Realty Income(US:O)2025-05-06 20:10Financial 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]