Maryland | 33-0580106 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered | ||||||
Common Stock, $0.01 Par Value | O | New York Stock Exchange | ||||||
1.125% Notes due 2027 | O27A | New York Stock Exchange | ||||||
1.875% Notes due 2027 | O27B | New York Stock Exchange | ||||||
1.625% Notes due 2030 | O30 | New York Stock Exchange | ||||||
4.875% Notes due 2030 | O30A | New York Stock Exchange | ||||||
1.750% Notes due 2033 | O33A | New York Stock Exchange | ||||||
5.125% Notes due 2034 | O34 | New York Stock Exchange | ||||||
2.500% Notes due 2042 | O42 | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Real estate held for investment, at cost: | |||||||||||
Land | $ | 14,011,325 | $ | 12,948,835 | |||||||
Buildings and improvements | 32,652,912 | 29,707,751 | |||||||||
Total real estate held for investment, at cost | 46,664,237 | 42,656,586 | |||||||||
Less accumulated depreciation and amortization | (5,485,766) | (4,904,165) | |||||||||
Real estate held for investment, net | 41,178,471 | 37,752,421 | |||||||||
Real estate and lease intangibles held for sale, net | 17,324 | 29,535 | |||||||||
Cash and cash equivalents | 253,693 | 171,102 | |||||||||
Accounts receivable, net | 620,599 | 543,237 | |||||||||
Lease intangible assets, net | 5,238,400 | 5,168,366 | |||||||||
Goodwill | 3,731,478 | 3,731,478 | |||||||||
Other assets, net | 2,940,701 | 2,276,953 | |||||||||
Total assets | $ | 53,980,666 | $ | 49,673,092 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Distributions payable | $ | 182,855 | $ | 165,710 | |||||||
Accounts payable and accrued expenses | 559,383 | 399,137 | |||||||||
Lease intangible liabilities, net | 1,439,968 | 1,379,436 | |||||||||
Other liabilities | 855,496 | 774,787 | |||||||||
Line of credit payable and commercial paper | 990,257 | 2,729,040 | |||||||||
Term loan, net | 1,324,285 | 249,755 | |||||||||
Mortgages payable, net | 841,690 | 853,925 | |||||||||
Notes payable, net | 16,475,589 | 14,278,013 | |||||||||
Total liabilities | 22,669,523 | 20,829,803 | |||||||||
Commitments and contingencies (Note 17) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock and paid in capital, par value $0.01 per share, 1,300,000 shares authorized, 708,773 and 660,300 shares issued and outstanding as of June 30, 2023, and December 31, 2022, respectively | 37,149,380 | 34,159,509 | |||||||||
Distributions in excess of net income | (6,102,226) | (5,493,193) | |||||||||
Accumulated other comprehensive income | 96,057 | 46,833 | |||||||||
Total stockholders’ equity | 31,143,211 | 28,713,149 | |||||||||
Noncontrolling interests | 167,932 | 130,140 | |||||||||
Total equity | 31,311,143 | 28,843,289 | |||||||||
Total liabilities and equity | $ | 53,980,666 | $ | 49,673,092 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUE | |||||||||||||||||||||||
Rental (including reimbursable) | $ | 995,289 | $ | 800,800 | $ | 1,920,578 | $ | 1,600,365 | |||||||||||||||
Other | 23,916 | 9,619 | 43,026 | 17,397 | |||||||||||||||||||
Total revenue | 1,019,205 | 810,419 | 1,963,604 | 1,617,762 | |||||||||||||||||||
EXPENSES | |||||||||||||||||||||||
Depreciation and amortization | 472,278 | 409,437 | 923,755 | 813,199 | |||||||||||||||||||
Interest | 183,857 | 110,121 | 337,989 | 216,524 | |||||||||||||||||||
Property (including reimbursable) | 94,703 | 52,180 | 164,100 | 104,522 | |||||||||||||||||||
General and administrative | 36,829 | 34,139 | 70,996 | 66,838 | |||||||||||||||||||
Provisions for impairment | 29,815 | 7,691 | 42,993 | 14,729 | |||||||||||||||||||
Merger and integration-related costs | 341 | 2,729 | 1,648 | 9,248 | |||||||||||||||||||
Total expenses | 817,823 | 616,297 | 1,541,481 | 1,225,060 | |||||||||||||||||||
Gain on sales of real estate | 7,824 | 40,572 | 12,103 | 50,728 | |||||||||||||||||||
Foreign currency and derivative (loss) gain, net | (2,552) | 7,480 | 7,770 | 6,890 | |||||||||||||||||||
Gain on extinguishment of debt | — | 127 | — | 127 | |||||||||||||||||||
Equity in income and impairment of investment in unconsolidated entities | 411 | (6,627) | 411 | (5,673) | |||||||||||||||||||
Other income, net | 3,020 | 2,806 | 5,750 | 4,658 | |||||||||||||||||||
Income before income taxes | 210,085 | 238,480 | 448,157 | 449,432 | |||||||||||||||||||
Income taxes | (12,932) | (14,658) | (24,882) | (25,639) | |||||||||||||||||||
Net income | 197,153 | 223,822 | 423,275 | 423,793 | |||||||||||||||||||
Net income attributable to noncontrolling interests | (1,738) | (615) | (2,844) | (1,217) | |||||||||||||||||||
Net income available to common stockholders | $ | 195,415 | $ | 223,207 | $ | 420,431 | $ | 422,576 | |||||||||||||||
Amounts available to common stockholders per common share: | |||||||||||||||||||||||
Net income available to common stockholders per common share, basic and diluted | $ | 0.29 | $ | 0.37 | $ | 0.63 | $ | 0.71 | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 674,109 | 601,672 | 667,357 | 597,778 | |||||||||||||||||||
Diluted | 674,593 | 602,031 | 668,108 | 598,141 | |||||||||||||||||||
Net income available to common stockholders | $ | 195,415 | $ | 223,207 | $ | 420,431 | $ | 422,576 | |||||||||||||||
Total other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustment | 29,046 | (48,992) | 57,796 | (59,698) | |||||||||||||||||||
Unrealized (loss) gain on derivatives, net | (6,410) | 33,454 | (8,572) | 77,144 | |||||||||||||||||||
Total other comprehensive income (loss) | $ | 22,636 | $ | (15,538) | $ | 49,224 | $ | 17,446 | |||||||||||||||
Comprehensive income available to common stockholders | $ | 218,051 | $ | 207,669 | $ | 469,655 | $ | 440,022 |
Shares of common stock | Common stock and paid in capital | Distributions in excess of net income | Accumulated other comprehensive income | Total stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | 673,207 | $ | 34,958,608 | $ | (5,772,923) | $ | 73,421 | $ | 29,259,106 | $ | 128,232 | $ | 29,387,338 | |||||||||||||||||||||||||||||||
Net income | — | — | 195,415 | — | 195,415 | 1,738 | 197,153 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 22,636 | 22,636 | — | 22,636 | |||||||||||||||||||||||||||||||||||||
Distributions paid and payable | — | — | (524,718) | — | (524,718) | (1,597) | (526,315) | |||||||||||||||||||||||||||||||||||||
Share issuances, net of costs | 35,519 | 2,183,194 | — | — | 2,183,194 | — | 2,183,194 | |||||||||||||||||||||||||||||||||||||
