{"id":59281,"date":"2020-08-04T10:44:00","date_gmt":"2020-08-04T10:44:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/2020\/08\/04\/realty-income-announces-operating-results-for-second-quarter-and-first-six-months-of-2020\/"},"modified":"2020-08-04T10:44:00","modified_gmt":"2020-08-04T10:44:00","slug":"realty-income-announces-operating-results-for-second-quarter-and-first-six-months-of-2020","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2020\/08\/04\/realty-income-announces-operating-results-for-second-quarter-and-first-six-months-of-2020\/","title":{"rendered":"Realty Income Announces Operating Results For Second Quarter And First Six Months Of 2020"},"content":{"rendered":"![\"\"](\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2020\/08\/4000-1-3.jpg\")
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Realty Income Corporation, The Monthly Dividend Company®<\/sup>, today announced operating results for the second quarter and six months ended June 30, 2020<\/span>. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.<\/p>\nCOMPANY HIGHLIGHTS<\/strong>:<\/strong><\/p>\nFor the quarter ended June 30, 2020<\/span><\/strong>:<\/p>\n\n- Net income per share was $0.31<\/span><\/li>\n
- AFFO per share increased 4.9% to $0.86<\/span>, compared to the quarter ended June 30, 2019<\/span><\/li>\n
- Collected 86.5% of contractual rent across our total portfolio<\/li>\n
- Invested $154.2 million<\/span> in 32 properties and properties under development or expansion, including $58.2 million<\/span> in two properties in the U.K.<\/li>\n
- Raised $593.9 million<\/span> through the issuance of 3.250% senior unsecured notes due in 2031<\/li>\n
- Raised $98.1 million<\/span> from the sale of common stock, primarily through our At -The-Market (ATM) program<\/li>\n<\/ul>\n
For the month ended July 31, 2020<\/span><\/strong>:<\/p>\n\n- Collected 91.5% of contractual rent due for the month of July 2020<\/span> across our total portfolio<\/li>\n
- Raised $378.8 million<\/span> through the issuance of 3.250% senior unsecured notes due 2031<\/li>\n<\/ul>\n
CEO Comments<\/strong><\/p>\n“First and foremost, I appreciate my colleagues’ seamless transition to a remote work environment, recognize our team’s outstanding dedication and contributions that continue to drive our business, and empathize with individuals and businesses impacted by the COVID-19 pandemic,” said Sumit Roy<\/span>, Realty Income’s President and Chief Executive Officer. “While economic and public health considerations remain due to the COVID-19 pandemic, our operating results for the second quarter continue to demonstrate the stability and resiliency of our business. Our diversified and high-quality real estate portfolio, which is primarily leased to tenants providing non-discretionary and\/or low price point goods or services, was 98.5% occupied at quarter-end, and we achieved a 101% rent recapture rate on re-leasing activity during the quarter. Additionally, our financial position remains strong, as we ended the quarter with a net debt to EBITDAre ratio of 5.1x and a fixed charge coverage ratio of 5.4x. As of July 31st<\/span>, we had total liquidity of $2.9 billion<\/span>, including approximately $400 million<\/span> of cash on hand and $2.5 billion<\/span> remaining borrowing capacity available on our $3.0 billion<\/span> revolving credit facility (excluding the $1.0 billion<\/span> accordion feature, which is subject to obtaining lender commitments), which we believe provides us significant financial flexibility.”<\/p>\n“Through July 31st<\/span>, we have collected 86.5% of contractual rent for the second quarter and 91.5% of contractual rent for the month of July, which represented the second consecutive month of improving rent collection trends and the highest monthly rent collection reported since April 2020<\/span>. We are pleased with these positive trends, and we continue to manage the business with a focus on generating long-term value for our stakeholders. Given the increased visibility to our business, we are providing 2020 acquisition guidance of $1.25 billion<\/span> to $1.75 billion<\/span>.”<\/p>\nSummarized Financial Results<\/strong><\/p>\nThe following summarizes our select financial results (dollars in millions, except per share data):<\/p>\n
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\n\n\n| <\/td>\n | \n Three Months Ended June 30,<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n Six Months Ended June 30,<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | \n 2020<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 2019<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 2020<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 2019<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Total revenue<\/span><\/p>\n<\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 414.6<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 365.5<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 829.0<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 719.8<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net income available to common stockholders (1)(2)<\/sup><\/span><\/p>\n<\/td>\n| \n $<\/span><\/p>\n<\/td>\n | \n 107.8<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 95.2<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 254.7<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 206.1<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Net income per share<\/span><\/p>\n<\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.31<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.31<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.75<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.67<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Funds from operations available to common <\/span>stockholders (FFO) (2)(3)<\/sup><\/span><\/p>\n<\/td>\n| \n $<\/span><\/p>\n<\/td>\n | \n 288.3<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 251.5<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 565.4<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 497.2<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n FFO per share<\/span><\/p>\n<\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.84<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.81<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 1.66<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 1.62<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n Adjusted funds from operations available to common <\/span>stockholders (AFFO) (3)<\/sup><\/span><\/p>\n<\/td>\n| \n $<\/span><\/p>\n<\/td>\n | \n 295.2<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 253.9<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 592.5<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 502.7<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n | \n| \n AFFO per share<\/span><\/p>\n<\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.86<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 0.82<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 1.74<\/span><\/p>\n<\/td>\n | <\/td>\n | <\/td>\n | \n $<\/span><\/p>\n<\/td>\n | \n 1.63<\/span><\/p>\n<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n\n \n \n \n\n\n| <\/td>\n | <\/td>\n<\/tr>\n | \n| \n (1)<\/sup><\/span><\/p>\n<\/td>\n| \n The calculation to determine net income attributable to common stockholders includes provisions for impairment, gains on sales of real estate, and foreign currency gains and losses. These items can vary from quarter to quarter and can significantly impact net income and period to period comparisons.