EX-99.1 2 a14-11438_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

RECORD OPERATING RESULTS FOR FIRST QUARTER 2014
ANNOUNCED BY REALTY INCOME

 

 

ESCONDIDO, CALIFORNIA, May 1, 2014...Realty Income Corporation (Realty Income), The Monthly Dividend Company® (NYSE: O), today announced record operating results for the first quarter ended March 31, 2014. Access to this document is available at www.realtyincome.com. All per share amounts presented in this press release are on a diluted per common share basis unless stated otherwise.

 

COMPANY HIGHLIGHTS:

 

For the quarter ended March 31, 2014 (as compared to the same quarterly period in 2013):

·     Revenue increased 26.3% to $221.6 million as compared to $175.5 million

·     Net income available to common stockholders per share was $0.23

·     FFO available to common stockholders increased 29.7% to $134.5 million

·     FFO per share increased 8.3% to $0.65

·     AFFO available to common stockholders increased 27.6% to $132.7 million

·     AFFO per share increased 6.7% to $0.64

·     Same store rents increased 1.5% to $131.4 million

·     Portfolio occupancy increased to 98.3% from 97.7%

·     Invested $656.7 million in 337 new properties and properties under development or expansion

·     Increased the monthly dividend in March for the 75th time and for the 66th consecutive quarter

·     Dividends paid per common share increased 6.4%

·     Also, generated net proceeds of approximately $528.5 million in 13.8 million common share offering in April

 

Financial Results

 

Revenue

Revenue, for the quarter ended March 31, 2014, increased 26.3% to $221.6 million as compared to $175.5 million, for the same quarter in 2013.

 

Net Income Available to Common Stockholders

Net income available to common stockholders, for the quarter ended March 31, 2014, was $47.2 million as compared to $62.7 million for the same quarter in 2013. Net income available to common stockholders, for the quarter ended March 31, 2013, was impacted by an unusually large gain on sale of real estate. Net income per share, for the quarter ended March 31, 2014, was $0.23 as compared to $0.36, for the same quarter in 2013. The calculation to determine net income for a real estate company includes impairments and/or gains from the sales of investment properties. Impairments and/or gains on property sales vary from quarter to quarter. This variance can significantly impact net income and period to period comparisons.

 

Funds From Operations Available to Common Stockholders (FFO)

FFO, for the quarter ended March 31, 2014, increased 29.7% to $134.5 million as compared to $103.7 million, for the same quarter in 2013. FFO, for the quarter ended March 31, 2013, was normalized to exclude 2013 merger-related costs for Realty Income’s acquisition of American Realty Capital Trust, Inc., or ARCT. All references to FFO for the first quarter of 2013 reflect this adjustment for merger-related costs. FFO per share, for the quarter ended March 31, 2014, increased 8.3% to $0.65 as compared to $0.60, for the same quarter in 2013.

 

Net income, for the quarter ended March 31, 2013, has been adjusted from that previously reported in Realty Income’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, as a result of measurement period adjustments, previously reported in Realty Income’s 2013 Annual Report on Form 10-K, that were recorded during the second half of 2013 upon completion of the real estate valuations for the acquisition of ARCT. As a result of these adjustments to the asset allocation, revisions were made to the consolidated statement of income for the first quarter of 2013 for the impact related to rental revenue and depreciation and amortization. Because of these revisions, net income increased by $1.4 million, with no impact on earnings per share, while FFO decreased by $1.2 million, or $0.01 per share, for the first quarter of 2013.

 


 

Adjusted Funds From Operations Available to Common Stockholders (AFFO)

AFFO, for the quarter ended March 31, 2014, increased 27.6% to $132.7 million as compared to $104.0 million, for the same quarter in 2013. AFFO per share, for the quarter ended March 31, 2014, increased 6.7% to $0.64 as compared to $0.60, for the same quarter in 2013.

 

The company considers FFO and AFFO to be appropriate supplemental measures of a Real Estate Investment Trust’s (REIT’s) operating performance. Realty Income defines FFO consistent with the National Association of Real Estate Investment Trust’s (NAREIT’s) definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate, reduced by gains on sales of investment properties and extraordinary items. FFO, for the first quarter of 2013, has also been normalized to add back merger-related costs for the acquisition of ARCT. AFFO further adjusts FFO for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company’s ongoing operating performance. See the reconciliations of net income available to common stockholders to FFO and AFFO on page six.