Contributions by noncontrolling interests | — | — | — | — | — | 39,559 | 39,559 | |||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 47 | 7,578 | — | — | 7,578 | — | 7,578 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | 708,773 | $ | 37,149,380 | $ | (6,102,226) | $ | 96,057 | $ | 31,143,211 | $ | 167,932 | $ | 31,311,143 | |||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 601,567 | $ | 30,236,374 | $ | (4,772,112) | $ | 37,917 | $ | 25,502,179 | $ | 76,546 | $ | 25,578,725 | |||||||||||||||||||||||||||||||
Net income | — | — | 223,207 | — | 223,207 | 615 | 223,822 | |||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | (15,538) | (15,538) | — | (15,538) | |||||||||||||||||||||||||||||||||||||
Distributions paid and payable | — | — | (450,245) | — | (450,245) | (894) | (451,139) | |||||||||||||||||||||||||||||||||||||
Share issuances, net of costs | 15,961 | 1,060,529 | — | — | 1,060,529 | — | 1,060,529 | |||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 36 | 6,480 | — | — | 6,480 | — | 6,480 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 617,564 | $ | 31,303,383 | $ | (4,999,150) | $ | 22,379 | $ | 26,326,612 | $ | 76,267 | $ | 26,402,879 | |||||||||||||||||||||||||||||||
Six months ended June 30, 2023 and 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Shares of common stock | Common stock and paid in capital | Distributions in excess of net income | Accumulated other comprehensive income | Total stockholders’ equity | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | 660,300 | $ | 34,159,509 | $ | (5,493,193) | $ | 46,833 | $ | 28,713,149 | $ | 130,140 | $ | 28,843,289 | |||||||||||||||||||||||||||||||
Net income | — | — | 420,431 | — | 420,431 | 2,844 | 423,275 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 49,224 | 49,224 | — | 49,224 | |||||||||||||||||||||||||||||||||||||
Distributions paid and payable | — | — | (1,029,464) | — | (1,029,464) | (4,611) | (1,034,075) | |||||||||||||||||||||||||||||||||||||
Share issuances, net of costs | 48,226 | 2,982,094 | — | — | 2,982,094 | 2,982,094 | ||||||||||||||||||||||||||||||||||||||
Contributions by noncontrolling interests | — | — | — | — | — | 39,559 | 39,559 | |||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 247 | 7,777 | — | — | 7,777 | — | 7,777 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | 708,773 | $ | 37,149,380 | $ | (6,102,226) | $ | 96,057 | $ | 31,143,211 | $ | 167,932 | $ | 31,311,143 | |||||||||||||||||||||||||||||||
Balance December 31, 2021 | 591,262 | $ | 29,578,212 | $ | (4,530,571) | $ | 4,933 | $ | 25,052,574 | $ | 76,826 | $ | 25,129,400 | |||||||||||||||||||||||||||||||
Net income | — | — | 422,576 | — | 422,576 | 1,217 | 423,793 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | 17,446 | 17,446 | — | 17,446 | |||||||||||||||||||||||||||||||||||||
Distributions paid and payable | — | — | (891,155) | — | (891,155) | (1,776) | (892,931) | |||||||||||||||||||||||||||||||||||||
Share issuances, net of costs | 26,133 | 1,720,573 | — | — | 1,720,573 | — | 1,720,573 | |||||||||||||||||||||||||||||||||||||
Share-based compensation, net | 169 | 4,598 | — | — | 4,598 | — | 4,598 | |||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 617,564 | $ | 31,303,383 | $ | (4,999,150) | $ | 22,379 | $ | 26,326,612 | $ | 76,267 | $ | 26,402,879 |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | 423,275 | $ | 423,793 | |||||||
Adjustments to net income: | |||||||||||
Depreciation and amortization | 923,755 | 813,199 | |||||||||
Amortization of share-based compensation | 13,923 | 11,643 | |||||||||
Non-cash revenue adjustments | (33,420) | (25,332) | |||||||||
Gain on extinguishment of debt | — | (127) | |||||||||
Amortization of net premiums on mortgages payable | (6,396) | (7,091) | |||||||||
Amortization of net premiums on notes payable | (30,657) | (31,423) | |||||||||
Amortization of deferred financing costs | 12,568 | 7,081 | |||||||||
(Loss) gain on interest rate swaps | (3,600) | 1,446 | |||||||||
Foreign currency and unrealized derivative loss, net | (6,289) | (6,890) | |||||||||
Gain on sales of real estate | (12,103) | (50,728) | |||||||||
Equity in income and impairment of investment in unconsolidated entities | (411) | 5,673 | |||||||||
Distributions from unconsolidated entities | — | 1,490 | |||||||||
Provisions for impairment on real estate | 42,993 | 14,729 | |||||||||
Change in assets and liabilities | |||||||||||
Accounts receivable and other assets | 25,733 | 134,019 | |||||||||
Accounts payable, accrued expenses and other liabilities | 116,742 | (34,921) | |||||||||
Net cash provided by operating activities | 1,466,113 | 1,256,561 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Investment in real estate | (4,686,800) | (3,166,063) | |||||||||
Improvements to real estate, including leasing costs | (29,458) | (29,654) | |||||||||
Proceeds from sales of real estate | 60,460 | 272,245 | |||||||||
Return of investment from unconsolidated entities | 3,927 | 746 | |||||||||
Insurance proceeds received | 7,198 | 16,046 | |||||||||
Non-refundable escrow deposits | (1,935) | (13,815) | |||||||||
Net cash used in investing activities | (4,646,608) | (2,920,495) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Cash distributions to common stockholders | (1,012,336) | (884,109) | |||||||||
Borrowings on line of credit and commercial paper programs | 27,136,997 | 9,366,868 | |||||||||
Payments on line of credit and commercial paper programs | (28,911,973) | (9,724,268) | |||||||||
Proceeds from term loan | 1,029,383 | — | |||||||||
Proceeds from notes payable issued | 2,074,883 | 1,405,691 | |||||||||
Principal payments on mortgages payable | (8,070) | (225,951) | |||||||||
Proceeds from common stock offerings, net | 2,976,683 | 1,712,696 | |||||||||
Proceeds from dividend reinvestment and stock purchase plan | 5,411 | 5,731 | |||||||||
Distributions to noncontrolling interests | (3,038) | (1,776) | |||||||||
Net (payments) receipts on derivative settlements | (9,285) | 7,474 | |||||||||
Debt issuance costs | (25,108) | (27,272) | |||||||||
Other items, including shares withheld upon vesting | (6,146) | (4,899) | |||||||||
Net cash provided by financing activities | 3,247,401 | 1,630,185 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | 21,075 | (24,955) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 87,981 | (58,704) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 226,881 | 332,369 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 314,862 | $ | 273,665 |
June 30, 2023 | December 31, 2022 | ||||||||||
Net real estate | $ | 2,432,712 | $ | 920,032 | |||||||
Total assets | $ | 3,165,836 | $ | 1,082,346 | |||||||
Total liabilities | $ | 159,014 | $ | 60,127 |
A. | Accounts receivable, net, consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
Straight-line rent receivables, net | $ | 440,939 | $ | 363,993 | ||||||||||
