Realty Income Corp. Files Q2 2024 10-Q

TL;DR

Realty Income's Q2 10-Q is in: details on preferred stock and notes like 1.125% due '27.

AI Summary

Realty Income Corp. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including its various series of preferred stock and senior unsecured notes, such as the 1.125% notes due July 2027 and 1.875% notes due January 2027.

Why It Matters

This filing provides investors with a detailed look at Realty Income's financial health and debt obligations during the second quarter of 2024, crucial for understanding its stability and future prospects.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including debt instruments, which inherently carry financial risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 1.125% — Interest Rate (Refers to the interest rate on Senior Unsecured Notes due July 2027.)
• 1.875% — Interest Rate (Refers to the interest rate on Senior Unsecured Notes due January 2027.)

Key Players & Entities

• Realty Income Corp. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 1.125% Senior Unsecured Notes Due July 2027 (dollar_amount) — Specific debt instrument mentioned
• 1.875% Senior Unsecured Notes Due January 2027 (dollar_amount) — Specific debt instrument mentioned

FAQ

Key Financial Figures

• $0.01 — nge On Which Registered Common Stock, $0.01 Par Value O New York Stock Exchange 6.

Filing Documents

• o-20240630.htm (10-Q) — 2481KB
• o-063024ex311.htm (EX-31.1) — 11KB
• o-063024ex312.htm (EX-31.2) — 11KB
• o-063024ex32.htm (EX-32) — 6KB
• o-20240630_g1.jpg (GRAPHIC) — 38KB
• 0000726728-24-000118.txt ( ) — 13738KB
• o-20240630.xsd (EX-101.SCH) — 110KB
• o-20240630_cal.xml (EX-101.CAL) — 136KB
• o-20240630_def.xml (EX-101.DEF) — 588KB
• o-20240630_lab.xml (EX-101.LAB) — 1059KB
• o-20240630_pre.xml (EX-101.PRE) — 816KB
• o-20240630_htm.xml (XML) — 2170KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets 2 Consolidated Statements of Income and Comprehensive Income 3 Consolidated Statements of Equity 4 Consolidated Statements of Cash Flows 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 6 Item 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 4:

Controls and Procedures

Controls and Procedures 51 PART II. OTHER INFORMATION Item 1A:

Risk Factors

Risk Factors 52 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 5: Other Information 52 Item 6: Exhibits 53 SIGNATURE 54 -1- Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

: Financial Statements

Item 1: Financial Statements REALTY INCOME CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) June 30, 2024 December 31, 2023 ASSETS Real estate held for investment, at cost: Land $ 16,760,251 $ 14,929,310 Buildings and improvements 39,895,617 34,657,094 Total real estate held for investment, at cost 56,655,868 49,586,404 Less accumulated depreciation and amortization ( 6,693,997 ) ( 6,072,118 ) Real estate held for investment, net 49,961,871 43,514,286 Real estate and lease intangibles held for sale, net 190,570 31,466 Cash and cash equivalents 442,820 232,923 Accounts receivable, net 788,639 710,536 Lease intangible assets, net 6,730,472 5,017,907 Goodwill 4,931,159 3,731,478 Investment in unconsolidated entities 1,219,759 1,172,118 Other assets, net 3,795,641 3,368,643 Total assets $ 68,060,931 $ 57,779,357 LIABILITIES AND EQUITY Distributions payable $ 231,160 $ 195,222 Accounts payable and accrued expenses 884,087 738,526 Lease intangible liabilities, net 1,704,747 1,406,853 Other liabilities 866,992 811,650 Line of credit payable and commercial paper 1,148,787 764,390 Term loans, net 2,370,057 1,331,841 Mortgages payable, net 199,031 821,587 Notes payable, net 21,741,606 18,602,319 Total liabilities $ 29,146,467 $ 24,672,388 Commitments and contingencies (note 20) 6.000 % Series A cumulative redeemable preferred stock and paid in capital, par value $ 0.01 per share, 69,900 shares authorized, 6,900 shares and no shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively, liquidation preference $ 25.00 per share $ 167,394 $ — Stockholders' equity: Common stock and paid in capital, par value $ 0.01 per share, 1,300,000 shares authorized, 870,848 and 752,460 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively $ 46,230,789 $ 39,629,709 Distributions in excess of net income ( 7,724,318 ) ( 6,762,136 ) Accumul

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2024 (unaudited) 1. Summary of Significant Accounting Policies Realty Income Corporation ("Realty Income," the "Company," "we," "our" or "us"), a Maryland corporation, is an S&P 500 company and real estate partner to the world's leading companies. The Company was founded in 1969 and our shares of common stock trade on the New York Stock Exchange ("NYSE") under the symbol "O". As of June 30, 2024, we owned or held interests in a diversified portfolio of 15,450 properties located in all 50 states of the United States ("U.S."), the United Kingdom ("U.K."), and six other countries in Europe, with approximately 335.3 million square feet of leasable space. In January 2024, we completed our merger with Spirit Realty Capital, Inc. ("Spirit"). For more details, please see note 2 , Merger with Spirit Realty Capital, Inc. Basis of Presentation . These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Intercompany accounts and transactions are eliminated in consolidation. The U.S. dollar ("USD") is our reporting currency. Unless otherwise indicated, all dollar amounts are expressed in USD. For our consolidated subsidiaries whose functional currency is not the USD, we translate their financial statements into USD at the time we consolidate those subsidiaries' financial statements. Generally, assets and liabilities are translated at the exchange rate in effect at the balance sheet date. The resulting translation adjustments are included in 'Accumulated other comprehensive income' ("AOCI") on our consolidated balance sheets. Certain balance sheet items, primarily equity and capital-related accounts, are reflected at the historical exchange rate. Income statement accounts are translated using the average exchange rate for the period. We and certain of our consolidated subsidiaries have intercompany and third-part