 

Dividend Information

In March 2014, Realty Income announced the 66th consecutive quarterly dividend increase, which is the 75th increase in the amount of the dividend since the company’s listing on the New York Stock Exchange in 1994. The annualized dividend amount, as of March 31, 2014, was approximately $2.19 per share. The amount of monthly dividends paid per share increased 6.4% to $0.547 in the first quarter of 2014 compared to $0.514 for the same period in 2013. In addition, through March 31, 2014, the company has paid 524 consecutive monthly dividends and over $2.9 billion in total dividends since 1969. Realty Income has a dividend reinvestment and stock purchase program that can be accessed at www.realtyincome.com. The program is administered by Wells Fargo Shareowner Services.

 

Real Estate Portfolio Update

 

As of March 31, 2014, Realty Income’s portfolio of freestanding, single-tenant properties consisted of 4,208 properties located in 49 states and Puerto Rico, leased to 211 commercial tenants doing business in 47 industries. The properties are leased under long-term, net leases with a weighted average remaining lease term of approximately 10.8 years.

 

Portfolio Management Activities

The company’s portfolio of commercial real estate, owned primarily under 10- to 20-year net leases, continues to perform well and provide dependable lease revenue supporting the payment of monthly dividends. As of March 31, 2014, portfolio occupancy was 98.3% with 73 properties available for lease out of a total of 4,208 properties in the portfolio, as compared to 97.7% portfolio occupancy, or 81 properties available for lease, as of March 31, 2013.

 

Rent Increases

During the quarter ended March 31, 2014, same store rents, on 2,784 properties under lease, increased 1.5% to $131.4 million, as compared to $129.4 million for the same quarter in 2013.

 

Property Acquisitions

During the first quarter of 2014, Realty Income invested $656.7 million in 337 new properties and properties under development or expansion, located in 35 states. These properties are 100% leased with a weighted average lease term of approximately 14.2 years and an initial average lease yield of 7.0%. The tenants occupying the new properties operate in 15 industries, and the property types consist of 88% retail, 8% industrial and distribution and 4% office, based on annualized rental revenue.

 

Realty Income maintains a $1.5 billion unsecured acquisition credit facility, which is used to fund property acquisitions in the near term. As of April 3, 2014, approximately $1.29 billion was available on the credit facility to fund additional acquisitions, after using stock offering proceeds (discussed below) to pay down the credit facility.

 

Property Dispositions

Realty Income continued to successfully execute its asset disposition program. During the quarter ended March 31, 2014, Realty Income sold 11 properties for $12.7 million, with a gain on sales of $3.9 million, as compared to 17 properties sold for $60.0 million, with a gain on sales of $38.6 million, during the same quarter in 2013.

 

During the first quarter of 2014, the Financial Accounting Standards Board issued guidance that changes the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have, or will have, a major effect on an entity’s operations and financial results. Previously, Realty Income had reported all properties sold and held for sale within a period as discontinued operations. The company early adopted the requirements of this accounting pronouncement in the first quarter of 2014. As a result, Realty Income’s results of operations for all qualifying disposals and properties classified as held for sale that were not previously reported in discontinued operations in Realty Income’s 2013 Annual Report on Form 10-K are presented within income from continuing operations on the consolidated statements of income.

 

2


 

Other Activities

 

Issued 13.8 Million Shares in an Upsized Common Share Offering

On April 1, 2014, Realty Income issued 13.8 million common shares priced at $39.96 per share. Net proceeds of approximately $528.5 million were used to repay a portion of the borrowings under the company’s acquisition credit facility.

 

Realty Income Names Debra Bonebrake Senior Vice President – Industrial, Distribution and Office Properties

On March 3, 2014, Realty Income announced that Debra Bonebrake was named Senior Vice President – Industrial, Distribution and Office Properties.

 

Direct Stock Purchase and Dividend Reinvestment Plan

During the first quarter of 2014, Realty Income issued 55,870 common shares via its Stock Plan at an average price of $40.69 per share. The Plan generated gross proceeds of approximately $2.3 million during the quarter.

 

CEO Comments on Operating Results

Commenting on Realty Income’s results and real estate operations, Chief Executive Officer, John P. Case, said,  “We are pleased with our operating results for the first quarter of 2014. We achieved record quarterly AFFO per share of $0.64, representing an increase of 6.7% from the same period last year. The portfolio continues to perform quite well, with same store rent rising 1.5% from a year ago and occupancy increasing to 98.3%, the highest it’s been since 2007.”

