Financial Data and Key Metrics Changes - Realty Income achieved an AFFO per share growth of 4.8% in 2024, marking the fourteenth consecutive year of growth [21] - The company reported a total operational return of 10.2% for investors who held its stock in 2024, supported by a 5.4% dividend yield [21] - The net debt to annualized pro forma adjusted EBITDAR was 5.4 times at the end of Q1 2025 [26] Business Line Data and Key Metrics Changes - Realty Income's portfolio includes over 15,600 properties across 91 industries, with a high occupancy rate of 98.5% at the end of Q1 2025 [18][23] - The company invested $2 billion in the US at a 6.9% weighted average initial cash yield and $1.9 billion in Europe at an 8% weighted average initial cash yield in 2024 [21] - The company completed 15 transactions in 2024 with total consideration exceeding $50 million, including a $770 million sale-leaseback transaction with 7-Eleven [22] Market Data and Key Metrics Changes - In 2025, 60% of total investment volume came from Europe, highlighting the company's global reach [22] - Realty Income has expanded into new verticals, including industrial, gaming, and data centers, increasing its total addressable market [24] Company Strategy and Development Direction - The company aims to maintain a conservative capital structure while expanding into new verticals to bolster growth [25] - Realty Income's strategy focuses on acquiring high-quality real estate leased to leading operators in economically resilient industries [18] - The company anticipates approximately $4 billion in investment volume for 2025, supported by a strong balance sheet and liquidity [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive results despite external volatility, emphasizing the stability of its business model [27] - The company remains focused on creating durable long-term value and consistently returning capital to shareholders through monthly dividends [27] Other Important Information - Realty Income celebrated 30 years of being listed on the New York Stock Exchange in 2024, achieving a 13.6% compound annual total shareholder return since listing [19] - The company is one of only 69 companies in the S&P 500 Dividend Aristocrat Index, having increased its dividend for over 30 consecutive years [20] Q&A Session Summary Question: How can there be more access to information for retail shareholders? - The company posts its 10-Q and 10-K reports quarterly and annually, along with an annual shareholder proxy statement and investor presentations available on its website [28][29] Question: What are the company's values? - Management reassured that Realty Income is a value-driven organization with a clear purpose, mission, and values, supported by engagement surveys conducted every eighteen months [30]

Company Overview - Realty Income Corporation, known as "The Monthly Dividend Company®," has declared its 659th consecutive common stock monthly dividend of $0.2685 per share, which annualizes to $3.222 per share, payable on June 13, 2025 [1] - As of March 31, 2025, Realty Income has a diversified portfolio of over 15,600 properties across all 50 U.S. states, the U.K., and six other European countries [2] - The company has been recognized as a member of the S&P 500 Dividend Aristocrats® index for increasing its dividend for over 30 consecutive years [2] Dividend Information - The declared monthly dividend of $0.2685 per share reflects the company's commitment to delivering dependable monthly dividends that increase over time [1][2] - The dividend is payable to stockholders of record as of June 2, 2025, demonstrating the company's ongoing financial stability and commitment to its shareholders [1]

Group 1 - The iREIT® service, led by Brad and HOYA Capital, focuses on various income-oriented investment vehicles including REITs, BDCs, MLPs, and Preferreds, providing extensive research and data on over 250 tickers [1] - The team behind iREIT® has over 100 years of combined experience, including professionals from diverse backgrounds such as hedge fund management and military service [1] - Brad Thomas, a key figure in real estate investing, has over 30 years of experience and has been involved in transactions exceeding $1 billion in commercial real estate [2] Group 2 - Brad Thomas is also an author of four books, including "REITs For Dummies," indicating his expertise and contribution to the field of real estate investment [2]

