Realty Income Q1 earnings beat consensus; on pace to reach investment guidance

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  • Realty Income (NYSE:O) President and CEO Sumit Roy says the REIT remains "on pace" to reach its 2021 investment guidance of more than 3.25B.
  • "Looking forward, our rent collections have improved and stabilized, the business is well-positioned to capitalize on our active global investment pipeline, and we finished the quarter with approximately $2.5B of liquidity and a net debt to EBITDAre ratio of 5.3x," he said.
  • Q1 adjusted FFO per share of 86 cents beats the average analyst estimate of 74 cents; compares with 84 cents in Q4 2020 and 88 cents in the year-ago quarter.
  • Q1 revenue of $442.8M exceeds the $416.1M consensus; increased from $418.1M in Q4 and $414.3M in Q1 2020.
  • Invested $1.03B in properties and properties under development, including $403.0M in properties in the U.K.; compares with Q4 investment of $1.01B in properties and properties under development, including $467.2M in properties in the U.K.
  • Collects 94.1% of contractual rent in Q1 vs. 94.3% in Q4.
  • Portfolio occupancy was 98.0% at March 31, 2021 vs. 97.9% at Dec. 31, 2020.
  • The company didn't record any provisions for impairment on theater properties in the quarter. For its theater properties, NNN records $7.3M rental revenue reserves; adding straight-line rent reserves total rental revenue serves comes to $7.4M.
  • Reaffirms 2021 adjusted FFO per share of $3.44-$3.49.
  • Late last month, Realty Income announced its agreement to acquire Vereit in an all-stock stock transaction, creating a merged company with an enterprise value of ~$50B.
  • Conference call on May 4 at 2:30 PM ET.


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