<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/sup><\/span><\/p>\n<\/td>\n| \n Net income available to common stockholders and FFO in the first six months of 2020 were impacted by the following transactions recorded in the first quarter of 2020: (i) a $9.8 million loss on extinguishment of debt due to the January 2020 early redemption of the 5.750% notes due 2021, and (ii) a $3.5 million executive severance charge for our former chief financial officer (CFO).<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/sup><\/span><\/p>\n<\/td>\n| \n 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, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trusts’ (Nareit’s) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, and reduced by gains on property sales. 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. Presentation of the information regarding FFO and AFFO is intended to assist the reader in comparing the operating performance of different REITs, although it should be noted that not all REITs calculate FFO and AFFO in the same way, so comparisons with other REITs may not be meaningful. FFO and AFFO should not be considered as alternatives to reviewing our cash flows from operating, investing, and financing activities. In addition, FFO and AFFO should not be considered as measures of liquidity, our ability to make cash distributions, or our ability to pay interest payments. See the reconciliations of net income available to common stockholders to FFO and AFFO on pages eight and nine of this press release. <\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\nImpact of COVID-19<\/strong><\/p>\nPercentages of Contractual Rent Collected as of July 31, 2020<\/span><\/em><\/strong><\/p>\n\n \n \n \n\n\n| <\/td>\n | \n Month Ended
<\/strong>April 30, 2020<\/strong><\/span><\/p>\n<\/td>\n <\/td>\n | \n Month
Ended
<\/strong>May 31, 2020<\/strong><\/span><\/p>\n<\/td>\n <\/td>\n | \n Month Ended
June 30,
2020<\/strong><\/span><\/p>\n<\/td>\n <\/td>\n | \n Quarter
Ended
June 30, 2020<\/strong><\/span><\/p>\n<\/td>\n <\/td>\n | \n Month Ended
<\/strong>July 31, 2020<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n\n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n| \n Contractual rent collected(1) <\/sup>across total portfolio<\/span><\/p>\n<\/td>\n| \n 88.4%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 84.9%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 86.1%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 86.5%<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 91.5%<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Contractual rent collected(1)<\/sup> from top 20 tenants(2)<\/sup><\/span><\/p>\n<\/td>\n| \n 83.0%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 82.1%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 82.5%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 82.5%<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 90.7%<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n Contractual rent collected(1)<\/sup> <\/sup>from investment <\/span>grade tenants(3)<\/sup><\/span><\/p>\n<\/td>\n| \n 100.0%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 98.4%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 98.9%<\/span><\/p>\n<\/td>\n | <\/td>\n | \n 99.1%<\/strong><\/span><\/p>\n<\/td>\n| <\/td>\n | \n 100.0%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n\n \n \n \n\n\n| <\/td>\n | <\/td>\n<\/tr>\n | \n| \n (1)<\/sup><\/span><\/p>\n<\/td>\n| \n Contractual rent is the aggregate cash amount charged to tenants inclusive of monthly base rent receivables. U.K. rent (which is payable in pounds Sterling) was converted at the exchange rate in effect on May 1, 2020 for rents collected for the month of April 2020, on June 1, 2020 for rents collected for the month of May 2020, on July 1, 2020 for rents collected for the month of June 2020, and on July 31, 2020 for rents collected for the month of July 2020.<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (2)<\/sup><\/span><\/p>\n<\/td>\n| \n We define top 20 tenants as our 20 largest tenants based on percentage of total portfolio annualized contractual rental revenue as of the last day of such period.<\/span><\/p>\n<\/td>\n<\/tr>\n\n| \n (3)<\/sup><\/span><\/p>\n<\/td>\n| \n We define investment grade tenants as tenants with a credit rating, and tenants that are subsidiaries or affiliates of companies with a credit rating, of Baa3\/BBB- or higher from one of the three major rating agencies (Moody’s\/S&P\/Fitch).<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\nWe have executed deferral agreements or maintain ongoing deferral discussions with tenants that account for a majority of the unpaid contractual rent for the months of April, May, June, and July 2020<\/span>. Additional detail on rent collections can be found in our supplemental materials available on our corporate website at www.realtyincome.com\/investors\/financial-information\/quarterly-results.<\/p>\nDividend Increases<\/strong> <\/em><\/strong><\/p>\nIn June 2020<\/span>, we announced the 91st<\/sup> consecutive quarterly dividend increase, which is the 107th<\/sup> increase in the amount of the dividend since the company’s listing on the New York Stock Exchange (NYSE) in 1994. The annualized dividend amount as of June 30, 2020<\/span> was $2.802<\/span> per share. The amount of monthly dividends paid per share increased 3.1% to $0.699<\/span> in the second quarter of 2020, as compared to $0.678<\/span> in the second quarter of 2019. During the second quarter of 2020, the company distributed $240.5 million<\/span> in common dividends to shareholders, representing 81.5% of its AFFO of $295.2 million<\/span>.<\/p>\nReal Estate Portfolio Update<\/strong><\/p>\nAs of June 30, 2020<\/span>, our portfolio consisted of 6,541 properties located in 49 U.S. states, Puerto Rico<\/span> and the U.K., and leased to approximately 600 different tenants doing business in 50 industries. The properties are primarily freestanding and leased under long-term, net lease agreements with a weighted average remaining lease term of 9.0 years. The company’s portfolio of commercial real estate has historically provided dependable rental revenue supporting the payment of monthly dividends. As of June 30, 2020<\/span>, portfolio occupancy was 98.5% with 101 properties available for lease or sale out of the 6,541, as compared to 98.5% as of | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |