Financial Data and Key Metrics Changes - Realty Income achieved AFFO per share growth of 4.8% in 2024, marking the fourteenth consecutive year of growth, with a total operational return of 10.2% for the year [5][6][30] - The fourth quarter AFFO per share was $1.05, representing a growth of 4% [10] - The company ended the year with a net debt to annualized pro forma adjusted EBITDA of 5.4 times and a fixed charge coverage ratio of 4.7 times [24][25] Business Line Data and Key Metrics Changes - In 2024, Realty Income invested $3.9 billion at a 7.4% weighted average initial cash yield, with 73 discrete transactions completed [8][10] - The company invested $1.1 billion in the US at a 6.4% weighted average initial cash yield and $650 million in Europe at an 8.2% yield [11] - The company sold 80 properties in the fourth quarter for total net proceeds of $138 million, contributing to $589 million from the sale of 294 properties for the full year [15] Market Data and Key Metrics Changes - The company maintained a portfolio occupancy rate of 98.7% [13] - The entry capture rate on lease renewals was 107.4%, generating approximately $52 million in new annualized cash rent [13] - The company expects approximately $4 billion in investment volume for 2025, with a focus on various property types and industries [16] Company Strategy and Development Direction - Realty Income aims to continue driving growth in its core business while exploring new avenues for value generation [6][16] - The company is expanding its private capital initiative to leverage its platform for further investment opportunities [22] - The company remains committed to maintaining a disciplined capital allocation strategy and enhancing its portfolio quality through strategic dispositions [15][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate macroeconomic challenges and highlighted a robust pipeline of investment opportunities [16][30] - The company anticipates strong releasing outcomes in retail and industrial real estate, expecting to recapture rent at levels consistent with historical performance [19] - Management acknowledged potential risks from tenant credit issues and macroeconomic uncertainties, leading to a conservative approach in guidance [46][121] Other Important Information - Realty Income remains one of the 66 companies in the S&P 500 Dividend Aristocrats Index, having increased its dividend for thirty consecutive years [26] - The board authorized a common stock repurchase program for $2 billion, intended to be leverage neutral [28] Q&A Session Summary Question: Cap rates and expectations going forward - Management expects cap rates to trend around the average seen in 2024 based on the current pipeline [35] Question: Capital recycling and funding acquisitions - Management indicated it is early to provide complete guidance on capital recycling but suggested it would be a significant source for future acquisitions [36] Question: Share repurchase program thresholds - Management clarified that share repurchases will only be conducted on a leverage-neutral basis using free cash flow and proceeds from asset dispositions [42][44] Question: Health of the overall portfolio and bad debt provisions - Management noted an increase in non-reimbursable expenses and a conservative approach to bad debt provisions, primarily due to a few tenants [45][48] Question: Transaction market split between US and Europe - Management indicated a balanced split between US and European transactions, with a focus on maintaining a robust pipeline [54] Question: Competition in the private fund space - Management views the entry of other REITs into the private fund space as a reaffirmation of their strategy and believes they can capture their share of capital [66][69] Question: Pipeline and asset types - Management reported a robust pipeline with no large transactions currently but expressed interest in gaming and data center sectors [74][76] Question: Tenant credit and watch list - Management reported a credit watch list at 4.8%, slightly higher than the previous quarter, reflecting macroeconomic uncertainties [137]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2024, or ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number 1-13374 REALTY INCOME CORPORATION (Exact name of registrant as specified in its charter) Maryland 33-0580106 (State or Other Jurisdiction of Incorporation or Organiz ...

Core Insights - Realty Income Corporation's fourth-quarter 2024 adjusted funds from operations (AFFO) per share was $1.05, slightly missing the Zacks Consensus Estimate of $1.06, but showing an increase from $1.01 in the prior-year quarter [1][2] - Total revenues for the quarter were $1.34 billion, falling short of the Zacks Consensus Estimate of $1.35 billion, yet reflecting a year-over-year growth of 24.5% [2] - The company reported a same-store rental revenue of $992.8 million, which increased by 0.8% year-over-year, with portfolio occupancy remaining stable at 98.7% [4] Financial Performance - In 2024, Realty Income achieved an AFFO per share of $4.19, meeting the Zacks Consensus Estimate and up from $4.00 the previous year [3] - Revenues for the year totaled $5.27 billion, a 29.2% increase year-over-year, although it was below the consensus mark of $5.29 billion [3] - The company invested $1.72 billion in 308 properties and developments during the fourth quarter [5] Balance Sheet and Liquidity - Realty Income ended the fourth quarter of 2024 with $3.7 billion in liquidity, which included $445 million in cash and cash equivalents, $91.8 million in unsettled At-The-Market forward equity, and $3.1 billion available under its unsecured revolving credit facility [6] - The net debt to annualized pro-forma adjusted EBITDAre ratio was reported at 5.4X [6] 2025 Guidance - Management anticipates 2025 AFFO per share to be in the range of $4.22 to $4.28, while the Zacks Consensus Estimate is higher at $4.32 [7] - Projections for the full year include an expected same-store rent growth of approximately 1% and occupancy levels exceeding 98% [7] - The company plans for a full-year investment volume of around $4 billion [7]