 

“Acquisitions again contributed to these positive first quarter results. We completed $656.7 million in acquisitions this quarter, making it our second most acquisitive quarter in our company’s history. These acquisitions include $274.3 million of the previously announced $503 million transaction with Inland Diversified Real Estate Trust, Inc. We expect the majority of the remaining properties to close during the second quarter of 2014. The properties acquired during the quarter are leased to 22 different tenants in 15 industries, and located across 35 states. Retail properties comprised the majority of acquisitions accounting for 88%, while industrial and distribution accounted for 8%. Approximately 84% of the revenue generated by these acquisitions is from investment grade-rated tenants. We are pleased to have continued to add to the portfolio’s credit quality and diversification through these acquisitions, while achieving a weighted average lease term of 14.2 years and an initial average lease yield of 7.0%.”

 

“Subsequent to the quarter-end, we successfully accessed the capital markets, raising approximately $529 million in net proceeds in a common stock offering on April 1st. The original offering of 10.5 million shares was upsized to 13.8 million shares, allowing us to pay down our $1.5 billion acquisitions credit facility. We are well positioned with ample liquidity to fund 2014 acquisitions activity.”

 

FFO and AFFO Commentary

Realty Income’s FFO and AFFO per share has historically tended to be stable and fairly predictable because of the long-term leases that are the primary source of the company’s revenue. There are, however, several factors that can cause FFO and AFFO per share to vary from levels that have been anticipated by the company. These factors include, but are not limited to, changes in interest rates and occupancy rates, periodically accessing the capital markets, the level and timing of property and entity acquisitions and dispositions, lease rollovers, the general real estate market, and the economy.

 

2014 Earnings Estimates

FFO per share for 2014 should range from $2.53 to $2.58, an increase of 5% to 7% over 2013 FFO (normalized to exclude 2013 ARCT merger-related costs) per share of $2.41. FFO per share for 2014 is based on a net income per share range of $0.86 to $0.91, plus estimated real estate depreciation of $1.72 per share, and reduced by potential estimated gains on sales of investment properties of $0.05 per share (in accordance with NAREIT’s definition of FFO).

 

AFFO per share for 2014 should range from $2.53 to $2.58, an increase of 5% to 7% over the 2013 AFFO per diluted share of $2.41. AFFO further adjusts FFO for unique revenue and expense items, which are not as pertinent to the measurement of the company’s ongoing operating performance.

 

About Realty Income

Realty Income is The Monthly Dividend Company®, a New York Stock Exchange real estate company dedicated to providing shareholders with dependable monthly income. As of March 31, 2014, the company had paid 524 consecutive monthly dividends throughout its 45-year operating history. The monthly income is supported by the cash flows from over 4,200 properties owned under long-term lease agreements with 211 leading regional and national commercial tenants. The company is an active buyer of net-leased properties nationwide. Additional information about the company can be obtained from the corporate website at www.realtyincome.com or www.twitter.com/realtyincome.

 

3


 

Forward-Looking Statements

Statements in this press release that are not strictly historical are “forward-looking” statements. Forward-looking statements involve known and unknown risks, which may cause the company’s actual future results to differ materially from expected results. These risks include, among others, general economic conditions, local real estate conditions, tenant financial health, the availability of capital to finance planned growth, continued volatility and uncertainty in the credit markets and broader financial markets, property acquisitions and the timing of these acquisitions, charges for property impairments, and the outcome of any legal proceedings to which the company is a party, as described in the company’s filings with the Securities and Exchange Commission. Consequently, forward-looking statements should be regarded solely as reflections of the company’s current operating plans and estimates. Actual operating results may differ materially from what is expressed or forecast in this press release. The company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date these statements were made.

 

Note to Editors: Realty Income press releases are available via the internet at http://www.realtyincome.com/invest/newsroom-library/press-releases.shtml.