Core Viewpoint - Realty Income is a prominent real estate investment trust (REIT) that combines stock and real estate investment, offering a high forward dividend yield of 5.67% and a strong potential for long-term returns [1][12]. Group 1: Investment Appeal - Realty Income's dividend yield is a significant attraction, with a history of increasing dividends for 30 consecutive years and a compound annual growth rate of 4.3% [3]. - The REIT has delivered a compounded annual return of 13.6% since its listing in 1994, with an initial investment of $10,000 growing to approximately $865,000 if dividends were reinvested [4]. - The company has maintained positive operational returns for 29 years, supported by a solid balance sheet and a low beta value of 0.5, indicating low volatility compared to the S&P 500 [5]. Group 2: Portfolio and Market Position - Realty Income's stability is attributed to its diversified property portfolio, owning 15,627 properties leased to 1,598 clients across 91 industries, with no single client contributing more than 3.4% of total annualized base rent [6]. - The REIT has a substantial global net lease addressable market of approximately $14 trillion, with promising growth opportunities in Europe due to limited competition [8]. Group 3: Resilience and Future Outlook - The company estimates that around 91% of its total rent is resilient during economic downturns, with 73% of clients operating in non-discretionary, low-price-point, or service-oriented sectors [9]. - Realty Income has demonstrated consistent financial performance through various economic challenges, including the dot-com bubble, the Great Recession, the COVID-19 pandemic, and the regional banking crisis of 2023 [10]. - The company is expected to deliver double-digit percentage total returns over the next decade, supported by its attractive dividend and solid growth prospects, making it a strong long-term investment choice [12].

Company Overview - Realty Income is a real estate investment trust (REIT) focused on the retail industry, owning approximately 15,600 properties globally and maintaining significant cash and credit for acquisitions [5] - The company has expanded its focus beyond the U.S. and essentials retailers, with over 14% of its properties now in industrials and more than 11% located in the U.K. [6] Business Model and Resilience - Realty Income's model is tariff-resistant, primarily leasing to large, established retail chains that are likely to continue paying rent even during economic downturns [9] - The company benefits from a diverse tenant base, with grocery and convenience stores making up over 20% of its properties, and top clients including 7-Eleven, Dollar General, and Walgreens [7] Growth Opportunities - Realty Income has identified a global addressable market of $14 trillion and sourced $43 billion in opportunities for 2024, indicating strong growth potential [10] - The company plans to grow through property acquisitions and by acquiring smaller REITs, with decreasing interest rates facilitating easier capital access for these activities [10] Dividend Performance - Realty Income has a long-standing history of paying monthly dividends for over 54 years, with a track record of 658 consecutive months [12] - The current dividend yield is approximately 5.6%, which is more than three times the average S&P 500 dividend yield, providing a secure passive income stream [13][14]

Core Viewpoint - Realty Income is positioned as a reliable investment option for dividend-seeking investors, especially during periods of economic uncertainty and market volatility [1][2]. Company Overview - Realty Income operates as a retail real estate investment trust (REIT), with approximately 20% of its portfolio in convenience and grocery stores, and another 15% in drug stores, auto services, and dollar stores [3]. - Major tenants include Dollar General, Walgreens, Dollar Tree, FedEx, CVS, Home Depot, and Walmart, contributing to a median occupancy rate of 98.2% from 2000 to 2024, significantly higher than the S&P 500 REITs median of 94.2% [4]. Economic Resilience - The company has maintained high occupancy rates due to its focus on thrift and middle-market retailers, which are considered recession-proof. During the Great Recession (2007-2009) and the COVID-19 recession (2020), occupancy rates remained between 97% and 98% [5]. - Realty Income's business model is relatively insulated from economic turbulence, supported by its long-term commitment to rewarding shareholders through consistent dividend payments [11]. Dividend Safety and Growth - Realty Income pays dividends monthly, which is appealing for passive income investors. The company has a strong track record of increasing dividends, with 110 consecutive quarters of dividend raises [10]. - The company's ability to generate consistent funds from operations (FFO) has been bolstered by strategic acquisitions, including expansions into gaming and data centers, which are expected to thrive amid the AI revolution [10][15]. Valuation and Investment Potential - Realty Income's current price-to-FFO ratio stands at 14.3, near its lowest levels in nearly a decade, suggesting an attractive valuation for potential investors [12]. - Concerns regarding the impact of tariffs on inflation and economic growth, as well as doubts about the company's growth strategy in non-core markets, are viewed as short-sighted given Realty Income's historical resilience [14][15]. - The company is considered a bargain at present, with potential for long-term investment while providing reliable dividend income [16].

