Dividend
Company® (NYSE: O), today announced operating results
for the second quarter ended June 30,
2014. Access to this document is available at
www.realtyincome.com. All per share amounts presented in this press
release are on a diluted per common share basis unless stated
otherwise.
COMPANY HIGHLIGHTS:
For the quarter ended June 30,
2014 (as compared to the same quarterly period in
2013):
- Revenue increased 22.6% to $228.6
million as compared to $186.4
million
- Net income available to common stockholders per share was
$0.23
- FFO available to common stockholders increased 21.1% to
$142.4 million
- FFO per share increased 6.7% to $0.64
- AFFO available to common stockholders increased 22.1% to
$141.2 million
- AFFO per share increased 8.5% to $0.64
- Same store rents increased 1.4% to $130.5 million
- Portfolio occupancy increased to 98.3% from 98.2%
- Invested $405.1 million in 73 new
properties and properties under development or expansion
- Increased the monthly dividend in June for the 76th
time and for the 67th consecutive quarter
- Dividends paid per common share increased 0.6%
- Generated net proceeds of $528.6
million in a 13.8 million share common stock offering in
April
- Generated net proceeds of $346.6
million in a 3.875% senior unsecured notes offering in
June
Financial Results
Revenue
Revenue, for the quarter ended
June 30, 2014, increased 22.6% to
$228.6 million as compared to
$186.4 million, for the same
quarter in 2013. Revenue, for the six months ended June 30, 2014, increased 24.4% to $450.2 million as compared to $362.0 million, for the same period in 2013.
Net Income Available to Common Stockholders
Net income available to common stockholders, for the quarter ended
June 30, 2014, was $51.4 million as compared to $46.0 million, for the same quarter in 2013. Net
income per share, for the quarter ended June
30, 2014, was $0.23, which is
unchanged from the same quarter in 2013.
Net income available to common stockholders, for the six months
ended June 30, 2014, was $98.6 million as compared to $108.7 million, for the same period in 2013. Net
income per share, for the six months ended June 30, 2014, was $0.46 as compared to $0.59, for the same period in 2013. Net income
available to common stockholders in the first six months of 2013
was impacted by an unusually large gain on sale of real estate,
which represents $0.19 per
share.
The calculation to determine net income for a real estate
company includes impairments and/or gains from property sales.
Impairments and/or gains on property sales vary from quarter to
quarter. This variance can significantly impact net income and
period to period comparisons.
Funds From Operations Available to Common Stockholders
(FFO)
FFO, for the quarter ended June 30, 2014, increased 21.1% to $142.4 million as compared to $117.6 million, for the same quarter in 2013. FFO
per share, for the quarter ended June 30,
2014, increased 6.7% to $0.64
as compared to $0.60, for the same
quarter in 2013.
FFO, for the six months ended June 30,
2014, increased 25.1% to $276.9
million as compared to $221.3
million, for the same period in 2013. FFO per share, for the
six months ended June 30, 2014,
increased 7.5% to $1.29 as compared
to $1.20, for the same period in
2013.
Adjusted Funds From Operations Available to Common
Stockholders (AFFO)
AFFO, for the quarter ended
June 30, 2014, increased 22.1% to
$141.2 million as compared to
$115.6 million, for the same quarter
in 2013. AFFO per share, for the quarter ended June 30, 2014, increased 8.5% to $0.64 as compared to $0.59, for the same quarter in 2013.
AFFO, for the six months ended June 30,
2014, increased 24.7% to $273.8
million as compared to $219.5
million, for the same period in 2013. AFFO per share, for
the six months ended June 30, 2014, increased 7.6% to
$1.28 as compared to $1.19, for the same period in 2013.
The company considers FFO and AFFO to be appropriate
supplemental measures of a Real Estate Investment Trust's (REIT's)
operating performance. Realty Income defines FFO consistent with
the National Association of Real Estate Investment Trust's
(NAREIT's) definition, as net income available to common
stockholders, plus depreciation and amortization of real estate
assets, plus impairments of real estate, reduced by gains on sales
of investment properties and extraordinary items. FFO, for the
first six months of 2013, has also been normalized to add back
merger-related costs for the acquisition of ARCT. AFFO further
adjusts FFO for unique revenue and expense items, which the company
believes are not as pertinent to the measurement of the company's
ongoing operating performance. See the reconciliations of net
income available to common stockholders to FFO and AFFO on page
six.
Dividend Information
In June 2014, Realty Income announced the
67th consecutive quarterly dividend increase, which is
the 76th increase in the amount of the dividend since
the company's listing on the New York Stock Exchange in 1994. The
annualized dividend amount, as of June 30,
2014, was approximately $2.194
per share. The amount of monthly dividends paid per share increased
0.6% to $0.547 in the second quarter
of 2014 compared to $0.544 for the
same period in 2013. In addition, through June 30, 2014, the company has paid 527
consecutive monthly dividends and over $3.0 billion in total dividends since 1969.
Realty Income has a dividend reinvestment and stock purchase
program that can be accessed at www.realtyincome.com. The program
is administered by Wells Fargo Shareowner Services.
Real Estate Portfolio Update
As of June 30, 2014, Realty
Income's portfolio of freestanding, single-tenant properties
consisted of 4,263 properties located in 49 states and Puerto Rico, leased to 228 commercial tenants
doing business in 47 industries. The properties are leased under
long-term, net leases with a weighted average remaining lease term
of approximately 10.6 years.
Portfolio Management Activities
The company's
portfolio of commercial real estate, owned primarily under 10- to
20-year net leases, continues to perform well and provide
dependable lease revenue supporting the payment of monthly
dividends. As of June 30, 2014, portfolio occupancy was 98.3%
with 74 properties available for lease out of a total of 4,263
properties in the portfolio, as compared to 98.2% portfolio
occupancy, or 68 properties available for lease, as of June 30, 2013.
Since March 31, 2014, when we
reported 73 properties available for lease, we had 40 lease
expirations, re-leased 37 properties and sold two properties. Of
the 37 properties re-leased during the second quarter of 2014, 36
properties were re-leased to either existing or new tenants without
vacancy, and one was re-leased to a new tenant after a period of
vacancy. The annual new rent on these leases was $5.2 million, as compared to the previous rent on
these same properties of $5.0
million.
Rent Increases
During the quarter ended
June 30, 2014, same store rents, on
2,774 properties under lease, increased 1.4% to $130.5 million, as compared to $128.7 million, for the same quarter in
2013. For the six months ended June 30,
2014, same store rents, on 2,774 properties under lease,
increased 1.4% to $261.5 million, as compared to $257.8 million, for the same period in
2013.
Property Acquisitions
During the second
quarter of 2014, Realty Income invested $405.1 million in 73 new properties and
properties under development or expansion, located in 27 states.
These properties are 100% leased with a weighted average lease term
of approximately 10.6 years and an initial average lease yield of
7.3%. The tenants occupying the new properties operate in 22
industries, and the property types consist of 75.9% retail, 14.6%
office, 5.2% industrial and distribution, and 4.3% manufacturing,
based on rental revenue. Approximately 55% of the revenue generated
for acquisitions during the second quarter of 2014 is from
investment grade tenants.
During the six months ended June 30,
2014, Realty Income invested approximately $1.06 billion in 402 new properties and
properties under development or expansion. The new properties are
located in 39 states and are 100% leased with a weighted average
lease term of approximately 12.8 years and an initial average lease
yield of 7.1%. The tenants occupying the new properties operate in
24 industries, and the property types consist of 83.0% retail, 8.5%
office, 6.8% industrial and distribution, and 1.7% manufacturing,
based on rental revenue. Approximately 73% of the revenue generated
from the year-to-date 2014 acquisitions is from investment grade
tenants.
Realty Income maintains a $1.5
billion unsecured acquisition credit facility, which is used
to fund property acquisitions in the near term. As of June 30, 2014, approximately $1.43 billion was available on the credit
facility to fund additional acquisitions.
Property Dispositions
During the quarter ended
June 30, 2014, Realty Income sold six
properties for $7.0 million,
with a gain on sales of $2.0 million, as compared to 17 properties
sold for $23.7 million, with a gain
on sales of $5.7 million, during the
same quarter in 2013.
