Realty Income

O Q2 2024 Earnings

Reported Aug 5, 2024 at 4:07 PM ET · SEC Source

Q2 24 EPS

$0.29

MISS 19.44%

Est. $0.36

Q2 24 Revenue

$1.34B

BEAT +7.38%

Est. $1.25B

vs S&P Since Q2 24

-19.1%

TRAILING MARKET

O +18.9% vs S&P +38.0%

Market Reaction

Did O Beat Earnings? Q2 2024 Results

Realty Income delivered a mixed second quarter for 2024, posting earnings per share of $0.29 against a consensus estimate of $0.36, a miss of 19.44%, even as revenue climbed 31.4% year-over-year to $1.34 billion, well ahead of the $1.25 billion analy… Read more Realty Income delivered a mixed second quarter for 2024, posting earnings per share of $0.29 against a consensus estimate of $0.36, a miss of 19.44%, even as revenue climbed 31.4% year-over-year to $1.34 billion, well ahead of the $1.25 billion analysts had expected. The top-line strength was largely attributable to the January 2024 close of the Spirit Realty Capital merger, which meaningfully expanded the company's property portfolio and drove the bulk of that revenue surge. Elevated provisions for impairment, reaching $96.50 million compared to $29.80 million a year ago, weighed on the bottom line as management actively optimized the enlarged portfolio. On the operational side, portfolio occupancy improved to 98.8% and AFFO per share grew 6.0% year-over-year to $1.06, offering a more favorable picture of underlying performance. Looking ahead, Realty Income maintained its full-year AFFO per share guidance of $4.15 to $4.21, while trimming its net income per share outlook to $1.21 to $1.30, reflecting higher depreciation and impairment charges tied to ongoing integration work.

Key Takeaways

  • AFFO per share growth of 6.0% year-over-year
  • Portfolio expansion from Spirit Realty Capital merger completed January 2024
  • Rent recapture rate of 105.7% on re-leased properties
  • Investment volume of $805.8 million at 7.9% initial weighted average cash yield
  • Portfolio occupancy improved to 98.8% from 98.6% sequentially
  • Industrial same store rental revenue growth of 2.1%
  • Gaming same store rental revenue growth of 1.7%
24/7 Wall St

O YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

24/7 Wall St

O Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q4 25

“I am pleased with the continued momentum and acceleration compared to the first quarter, as evidenced by AFFO per share growth of 6.0% compared to the same quarter in 2023.”

— Sumit Roy, Q2 2024 Earnings Press Release