Client receivables, net | 179,660 | 179,244 | ||||||||||||
$ | 620,599 | $ | 543,237 |
B. | Lease intangible assets, net, consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
In-place leases | $ | 5,649,747 | $ | 5,324,565 | ||||||||||
Accumulated amortization of in-place leases | (1,715,425) | (1,409,878) | ||||||||||||
Above-market leases | 1,824,355 | 1,697,367 | ||||||||||||
Accumulated amortization of above-market leases | (520,277) | (443,688) | ||||||||||||
$ | 5,238,400 | $ | 5,168,366 |
C. | Other assets, net, consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
Financing receivables | $ | 1,556,342 | $ | 933,116 | ||||||||||
589,237 | 603,097 | |||||||||||||
538,168 | 467,920 | |||||||||||||
Value-added tax receivable | 51,983 | 24,726 | ||||||||||||
Prepaid expenses | 39,595 | 28,128 | ||||||||||||
Impounds related to mortgages payable | 37,174 | 18,152 | ||||||||||||
Derivative assets and receivables – at fair value | 32,730 | 83,100 | ||||||||||||
Restricted escrow deposits | 23,995 | 37,627 | ||||||||||||
Credit facility origination costs, net | 14,730 | 17,196 | ||||||||||||
Corporate assets, net | 13,649 | 12,334 | ||||||||||||
Investment in sales type lease | 6,003 | 5,951 | ||||||||||||
Non-refundable escrow deposits | 1,935 | 5,667 | ||||||||||||
Other items | 35,160 | 39,939 | ||||||||||||
$ | 2,940,701 | $ | 2,276,953 |
D. | Accounts payable and accrued expenses consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
Notes payable - interest payable | $ | 169,773 | $ | 129,202 | ||||||||||
Derivative liabilities and payables – at fair value | 93,017 | 64,724 | ||||||||||||
Accrued costs on properties under development | 65,981 | 26,559 | ||||||||||||
Property taxes payable | 63,337 | 45,572 | ||||||||||||
Value-added tax payable | 44,981 | 23,375 | ||||||||||||
Accrued income taxes | 40,826 | 22,626 | ||||||||||||
Accrued property expenses | 26,718 | 25,290 | ||||||||||||
Mortgages, term loans, and credit line - interest payable | 7,802 | 5,868 | ||||||||||||
Other items | 46,948 | 55,921 | ||||||||||||
$ | 559,383 | $ | 399,137 |
E. | Lease intangible liabilities, net, consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
Below-market leases | $ | 1,728,348 | $ | 1,617,870 | ||||||||||
Accumulated amortization of below-market leases | (288,380) | (238,434) | ||||||||||||
$ | 1,439,968 | $ | 1,379,436 |
F. | Other liabilities consist of the following at: | June 30, 2023 | December 31, 2022 | |||||||||||
$ | 428,178 | $ | 440,096 | |||||||||||
Rent received in advance and other deferred revenue | 358,086 | 269,645 | ||||||||||||
49,208 | 49,469 | |||||||||||||
Security deposits | 20,024 | 15,577 | ||||||||||||
$ | 855,496 | $ | 774,787 |
Number of Properties | Leasable Square Feet (in thousands) | Investment ($ in millions) | Weighted Average Lease Term (Years) | Initial Weighted Average Cash Lease Yield (1) | |||||||||||||||||||||||||
Acquisitions - U.S. | 747 | 12,483 | $ | 3,408.9 | 15.9 | 6.9 | % | ||||||||||||||||||||||
Acquisitions - Europe | 31 | 4,181 | 788.7 | 9.3 | 7.4 | % | |||||||||||||||||||||||
Total acquisitions | 778 | 16,664 | $ | 4,197.6 | 14.6 | 7.0 | % | ||||||||||||||||||||||
Properties under development (2) | 219 | 5,635 | 569.9 | 16.5 | 6.5 | % | |||||||||||||||||||||||
Total (3) | 997 | 22,299 | $ | 4,767.5 | 14.8 | 6.9 | % |
Acquisitions - USD | Acquisitions - Sterling | Acquisitions - Euro | |||||||||||||||
Land (1) | $ | 665.4 | £ | 141.0 | € | 15.2 | |||||||||||
Buildings and improvements | 2,259.3 | 318.8 | 22.1 | ||||||||||||||
Lease intangible assets (2) | 328.6 | 76.3 | 14.4 | ||||||||||||||
Other assets (3) | 620.9 | 59.7 | — | ||||||||||||||
Lease intangible liabilities (4) | (99.4) | (6.8) | (0.9) | ||||||||||||||
Other liabilities (5) | (57.0) | (0.1) | — | ||||||||||||||
$ | 3,717.8 | £ | 588.9 | € | 50.8 |
Net increase (decrease) to rental revenue | Increase to amortization expense | ||||||||||
2023 | $ | (31,009) | $ | 313,260 | |||||||
2024 | (56,416) | 571,588 | |||||||||
2025 | (49,649) | 492,288 | |||||||||
2026 | (41,955) | 439,340 | |||||||||
2027 | (33,293) | 381,063 | |||||||||
Thereafter | 348,212 | 1,736,783 | |||||||||
Totals | $ | 135,890 | $ | 3,934,322 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Number of properties | 29 | 70 | 55 | 104 | |||||||||||||||||||
Net sales proceeds | $ | 31.9 | $ | 150.0 | $ | 60.5 | $ | 272.2 | |||||||||||||||
Gain on sales of real estate | $ | 7.8 | $ | 40.6 | $ | 12.1 | $ | 50.7 |
As Of | Number of Properties (1) | Weighted Average Stated Interest Rate (2) | Weighted Average Effective Interest Rate (3) | Weighted Average Remaining Years Until Maturity | Remaining Principal Balance | Unamortized Premium and Deferred Financing Costs Balance, net | Mortgage Payable Balance | ||||||||||||||||||||||||||||||||||
June 30, 2023 | 135 | 4.8 | % | 3.3 | % | 0.9 | $ | 836.3 | $ | 5.4 | $ | 841.7 | |||||||||||||||||||||||||||||
December 31, 2022 | 136 | 4.8 | % | 3.3 | % | 1.4 | $ | 842.3 | $ | 11.6 | $ | 853.9 |
Year of Maturity | Principal | |||||||
2023 | $ | 14.1 | ||||||
2024 | 740.5 | |||||||
2025 | 43.9 | |||||||
2026 | 12.0 | |||||||
2027 | 22.3 | |||||||
Thereafter | 3.5 | |||||||
Totals | $ | 836.3 |
Year of Maturity | Principal | |||||||
2023 | $ | — | ||||||
2024 | 850.0 | |||||||
2025 | 1,050.0 | |||||||
2026 | 2,075.0 | |||||||
2027 | 2,025.9 | |||||||
Thereafter | 10,382.3 | |||||||
Totals | $ | 16,383.2 |
Date of Issuance | Maturity Date | Principal amount | Price of par value | Effective semi-annual yield to maturity | ||||||||||||||||||||||||||||
5.050% Notes | January 2023 | January 2026 | $ | 500.0 | (1) | 99.618 | % | 5.189 | % | |||||||||||||||||||||||
4.850% Notes | January 2023 | March 2030 | $ | 600.0 | 98.813 | % | 5.047 | % | ||||||||||||||||||||||||
4.700% Notes | April 2023 | December 2028 | $ | 400.0 | 98.949 | % | 4.912 | % | ||||||||||||||||||||||||
4.900% Notes | April 2023 | July 2033 | $ | 600.0 | 98.020 | % | 5.148 | % | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Shares of common stock issued under the ATM program(1) | 35,475,153 | 15,899,972 | 48,139,631 | 25,973,181 | |||||||||||||||||||
Gross proceeds | $ | 2,195.7 | $ | 1,067.3 | $ | 2,997.4 | $ | 1,727.5 | |||||||||||||||
Sales agents' commissions and other offering expenses | (15.2) | (10.7) | (20.7) | (14.8) | |||||||||||||||||||
Net proceeds | $ | 2,180.5 | $ | 1,056.6 | $ | 2,976.7 | $ | 1,712.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Shares of common stock issued under the DRSPP program | 44,118 | 43,260 | 85,781 | 84,631 | |||||||||||||||||||