During the six months ended June 30,
2014, Realty Income sold 17 properties for $19.7 million, with a gain on sales of
$5.8 million, as compared to 34
properties sold for $83.7 million,
with a gain on sales of $44.3
million, during the same period in 2013.
Other Activities
Issued 13.8 Million Shares in an Upsized Common Share
Offering
On April 1, 2014, Realty Income
issued 13.8 million common shares, raising net proceeds of
approximately $528.6 million,
which were used to repay a portion of the borrowings under the
company's acquisition credit facility.
Direct Stock Purchase and Dividend Reinvestment Plan
During the second quarter of 2014, Realty Income issued 1,174,837
common shares via its Plan, generating gross proceeds of
approximately $52.1 million. During
the first six months of 2014, Realty Income issued 1,240,305 common
shares via its Plan, generating gross proceeds of approximately
$54.4 million.
Issued $350 Million of 3.875%
Senior Unsecured Notes Due 2024
On June 25, 2014, Realty Income issued $350 million of 3.875% senior unsecured notes due
2024. The public offering price for the notes was 99.956% of the
principal amount for an effective yield to maturity of 3.88%. The
net proceeds of approximately $346.6
million from the offering were used to repay a portion of
the borrowings outstanding under the company's acquisition credit
facility.
CEO Comments on Operating Results
Commenting on Realty Income's results and real estate
operations, Chief Executive Officer, John
P. Case, said, "We are pleased with our second quarter
operating results as we continued to see healthy acquisition
volumes and consistently positive performance in our portfolio. Our
disciplined and selective investment strategy continued to drive
earnings and dividend growth. FFO per share increased by 6.7% to
$0.64 and AFFO per share increased
8.5% to $0.64. With the payment of
our June 2014 dividend, we achieved a
company milestone, surpassing $3
billion in dividends paid to our shareholders over the
company's 45-year operating history."
"During the quarter, we completed $405.1
million in acquisitions at an initial average lease yield of
7.3% and a weighted average lease term of 10.6 years. Our
investment activity this quarter was balanced between our two
principal investment segments: non-investment grade retail
properties which accounted for more than 40% of acquisitions and
investment grade retail/non-retail properties. Of the total
acquisitions this quarter, $228.6
million represented the remaining balance of the previously
announced transaction with Inland Diversified Real Estate Trust,
Inc. The $503 million Inland
transaction is now closed in its entirety. This year we have
completed $1.06 billion in property
level acquisitions, which is a record amount for the first half of
any year in the company's history. Our investment spreads remain
well above their historical averages."
"Our occupancy at the end of the second quarter was 98.3%, and
our year-to-date same store rent increased by 1.4% from the same
period a year ago. Our portfolio remains quite diversified with no
tenant, industry, or state accounting for more than 5.2%, 10.2% or
10.3% of rental revenue, respectively."
"To support our growth activities, we raised just under
$1 billion in permanent and long-term
capital during the quarter. At the end of the quarter, we had a
$70 million balance on the credit
facility giving the company more than $1.4
billion available to fund future investment activity."
"Given our robust level of acquisitions during the first half of
the year, we now estimate our 2014 acquisitions will be
approximately $1.4 billion versus our
previous estimate of $1.2 billion.
With this year-to-date acquisition activity and the improved
visibility we have on our operations, we are raising our 2014 FFO
per share guidance from $2.53 - $2.58
to $2.59 - $2.62. We are also
tightening and raising the midpoint of our 2014 AFFO per share
guidance from $2.53 - $2.58 to
$2.55 - $2.57."
FFO and AFFO Commentary
Realty Income's FFO and AFFO per share has historically tended to
be stable and fairly predictable because of the long-term leases
that are the primary source of the company's revenue. There are,
however, several factors that can cause FFO and AFFO per share to
vary from levels that have been anticipated by the company. These
factors include, but are not limited to, changes in interest rates
and occupancy rates, periodically accessing the capital markets,
the level and timing of property and entity acquisitions and
dispositions, lease rollovers, the general real estate market, and
the economy.
2014 Earnings Estimates
FFO per share for 2014 should range from $2.59 to $2.62, an increase of 7.5% to 8.7% over
2013 FFO (normalized to exclude 2013 ARCT merger-related costs) per
share of $2.41. FFO per share for
2014 is based on a net income per share range of $0.90 to $0.93, plus estimated real estate
depreciation of $1.74 per share, and
reduced by potential estimated gains on sales of investment
properties of $0.05 per share (in
accordance with NAREIT's definition of FFO).
AFFO per share for 2014 should range from $2.55 to $2.57, an increase of 5.8% to 6.6% over
the 2013 AFFO per share of $2.41.
AFFO further adjusts FFO for unique revenue and expense items,
which are not as pertinent to the measurement of the company's
ongoing operating performance.
About Realty Income
Realty Income is The Monthly Dividend Company®, a New
York Stock Exchange real estate company dedicated to providing
shareholders with dependable monthly income. As of June 30, 2014, the company had paid 527
consecutive monthly dividends throughout its 45-year operating
history. The monthly income is supported by the cash flows from
over 4,200 properties owned under long-term lease agreements with
228 leading regional and national commercial tenants. The company
is an active buyer of net-leased properties nationwide. Additional
information about the company can be obtained from the corporate
website at www.realtyincome.com or
www.twitter.com/realtyincome.
Forward-Looking Statements
Statements in this press release that are not strictly historical
are "forward-looking" statements. Forward-looking statements
involve known and unknown risks, which may cause the company's
actual future results to differ materially from expected results.
These risks include, among others, general economic conditions,
local real estate conditions, tenant financial health, the
availability of capital to finance planned growth, continued
volatility and uncertainty in the credit markets and broader
financial markets, property acquisitions and the timing of these
acquisitions, charges for property impairments, and the outcome of
any legal proceedings to which the company is a party, as described
in the company's filings with the Securities and Exchange
Commission. Consequently, forward-looking statements should be
regarded solely as reflections of the company's current operating
plans and estimates. Actual operating results may differ materially
from what is expressed or forecast in this press release. The
company undertakes no obligation to publicly release the results of
any revisions to these forward-looking statements that may be made
to reflect events or circumstances after the date these statements
were made.
Note to Editors: Realty Income press releases are
available via the internet at
http://www.realtyincome.com/invest/newsroom-library/press-releases.shtml.