Core Viewpoint - Realty Income's fourth-quarter earnings report showed adjusted funds from operations (AFFO) in line with expectations, but the guidance for future AFFO fell short of analyst estimates, leading to a decline in share price [1][2][3]. Financial Performance - Realty Income reported adjusted funds from operations (AFFO) of $1.05, matching consensus estimates [2] - The company's revenue for the quarter was $1.34 billion, exceeding consensus estimates [2] - The guidance for AFFO in 2025 is projected to be between $4.22 and $4.28, below the $4.30 average estimate from Wall Street analysts [3] Dividend Information - Realty Income increased its quarterly dividend for the 109th consecutive time, with a 2.5% increase to $3.126 [3] - The current dividend yield stands at 5.78% [3] Investment Strategy - The company focuses on investing in real estate leased to clients in non-discretionary, low-price, service-oriented, and non-retail businesses [4] - Realty Income is exploring opportunities in the growing data center and gaming markets [4] - The company's strategy allows investors to benefit from a strong and growing dividend while management executes its plans [4]

Even though they might not be everybody's cup of tea, I really do appreciate REITs. Admittedly, there are all sorts of REITs and not all of them are attractive. But many of them are, and they have a history of generating consistentHe runs Crude Value Insights , a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a ...

Core Insights - Realty Income Corp. reported revenue of $1.34 billion for the quarter ended December 2024, reflecting a year-over-year increase of 24.5% [1] - The earnings per share (EPS) for the quarter was $1.05, significantly higher than the $0.30 reported in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $1.35 billion, resulting in a revenue surprise of -0.91% [1] - The EPS fell short of the consensus estimate of $1.06, leading to an EPS surprise of -0.94% [1] Revenue Breakdown - Rental revenue (including reimbursable) was reported at $1.28 billion, slightly below the average estimate of $1.29 billion, but still showing a year-over-year increase of 24.4% [4] - Other revenue amounted to $60.60 million, exceeding the average estimate of $56.19 million, with a year-over-year growth of 27.4% [4] Stock Performance - Realty Income Corp.'s shares have returned +5.1% over the past month, outperforming the Zacks S&P 500 composite, which saw a -0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Realty Income Corp. reported quarterly funds from operations (FFO) of $1.05 per share, slightly missing the Zacks Consensus Estimate of $1.06 per share, but showing an increase from $1.01 per share a year ago [1][2] Financial Performance - The company posted revenues of $1.34 billion for the quarter ended December 2024, which was below the Zacks Consensus Estimate by 0.91%, compared to $1.08 billion in the same quarter last year [2] - Over the last four quarters, Realty Income Corp. has surpassed consensus FFO estimates only once [2] Stock Performance - Realty Income Corp. shares have increased approximately 6.9% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] Future Outlook - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook for upcoming quarters [3][4] - The current consensus FFO estimate for the next quarter is $1.07 on revenues of $1.38 billion, and for the current fiscal year, it is $4.32 on revenues of $5.58 billion [7] Industry Context - The REIT and Equity Trust - Retail industry is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - For the three months ended December 31, 2024, net income available to common stockholders was $199.6 million, or $0.23 per share, compared to $218.4 million, or $0.30 per share for the same period in 2023[6]. - Total revenue for the year ended December 31, 2024, was $5,271.1 million, a 29.3% increase from $4,079.0 million in 2023[7]. - Net income attributable to the company for the year ended December 31, 2024, was $860.8 million, a decrease of 1.4% from $872.3 million in 2023[31]. - Total revenue for the three months ended December 31, 2024, was $1.34 billion, compared to $1.08 billion for the same period in 2023, reflecting a year-over-year increase of approximately 24.5%[31]. - For the three months ended December 31, 2024, net income available to common stockholders was $199,612,000, a decrease of 8.5% from $218,405,000 in the same period of 2023[34]. Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) - Adjusted Funds from Operations (AFFO) per share increased 4.0% to $1.05 for the three months ended December 31, 2024, compared to $1.01 for the same period in 2023[6]. - Funds from operations (FFO) available to common stockholders for the year ended December 31, 2024, was $3.47 billion, up from $2.82 billion in 2023, representing a 23% increase[31]. - FFO available to common stockholders for Q4 2024 was $897,917,000, up 25.8% from $713,716,000 in Q4 2023[38]. - Normalized FFO available to common stockholders for the year ended December 31, 2024, increased to $3,563,951,000, up 25.8% from $2,836,602,000 in 2023[36]. - AFFO available to common stockholders for the year ended December 31, 2024, was $3,621,437,000, a 30.5% increase from $2,774,870,000 in 2023[36]. Revenue and Rental Growth - The same store rental revenue for the year ended December 31, 2024, was $3,319.1 million, reflecting a 0.5% increase from $3,302.4 million in 2023[15]. - The company reported a same-store rent growth of approximately 1.0% and maintained an occupancy rate of over 98%[20]. - The rent recapture rate on properties re-leased for the year ended December 31, 2024, was 105.6%[12]. Investments and Acquisitions - The company invested $3.9 billion in 2024 at an initial weighted average cash yield of 7.4%[6]. - The company completed 233 real estate acquisitions in the fourth quarter of 2024, totaling $1,316.2 million[14]. Dividends and Shareholder Returns - The annualized dividend amount as of December 31, 2024, was $3.168 per share, with a 2.5% increase in monthly dividends compared to 2023[8]. - The company has declared 656 consecutive monthly dividends and is a member of the S&P 500 Dividend Aristocrats index[26]. - Distributions paid to common stockholders for the three months ended December 31, 2024, totaled $691,861,000, compared to $556,114,000 in the same period of 2023, reflecting a 24.4% increase[36]. Liquidity and Capital Structure - As of December 31, 2024, the company had $3.7 billion in liquidity, including $445.0 million in cash and cash equivalents and $3.1 billion available under its $4.25 billion unsecured revolving credit facility[18]. - The company raised $1.8 billion from the sale of common stock in 2024, primarily through its At-The-Market (ATM) program, at a weighted average price of $58.33[6]. - The company raised $947.8 million from the sale of common stock at a weighted average price of $58.12 per share during the three months ended December 31, 2024[17]. - The company authorized a share repurchase program for up to $2.0 billion, set to expire in January 2028[19]. Balance Sheet and Asset Growth - Total assets increased to $68.84 billion as of December 31, 2024, up from $57.78 billion in 2023, representing a growth of approximately 19.5%[46]. - Real estate held for investment, net, rose to $50.91 billion, compared to $43.51 billion in the previous year, marking an increase of about 16.9%[46]. - Total liabilities grew to $29.78 billion, up from $24.67 billion, indicating an increase of around 20.5%[46]. - Stockholders' equity increased to $39.05 billion from $33.11 billion, representing a growth of approximately 18%[46]. Impairments and Costs - The company experienced a significant increase in provisions for impairment of real estate, which rose to $319,032,000 for the year ended December 31, 2024, compared to $82,208,000 in 2023[34]. - The merger, transaction, and other costs for the year ended December 31, 2024, included $86.7 million related to the Spirit merger[34].