Gross proceeds | $ | 2.7 | $ | 2.9 | $ | 5.4 | $ | 5.7 |
Realty Income, L.P. units (1) | Other Noncontrolling Interests | Total | |||||||||||||||
Carrying value at December 31, 2022 | $ | 115,801 | $ | 14,339 | $ | 130,140 | |||||||||||
Contributions (2) | — | 39,559 | 39,559 | ||||||||||||||
Distributions (3) | (2,826) | (1,785) | (4,611) | ||||||||||||||
Allocation of net income | 1,925 | 919 | 2,844 | ||||||||||||||
Carrying value at June 30, 2023 | $ | 114,900 | $ | 53,032 | $ | 167,932 |
June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | ||||||||||||||||||||
Mortgages payable (1) | $ | 836.3 | $ | 812.5 | $ | 842.3 | $ | 810.4 | |||||||||||||||
Notes and bonds payable (2) | $ | 16,383.2 | $ | 14,553.6 | $ | 14,114.2 | $ | 12,522.8 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Carrying value prior to impairment | $ | 97.0 | $ | 64.5 | $ | 125.5 | $ | 98.2 | |||||||||||||||
Less: total provisions for impairment | (29.8) | (7.7) | (43.0) | (14.7) | |||||||||||||||||||
Carrying value after impairment | $ | 67.2 | $ | 56.8 | $ | 82.5 | $ | 83.5 | |||||||||||||||
Derivative Type | Number of Instruments(1) | Notional Amount as of | Weighted Average Strike Rate (2) | Maturity Date (3) | Fair Value - asset (liability) as of | ||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
Interest rate swaps | 9 | $ | 1,630.0 | $ | 250.0 | 4.26% | Jan 2024 - Jan 2026 | $ | 6.4 | $ | 5.6 | ||||||||||||||||||
Interest rate swaptions | 6 | 1,000.0 | — | (4) | Feb 2034 | 8.8 | — | ||||||||||||||||||||||
Cross-currency swaps | 3 | 320.0 | 320.0 | (5) | Oct 2032 | (45.6) | (33.3) | ||||||||||||||||||||||
Foreign currency forwards | 24 | 144.0 | 185.5 | (6) | Jul 2023 - Dec 2024 | 6.9 | 16.1 | ||||||||||||||||||||||
$ | 3,094.0 | $ | 755.5 | $ | (23.5) | $ | (11.6) | ||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Currency exchange swaps | 1 | $ | 214.9 | $ | 2,427.7 | (7) | July 2023 | $ | 3.5 | $ | 58.8 | ||||||||||||||||||
Cross-currency swaps | 3 | 280.0 | 280.0 | (5) | Oct 2032 | (40.3) | (29.5) | ||||||||||||||||||||||
$ | 494.9 | $ | 2,707.7 | $ | (36.8) | $ | 29.3 | ||||||||||||||||||||||
Total of all Derivatives | $ | 3,588.9 | $ | 3,463.2 | $ | (60.3) | $ | 17.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cross-currency swaps | $ | — | $ | (6,986) | $ | — | $ | (5,091) | |||||||||||||||
Interest rate swaps | 3,564 | 30,386 | 1,844 | 69,391 | |||||||||||||||||||
Foreign currency forwards | (4,081) | 10,054 | (9,194) | 12,844 | |||||||||||||||||||
Interest rate swaptions | 4,840 | — | 3,553 | — | |||||||||||||||||||
Total derivatives in cash flow hedging relationships | $ | 4,323 | $ | 33,454 | $ | (3,797) | $ | 77,144 | |||||||||||||||
Derivatives in Fair Value Hedging Relationships | |||||||||||||||||||||||
Cross-currency swaps | $ | (10,733) | $ | — | $ | (4,775) | $ | — | |||||||||||||||
Total derivatives in fair value hedging relationships | $ | (10,733) | $ | — | $ | (4,775) | $ | — | |||||||||||||||
Total unrealized (loss) gain on derivatives | $ | (6,410) | $ | 33,454 | $ | (8,572) | $ | 77,144 | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Location of Gain (Loss) Recognized in Income | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||
Cross-currency swaps | Foreign currency and derivative gain (loss), net | $ | — | $ | 21,527 | $ | — | $ | 27,641 | ||||||||||||||||||||
Interest rate swaps | Interest income | 3,259 | (2,153) | 4,739 | (4,683) | ||||||||||||||||||||||||
Foreign currency forwards | Foreign currency and derivative gain (loss), net | 892 | — | 2,323 | — | ||||||||||||||||||||||||
Interest rate swaptions | Interest expense | (2,358) | — | (2,358) | — | ||||||||||||||||||||||||
Total derivatives in cash flow hedging relationships | $ | 1,793 | $ | 19,374 | $ | 4,704 | $ | 22,958 | |||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | |||||||||||||||||||||||||||||
Cross-currency swaps | Foreign currency and derivative gain (loss), net | $ | 190 | $ | — | $ | 484 | $ | — | ||||||||||||||||||||
Total derivatives in fair value hedging relationships | $ | 190 | $ | — | $ | 484 | $ | — | |||||||||||||||||||||
Net increase to net income | $ | 1,983 | $ | 19,374 | $ | 5,188 | $ | 22,958 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Realized foreign currency and derivative gain (loss), net: | |||||||||||||||||||||||
(Loss) gain on the settlement of undesignated derivatives | $ | (981) | $ | 79,308 | $ | (1,326) | $ | 76,628 | |||||||||||||||
Gain on the settlement of designated derivatives reclassified from AOCI | 1,082 | 21,527 | 2,807 | 27,641 | |||||||||||||||||||
(Loss) gain on the settlement of transactions with third parties | (51) | 1,004 | 1,275 | 952 | |||||||||||||||||||
Total realized foreign currency and derivative gain, net | $ | 50 | $ | 101,839 | $ | 2,756 | $ | 105,221 | |||||||||||||||
Unrealized foreign currency and derivative gain (loss), net: | |||||||||||||||||||||||
(Loss) gain on the change in fair value of undesignated derivatives | $ | (7,394) | $ | 37,274 | $ | (8,176) | $ | 59,995 | |||||||||||||||
Gain (loss) on remeasurement of certain assets and liabilities | 4,792 | (131,633) | 13,190 | (158,326) | |||||||||||||||||||
Total unrealized foreign currency and derivative (loss) gain, net | $ | (2,602) | $ | (94,359) | $ | 5,014 | $ | (98,331) | |||||||||||||||
Total foreign currency and derivative (losses) gains, net | $ | (2,552) | $ | 7,480 | $ | 7,770 | $ | 6,890 |
2023 | 2022 | ||||||||||
January | $ | 0.2485 | $ | 0.2465 | |||||||
February | 0.2485 | 0.2465 | |||||||||
March | 0.2545 | 0.2465 | |||||||||
April | 0.2550 | 0.2470 | |||||||||
May | 0.2550 | 0.2470 | |||||||||
June | 0.2550 | 0.2470 | |||||||||
Total | $ | 1.5165 | $ | 1.4805 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Weighted average shares used for the basic net income per share computation | 674,109 | 601,672 | 667,357 | 597,778 | |||||||||||||||||||
Incremental shares from share-based compensation | 409 | 359 | 392 | 363 | |||||||||||||||||||
Dilutive effect of forward ATM offerings | 75 | — | 359 | — | |||||||||||||||||||
Weighted average shares used for diluted net income per share computation | 674,593 | 602,031 | 668,108 | 598,141 | |||||||||||||||||||
Unvested shares from share-based compensation that were anti-dilutive | 182 | 16 | 147 | 16 | |||||||||||||||||||
Weighted average partnership common units convertible to common shares that were anti-dilutive | 1,795 | 1,061 | 1,795 | 1,061 | |||||||||||||||||||
Weighted average forward ATM offerings that were anti-dilutive | 322 | — | 223 | — |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Supplemental disclosures: | |||||||||||