CONSOLIDATED
STATEMENTS OF INCOME
|
(dollars in
thousands, except per share amounts - unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
Three
Months
|
|
|
|
Six Months
|
|
|
|
Six Months
|
|
|
|
Ended
6/30/14
|
|
|
|
Ended
6/30/13
|
|
|
|
Ended
6/30/14
|
|
|
|
Ended
6/30/13
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
$
|
221,868
|
|
|
|
$
|
180,089
|
|
|
|
$
|
435,989
|
|
|
|
$
|
347,887
|
|
Tenant
reimbursements
|
|
|
6,169
|
|
|
|
|
4,485
|
|
|
|
|
12,597
|
|
|
|
|
10,512
|
|
Other
|
|
|
609
|
|
|
|
|
1,869
|
|
|
|
|
1,632
|
|
|
|
|
3,566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
228,646
|
|
|
|
|
186,443
|
|
|
|
|
450,218
|
|
|
|
|
361,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
92,894
|
|
|
|
|
73,906
|
|
|
|
|
182,864
|
|
|
|
|
140,655
|
|
Interest
|
|
|
52,712
|
|
|
|
|
39,232
|
|
|
|
|
104,432
|
|
|
|
|
80,831
|
|
General and
administrative
|
|
|
11,587
|
|
|
|
|
12,088
|
|
|
|
|
24,473
|
|
|
|
|
23,716
|
|
Property (including
reimbursable)
|
|
|
10,127
|
|
|
|
|
7,754
|
|
|
|
|
20,704
|
|
|
|
|
17,326
|
|
Income
taxes
|
|
|
570
|
|
|
|
|
624
|
|
|
|
|
1,661
|
|
|
|
|
1,201
|
|
Provisions for
impairment
|
|
|
499
|
|
|
|
|
290
|
|
|
|
|
2,182
|
|
|
|
|
290
|
|
Merger-related
costs
|
|
|
-
|
|
|
|
|
605
|
|
|
|
|
-
|
|
|
|
|
12,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
|
|
168,389
|
|
|
|
|
134,499
|
|
|
|
|
336,316
|
|
|
|
|
276,654
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of real
estate
|
|
|
1,964
|
|
|
|
|
-
|
|
|
|
|
3,236
|
|
|
|
|
-
|
|
Income from
continuing operations
|
62,221
|
|
|
|
|
51,944
|
|
|
|
|
117,138
|
|
|
|
|
85,311
|
|
Income from
discontinued operations
|
|
20
|
|
|
|
|
4,572
|
|
|
|
|
3,097
|
|
|
|
|
44,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
62,241
|
|
|
|
|
56,516
|
|
|
|
|
120,235
|
|
|
|
|
129,743
|
|
Net income
attributable to noncontrolling interests
|
|
(339)
|
|
|
|
|
(77)
|
|
|
|
|
(671)
|
|
|
|
|
(86)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company
|
61,902
|
|
|
|
|
56,439
|
|
|
|
|
119,564
|
|
|
|
|
129,657
|
|
Preferred stock
dividends
|
|
|
(10,482)
|
|
|
|
|
(10,482)
|
|
|
|
|
(20,965)
|
|
|
|
|
(20,965)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
51,420
|
|
|
|
$
|
45,957
|
|
|
|
$
|
98,599
|
|
|
|
$
|
108,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
available to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stockholders
(FFO)
|
|
$
|
142,409
|
|
|
|
$
|
117,565
|
(1)
|
|
|
$
|
276,910
|
|
|
|
$
|
221,253
|
(1)
|
Adjusted funds from
operations available to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common stockholders
(AFFO)
|
|
$
|
141,178
|
|
|
|
$
|
115,584
|
|
|
|
$
|
273,822
|
|
|
|
$
|
219,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information
for common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
basic and
diluted
|
|
$
|
0.23
|
|
|
|
$
|
0.21
|
|
|
|
$
|
0.45
|
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, basic and
diluted
|
|
$
|
0.23
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO, basic and
diluted
|
|
$
|
0.64
|
|
|
|
$
|
0.60
|
(1)
|
|
|
$
|
1.29
|
|
|
|
$
|
1.20
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.64
|
|
|
|
$
|
0.59
|
|
|
|
$
|
1.28
|
|
|
|
$
|
1.20
|
|
Diluted
|
|
$
|
0.64
|
|
|
|
$
|
0.59
|
|
|
|
$
|
1.28
|
|
|
|
$
|
1.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per common share
|
$
|
0.547
|
|
|
|
$
|
0.544
|
|
|
|
$
|
1.094
|
|
|
|
$
|
1.057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Normalized to exclude ARCT merger-related costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUNDS FROM
OPERATIONS (FFO)
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Six Months
|
|
|
Six Months
|
|
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/13
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
51,420
|
|
|
$
|
45,957
|
|
|
$
|
98,599
|
|
|
$
|
108,692
|
|
Depreciation and
amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
92,894
|
|
|
|
73,906
|
|
|
|
182,864
|
|
|
|
140,655
|
|
|
Discontinued
operations
|
|
|
-
|
|
|
|
632
|
|
|
|
-
|
|
|
|
1,146
|
|
Depreciation of
furniture, fixtures and equipment
|
|
|
(104)
|
|
|
|
(67)
|
|
|
|
(196)
|
|
|
(128)
|
|
Provisions for
impairment on investment properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
499
|
|
|
|
290
|
|
|
|
2,182
|
|
|
|
290
|
|
|
Discontinued
operations
|
|
|
-
|
|
|
|
2,206
|
|
|
|
-
|
|
|
|
2,662
|
|
Gain on sale of
investment properties:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
(1,964)
|
|
|
|
-
|
|
|
|
(3,236)
|
|
|
-
|
|
|
Discontinued
operations
|
|
|
-
|
|
|
|
(5,744)
|
|
|
|
(2,607)
|
|
|
(44,304)
|
|
Merger-related costs
(1)
|
|
|
-
|
|
|
|
605
|
|
|
|
-
|
|
|
|
12,635
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
|
(336)
|
|
|
|
(220)
|
|
|
|
(696)
|
|
|
(395)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO available to
common stockholders
|
|
$
|
142,409
|
|
|
$
|
117,565
|
|
|
$
|
276,910
|
|
|
$
|
221,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common
share
|
|
$
|
0.64
|
|
|
$
|
0.60
|
|
|
$
|
1.29
|
|
|
$
|
1.20
|
|
Distributions paid to
common stockholders
|
|
$
|
121,229
|
|
|
$
|
106,692
|
|
|
$
|
234,643
|
|
|
$
|
191,669
|
|
FFO in excess of
distributions paid to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
stockholders
|
|
$
|
21,180
|
|
|
$
|
10,873
|
|
|
$
|
42,267
|
|
|
$
|
29,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
220,979,955
|
|
|
195,574,014
|
|
|
214,039,692
|
|
|
183,714,191
|
|
|
Diluted
|
|
221,043,619
|
|
|
195,759,091
|
|
|
214,089,629
|
|
|
183,873,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
FFO for the three and
six months ended June 30, 2013, has been normalized to exclude ARCT
merger-related costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define FFO, a
non-GAAP measure, consistent with the National Association of Real
Estate Investment Trust's definition, as net income available to
common stockholders, plus depreciation and amortization of real
estate assets, plus impairments of real estate assets, reduced by
gains on sales of investment properties and extraordinary
items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED FUNDS
FROM OPERATIONS (AFFO)
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We define AFFO as FFO
adjusted for unique revenue and expense items, which the company
believes are not as pertinent to the measurement of the company's
ongoing operating performance. Most companies in our industry
use a similar measurement to AFFO, but they may use the term "CAD"
(for Cash Available for Distribution) or "FAD" (for Funds Available
for Distribution).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
Three
Months
|
|
|
Six Months
|
|
|
Six Months
|
|
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/13
|
|
|
Ended
6/30/14
|
|
|
Ended
6/30/13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
|
$
|
51,420
|
|
|
$
|
45,957
|
|
|
$
|
98,599
|
|
|
$
|
108,692
|
|
Cumulative
adjustments to calculate FFO (1)
|
|
|
90,989
|
|
|
|
71,608
|
|
|
|
178,311
|
|
|
|
112,561
|
|
FFO available to
common stockholders
|
|
|
142,409
|
|
|
|
117,565
|
|
|
|
276,910
|
|
|
|
221,253
|
|
Amortization of
share-based compensation
|
|
|
2,752
|
|
|
|
3,653
|
|
|
|
5,449
|
|
|
|
7,498
|
|
Amortization of
deferred financing costs (2)
|
|
|
1,165
|
|
|
|
1,015
|
|
|
|
2,241
|
|
|
|
2,021
|
|
Amortization of net
mortgage premiums
|
|
|
(3,009)
|
|
|
|
(2,494)
|
|
|
|
(5,394)
|
|
|
(4,441)
|
|
(Gain) loss on
interest rate swaps
|
|
|
984
|
|
|
|
(1,738)
|
|
|
|
1,042
|
|
|
|
(1,286)
|
|
Capitalized leasing
costs and commissions
|
|
|
(275)
|
|
|
|
(361)
|
|
|
|
(467)
|
|
|
(774)
|
|
Capitalized building
improvements
|
|
|
(1,090)
|
|
|
|
(1,255)
|
|
|
|
(2,267)
|
|
|
(2,520)
|
|
Straight-line
rent
|
|
|
(3,977)
|
|
|
|
(3,250)
|
|
|
|
(7,913)
|
|
|
(6,454)
|
|
Amortization of above
and below-market leases
|
|
|
2,213
|
|
|
|
2,429
|
|
|
|
4,207
|
|
|
|
4,223
|
|
AFFO adjustments
allocable to noncontrolling interests
|
|
|
6
|
|
|
|
20
|
|
|
|
14
|
|
|
|
27
|
|
AFFO available to
common stockholders
|
|
$
|
141,178
|
|
|
$
|
115,584
|
|
|
$
|
273,822
|
|
|
$
|
219,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.64
|
|
|
$
|
0.59
|
|
|
$
|
1.28
|
|
|
$
|
1.20
|
|
|
Diluted
|
|
$
|
0.64
|
|
|
$
|
0.59
|
|
|
$
|
1.28
|
|
|
$
|
1.19
|
|
Distributions paid to
common stockholders
|
|
$
|
121,229
|
|
|
$
|
106,692
|
|
|
$
|
234,643
|
|
|
$
|
191,669
|
|
AFFO in excess of
distributions paid to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common
stockholders
|
|
$
|
19,949
|
|
|
$
|
8,892
|
|
|
$
|
39,179
|
|
|
$
|
27,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares used for AFFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
220,979,955
|
|
|
195,574,014
|
|
|
214,039,692
|
|
|
183,714,191
|
|
|
Diluted
|
|
221,043,619
|
|
|
195,759,091
|
|
|
214,089,629
|
|
|
183,873,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
See FFO calculation
above for reconciling items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes the
amortization of costs incurred and capitalized when our notes were
issued in March 2003, November 2003, March 2005, September 2005,
September 2006, September 2007, June 2010, June 2011, October 2012,
July 2013 and June 2014. Additionally, this includes the
amortization of deferred financing costs incurred and capitalized
in connection with our assumption of our mortgages payable and the
issuance of our term loan. The deferred financing costs are being
amortized over the lives of the respective mortgages and term loan.
