Realty Income(US:O)2025-08-06 21:40Financial Performance - Total revenue for the three months ended June 30, 2025, was $1,410,378,000, an increase of 5.3% compared to $1,339,443,000 for the same period in 2024[11] - Net income attributable to the Company for the six months ended June 30, 2025, was $446,734,000, representing a 14.5% increase from $391,675,000 in the same period of 2024[11] - The Company reported a basic earnings per share of $0.22 for the three months ended June 30, 2025, down from $0.30 in the same period of 2024[11] - The Company’s total expenses for the six months ended June 30, 2025, were $2,377,020,000, an increase of 6.5% from $2,232,108,000 in the same period of 2024[11] - Net income for the six months ended June 30, 2025, was $450,473,000, an increase from $394,867,000 in the same period of 2024, representing a growth of approximately 14.1%[17] - Total revenues for the six months ended June 30, 2024, were $2,646.8 million, with a net income of $490.8 million[49] Assets and Liabilities - Total assets increased to $71,424,073,000 as of June 30, 2025, up from $68,835,039,000 at the end of 2024, reflecting a growth of 2.3%[9] - Total liabilities increased to $32,060,738,000 as of June 30, 2025, compared to $29,783,353,000 at the end of 2024, marking an increase of 7.7%[9] - The Company’s total stockholders' equity increased to $39,153,106,000 as of June 30, 2025, from $38,840,738,000 at the end of 2024, reflecting a growth of 0.8%[9] - The company had $962.1 million in accounts receivable, net, as of June 30, 2025, compared to $877.7 million as of December 31, 2024[50] - The company’s total liabilities as of June 30, 2025, were $133,865,000, slightly up from $131,096,000 at the end of 2024[29] Cash Flow and Investments - Total cash provided by operating activities for the first half of 2025 was $1,848,185,000, compared to $1,759,845,000 in 2024, indicating an increase of about 5.0%[17] - Cash and cash equivalents rose to $800,447,000, a significant increase of 79.9% from $444,962,000 at the end of 2024[9] - Investment in real estate for the first half of 2025 was $2,214,524,000, significantly higher than $892,956,000 in the same period of 2024[17] - Cash distributions to common stockholders for the six months ended June 30, 2025, totaled $1,439,274,000, compared to $1,312,714,000 in 2024, reflecting an increase of approximately 9.6%[17] - The company reported a net cash increase of $346,230,000 for the first half of 2025, compared to $180,936,000 in 2024[17] Real Estate and Property Management - The company owned or held interests in 15,606 properties across the U.S., U.K., and seven other European countries, with approximately 346.3 million square feet of leasable space as of June 30, 2025[21] - The company acquired 89 properties totaling 9,030 thousand square feet during the first half of 2025[52] - The properties acquired during the six months ended June 30, 2025, generated total revenue of $33.6 million and net income of $8.6 million[54] - Total real estate acquisitions for the six months ended June 30, 2025, amounted to $1,897.0 million, with a weighted average cash yield of 7.0%[52] - The company recorded provisions for impairment of real estate investments totaling $239.7 million for the six months ended June 30, 2025, compared to $175.4 million for the same period in 2024[103] Debt and Financing - The total principal amount of notes and bonds payable was $25.2 billion as of June 30, 2025[85] - The company entered into new $4.0 billion unsecured multicurrency revolving credit facilities in April 2025, amending a previous $4.25 billion facility[65] - The weighted average interest rate on outstanding borrowings under the RI Credit Facilities was 4.9% as of June 30, 2025, compared to 5.7% under the previous facility[69] - The company was in compliance with all covenants related to its debt obligations as of June 30, 2025, including maintaining total unencumbered assets not less than 150% of outstanding unsecured debt[87] - The company entered into interest rate swaps in January 2024, fixing its per annum interest rate at 4.9% until maturity in January 2026[80] Shareholder Distributions and Equity - The Company declared distributions payable of $248,345,000 as of June 30, 2025, compared to $238,045,000 at the end of 2024, an increase of 5.4%[9] - The company paid total distributions of $1.6015 per common share for the six months ended June 30, 2025, compared to $1.5460 in 2024[117] - The company has made provisions for taxes in applicable international territories, with no provisions for uncertain tax positions recorded in the financial statements[34] - The company has eight variable-to-fixed interest rate swaps on term loans designated as cash flow hedges, with a weighted average strike rate of 3.32%[109] - The company expects to fully settle forward sale agreements outstanding by September 30, 2025, representing $422.8 million in net proceeds at a weighted average forward price of $55.92 per share[119] Miscellaneous - The company incurred $2.8 million and $96.9 million in merger-related transaction costs during the three and six months ended June 30, 2024, respectively[47] - The company completed a merger with Spirit Realty Capital, Inc. on January 23, 2024, with Realty Income as the accounting acquirer[45] - The company recognized a general allowance of $4.5 million for operating lease receivables as of June 30, 2025, compared to no allowance as of December 31, 2024[38] - The company is evaluating the impact of new accounting standards on its financial statement disclosures, effective for fiscal years beginning after December 15, 2024[44] - The company granted 285,242 performance shares during the six months ended June 30, 2025, with a remaining share-based compensation expense of $30.1 million[128]