Cash paid for interest | $ | 324,711 | $ | 229,929 | |||||||
Cash paid for income taxes | $ | 8,081 | $ | 30,091 | |||||||
Non-cash activities: | |||||||||||
Net (decrease) increase in fair value of derivatives | $ | (77,982) | $ | 146,181 | |||||||
Increase in noncontrolling interests from property acquisitions | $ | 39,156 | $ | — | |||||||
Mortgages assumed at fair value | $ | — | $ | 45,079 | |||||||
June 30, 2023 | June 30, 2022 | ||||||||||
Cash and cash equivalents shown in the consolidated balance sheets | $ | 253,693 | $ | 172,849 | |||||||
Restricted escrow deposits (1) | 23,995 | 100,098 | |||||||||
Impounds related to mortgages payable (1) | 37,174 | 718 | |||||||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ | 314,862 | $ | 273,665 |
2023 Dividend increases | Month Declared | Month Paid | Dividend per share | Increase per share | |||||||||||||||||||
1st increase | Dec 2022 | Jan 2023 | $0.2485 | $0.0005 | |||||||||||||||||||
2nd increase | Feb 2023 | Mar 2023 | $0.2545 | $0.0060 | |||||||||||||||||||
3rd increase | Mar 2023 | Apr 2023 | $0.2550 | $0.0005 | |||||||||||||||||||
4th increase | Jun 2023 | Jul 2023 | $0.2555 | $0.0005 | |||||||||||||||||||
Three months ended June 30, 2023 | |||||
Properties available for lease at March 31, 2023 | 131 | ||||
Lease expirations (1) | 216 | ||||
Re-leases to same client | (174) | ||||
Re-leases to new client | (8) | ||||
Vacant dispositions | (28) | ||||
Properties available for lease at June 30, 2023 | 137 | ||||
Six months ended June 30, 2023 | |||||
Properties available for lease at December 31, 2022 | 126 | ||||
Lease expirations (1) | 408 | ||||
Re-leases to same client | (329) | ||||
Re-leases to new client | (14) | ||||
Vacant dispositions | (54) | ||||
Properties available for lease at June 30, 2023 | 137 |
Note Issuance | Date of Issuance | Maturity Date | Principal amount | Price of par value | Effective semi-annual yield to maturity | |||||||||||||||||||||||||||
5.050% Notes | January 2023 | January 2026 | $ | 500.0 | 99.618 | % | 5.189 | % | ||||||||||||||||||||||||
4.850% Notes | January 2023 | March 2030 | $ | 600.0 | 98.813 | % | 5.047 | % | ||||||||||||||||||||||||
4.700% Notes | April 2023 | December 2028 | $ | 400.0 | 98.949 | % | 4.912 | % | ||||||||||||||||||||||||
4.900% Notes | April 2023 | July 2033 | $ | 600.0 | 98.020 | % | 5.148 | % | ||||||||||||||||||||||||
Note Covenants | Required | Actual | ||||||
Limitation on incurrence of total debt | < 60% of adjusted assets | 39.5 | % | |||||
Limitation on incurrence of secured debt | < 40% of adjusted assets | 1.8 | % | |||||
Debt service coverage (trailing 12 months) (1) | > 1.5x | 4.6x | ||||||
Maintenance of total unencumbered assets | > 150% of unsecured debt | 259.8 | % |
Net income available to common stockholders | $ | 867,265 | |||
Plus: interest expense, excluding the amortization of deferred financing costs | 566,816 | ||||
Less: gain on extinguishment of debt | (240) | ||||
Plus: provision for taxes | 44,425 | ||||
Plus: depreciation and amortization | 1,780,945 | ||||
Plus: provisions for impairment | 54,124 | ||||
Plus: pro forma adjustments | 354,489 | ||||
Less: gain on sales of real estate | (64,333) | ||||
Income available for debt service, as defined | $ | 3,603,491 | |||
Total pro forma debt service charge | $ | 786,752 | |||
Debt service and fixed charge coverage ratio | 4.6 |
Credit Facility and Commercial Paper (1) | Senior Unsecured Notes | Term Loans (2) | Mortgages Payable | Interest (3) | Ground Leases Paid by the Company (4) | Ground Leases Paid by Our Clients (5) | Other (6) | Totals | |||||||||||||||||||||||||||||||||||||||||||||
2023 | $ | 122.7 | $ | — | $ | — | $ | 14.1 | $ | 354.6 | $ | 5.3 | $ | 15.5 | $ | 579.3 | $ | 1,091.5 | |||||||||||||||||||||||||||||||||||
2024 | — | 850.0 | 250.0 | 740.5 | 734.3 | 13.4 | 30.8 | 194.4 | 2,813.4 | ||||||||||||||||||||||||||||||||||||||||||||
2025 | — | 1,050.0 | — | 43.9 | 646.5 | 11.5 | 30.1 | 0.7 | 1,782.7 | ||||||||||||||||||||||||||||||||||||||||||||
2026 | 867.5 | 2,075.0 | 1,078.7 | 12.0 | 493.8 | 17.2 | 29.3 | 1.6 | 4,575.1 | ||||||||||||||||||||||||||||||||||||||||||||
2027 | — | 2,025.9 | — | 22.3 | 408.6 | 8.9 | 26.5 | 0.3 | 2,492.5 | ||||||||||||||||||||||||||||||||||||||||||||
Thereafter | — | 10,382.3 | — | 3.5 | 1,808.2 | 288.7 | 266.7 | 3.8 | 12,753.2 | ||||||||||||||||||||||||||||||||||||||||||||
Totals | $ | 990.2 | $ | 16,383.2 | $ | 1,328.7 | $ | 836.3 | $ | 4,446.0 | $ | 345.0 | $ | 398.9 | $ | 780.1 | $ | 25,508.4 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Rental (excluding reimbursable) | $ | 907,551 | $ | 759,825 | $ | 147,726 | $ | 1,773,259 | $ | 1,515,383 | $ | 257,876 | |||||||||||||||||||||||
Rental (reimbursable) | 87,738 | 40,975 | 46,763 | 147,319 | 84,982 | $ | 62,337 | ||||||||||||||||||||||||||||
Other | 23,916 | 9,619 | 14,297 | 43,026 | 17,397 | $ | 25,629 | ||||||||||||||||||||||||||||
Total revenue | $ | 1,019,205 | $ | 810,419 | $ | 208,786 | $ | 1,963,604 | $ | 1,617,762 | $ | 345,842 |
Number of Properties | Three Months Ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||||||||||||||||||||||||||||||||
Properties acquired during 2023 & 2022 | 2,203 | $ | 186,693 | $ | 28,248 | $ | 158,445 | $ | 323,895 | $ | 34,237 | $ | 289,658 | |||||||||||||||||||||||||||||||
Same store rental revenue (1) | 10,685 | 718,768 | 704,886 | 13,882 | 1,435,311 | 1,420,152 | 15,159 | |||||||||||||||||||||||||||||||||||||
Constant currency adjustment (2) | N/A | (1,345) | (937) | (408) | (5,258) | 2,226 | (7,484) | |||||||||||||||||||||||||||||||||||||
Properties sold during and prior to 2023 | 243 | 135 | 5,537 | (5,402) | 1,193 | 11,907 | (10,714) | |||||||||||||||||||||||||||||||||||||
Straight-line rent and other non-cash adjustments | N/A | (7,912) | 3,933 | (11,845) | (6,078) | 12,188 | (18,266) | |||||||||||||||||||||||||||||||||||||
Vacant rents, development and other (3) | 230 | 10,445 | 14,064 | (3,619) | 20,188 | 28,457 | (8,269) | |||||||||||||||||||||||||||||||||||||
Other excluded revenue (4) | N/A | 767 | 4,094 | (3,327) | 4,008 | 6,216 | (2,208) | |||||||||||||||||||||||||||||||||||||
Totals | $ | 907,551 | $ | 759,825 | $ | 147,726 | $ | 1,773,259 | $ | 1,515,383 | $ | 257,876 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 472,278 | $ | 409,437 | $ | 62,841 | $ | 923,755 | $ | 813,199 | $ | 110,556 | |||||||||||||||||||||||
Interest | 183,857 | 110,121 | 73,736 | 337,989 | 216,524 | 121,465 | |||||||||||||||||||||||||||||
Property (excluding reimbursable) | 6,965 | 11,205 | (4,240) | 16,781 | 19,540 | (2,759) | |||||||||||||||||||||||||||||