No costs associated with our credit facility agreements or annual
fees paid to credit rating agencies have been included.
|
|
HISTORICAL FUNDS
FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30,
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
51,420
|
|
$
|
45,957
|
|
$
|
32,950
|
|
$
|
33,185
|
|
$
|
24,985
|
|
Depreciation and
amortization
|
|
92,790
|
|
|
74,471
|
|
|
35,571
|
|
|
29,000
|
|
|
23,469
|
|
Provisions for
impairment on investment properties
|
499
|
|
|
2,496
|
|
|
-
|
|
|
10
|
|
|
53
|
|
Gain on sales of
investment properties
|
(1,964)
|
|
|
(5,744)
|
|
|
(3,354)
|
|
|
(1,251)
|
|
|
(1,663)
|
|
Merger-related
costs
|
|
-
|
|
|
605
|
|
|
-
|
|
|
-
|
|
|
-
|
|
FFO adjustments
allocable to noncontrolling interests
|
|
(336)
|
|
|
(220)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
(1)
|
$
|
142,409
|
|
$
|
117,565
|
|
$
|
65,167
|
|
$
|
60,944
|
|
$
|
46,844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted share
(1)
|
$
|
0.64
|
|
$
|
0.60
|
|
$
|
0.49
|
|
$
|
0.48
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
141,178
|
|
$
|
115,584
|
|
$
|
66,499
|
|
$
|
62,370
|
|
$
|
47,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
0.64
|
|
$
|
0.59
|
|
$
|
0.50
|
|
$
|
0.49
|
|
$
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
0.547
|
|
$
|
0.544
|
|
$
|
0.437
|
|
$
|
0.434
|
|
$
|
0.430
|
|
Weighted average
diluted shares outstanding
|
221,043,619
|
|
195,759,091
|
|
132,828,540
|
|
126,202,047
|
|
103,765,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended June 30,
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common stockholders
|
$
|
98,599
|
|
$
|
108,692
|
|
$
|
59,022
|
|
$
|
63,120
|
|
$
|
49,127
|
|
Depreciation and
amortization
|
|
182,668
|
|
|
141,673
|
|
|
70,806
|
|
|
55,791
|
|
|
46,682
|
|
Provisions for
impairment on investment properties
|
2,182
|
|
|
2,952
|
|
|
-
|
|
|
210
|
|
|
87
|
|
Gain on sales of
investment properties
|
(5,843)
|
|
|
(44,304)
|
|
|
(3,965)
|
|
|
(1,379)
|
|
|
(2,366)
|
|
Merger-related
costs
|
|
-
|
|
|
12,635
|
|
|
-
|
|
|
-
|
|
|
-
|
|
AFFO adjustments
allocable to noncontrolling interests
|
|
(696)
|
|
|
(395)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
(1)
|
$
|
276,910
|
|
$
|
221,253
|
|
$
|
125,863
|
|
$
|
117,742
|
|
$
|
93,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO per diluted share
(1)
|
$
|
1.29
|
|
$
|
1.20
|
|
$
|
0.95
|
|
$
|
0.96
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO
|
$
|
273,822
|
|
$
|
219,547
|
|
$
|
132,793
|
|
$
|
120,610
|
|
$
|
95,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AFFO per diluted
share
|
$
|
1.28
|
|
$
|
1.19
|
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends paid
per share
|
$
|
1.094
|
|
$
|
1.057
|
|
$
|
0.874
|
|
$
|
0.866
|
|
$
|
0.859
|
|
Weighted average
diluted shares outstanding
|
214,089,629
|
|
183,873,647
|
|
132,785,213
|
|
122,691,418
|
|
103,778,609
|
|
(1)
|
FFO for the three and
six months ended June 30, 2013, has been normalized to exclude ARCT
merger-related costs.
|
|
REALTY INCOME
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
June 30, 2014 and
December 31, 2013
|
(dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2013
|
|
ASSETS
|
|
(unaudited)
|
|
|
|
|
Real estate, at
cost:
|
|
|
|
|
|
|
Land
|
$
|
2,991,946
|
|
$
|
2,791,147
|
|
Buildings and
improvements
|
|
7,869,046
|
|
|
7,108,328
|
|
Total real estate, at
cost
|
|
10,860,992
|
|
|
9,899,475
|
|
Less accumulated
depreciation and amortization
|
|
(1,249,461)
|
|
|
(1,114,888)
|
|
Net real estate held
for investment
|
|
9,611,531
|
|
|
8,784,587
|
|
Real estate held for
sale, net
|
|
9,598
|
|
|
12,022
|
|
Net real
estate
|
|
9,621,129
|
|
|
8,796,609
|
|
Cash and cash
equivalents
|
|
8,908
|
|
|
10,257
|
|
Accounts receivable,
net
|
|
43,751
|
|
|
39,323
|
|
Acquired lease
intangible assets, net
|
|
1,048,139
|
|
|
935,459
|
|
Goodwill
|
|
15,556
|
|
|
15,660
|
|
Other assets,
net
|
|
74,919
|
|
|
127,133
|
|
Total
assets
|
$
|
10,812,402
|
|
$
|
9,924,441
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Distributions
payable
|
$
|
44,353
|
|
$
|
41,452
|
|
Accounts payable and
accrued expenses
|
|
98,973
|
|
|
102,511
|
|
Acquired lease
intangible liabilities, net
|
|
174,769
|
|
|
148,250
|
|
Other
liabilities
|
|
36,682
|
|
|
44,030
|
|
Line of credit
payable
|
|
70,800
|
|
|
128,000
|
|
Term loan
|
|
70,000
|
|
|
70,000
|
|
Mortgages payable,
net
|
|
916,454
|
|
|
783,360
|
|
Notes payable,
net
|
|
3,535,957
|
|
|
3,185,480
|
|
Total
liabilities
|
|
4,947,988
|
|
|
4,503,083
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred stock and
paid in capital, par value $0.01 per share,
|
|
|
|
|
|
|
69,900,000 shares
authorized and 25,150,000 shares issued and
|
|
|
|
|
|
|
outstanding as of June
30, 2014 and December 31, 2013
|
|
609,363
|
|
|
609,363
|
|
Common stock and paid
in capital, par value $0.01 per share,
|
|
|
|
|
|
|
370,100,000 shares
authorized, 222,623,256 shares issued and
|
|
|
|
|
|
|
outstanding as of June
30, 2014 and 207,485,073 shares issued
|
|
|
|
|
|
|
and outstanding at
December 31, 2013
|
|
6,357,084
|
|
|