Core Insights - Realty Income Corporation reported a 4.8% increase in Adjusted Funds from Operations (AFFO) per share for 2024, marking the 14th consecutive year of growth in this metric [3][8] - The company achieved total revenue of $5.27 billion for the year ended December 31, 2024, up from $4.08 billion in 2023, reflecting a strong performance in its investment strategy [4][8] - A share repurchase program of up to $2.0 billion was authorized by the Board of Directors in February 2025, indicating confidence in the company's future growth [3][22] Financial Performance - For the three months ended December 31, 2024, total revenue was $1.34 billion, compared to $1.08 billion for the same period in 2023 [4] - Net income available to common stockholders for the year was $847.9 million, or $0.98 per share, down from $872.3 million, or $1.26 per share, in 2023 [4][8] - Funds from Operations (FFO) for the year increased to $3.47 billion, with FFO per share at $4.01, slightly down from $4.07 in 2023 [4][8] Investment Activity - The company invested $3.9 billion in real estate during 2024, achieving an initial weighted average cash yield of 7.4% [8][16] - Realty Income's portfolio consisted of 15,621 properties leased to 1,565 clients across 89 industries, with a portfolio occupancy rate of 98.7% as of December 31, 2024 [11][8] - The rent recapture rate on properties re-leased was 105.6% for the year, indicating effective management of lease renewals [15][8] Dividend Policy - Realty Income announced its 109th consecutive quarterly dividend increase in December 2024, with an annualized dividend amount of $3.168 per share [9] - The monthly dividend paid per share increased by 2.5% in 2024, reflecting a commitment to returning value to shareholders [9][10] Future Outlook - The company provided earnings guidance for 2025, projecting net income per share between $1.52 and $1.58 and AFFO per share between $4.22 and $4.28 [24] - Expected same-store rent growth is approximately 1.0%, with occupancy anticipated to remain over 98% [24][25]

Core Insights - Realty Income is expected to deliver predictable and solid returns, with potential for even higher performance in the future [1] Summary by Categories - **Company Performance** - Realty Income is positioned for market-beating returns moving forward [1] - **Market Outlook** - The company’s strategy suggests a pathway to enhanced returns, indicating a positive outlook for investors [1]