Property (reimbursable) | 87,738 | 40,975 | 46,763 | 147,319 | 84,982 | 62,337 | |||||||||||||||||||||||||||||
General and administrative | 36,829 | 34,139 | 2,690 | 70,996 | 66,838 | 4,158 | |||||||||||||||||||||||||||||
Provisions for impairment | 29,815 | 7,691 | 22,124 | 42,993 | 14,729 | 28,264 | |||||||||||||||||||||||||||||
Merger and integration-related costs | 341 | 2,729 | (2,388) | 1,648 | 9,248 | (7,600) | |||||||||||||||||||||||||||||
Total expenses | $ | 817,823 | $ | 616,297 | $ | 201,526 | $ | 1,541,481 | $ | 1,225,060 | $ | 316,421 | |||||||||||||||||||||||
Total revenue (1) | $ | 931,467 | $ | 769,444 | $ | 1,816,285 | $ | 1,532,780 | |||||||||||||||||||||||||||
General and administrative expenses as a percentage of total revenue (1) | 4.0 | % | 4.4 | % | 3.9 | % | 4.4 | % | |||||||||||||||||||||||||||
Property expenses (excluding reimbursable) as a percentage of total revenue (1) | 0.7 | % | 1.5 | % | 0.9 | % | 1.3 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Interest on our credit facility, commercial paper, term loans, notes, mortgages and interest rate swaps | $ | 197,321 | $ | 124,313 | $ | 365,287 | $ | 245,288 | |||||||||||||||
Credit facility commitment fees | 1,313 | 1,226 | 2,642 | 2,163 | |||||||||||||||||||
Amortization of debt origination and deferred financing costs | 6,497 | 3,280 | 12,568 | 6,403 | |||||||||||||||||||
(Gain) loss on interest rate swaps | (1,799) | 724 | (3,600) | 1,446 | |||||||||||||||||||
Amortization of net mortgage premiums | (3,196) | (3,530) | (6,396) | (7,091) | |||||||||||||||||||
Amortization of net note premiums | (15,125) | (15,683) | (30,657) | (31,423) | |||||||||||||||||||
Capital lease obligation | 402 | 356 | 805 | 678 | |||||||||||||||||||
Interest capitalized | (1,556) | (565) | (2,660) | (940) | |||||||||||||||||||
Interest expense | $ | 183,857 | $ | 110,121 | $ | 337,989 | $ | 216,524 | |||||||||||||||
Credit facility, commercial paper, term loans, mortgages and notes | |||||||||||||||||||||||
Average outstanding balances | $ | 20,406,982 | $ | 15,944,510 | $ | 19,594,007 | $ | 15,629,159 | |||||||||||||||
Weighted average interest rates | 3.84 | % | 3.08 | % | 3.71 | % | 3.10 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Carrying value prior to impairment | $ | 97.0 | $ | 64.5 | $ | 125.5 | $ | 98.2 | |||||||||||||||
Less: total provisions for impairment | (29.8) | (7.7) | (43.0) | (14.7) | |||||||||||||||||||
Carrying value after impairment | $ | 67.2 | $ | 56.8 | $ | 82.5 | $ | 83.5 | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Number of properties sold | 29 | 70 | 55 | 104 | |||||||||||||||||||
Net sales proceeds | $ | 31.9 | $ | 150.0 | $ | 60.5 | $ | 272.2 | |||||||||||||||
Gain on sales of real estate | $ | 7.8 | $ | 40.6 | $ | 12.1 | $ | 50.7 |
Three months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Net income | $ | 197,153 | $ | 223,822 | |||||||
Interest | 183,857 | 110,121 | |||||||||
Gain on extinguishment of debt | — | (127) | |||||||||
Income taxes | 12,932 | 14,658 | |||||||||
Depreciation and amortization | 472,278 | 409,437 | |||||||||
Provisions for impairment | 29,815 | 7,691 | |||||||||
Merger and integration-related costs | 341 | 2,729 | |||||||||
Gain on sales of real estate | (7,824) | (40,572) | |||||||||
Foreign currency and derivative losses (gains), net | 2,552 | (7,480) | |||||||||
Gain on settlement of foreign currency forwards | — | 2,106 | |||||||||
Proportionate share of adjustments from unconsolidated entities | (411) | 9,049 | |||||||||
Quarterly Adjusted EBITDAre | $ | 890,693 | $ | 731,434 | |||||||
Annualized Adjusted EBITDAre (1) | $ | 3,562,772 | $ | 2,925,736 | |||||||
Annualized Pro Forma Adjustments | $ | 87,712 | $ | 55,756 | |||||||
Annualized Pro Forma Adjusted EBITDAre | $ | 3,650,484 | $ | 2,981,492 | |||||||
Total debt per the consolidated balance sheets, excluding deferred financing costs and net premiums and discounts | $ | 19,538,466 | $ | 15,738,383 | |||||||
Proportionate share for unconsolidated entities debt, excluding deferred financing costs | — | 86,006 | |||||||||
Less: Cash and cash equivalents | (253,693) | (172,849) | |||||||||
Net Debt (2) | $ | 19,284,773 | $ | 15,651,540 | |||||||
Net Debt/Annualized Adjusted EBITDAre | 5.4 | x | 5.3 | x | |||||||
Net Debt/Annualized Pro Forma Adjusted EBITDAre | 5.3 | x | 5.2 | x |
Three months ended June 30, | ||||||||||||||
2023 | 2022 | |||||||||||||
Annualized pro forma adjustments from properties acquired or stabilized | $ | 87,510 | $ | 56,048 | ||||||||||
Annualized pro forma adjustments from properties disposed | 202 | (292) | ||||||||||||
Annualized Pro forma Adjustments | $ | 87,712 | $ | 55,756 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||
FFO available to common stockholders | $ | 688.0 | $ | 608.8 | 13.0 | % | $ | 1,372.3 | $ | 1,210.2 | 13.4 | % | |||||||||||||||||||||||
FFO per share (1) | $ | 1.02 | $ | 1.01 | 1.0 | % | $ | 2.05 | $ | 2.02 | 1.5 | % | |||||||||||||||||||||||
Normalized FFO available to common stockholders | $ | 688.3 | $ | 611.5 | 12.6 | % | $ | 1,373.9 | $ | 1,219.5 | 12.7 | % | |||||||||||||||||||||||
Normalized FFO per share (1) | $ | 1.02 | $ | 1.02 | 0.0 | % | $ | 2.06 | $ | 2.04 | 1.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income available to common stockholders | $ | 195,415 | $ | 223,207 | $ | 420,431 | $ | 422,576 | |||||||||||||||
Depreciation and amortization | 472,278 | 409,437 | 923,755 | 813,199 | |||||||||||||||||||
Depreciation of furniture, fixtures and equipment | (297) | (489) | (839) | (967) | |||||||||||||||||||
Provisions for impairment | 29,815 | 7,691 | 42,993 | 14,729 | |||||||||||||||||||
Gain on sales of real estate | (7,824) | (40,572) | (12,103) | (50,728) | |||||||||||||||||||
Proportionate share of adjustments for unconsolidated entities | (465) | 9,860 | (465) | 12,095 | |||||||||||||||||||
FFO adjustments allocable to noncontrolling interests | (937) | (319) | (1,496) | (673) | |||||||||||||||||||
FFO available to common stockholders | $ | 687,985 | $ | 608,815 | $ | 1,372,276 | $ | 1,210,231 | |||||||||||||||
FFO allocable to dilutive noncontrolling interests | 1,371 | 776 | 2,791 | 1,584 | |||||||||||||||||||
Diluted FFO | $ | 689,356 | $ | 609,591 | $ | 1,375,067 | $ | 1,211,815 | |||||||||||||||
FFO available to common stockholders | $ | 687,985 | $ | 608,815 | $ | 1,372,276 | $ | 1,210,231 | |||||||||||||||
Merger and integration-related costs | 341 | 2,729 | 1,648 | 9,248 | |||||||||||||||||||
Normalized FFO available to common stockholders | $ | 688,326 | $ | 611,544 | $ | 1,373,924 | $ | 1,219,479 | |||||||||||||||