5,767,878
|
|
Distributions in
excess of net income
|
|
(1,130,746)
|
|
|
(991,794)
|
|
Total stockholders'
equity
|
|
5,835,701
|
|
|
5,385,447
|
|
Noncontrolling
interests
|
|
28,713
|
|
|
35,911
|
|
Total
equity
|
|
5,864,414
|
|
|
5,421,358
|
|
Total liabilities and
equity
|
$
|
10,812,402
|
|
$
|
9,924,441
|
|
|
|
|
|
|
|
|
Realty Income
Performance vs. Major Stock Indices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NASDAQ
|
|
|
Realty
Income
|
|
REIT Index
(1)
|
|
DJIA
|
|
S&P
500
|
|
Composite
|
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
Dividend
|
|
Total
|
|
|
yield
|
|
return
(2)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(3)
|
|
yield
|
|
return
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10/18 to
12/31/1994
|
10.5
|
%
|
|
10.8
|
%
|
|
7.7
|
%
|
|
0.0
|
%
|
|
2.9
|
%
|
|
(1.6%)
|
|
|
2.9
|
%
|
|
(1.2%)
|
|
|
0.5
|
%
|
|
(1.7%)
|
|
1995
|
8.3
|
%
|
|
42.0
|
%
|
|
7.4
|
%
|
|
15.3
|
%
|
|
2.4
|
%
|
|
36.9
|
%
|
|
2.3
|
%
|
|
37.6
|
%
|
|
0.6
|
%
|
|
39.9
|
%
|
1996
|
7.9
|
%
|
|
15.4
|
%
|
|
6.1
|
%
|
|
35.3
|
%
|
|
2.2
|
%
|
|
28.9
|
%
|
|
2.0
|
%
|
|
23.0
|
%
|
|
0.2
|
%
|
|
22.7
|
%
|
1997
|
7.5
|
%
|
|
14.5
|
%
|
|
5.5
|
%
|
|
20.3
|
%
|
|
1.8
|
%
|
|
24.9
|
%
|
|
1.6
|
%
|
|
33.4
|
%
|
|
0.5
|
%
|
|
21.6
|
%
|
1998
|
8.2
|
%
|
|
5.5
|
%
|
|
7.5
|
%
|
|
(17.5%)
|
|
|
1.7
|
%
|
|
18.1
|
%
|
|
1.3
|
%
|
|
28.6
|
%
|
|
0.3
|
%
|
|
39.6
|
%
|
1999
|
10.5
|
%
|
|
(8.7%)
|
|
|
8.7
|
%
|
|
(4.6%)
|
|
|
1.3
|
%
|
|
27.2
|
%
|
|
1.1
|
%
|
|
21.0
|
%
|
|
0.2
|
%
|
|
85.6
|
%
|
2000
|
8.9
|
%
|
|
31.2
|
%
|
|
7.5
|
%
|
|
26.4
|
%
|
|
1.5
|
%
|
|
(4.7%)
|
|
|
1.2
|
%
|
|
(9.1%)
|
|
|
0.3
|
%
|
|
(39.3%)
|
|
2001
|
7.8
|
%
|
|
27.2
|
%
|
|
7.1
|
%
|
|
13.9
|
%
|
|
1.9
|
%
|
|
(5.5%)
|
|
|
1.4
|
%
|
|
(11.9%)
|
|
|
0.3
|
%
|
|
(21.1%)
|
|
2002
|
6.7
|
%
|
|
26.9
|
%
|
|
7.1
|
%
|
|
3.8
|
%
|
|
2.6
|
%
|
|
(15.0%)
|
|
|
1.9
|
%
|
|
(22.1%)
|
|
|
0.5
|
%
|
|
(31.5%)
|
|
2003
|
6.0
|
%
|
|
21.0
|
%
|
|
5.5
|
%
|
|
37.1
|
%
|
|
2.3
|
%
|
|
28.3
|
%
|
|
1.8
|
%
|
|
28.7
|
%
|
|
0.6
|
%
|
|
50.0
|
%
|
2004
|
5.2
|
%
|
|
32.7
|
%
|
|
4.7
|
%
|
|
31.6
|
%
|
|
2.2
|
%
|
|
5.6
|
%
|
|
1.8
|
%
|
|
10.9
|
%
|
|
0.6
|
%
|
|
8.6
|
%
|
2005
|
6.5
|
%
|
|
(9.2%)
|
|
|
4.6
|
%
|
|
12.2
|
%
|
|
2.6
|
%
|
|
1.7
|
%
|
|
1.9
|
%
|
|
4.9
|
%
|
|
0.9
|
%
|
|
1.4
|
%
|
2006
|
5.5
|
%
|
|
34.8
|
%
|
|
3.7
|
%
|
|
35.1
|
%
|
|
2.5
|
%
|
|
19.0
|
%
|
|
1.9
|
%
|
|
15.8
|
%
|
|
0.8
|
%
|
|
9.5
|
%
|
2007
|
6.1
|
%
|
|
3.2
|
%
|
|
4.9
|
%
|
|
(15.7%)
|
|
|
2.7
|
%
|
|
8.8
|
%
|
|
2.1
|
%
|
|
5.5
|
%
|
|
0.8
|
%
|
|
9.8
|
%
|
2008
|
7.3
|
%
|
|
(8.2%)
|
|
|
7.6
|
%
|
|
(37.7%)
|
|
|
3.6
|
%
|
|
(31.8%)
|
|
|
3.2
|
%
|
|
(37.0%)
|
|
|
1.3
|
%
|
|
(40.5%)
|
|
2009
|
6.6
|
%
|
|
19.3
|
%
|
|
3.7
|
%
|
|
28.0
|
%
|
|
2.6
|
%
|
|
22.6
|
%
|
|
2.0
|
%
|
|
26.5
|
%
|
|
1.0
|
%
|
|
43.9
|
%
|
2010
|
5.1
|
%
|
|
38.6
|
%
|
|
3.5
|
%
|
|
27.9
|
%
|
|
2.6
|
%
|
|
14.0
|
%
|
|
1.9
|
%
|
|
15.1
|
%
|
|
1.2
|
%
|
|
16.9
|
%
|
2011
|
5.0
|
%
|
|
7.3
|
%
|
|
3.8
|
%
|
|
8.3
|
%
|
|
2.8
|
%
|
|
8.3
|
%
|
|
2.3
|
%
|
|
2.1
|
%
|
|
1.3
|
%
|
|
(1.8%)
|
|
2012
|
4.5
|
%
|
|
20.1
|
%
|
|
3.5
|
%
|
|
19.7
|
%
|
|
3.0
|
%
|
|
10.2
|
%
|
|
2.5
|
%
|
|
16.0
|
%
|
|
2.6
|
%
|
|
15.9
|
%
|
2013
|
5.8
|
%
|
|
(1.8%)
|
|
|
3.9
|
%
|
|
2.9
|
%
|
|
2.3
|
%
|
|
29.6
|
%
|
|
2.0
|
%
|
|
32.4
|
%
|
|
1.4
|
%
|
|
38.3
|
%
|
Q2 YTD
2014
|
4.9
|
%
|
|
21.9
|
%
|
|
3.5
|
%
|
|
16.2
|
%
|
|
2.3
|
%
|
|
2.7
|
%
|
|
2.0
|
%
|
|
7.1
|
%
|
|
1.2
|
%
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compounded
Average
Annual Total
Return (5)
|
17.0
|
%
|
|
|
|
|
11.1
|
%
|
|
|
|
|
10.2
|
%
|
|
|
|
|
9.6
|
%
|
|
|
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: All of these dividend yields
are calculated as annualized dividends based on the last dividend
paid in applicable time period divided by the closing price as of
period end. Dividend yield sources: NAREIT website and
Bloomberg, except for the 1994 NASDAQ dividend yield which was
sourced from Datastream / Thomson Financial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
FTSE NAREIT US Equity
REIT Index, as per NAREIT website.
|
(2)
|
Calculated as the
difference between the closing stock price as of period end less
the closing stock price as of previous period, plus dividends paid
in period, divided by closing stock price as of end of previous
period. Does not include reinvestment of dividends for the
annual percentages.
|
(3)
|
Includes reinvestment
of dividends. Source: NAREIT website and
Factset.
|
(4)
|
Price only index,
does not include dividends. Source: Factset.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
All of these
Compounded Average Annual Total Return rates are calculated in the
same manner: from Realty Income's NYSE listing on October 18, 1994
through June 30, 2014, and (except for NASDAQ) assuming
reinvestment of dividends. Past Performance does not guarantee
future performance. Realty Income presents this data for
informational purposes only and makes no representation about its
future performance or how it will compare in performance to other
indices in the future.
