Realty Income(US:O)2025-11-03 22:46Financial Performance - Total revenue for Q3 2025 reached $1,470,552, an increase of 10.5% from $1,330,915 in Q3 2024[11] - Net income attributable to the Company for Q3 2025 was $315,771, up 17% from $269,485 in Q3 2024[11] - Rental revenue, including reimbursements, was $1,386,502 for Q3 2025, a rise of 9.1% from $1,271,153 in Q3 2024[11] - Net income for the nine months ended September 30, 2025, was $768,147, compared to $665,991 for the same period in 2024, representing an increase of approximately 15.4%[16] - Total cash provided by operating activities for the nine months ended September 30, 2025, was $2,791,320, up from $2,601,313 in 2024, indicating a growth of about 7.3%[16] - Cash distributions to common stockholders for the nine months ended September 30, 2025, amounted to $2,177,133, compared to $1,999,858 in 2024, reflecting an increase of approximately 8.9%[16] Assets and Liabilities - Total assets increased to $71,278,982 as of September 30, 2025, compared to $68,835,039 at the end of 2024, reflecting a growth of 3.9%[9] - Total liabilities increased to $32,018,761 as of September 30, 2025, compared to $29,783,353 at the end of 2024, marking an increase of 7.4%[9] - The company reported a total stockholders' equity of $39,050,597 as of September 30, 2025, compared to $38,840,738 at the end of 2024, indicating a growth of 0.5%[9] - Total assets as of September 30, 2025, were $3,595,766, up from $3,461,843 as of December 31, 2024, representing an increase of approximately 3.9%[28] - As of September 30, 2025, total liabilities were $132,815, slightly up from $131,096 as of December 31, 2024, showing a marginal increase[28] Investment Activities - Investment in real estate for the nine months ended September 30, 2025, was $3,086,544, significantly higher than $1,611,794 in 2024, indicating a year-over-year increase of about 91.5%[16] - The company reported a net cash used in investing activities of $3,549,551 for the nine months ended September 30, 2025, compared to $1,571,224 in 2024, showing a substantial increase in investment activity[16] - Total real estate acquisitions for the nine months ended September 30, 2025, amounted to $2,727.3 million, with an initial weighted average cash yield of 7.1%[52] - The properties acquired during the same period generated total revenue of $78.6 million and net income of $21.1 million[54] - The company sold 268 properties in the nine months ended September 30, 2025, generating net sales proceeds of $424.2 million and a gain on sales of $110.2 million[60] Debt and Financing - The company entered into new $4.0 billion unsecured multicurrency revolving credit facilities in April 2025, replacing a previous $4.25 billion facility, enhancing liquidity options[65] - As of September 30, 2025, the company had a borrowing capacity of $2.7 billion available on its RI Credit Facilities, with an outstanding balance of $1.3 billion[68] - The weighted average interest rate on outstanding borrowings under the RI Credit Facilities was 4.6% as of September 30, 2025, down from 5.4% under the previous facility[69] - The company has a USD-denominated unsecured commercial paper program with a maximum aggregate amount of $1.5 billion, and as of September 30, 2025, the outstanding balance was $469.4 million[76][78] - The total principal amount of notes and bonds payable was $25,087.2 million, an increase from $22,938.7 million as of December 31, 2024, reflecting a growth of approximately 9.4%[88] Shareholder Information - Monthly distributions to common stockholders totaled $2.4085 per share for the nine months ended September 30, 2025, compared to $2.3350 in 2024[117] - The company issued 5.6 million shares under the ATM program during the three months ended September 30, 2025, generating net proceeds of $314.8 million[119] - The gross proceeds from the ATM program for the nine months ended September 30, 2025, were $1.5804 billion, compared to $815.3 million in 2024[119] - The company granted 324,459 shares of restricted stock and restricted stock units during the nine months ended September 30, 2025[124] - As of September 30, 2025, the company had 10.6 million shares remaining for future issuance under the Dividend Reinvestment and Stock Purchase Plan (DRSPP)[120] Merger and Acquisition Activities - The merger with Spirit Realty Capital, Inc. was completed on January 23, 2024, with the acquisition accounted for using the acquisition method of accounting[45] - The company incurred merger-related transaction costs of $13.3 million and $14.0 million for the three and nine months ended September 30, 2025, respectively, compared to $8.6 million and $105.5 million for the same periods in 2024[41] - The company recognized a general allowance of $4.8 million for operating lease receivables as of September 30, 2025, compared to no general allowance as of December 31, 2024[37] Tax and Regulatory Compliance - The company has made provisions for taxes in applicable international territories, with no federal income taxes recorded for U.S. income, except for taxable REIT subsidiaries[30] - Deferred income tax liabilities were reported at $8.3 million as of September 30, 2025, up from $3.5 million as of December 31, 2024[31] - The company is currently evaluating the impact of new accounting standards, including ASU 2023-09 on income taxes, which will enhance disclosures but is not expected to materially affect financial results[44] Derivatives and Risk Management - The company recorded total provisions for impairment of real estate investments of $315.1 million for the nine months ended September 30, 2025[104] - The total notional amount of derivatives not designated as hedging instruments was $3,384.5 million, with a fair value asset of $25.2 million[110] - The company has entered into foreign currency forward contracts to hedge foreign currency risk associated with interest payments on intercompany loans denominated in GBP and EUR[106]