Normalized FFO allocable to dilutive noncontrolling interests | 1,371 | 776 | 2,791 | 1,584 | |||||||||||||||||||
Diluted Normalized FFO | $ | 689,697 | $ | 612,320 | $ | 1,376,715 | $ | 1,221,063 | |||||||||||||||
FFO per common share | |||||||||||||||||||||||
Basic | $ | 1.02 | $ | 1.01 | $ | 2.06 | $ | 2.02 | |||||||||||||||
Diluted | $ | 1.02 | $ | 1.01 | $ | 2.05 | $ | 2.02 | |||||||||||||||
Normalized FFO per common share, basic and diluted | $ | 1.02 | $ | 1.02 | $ | 2.06 | $ | 2.04 | |||||||||||||||
Distributions paid to common stockholders | $ | 515,091 | $ | 445,829 | $ | 1,012,336 | $ | 884,109 | |||||||||||||||
FFO available to common stockholders in excess of distributions paid to common stockholders | $ | 172,894 | $ | 162,986 | $ | 359,940 | $ | 326,122 | |||||||||||||||
Normalized FFO available to common stockholders in excess of distributions paid to common stockholders | $ | 173,235 | $ | 165,715 | $ | 361,588 | $ | 335,370 | |||||||||||||||
Weighted average number of common shares used for FFO and Normalized FFO: | |||||||||||||||||||||||
Basic | 674,109 | 601,672 | 667,357 | 597,778 | |||||||||||||||||||
Diluted | 676,388 | 603,091 | 669,903 | 599,201 | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | % Change | 2023 | 2022 | % Change | ||||||||||||||||||||||||||||||
AFFO available to common stockholders | $ | 671.7 | $ | 583.7 | 15.1 | % | $ | 1,322.5 | $ | 1,163.8 | 13.6 | % | |||||||||||||||||||||||
AFFO per share (1) | $ | 1.00 | $ | 0.97 | 3.1 | % | $ | 1.98 | $ | 1.94 | 2.1 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income available to common stockholders | $ | 195,415 | $ | 223,207 | $ | 420,431 | $ | 422,576 | |||||||||||||||
Cumulative adjustments to calculate Normalized FFO (1) | 492,911 | 388,337 | 953,493 | 796,903 | |||||||||||||||||||
Normalized FFO available to common stockholders | 688,326 | 611,544 | 1,373,924 | 1,219,479 | |||||||||||||||||||
Gain on extinguishment of debt | — | (127) | — | (127) | |||||||||||||||||||
Amortization of share-based compensation | 7,623 | 6,641 | 13,923 | 11,643 | |||||||||||||||||||
Amortization of net debt premiums and deferred financing costs (2) | (10,509) | (16,948) | (24,197) | (34,044) | |||||||||||||||||||
Non-cash (gain) loss on interest rate swaps | (1,799) | 724 | (3,600) | 1,446 | |||||||||||||||||||
Straight-line impact of cash settlement on interest rate swaps (3) | 1,797 | — | 3,595 | — | |||||||||||||||||||
Leasing costs and commissions | (5,032) | (794) | (5,476) | (3,167) | |||||||||||||||||||
Recurring capital expenditures | (85) | (173) | (138) | (186) | |||||||||||||||||||
Straight-line rent and expenses, net | (33,963) | (27,554) | (70,448) | (55,376) | |||||||||||||||||||
Amortization of above and below-market leases, net | 19,670 | 16,402 | 37,028 | 30,044 | |||||||||||||||||||
Proportionate share of adjustments for unconsolidated entities | — | (2,090) | — | (4,154) | |||||||||||||||||||
Other adjustments (4) | 5,709 | (3,897) | (2,145) | (1,732) | |||||||||||||||||||
AFFO available to common stockholders | $ | 671,737 | $ | 583,728 | $ | 1,322,466 | $ | 1,163,826 | |||||||||||||||
AFFO allocable to dilutive noncontrolling interests | 1,382 | 787 | 2,813 | 1,607 | |||||||||||||||||||
Diluted AFFO | $ | 673,119 | $ | 584,515 | $ | 1,325,279 | $ | 1,165,433 | |||||||||||||||
AFFO per common share: | |||||||||||||||||||||||
Basic | 1.00 | 0.97 | $ | 1.98 | $ | 1.95 | |||||||||||||||||
Diluted | 1.00 | 0.97 | $ | 1.98 | $ | 1.94 | |||||||||||||||||
Distributions paid to common stockholders | $ | 515,091 | $ | 445,829 | $ | 1,012,336 | $ | 884,109 | |||||||||||||||
AFFO available to common stockholders in excess of distributions paid to common stockholders | $ | 156,646 | $ | 137,899 | $ | 310,130 | $ | 279,717 | |||||||||||||||
Weighted average number of common shares used for computation per share: | |||||||||||||||||||||||
Basic | 674,109 | 601,672 | 667,357 | 597,778 | |||||||||||||||||||
Diluted | 676,388 | 603,091 | 669,903 | 599,201 |
Percentage of Total Portfolio Annualized Contractual Rent by Industry (1) | ||||||||||||||||||||||||||||||||||||||||||||
As of | ||||||||||||||||||||||||||||||||||||||||||||
Jun 30, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Convenience Stores | 11.1% | 8.6% | 9.1% | 11.9% | 12.3% | |||||||||||||||||||||||||||||||||||||||
Grocery | 9.9 | 10.0 | 10.2 | 9.8 | 7.9 | |||||||||||||||||||||||||||||||||||||||
Dollar Stores | 7.1 | 7.4 | 7.5 | 7.6 | 7.9 | |||||||||||||||||||||||||||||||||||||||
Home Improvement | 5.9 | 5.6 | 5.1 | 4.3 | 2.9 | |||||||||||||||||||||||||||||||||||||||
Drug Stores | 5.8 | 5.7 | 6.6 | 8.2 | 8.8 | |||||||||||||||||||||||||||||||||||||||
Restaurants-Quick Service | 5.5 | 6.0 | 6.6 | 5.3 | 5.8 | |||||||||||||||||||||||||||||||||||||||
Restaurants-Casual Dining | 4.8 | 5.1 | 5.9 | 2.8 | 3.2 | |||||||||||||||||||||||||||||||||||||||
Health and Fitness | 4.2 | 4.4 | 4.7 | 6.7 | 7.0 | |||||||||||||||||||||||||||||||||||||||
Automotive Service | 4.0 | 4.0 | 3.2 | 2.7 | 2.6 | |||||||||||||||||||||||||||||||||||||||
General Merchandise | 3.7 | 3.7 | 3.7 | 3.4 | 2.5 |
Property Type | Number of Properties | Approximate Leasable Square Feet (1) | Total Portfolio Annualized Contractual Rent | Percentage of Total Portfolio Annualized Contractual Rent | ||||||||||||||||||||||
Retail | 12,722 | 166,983,000 | $ | 3,097,985 | 82.5 | % | ||||||||||||||||||||
Industrial | 358 | 82,978,500 | 492,865 | 13.1 | ||||||||||||||||||||||
Gaming | 1 | 3,096,700 | 100,000 | 2.7 | ||||||||||||||||||||||
Other (2) | 37 | 2,411,200 | 64,592 | 1.7 | ||||||||||||||||||||||
Totals | 13,118 | 255,469,400 | $ | 3,755,442 | 100.0 | % |
Client | Number of Leases | Percentage of Total Portfolio Annualized Contractual Rent (1) | ||||||||||||
Dollar General | 1,579 | 3.8 | % | |||||||||||
Walgreens | 362 | 3.8 | ||||||||||||
Dollar Tree / Family Dollar | 1,162 | 3.3 | ||||||||||||
7-Eleven | 634 | 3.2 | ||||||||||||
EG Group Limited | 414 | 2.7 | ||||||||||||
Wynn Resorts | 1 | 2.7 | ||||||||||||
FedEx | 79 | 2.3 | ||||||||||||
B&Q (Kingfisher) | 45 | 1.9 | ||||||||||||
Sainsbury's | 35 | 1.9 | ||||||||||||
LA Fitness | 73 | 1.8 | ||||||||||||
BJ's Wholesale Clubs | 33 | 1.6 | ||||||||||||
Lifetime Fitness | 22 | 1.5 | ||||||||||||
CVS Pharmacy | 192 | 1.5 | ||||||||||||
Wal-Mart / Sam's Club | 67 | 1.5 | ||||||||||||
Tractor Supply | 184 | 1.4 | ||||||||||||
Tesco | 20 | 1.3 | ||||||||||||
AMC Theaters | 35 | 1.3 | ||||||||||||
Red Lobster | 200 | 1.2 | ||||||||||||
Regal Cinemas (Cineworld) | 35 | 1.1 | ||||||||||||
Lowe's | 40 | 1.1 | ||||||||||||
Total | 5,212 | 40.8 | % |
Total Portfolio (1) | |||||||||||||||||||||||||||||
