Realty Income Announces Operating Results for the Three Months and Year Ended December 31, 2024

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]