|
Property Type
Diversification
|
The following table
sets forth certain property type information regarding Realty
Income's property portfolio as of June 30, 2014 (dollars in
thousands):
|
|
|
|
|
|
|
Approximate
|
|
Rental Revenue
for
|
|
|
Percentage
of
|
|
|
|
|
Number
of
|
|
Leasable
|
|
the Quarter
Ended
|
|
|
Rental
|
|
Property
Type
|
|
Properties
|
|
Square Feet
|
|
June 30,
2014
|
(1)
|
Revenue
|
|
Retail
|
|
4,102
|
|
45,327,100
|
|
$
|
172,153
|
|
|
77.7
|
%
|
Industrial and
distribution
|
|
86
|
|
16,278,800
|
|
|
23,463
|
|
|
10.6
|
|
Office
|
|
46
|
|
3,519,900
|
|
|
15,004
|
|
|
6.8
|
|
Manufacturing
|
|
14
|
|
3,875,200
|
|
|
5,607
|
|
|
2.5
|
|
Agriculture
|
|
15
|
|
184,500
|
|
|
5,209
|
|
|
2.4
|
|
Totals
|
|
4,263
|
|
69,185,500
|
|
$
|
221,436
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes rental
revenue for all properties owned by Realty Income at June 30, 2014,
including revenue from properties reclassified as discontinued
operations of $18. Excludes revenue of $44 from properties
owned by Crest and $406 from sold properties that were included in
continuing operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tenant
Diversification
|
The largest tenants
based on percentage of total portfolio rental revenue at June 30,
2014 include the following:
|
|
|
|
|
|
|
|
|
|
|
Tenant
|
|
Number of
Properties
|
|
|
|
|
% of
Revenue
|
|
|
|
|
|
|
|
|
|
Walgreens
|
|
111
|
|
|
|
|
5.2
|
%
|
FedEx
|
|
38
|
|
|
|
|
5.0
|
%
|
Dollar
General
|
|
502
|
|
|
|
|
5.0
|
%
|
LA Fitness
|
|
45
|
|
|
|
|
4.6
|
%
|
Family
Dollar
|
|
450
|
|
|
|
|
4.5
|
%
|
BJ's Wholesale
Clubs
|
|
15
|
|
|
|
|
2.9
|
%
|
AMC
Theatres
|
|
20
|
|
|
|
|
2.8
|
%
|
Diageo
|
|
17
|
|
|
|
|
2.7
|
%
|
Northern Tier
Energy/Super America
|
134
|
|
|
|
|
2.3
|
%
|
Regal
Cinemas
|
|
20
|
|
|
|
|
2.1
|
%
|
Rite Aid
|
|
58
|
|
|
|
|
2.0
|
%
|
CVS
Pharmacy
|
|
49
|
|
|
|
|
1.9
|
%
|
The Pantry
|
|
145
|
|
|
|
|
1.7
|
%
|
Circle K
|
|
150
|
|
|
|
|
1.6
|
%
|
Walmart/Sam's
Club
|
|
19
|
|
|
|
|
1.5
|
%
|
GPM Investments/Fas
Mart
|
|
141
|
|
|
|
|
1.4
|
%
|
NPC
International
|
|
202
|
|
|
|
|
1.4
|
%
|
TBC
Corporation
|
|
70
|
|
|
|
|
1.3
|
%
|
Smart &
Final
|
|
36
|
|
|
|
|
1.2
|
%
|
FreedomRoads/Camping
World
|
|
18
|
|
|
|
|
1.2
|
%
|
Industry
Diversification
|
The following table
sets forth certain information regarding Realty Income's property
portfolio classified according to the business of the respective
tenants, expressed as a percentage of our total rental
revenue:
|
|
|
Percentage
of Rental Revenue(1)
|
|
For
the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
For the Years
Ended
|
|
June
30,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
Retail
industries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apparel
stores
|
1.9
|
%
|
|
|
1.9
|
%
|
|
1.7
|
%
|
|
1.4
|
%
|
|
1.2
|
%
|
|
1.1
|
%
|
|
1.1
|
%
|
Automotive collision
services
|
0.8
|
|
|
|
|
0.8
|
|
|
1.1
|
|
|
0.9
|
|
|
1.0
|
|
|
1.1
|
|
|
1.0
|
|
Automotive
parts
|
1.2
|
|
|
|
|
1.2
|
|
|
1.0
|
|
|
1.2
|
|
|
1.4
|
|
|
1.5
|
|
|
1.6
|
|
Automotive
service
|
1.8
|
|
|
|
|
2.1
|
|
|
3.1
|
|
|
3.7
|
|
|
4.7
|
|
|
4.8
|
|
|
4.8
|
|
Automotive tire
services
|
3.2
|
|
|
|
|
3.6
|
|
|
4.7
|
|
|
5.6
|
|
|
6.4
|
|
|
6.9
|
|
|
6.7
|
|
Book stores
|
*
|
|
|
|
|
*
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
Child care
|
2.3
|
|
|
|
|
2.8
|
|
|
4.5
|
|
|
5.2
|
|
|
6.5
|
|
|
7.3
|
|
|
7.6
|
|
Consumer
electronics
|
0.3
|
|
|
|
|
0.3
|
|
|
0.5
|
|
|
0.5
|
|
|
0.6
|
|
|
0.7
|
|
|
0.8
|
|
Convenience
stores
|
10.2
|
|
|
|
|
11.2
|
|
|
16.3
|
|
|
18.5
|
|
|
17.1
|
|
|
16.9
|
|
|
15.8
|
|
Crafts and
novelties
|
0.5
|
|
|
|
|
0.5
|
|
|
0.3
|
|
|
0.2
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
Dollar
stores
|
9.8
|
|
|
|
|
6.2
|
|
|
2.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Drug stores
|
9.5
|
|
|
|
|
8.1
|
|
|
3.5
|
|
|
3.8
|
|
|
4.1
|
|
|
4.3
|
|
|
4.1
|
|
Education
|
0.4
|
|
|
|
|
0.4
|
|
|
0.7
|
|
|
0.7
|
|
|
0.8
|
|
|
0.9
|
|
|
0.8
|
|
Entertainment
|
0.6
|
|
|
|
|
0.6
|
|
|
0.9
|
|
|
1.0
|
|
|
1.2
|
|
|
1.3
|
|
|
1.2
|
|
Equipment
services
|
0.1
|
|
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Financial
services
|
1.4
|
|
|
|
|
1.5
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
General
merchandise
|
1.2
|
|
|
|
|
1.1
|
|
|
0.6
|
|
|
0.6
|
|
|
0.8
|
|
|
0.8
|
|
|
0.8
|
|
Grocery
stores
|
3.0
|
|
|
|
|
2.9
|
|
|
3.7
|
|
|
1.6
|
|
|
0.9
|
|
|
0.7
|
|
|
0.7
|
|
Health and
fitness
|
7.0
|
|
|
|
|
6.3
|
|
|
6.8
|
|
|
6.4
|
|
|
6.9
|
|
|
5.9
|
|
|
5.6
|
|
Health care
|
1.1
|
|
|
|
|
1.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Home
furnishings
|
0.7
|
|
|
|
|
0.9
|
|
|
1.0
|
|
|
1.1
|
|
|
1.3
|
|
|
1.3
|
|
|
2.4
|
|
Home
improvement
|
1.3
|
|
|
|
|
1.6
|
|
|
1.5
|
|
|
1.7
|
|
|
2.0
|
|
|
2.2
|
|
|
2.1
|
|
Jewelry
|
0.1
|
|
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Motor vehicle
dealerships
|
1.5
|
|
|
|
|
1.6
|
|
|
2.1
|
|
|
2.2
|
|
|
2.6
|
|
|
2.7
|
|
|
3.2
|
|
Office
supplies
|
0.4
|
|
|
|
|
0.5
|
|
|
0.8
|
|
|
0.9
|
|
|
0.9
|
|
|
1.0
|
|
|
1.0
|
|
Pet supplies and
services
|
0.7
|
|
|
|
|
0.8
|
|
|
0.6
|
|
|
0.7
|
|
|
0.9
|
|
|
0.9
|
|
|
0.8
|
|
Restaurants - casual
dining
|
4.3
|
|
|
|
|
5.1
|
|
|
7.3
|
|
|
10.9
|
|
|
13.4
|
|
|
13.7
|
|
|
14.3
|
|
Restaurants - quick
service
|
3.5
|
|
|
|
|
4.4
|
|
|
5.9
|
|
|
6.6
|
|
|
7.7
|
|
|
8.3
|
|
|
8.2
|
|
Shoe stores
|
0.1
|
|
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
Sporting
goods
|
1.7
|
|
|
|
|
1.7
|
|
|
2.5
|
|
|
2.7
|
|
|
2.7
|
|
|
2.6
|
|
|
2.3
|
|
Theaters
|
5.2
|
|
|
|
|
6.2
|
|
|
9.4
|
|
|
8.8
|
|
|
8.9
|
|
|
9.2
|
|
|
9.0
|
|
Transportation
services
|
0.1
|
|
|
|
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
|
0.2
|
|
Wholesale
clubs
|
4.2
|
|
|
|
|
3.9
|
|
|
3.2
|
|
|
0.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other
|
0.1
|
|
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.3
|
|
|
1.1
|
|
|
1.2
|
|
Retail
industries
|
80.2
|
%
|
|
|
79.8
|
%
|
|
86.7
|
%
|
|
88.6
|
%
|
|
95.4
|
%
|
|
98.3
|
%
|
|
98.2
|
%
|
Industry
Diversification (continued)
|
|
|
|
Percentage
of Rental Revenue(1)
|
|
|
For
the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
For the Years
Ended
|
|
|
June
30,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
Dec
31,
|
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
Non-retail
industries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
1.2
|
|
|
|
|
1.2
|
|
|
0.9
|
|
|
0.5
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Beverages
|
2.8
|
|
|
|
|
3.3
|
|
|
5.1
|
|
|
5.6
|
|
|
3.0
|
|
|
-
|
|
|
-
|
|
|
Consumer