Expiring Leases | Approximate Leasable Square Feet | Total Portfolio Annualized Contractual Rent | Percentage of Total Portfolio Annualized Contractual Rent | ||||||||||||||||||||||||||
Year | Retail | Non-Retail | |||||||||||||||||||||||||||
2023 | 290 | 4 | 2,399,900 | $ | 41,120 | 1.1 | % | ||||||||||||||||||||||
2024 | 640 | 30 | 11,722,100 | 135,249 | 3.6 | ||||||||||||||||||||||||
2025 | 902 | 36 | 14,547,300 | 207,867 | 5.5 | ||||||||||||||||||||||||
2026 | 842 | 33 | 16,660,200 | 197,022 | 5.2 | ||||||||||||||||||||||||
2027 | 1,421 | 36 | 22,388,600 | 290,526 | 7.7 | ||||||||||||||||||||||||
2028 | 1,470 | 54 | 27,542,000 | 331,018 | 8.8 | ||||||||||||||||||||||||
2029 | 1,012 | 25 | 21,926,900 | 270,987 | 7.2 | ||||||||||||||||||||||||
2030 | 585 | 20 | 15,789,100 | 187,762 | 5.0 | ||||||||||||||||||||||||
2031 | 540 | 39 | 22,238,400 | 257,989 | 6.9 | ||||||||||||||||||||||||
2032 | 969 | 33 | 17,739,300 | 255,151 | 6.8 | ||||||||||||||||||||||||
2033 | 672 | 16 | 15,579,600 | 197,693 | 5.4 | ||||||||||||||||||||||||
2034 | 578 | 7 | 10,565,900 | 221,600 | 5.9 | ||||||||||||||||||||||||
2035 | 430 | 3 | 5,222,900 | 113,601 | 3.0 | ||||||||||||||||||||||||
2036 | 424 | 8 | 7,737,200 | 140,243 | 3.7 | ||||||||||||||||||||||||
2037 | 504 | 9 | 8,607,300 | 135,066 | 3.6 | ||||||||||||||||||||||||
2038-2143 | 2,128 | 67 | 31,919,500 | 772,548 | 20.6 | ||||||||||||||||||||||||
Totals | 13,407 | 420 | 252,586,200 | $ | 3,755,442 | 100.0 | % |
Location | Number of Properties | Percent Leased | Approximate Leasable Square Feet | Percentage of Total Portfolio Annualized Contractual Rent | |||||||||||||||||||
Alabama | 404 | 99 | % | 4,379,300 | 1.8 | % | |||||||||||||||||
Alaska | 6 | 100 | 299,700 | 0.1 | |||||||||||||||||||
Arizona | 253 | 100 | 3,996,100 | 1.9 | |||||||||||||||||||
Arkansas | 256 | 100 | 2,775,000 | 1.0 | |||||||||||||||||||
California | 351 | 99 | 12,415,900 | 5.6 | |||||||||||||||||||
Colorado | 170 | 98 | 2,697,500 | 1.1 | |||||||||||||||||||
Connecticut | 53 | 98 | 1,759,200 | 0.7 | |||||||||||||||||||
Delaware | 24 | 100 | 141,100 | 0.1 | |||||||||||||||||||
Florida | 880 | 99 | 10,528,000 | 5.3 | |||||||||||||||||||
Georgia | 571 | 98 | 9,141,400 | 3.4 | |||||||||||||||||||
Hawaii | 22 | 100 | 47,800 | 0.2 | |||||||||||||||||||
Idaho | 27 | 100 | 189,100 | 0.1 | |||||||||||||||||||
Illinois | 554 | 99 | 13,221,500 | 5.1 | |||||||||||||||||||
Indiana | 427 | 99 | 8,197,900 | 2.6 | |||||||||||||||||||
Iowa | 107 | 100 | 3,452,300 | 0.9 | |||||||||||||||||||
Kansas | 193 | 99 | 4,690,400 | 1.0 | |||||||||||||||||||
Kentucky | 372 | 99 | 6,288,400 | 1.6 | |||||||||||||||||||
Louisiana | 353 | 100 | 5,275,400 | 2.0 | |||||||||||||||||||
Maine | 85 | 99 | 1,208,700 | 0.6 | |||||||||||||||||||
Maryland | 79 | 97 | 3,067,500 | 1.2 | |||||||||||||||||||
Massachusetts | 207 | 100 | 6,672,000 | 4.8 | |||||||||||||||||||
Michigan | 474 | 99 | 5,893,600 | 2.6 | |||||||||||||||||||
Minnesota | 258 | 98 | 4,343,400 | 1.8 | |||||||||||||||||||
Mississippi | 301 | 99 | 4,493,600 | 1.2 | |||||||||||||||||||
Missouri | 388 | 98 | 5,393,400 | 1.9 | |||||||||||||||||||
Montana | 24 | 100 | 223,100 | 0.1 | |||||||||||||||||||
Nebraska | 79 | 99 | 1,122,500 | 0.3 | |||||||||||||||||||
Nevada | 74 | 100 | 2,665,700 | 0.9 | |||||||||||||||||||
New Hampshire | 54 | 98 | 667,300 | 0.5 | |||||||||||||||||||
New Jersey | 146 | 97 | 2,282,900 | 1.5 | |||||||||||||||||||
New Mexico | 108 | 100 | 1,343,500 | 0.5 | |||||||||||||||||||
New York | 337 | 99 | 5,033,100 | 3.1 | |||||||||||||||||||
North Carolina | 409 | 98 | 8,307,800 | 2.9 | |||||||||||||||||||
North Dakota | 21 | 95 | 427,800 | 0.2 | |||||||||||||||||||
Ohio | 714 | 99 | 15,990,500 | 4.1 | |||||||||||||||||||
Oklahoma | 316 | 100 | 4,271,000 | 1.6 | |||||||||||||||||||
Oregon | 41 | 100 | 650,400 | 0.4 | |||||||||||||||||||
Pennsylvania | 346 | 97 | 6,241,500 | 2.4 | |||||||||||||||||||
Rhode Island | 31 | 100 | 207,400 | 0.2 | |||||||||||||||||||
South Carolina | 323 | 99 | 4,481,300 | 1.8 | |||||||||||||||||||
South Dakota | 32 | 100 | 453,700 | 0.2 | |||||||||||||||||||
Tennessee | 455 | 98 | 7,292,000 | 2.4 | |||||||||||||||||||
Texas | 1,590 | 99 | 26,416,400 | 10.1 | |||||||||||||||||||
Utah | 39 | 100 | 1,585,500 | 0.5 | |||||||||||||||||||
Vermont | 18 | 100 | 173,500 | 0.1 | |||||||||||||||||||
Virginia | 367 | 99 | 7,352,500 | 2.3 | |||||||||||||||||||
Washington | 80 | 100 | 1,815,200 | 0.9 | |||||||||||||||||||
West Virginia | 81 | 100 | 769,900 | 0.3 | |||||||||||||||||||
Wisconsin | 286 | 100 | 6,577,200 | 2.0 | |||||||||||||||||||
Wyoming | 23 | 100 | 157,700 | 0.1 | |||||||||||||||||||
Puerto Rico | 6 | 100 | 59,400 | 0.1 | |||||||||||||||||||
United Kingdom | 241 | 100 | 23,003,000 | 10.5 | |||||||||||||||||||
Spain | 53 | 100 | 3,960,100 | 0.9 | |||||||||||||||||||
Italy | 7 | 100 | 1,075,100 | 0.4 | |||||||||||||||||||
Ireland | 2 | 100 | 294,200 | 0.1 | |||||||||||||||||||
Totals/average | 13,118 | 99 | % | 255,469,400 | 100.0 | % |
Year of Principal Due | Fixed rate debt | Weighted average rate on fixed rate debt | Variable rate debt | Weighted average rate on variable rate debt | |||||||||||||||||||
2023 | $ | 14.1 | 4.65 | % | $ | 122.7 | 5.37 | % | |||||||||||||||
2024 | 1,840.5 | 4.48 | % | — | — | ||||||||||||||||||
2025 | 1,093.9 | 4.23 | % | — | — | ||||||||||||||||||
2026 (1) | 1,587.0 | 3.72 | % | 2,446.2 | 4.98 | % | |||||||||||||||||
2027 | 2,048.2 | 2.66 | % | — | — | ||||||||||||||||||
Thereafter | 10,385.8 | 3.50 | % | — | — | ||||||||||||||||||
Totals (2) | $ | 16,969.5 | 3.57 | % | $ | 2,568.9 | 5.00 | % | |||||||||||||||
Fair Value (3) | $ | 15,123.1 | $ | 2,562.0 |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | ||||||||||||
April 1, 2023 — April 30, 2023 | 30 | $ | 63.27 | |||||||||||
May 1, 2023 — May 31, 2023 | 763 | $ | 60.70 | |||||||||||
June 1, 2023 — June 30, 2023 | 73 | $ | 59.68 | |||||||||||
Total | 866 | $ | 60.70 |
REALTY INCOME CORPORATION | |||||
Date: August 3, 2023 | /s/ SEAN P. NUGENT | ||||
Sean P. Nugent | |||||
Senior Vice President, Controller and Principal Accounting Officer | |||||
(Principal Accounting Officer) |
Date: August 3, 2023 | /s/ SUMIT ROY | |||||||
Sumit Roy | ||||||||
President, Chief Executive Officer |
Date: August 3, 2023 | /s/ CHRISTIE B. KELLY | |||||||
Christie B. Kelly | ||||||||
Executive Vice President, Chief Financial Officer and Treasurer |
/s/ SUMIT ROY | ||||||||
Sumit Roy | ||||||||
President, Chief Executive Officer |
/s/ CHRISTIE B. KELLY | ||||||||
Christie B. Kelly | ||||||||
Executive Vice President, Chief Financial Officer and Treasurer |