Core Viewpoint - Realty Income is positioned to deliver stable earnings and dividend growth despite market turbulence and economic uncertainties [2][9]. Financial Performance - Realty Income reported adjusted funds from operations (FFO) of $1.06 per share, a 2.9% increase year-over-year [4]. - The company announced its 110th consecutive quarterly dividend increase, raising its monthly dividend by 3.4% over the past year, resulting in a yield of over 5.5% [4]. - The dividend payout ratio was maintained at a conservative 75.1% of adjusted FFO in the first quarter [4]. Investment Strategy - Realty Income invested nearly $1.4 billion in the first quarter, with $825 million allocated to acquisitions and nearly $70 million to development projects in Europe, which offers a higher initial cash yield of 7% compared to 6.9% in the U.S. [5]. - The REIT's existing portfolio saw a 1.3% increase in same-store rental revenue, driven by contractual rent increases and new leases at higher rates [6]. Portfolio and Risk Management - The company has a diversified portfolio secured by long-term net leases with leading global companies, ensuring stable cash flow as tenants cover all operating costs [7]. - Realty Income's strong financial profile, characterized by a conservative dividend payout ratio and a robust balance sheet, allows for significant excess free cash flow to fund new investments [8]. Future Outlook - Realty Income anticipates investing about $4 billion into new properties this year, projecting adjusted FFO growth to a range of $4.22 to $4.28 per share, representing a 2% increase from the previous year [9]. - The company is confident in achieving its 2025 guidance despite uncertainties from tariffs, with potential for faster growth if interest rates decline [9][10].

Financial Performance - Total revenue for Q1 2025 was $1,380,505, an increase of 9.5% compared to $1,260,485 in Q1 2024[13] - Net income attributable to common stockholders for Q1 2025 was $249,815, representing a 93.1% increase from $129,696 in Q1 2024[13] - The company reported a basic and diluted net income per share of $0.28 for Q1 2025, up from $0.16 in Q1 2024[13] - Net income for the three months ended March 31, 2025, was $251,462, compared to $133,899 for the same period in 2024, representing an increase of 88%[18] - The company reported a comprehensive income available to common stockholders of $284.4 million for Q1 2025, compared to $120.6 million in Q1 2024[13] Assets and Liabilities - Total assets increased to $69,757,696 as of March 31, 2025, compared to $68,835,039 at the end of 2024, reflecting a growth of 1.3%[10] - Total liabilities rose to $30,515,509 as of March 31, 2025, up from $29,783,353 at the end of 2024, indicating an increase of 2.5%[10] - Stockholders' equity increased to $39,031,261 as of March 31, 2025, compared to $38,840,738 at the end of 2024, a growth of 0.5%[10] - The total liabilities as of March 31, 2025, amounted to $23,301.2 million, compared to $23,101.5 million as of December 31, 2024, reflecting an increase of approximately 0.87%[85] Cash Flow and Investments - Net cash provided by operating activities was $787,516 for Q1 2025, slightly up from $778,673 in Q1 2024[18] - Cash distributions to common stockholders increased to $711,824 in Q1 2025 from $636,499 in Q1 2024, reflecting a rise of 11.6%[18] - Investment in real estate for Q1 2025 was $1,184,086, significantly higher than $535,903 in Q1 2024[18] - The net cash used in investing activities was $1,313,631 for Q1 2025, compared to $388,810 in Q1 2024, indicating a substantial increase in investment outflows[18] Mergers and Acquisitions - The merger with Spirit Realty Capital, Inc. was completed on January 23, 2024, with a total consideration transferred valued at $6,186.3 million[45][46] - For the three months ended March 31, 2024, total revenues reached $1,307.7 million, with a net income of $234.4 million, including $155.0 million in revenues and $6.9 million in net income from Spirit's operations post-merger[49] - The company acquired 50 properties totaling 3,727,000 square feet for $1,026.3 million during the three months ended March 31, 2025, with an average cash yield of 7.0%[52] Debt and Financing - As of March 31, 2025, the company had a borrowing capacity of $2.96 billion available on its revolving credit facility, with an outstanding balance of $1.3 billion[66] - The company entered into an amended and restated term loan agreement in January 2024, borrowing a total of $800 million, with $300 million maturing in August 2025 and $500 million maturing in August 2027[73] - The weighted average interest rate on outstanding borrowings under the revolving credit facility was 4.5% for the three months ended March 31, 2025, down from 6.2% in the same period of 2024[67] - The company made principal payments of $39.5 million on mortgages during the three months ended March 31, 2025, including the full repayment of one mortgage for $39 million[76] Real Estate and Property Management - The company owned or held interests in 15,627 properties across the U.S., U.K., and six other European countries, totaling approximately 341.8 million square feet of leasable space[22] - The properties acquired during the three months ended March 31, 2025 generated total revenue of $6.6 million and net income of $2.3 million[54] - The company capitalized costs of $30.7 million on existing properties during the three months ended March 31, 2025, compared to $7.4 million in the same period of 2024, representing a 314% increase[55] Accounting and Compliance - The company is evaluating the impact of new accounting standards on financial statement disclosures, including ASU 2024-03 and ASU 2023-09, effective for fiscal years beginning after December 15, 2026, and December 15, 2024, respectively[43][44] - The company is in compliance with all covenants under its revolving credit facility and term loans as of March 31, 2025[75] - The company regularly reviews its revolving credit facility and commercial paper programs for potential extensions or replacements[72] Derivatives and Foreign Currency - The total notional amount of derivatives designated as hedging instruments was $3,466.8 million as of March 31, 2025, with a fair value loss of $78.3 million[99] - The total unrealized loss on derivatives for Q1 2025 was $10.625 million, compared to an unrealized gain of $8.922 million in Q1 2024[102] - The company entered into foreign currency forward contracts with a notional amount of $436.8 million, resulting in a fair value loss of $3.9 million[99]