appliances
|
0.5
|
|
|
|
|
0.6
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Consumer
goods
|
0.9
|
|
|
|
|
1.0
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Crafts and
novelties
|
0.1
|
|
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Diversified
industrial
|
0.5
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Electric
utilities
|
0.1
|
|
|
|
|
*
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Equipment
services
|
0.5
|
|
|
|
|
0.4
|
|
|
0.3
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Financial
services
|
0.4
|
|
|
|
|
0.5
|
|
|
0.4
|
|
|
0.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Food
processing
|
1.4
|
|
|
|
|
1.5
|
|
|
1.3
|
|
|
0.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
General
merchandise
|
0.4
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Government
services
|
1.3
|
|
|
|
|
1.4
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
Health care
|
0.7
|
|
|
|
|
0.8
|
|
|
*
|
|
|
*
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Home
furnishings
|
0.2
|
|
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Home
improvement
|
0.1
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Insurance
|
0.1
|
|
|
|
|
0.1
|
|
|
*
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Machinery
|
0.1
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other
manufacturing
|
0.7
|
|
|
|
|
0.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Packaging
|
0.8
|
|
|
|
|
0.9
|
|
|
0.7
|
|
|
0.4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Paper
|
0.1
|
|
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Shoe stores
|
0.8
|
|
|
|
|
0.9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Telecommunications
|
0.7
|
|
|
|
|
0.7
|
|
|
0.8
|
|
|
0.7
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Transportation
services
|
5.1
|
|
|
|
|
5.3
|
|
|
2.2
|
|
|
1.6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Other
|
0.3
|
|
|
|
|
0.1
|
|
|
1.0
|
|
|
1.2
|
|
|
1.5
|
|
|
1.6
|
|
|
1.8
|
|
|
Non-retail
industries
|
19.8
|
%
|
|
|
20.2
|
%
|
|
13.3
|
%
|
|
11.4
|
%
|
|
4.6
|
%
|
|
1.7
|
%
|
|
1.8
|
%
|
|
Totals
|
100.0
|
%
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Less than
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes rental
revenue for all properties owned by Realty Income at the end of
each period presented, including revenue from properties
reclassified as discontinued operations. Excludes revenue from
properties owned by Crest Net Lease, Inc., or Crest.
|
Lease
Expirations
|
The following table
sets forth certain information regarding Realty Income's property
portfolio regarding the timing of the lease term expirations
(excluding rights to extend a lease at the option of the tenant) on
our 4,169 net leased, single-tenant properties as of June 30, 2014
(dollars in thousands):
|
|
Total
Portfolio(1)
|
Initial
Expirations(3)
|
Subsequent
Expirations(4)
|
|
|
|
|
|
|
|
|
Rental
|
|
|
|
|
|
Rental
|
|
|
|
|
Rental
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
Revenue
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
for
the
|
|
|
|
|
|
for
the
|
|
|
|
|
for
the
|
|
|
|
|
|
Number
|
|
|
Quarter
|
|
|
%
of
|
|
|
Quarter
|
|
%
of
|
|
|
Quarter
|
|
%
of
|
|
|
|
of
Leases
|
|
Approx.
|
Ended
|
|
|
Total
|
|
Number
|
Ended
|
|
Total
|
|
Number
|
Ended
|
|
Total
|
|
|
|
Expiring
|
|
Leasable
|
Jun
30,
|
|
|
Rental
|
|
of
Leases
|
Jun
30,
|
|
Rental
|
|
of
Leases
|
Jun
30,
|
|
Rental
|
|
Year
|
|
Retail
|
|
Non-Retail
|
|
Sq.
Feet
|
2014
|
(2)
|
Revenue
|
|
Expiring
|
2014
|
|
Revenue
|
|
Expiring
|
2014
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
85
|
|
-
|
|
634,100
|
|
$
|
2,045
|
|
|
1.0
|
%
|
22
|
|
$
|
795
|
|
0.4
|
%
|
63
|
|
$
|
1,250
|
|
0.6
|
%
|
2015
|
|
172
|
|
-
|
|
866,600
|
|
|
3,693
|
|
|
1.7
|
|
67
|
|
|
1,520
|
|
0.7
|
|
105
|
|
|
2,173
|
|
1.0
|
|
2016
|
|
201
|
|
1
|
|
1,220,100
|
|
|
4,629
|
|
|
2.1
|
|
121
|
|
|
2,835
|
|
1.3
|
|
81
|
|
|
1,794
|
|
0.8
|
|
2017
|
|
187
|
|
2
|
|
2,116,500
|
|
|
6,031
|
|
|
2.8
|
|
49
|
|
|
3,050
|
|
1.4
|
|
140
|
|
|
2,981
|
|
1.4
|
|
2018
|
|
273
|
|
10
|
|
3,480,500
|
|
|
10,881
|
|
|
5.0
|
|
165
|
|
|
7,658
|
|
3.5
|
|
118
|
|
|
3,223
|
|
1.5
|
|
2019
|
|
214
|
|
11
|
|
3,599,800
|
|
|
11,619
|
|
|
5.3
|
|
167
|
|
|
10,001
|
|
4.6
|
|
58
|
|
|
1,618
|
|
0.7
|
|
2020
|
|
108
|
|
12
|
|
3,706,300
|
|
|
9,616
|
|
|
4.4
|
|
105
|
|
|
8,875
|
|
4.1
|
|
15
|
|
|
741
|
|
0.3
|
|
2021
|
|
184
|
|
13
|
|
5,487,900
|
|
|
14,332
|
|
|
6.6
|
|
187
|
|
|
13,780
|
|
6.3
|
|
10
|
|
|
552
|
|
0.3
|
|
2022
|
|
220
|
|
19
|
|
7,529,200
|
|
|
15,391
|
|
|
7.0
|
|
223
|
|
|
14,978
|
|
6.8
|
|
16
|
|
|
413
|
|
0.2
|
|
2023
|
|
344
|
|
22
|
|
6,561,600
|
|
|
20,875
|
|
|
9.5
|
|
353
|
|
|
20,203
|
|
9.2
|
|
13
|
|
|
672
|
|
0.3
|
|
2024
|
|
154
|
|
11
|
|
2,816,200
|
|
|
8,606
|
|
|
3.9
|
|
164
|
|
|
8,570
|
|
3.9
|
|
1
|
|
|
36
|
|
*
|
|
2025
|
|
296
|
|
10
|
|
4,201,900
|
|
|
18,124
|
|
|
8.3
|
|
299
|
|
|
17,873
|
|
8.2
|
|
7
|
|
|
251
|
|
0.1
|
|
2026
|
|
233
|
|
5
|
|
3,514,700
|
|
|
12,651
|
|
|
5.7
|
|
235
|
|
|
12,568
|
|
5.7
|
|
3
|
|
|
83
|
|
*
|
|
2027
|
|
462
|
|
2
|
|
4,901,800
|
|
|
16,080
|
|
|
7.4
|
|
462
|
|
|
16,040
|
|
7.4
|
|
2
|
|
|
40
|
|
*
|
|
2028
|
|
282
|
|
5
|
|
5,989,800
|
|
|
16,082
|
|
|
7.3
|
|
285
|
|
|
16,027
|
|
7.3
|
|
2
|
|
|
55
|
|
*
|
|
2029 -
2043
|
|
596
|
|
35
|
|
10,966,500
|
|
|
48,241
|
|
|
22.0
|
|
623
|
|
|
48,034
|
|
21.9
|
|
8
|
|
|
207
|
|
0.1
|
|
Totals
|
|
4,011
|
|
158
|
|
67,593,500
|
|
$
|
218,896
|
|
|
100.0
|
%
|
3,527
|
|
$
|
202,807
|
|
92.7
|
%
|
642
|
|
$
|
16,089
|
|
7.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Less than
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes 20
multi-tenant properties and 74 vacant properties, one of which is a
multi-tenant property. The lease expirations for properties under
construction are based on the estimated date of completion of those
properties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes rental
revenue of $18 from properties reclassified as discontinued
operations and excludes revenue of $2,540 from 20 multi-tenant
properties and from 74 vacant properties at June 30, 2014, $406
from sold properties included in continuing operations and $44 from
properties owned by Crest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Represents leases to
the initial tenant of the property that are expiring for the first
time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Represents lease
expirations on properties in the portfolio, which have previously
been renewed, extended or re-tenanted.
