Realty Income Corporation O shares dipped on Tuesday. On Monday, the company reported fourth-quarter adjusted funds from operations (AFFO) per share increase of 4.0% year over year to $1.05, missing the consensus of $1.07.
In the quarter, the new annualized contractual rent on re-leases totaled $52.5 million, compared to the previous annual rent of $48.9 million on the same units, reflecting a rent recapture rate of 107.4% on the re-leased units.
As of December 31, 2024, the company owned or held interests in 15,621 properties leased to 1,565 clients across 89 industries. The portfolio had an occupancy rate of 98.7%, with 205 properties available for lease or sale, consistent with the occupancy rates of 98.7% as of September 30, 2024, and 98.6% as of December 31, 2023.
Dividend: In February 2025, the company’s Board of Directors authorized a share repurchase program for up to $2.0 billion.
Also, Realty Income declared a 1.5% month-on-month increase in the monthly dividend to $0.268, payable on March 14, 2025, to stockholders of record as of March 3, 2025.
The company raised $947.8 million from the sale of common stock, mainly through the At-The-Market (ATM) program, at a weighted average price of $58.12.
As of December 31, 2024, the company had $3.7 billion in liquidity, including $445.0 million in cash and cash equivalents, $91.8 million in unsettled ATM forward equity and, $67.3 million in borrowings under the commercial paper programs.
Sumit Roy, Realty Income’s President and Chief Executive Officer, said, “Throughout the year, we remained disciplined in our capital deployment strategy, culminating in a successful fourth quarter of high-quality investment activity that was prefunded at attractive investment spreads.”
”Our deep access to capital, global reach for proprietary acquisition opportunities, and track record utilizing predictive analytics tools to enhance portfolio management capabilities represent inherent advantages of our unique business model.”
Outlook: For FY25, Realty Income projects net income per share of $1.52-$1.58 and expects approximately 1% same-store rent growth. For FY25, the company expects adjusted FFO per share of $4.22-$4.28, compared to the consensus of $4.38.
Investors can gain exposure to the stock via Janus Henderson U.S. Real Estate ETF JRE and Columbia ETF Trust I Columbia Research Enhanced Real Estate ETF CRED.
Price Action: O shares are down 3.25% at $55.45 at the last check on Tuesday.
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