Core Viewpoint - Realty Income Corporation reported strong first-quarter 2025 results, with adjusted funds from operations (AFFO) per share of $1.06, matching expectations and showing year-over-year growth from $1.03 per share [1][2]. Financial Performance - Total revenues reached $1.38 billion, exceeding the Zacks Consensus Estimate by 0.53% and reflecting a 9.5% increase year over year [2]. - Same-store rental revenues amounted to $1.15 billion from 14,702 properties, marking a 1.3% rise compared to the prior-year period [3]. - Interest expenses increased by 11.5% year over year to $268.4 million [3]. Investment Activity - The company invested $1.37 billion in 121 properties and properties under development or expansion during the quarter [4]. - Realty Income sold 55 properties, generating net sales proceeds of $92.6 million and a gain of $22.6 million on the sale of real estate [4]. Balance Sheet Strength - As of the end of the first quarter, Realty Income had $2.9 billion in liquidity, including $319 million in cash and cash equivalents, $69.1 million in unsettled At-The-Market forward equity, and $2.5 billion available under its unsecured revolving credit facility [5]. - The net debt to annualized pro-forma adjusted EBITDAre ratio stood at 5.4X [5]. Guidance for 2025 - Management maintained its AFFO per share guidance for 2025 in the range of $4.22-$4.28, aligning with the Zacks Consensus Estimate of $4.28 [6]. - Full-year projections include an expected same-store rent growth of approximately 1% and occupancy rates exceeding 98% [6]. - The company reaffirmed its full-year investment volume target of around $4 billion [6].

Core Viewpoint - Realty Income remains a reliable investment in a volatile market, offering stability and growth potential despite broader economic uncertainties [1][2]. Group 1: Company Overview - Realty Income is a retail REIT that acquires and leases properties, distributing rental income to investors while adhering to a requirement to pay out at least 90% of taxable income as dividends [4]. - The company has a diversified portfolio, leasing 15,621 properties to 1,565 clients across over 89 industries, which mitigates risks associated with economic downturns [5]. Group 2: Tenant Quality and Occupancy - Realty Income focuses on recession-resistant retailers, with top tenants including Walgreens, 7-Eleven, Dollar General, and Dollar Tree, ensuring no single tenant exceeds 3.5% of annualized rent [7]. - The occupancy rate has consistently remained above 96%, increasing from 98.6% in 2023 to 98.7% in 2024, indicating strong demand for its properties [8]. Group 3: Financial Performance - The company has a history of increasing monthly dividends, having raised its payout 130 times since its IPO, with a forward yield of 5.6% compared to the 10-year Treasury's 4.3% [9]. - Adjusted funds from operations (AFFO) rose 4.8% to $4.19 per share in 2024, with expectations for further growth to $4.22-$4.28 per share in 2025, comfortably covering the annual dividend rate of $3.22 per share [9]. Group 4: Valuation and Market Position - Realty Income trades at $57 per share, which is 13 times the midpoint of its AFFO estimate for 2025, positioning it as a cheaper option compared to peers like Vici Properties and Agree Realty [10]. Group 5: Interest Rate Impact - The company is expected to benefit from declining interest rates, which could attract more income-seeking investors and facilitate expansion, as the Federal Reserve has cut benchmark rates three times in 2024 [11][12].