|
Geographic
Diversification
|
The following table
sets forth certain state-by-state information regarding Realty
Income's property portfolio as of June 30, 2014 (dollars in
thousands):
|
|
|
|
|
|
|
Approximate
|
|
Rental Revenue
for
|
|
Percentage
of
|
|
|
|
Number
of
|
Percent
|
|
Leasable
|
|
the Quarter
Ended
|
|
Rental
|
|
State
|
Properties
|
Leased
|
|
Square
Feet
|
|
June 30,
2014
|
(1)
|
Revenue
|
|
Alabama
|
127
|
98
|
%
|
1,029,300
|
|
$
|
3,428
|
|
1.5
|
%
|
Alaska
|
2
|
100
|
|
128,500
|
|
|
307
|
|
0.1
|
|
Arizona
|
114
|
96
|
|
1,409,800
|
|
|
5,741
|
|
2.6
|
|
Arkansas
|
53
|
98
|
|
782,600
|
|
|
1,655
|
|
0.7
|
|
California
|
165
|
99
|
|
5,112,300
|
|
|
22,717
|
|
10.3
|
|
Colorado
|
72
|
99
|
|
1,045,400
|
|
|
2,951
|
|
1.3
|
|
Connecticut
|
25
|
96
|
|
536,900
|
|
|
2,281
|
|
1.0
|
|
Delaware
|
17
|
100
|
|
78,300
|
|
|
541
|
|
0.2
|
|
Florida
|
320
|
99
|
|
3,363,700
|
|
|
13,555
|
|
6.1
|
|
Georgia
|
233
|
98
|
|
3,029,200
|
|
|
9,428
|
|
4.3
|
|
Hawaii
|
--
|
--
|
|
--
|
|
|
--
|
|
--
|
|
Idaho
|
12
|
100
|
|
87,000
|
|
|
433
|
|
0.2
|
|
Illinois
|
160
|
99
|
|
4,406,500
|
|
|
12,681
|
|
5.7
|
|
Indiana
|
106
|
99
|
|
1,172,800
|
|
|
5,271
|
|
2.4
|
|
Iowa
|
35
|
94
|
|
2,751,700
|
|
|
3,326
|
|
1.5
|
|
Kansas
|
82
|
99
|
|
1,638,200
|
|
|
3,443
|
|
1.6
|
|
Kentucky
|
56
|
98
|
|
902,200
|
|
|
3,131
|
|
1.4
|
|
Louisiana
|
87
|
98
|
|
944,300
|
|
|
2,786
|
|
1.3
|
|
Maine
|
9
|
100
|
|
126,400
|
|
|
837
|
|
0.4
|
|
Maryland
|
33
|
100
|
|
772,000
|
|
|
4,203
|
|
1.9
|
|
Massachusetts
|
83
|
96
|
|
758,000
|
|
|
3,425
|
|
1.5
|
|
Michigan
|
106
|
98
|
|
1,009,400
|
|
|
3,285
|
|
1.5
|
|
Minnesota
|
155
|
100
|
|
1,153,200
|
|
|
7,350
|
|
3.3
|
|
Mississippi
|
121
|
98
|
|
1,551,500
|
|
|
3,800
|
|
1.7
|
|
Missouri
|
133
|
98
|
|
2,568,400
|
|
|
8,047
|
|
3.6
|
|
Montana
|
1
|
100
|
|
5,400
|
|
|
13
|
|
*
|
|
Nebraska
|
31
|
100
|
|
708,700
|
|
|
1,750
|
|
0.8
|
|
Nevada
|
22
|
95
|
|
413,000
|
|
|
1,289
|
|
0.6
|
|
New
Hampshire
|
20
|
100
|
|
320,100
|
|
|
1,467
|
|
0.7
|
|
New
Jersey
|
66
|
98
|
|
562,900
|
|
|
3,350
|
|
1.5
|
|
New
Mexico
|
29
|
100
|
|
277,400
|
|
|
638
|
|
0.3
|
|
New
York
|
87
|
95
|
|
2,203,500
|
|
|
10,587
|
|
4.8
|
|
North
Carolina
|
149
|
99
|
|
1,508,100
|
|
|
5,689
|
|
2.6
|
|
North
Dakota
|
7
|
100
|
|
66,000
|
|
|
118
|
|
0.1
|
|
Ohio
|
213
|
98
|
|
5,058,200
|
|
|
12,118
|
|
5.5
|
|
Oklahoma
|
124
|
99
|
|
1,583,700
|
|
|
3,814
|
|
1.7
|
|
Oregon
|
25
|
100
|
|
525,400
|
|
|
1,844
|
|
0.8
|
|
Pennsylvania
|
147
|
99
|
|
1,800,600
|
|
|
7,071
|
|
3.2
|
|
Rhode
Island
|
4
|
100
|
|
157,200
|
|
|
929
|
|
0.4
|
|
South
Carolina
|
134
|
99
|
|
1,011,100
|
|
|
4,389
|
|
2.0
|
|
South
Dakota
|
11
|
100
|
|
133,500
|
|
|
244
|
|
0.1
|
|
Tennessee
|
194
|
96
|
|
3,005,500
|
|
|
5,946
|
|
2.7
|
|
Texas
|
434
|
98
|
|
7,801,800
|
|
|
21,387
|
|
9.7
|
|
Utah
|
13
|
100
|
|
749,000
|
|
|
1,337
|
|
0.6
|
|
Vermont
|
6
|
100
|
|
100,700
|
|
|
492
|
|
0.2
|
|
Virginia
|
140
|
97
|
|
2,628,600
|
|
|
6,979
|
|
3.2
|
|
Washington
|
38
|
100
|
|
415,300
|
|
|
1,575
|
|
0.7
|
|
West
Virginia
|
12
|
100
|
|
261,200
|
|
|
883
|
|
0.4
|
|
Wisconsin
|
43
|
95
|
|
1,481,600
|
|
|
2,693
|
|
1.2
|
|
Wyoming
|
3
|
100
|
|
21,100
|
|
|
63
|
|
*
|
|
Puerto
Rico
|
4
|
100
|
|
28,300
|
|
|
149
|
|
0.1
|
|
TotalsAverage
|
4,263
|
98
|
%
|
69,185,500
|
|
$
|
221,436
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Less than
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes rental
revenue for all properties owned by Realty Income at June 30, 2014,
including revenue from properties reclassified as discontinued
operations of $18. Excludes revenue of $44 from properties
owned by Crest and $406 from sold properties that were included in
continuing operations.
|
Logo -
http://photos.prnewswire.com/prnh/20130507/MM09486LOGO
SOURCE Realty Income Corporation