 

Contact:

Paul M. Meurer

Executive Vice President, Chief Financial Officer & Treasurer

(760) 741-2111 ext. 1109

 

4


 

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share amounts - unaudited)

 

 

 

Three months

 

Three months

 

 

 

 

 

 

 

 

 

Ended 3/31/14

 

Ended 3/31/13

 

 

 

 

 

 

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

214,122

 

$

167,798

 

 

 

 

 

 

 

Tenant reimbursements

 

6,427

 

6,027

 

 

 

 

 

 

 

Other

 

1,023

 

1,697

 

 

 

 

 

 

 

Total revenue

 

221,572

 

175,522

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

89,970

 

66,749

 

 

 

 

 

 

 

Interest

 

51,720

 

41,599

 

 

 

 

 

 

 

General and administrative

 

12,886

 

11,628

 

 

 

 

 

 

 

Property (including reimbursable)

 

10,577

 

9,572

 

 

 

 

 

 

 

Income taxes

 

1,091

 

577

 

 

 

 

 

 

 

Merger-related costs

 

-

 

12,030

 

 

 

 

 

 

 

Provisions for impairment

 

1,683

 

-

 

 

 

 

 

 

 

Total expenses

 

167,927

 

142,155

 

 

 

 

 

 

 

Gain on sales of real estate

 

1,271

 

-

 

 

 

 

 

 

 

Income from continuing operations

 

54,916

 

33,367

 

 

 

 

 

 

 

Income from discontinued operations

 

3,077

 

39,859

 

 

 

 

 

 

 

Net income

 

57,993

 

73,226

 

 

 

 

 

 

 

Net income attributable to noncontrolling interests

 

(332

)

(9

)

 

 

 

 

 

 

Net income attributable to the Company

 

57,661

 

73,217

 

 

 

 

 

 

 

Preferred stock dividends

 

(10,482

)

(10,482

)

 

 

 

 

 

 

Net income available to common stockholders

 

$

47,179

 

$

62,735

 

 

 

 

 

 

 

Funds from operations available to

 

 

 

 

 

common stockholders (FFO)

 

$

134,520

 

$

103,688

(1)

Adjusted funds from operations available to

 

 

 

 

 

common stockholders (AFFO)

 

$

132,660

 

$

103,972

 

 

 

 

 

 

 

Per share information for common stockholders:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations,

 

 

 

 

 

 

 

 

 

 

 

basic and diluted

 

$

0.21

 

$

0.13

 

 

 

 

 

 

 

Net income:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.23

 

$

0.37

 

 

 

 

 

 

 

Diluted

 

$

0.23

 

$

0.36

 

 

 

 

 

 

 

FFO, basic and diluted

 

$

0.65

 

$

0.60

(1)

 

 

 

 

 

 

AFFO:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.64

 

$

0.61

 

 

 

 

 

 

 

Diluted

 

$

0.64

 

$

0.60

 

 

 

 

 

 

 

Cash dividends paid per common share

 

$

0.547

 

$

0.514

 

 

(1) Normalized to exclude ARCT merger-related costs

 

5


 

FUNDS FROM OPERATIONS (FFO)

 

(dollars in thousands, except per share amounts)

 

 

 

Three months

 

Three months

 

 

 

Ended 3/31/14

 

Ended 3/31/13

 

 

 

 

 

 

 

Net income available to common stockholders

 

 $

47,179

 

 $

62,735

 

Depreciation and amortization:

 

 

 

 

 

Continuing operations

 

89,970

 

66,749

 

Discontinued operations

 

-

 

513

 

Depreciation of furniture, fixtures and equipment

 

(91

)

(61

)

Provisions for impairment on investment properties

 

 

 

 

 

Continuing operations

 

1,683

 

-

 

Discontinued operations

 

-

 

456

 

Gain on sale of investment properties,

 

 

 

 

 

Continuing operations

 

(1,271

)

-

 

Discontinued operations

 

(2,607

)

(38,559

)

Merger-related costs (1)

 

-

 

12,030

 

FFO adjustments allocable to non-controlling interests

 

(343

)

(175

)

 

 

 

 

 

 

FFO available to common stockholders, basic and diluted

 

 $

134,520

 

 $

103,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per common share, basic and diluted

 

 $

0.65

 

 $

0.60

 

Distributions paid to common stockholders

 

 $

113,414

 

 $

84,977

 

FFO in excess of distributions paid to common stockholders, basic and diluted

 

 $

21,106

 

 $

18,711

 

 

 

 

 

 

 

Weighted average number of common shares used for FFO:

 

 

 

 

 

Basic

 

207,003,950

 

171,659,191

 

Diluted

 

207,007,341

 

172,053,880

 

 

(1)                   FFO for the three months ended March 31, 2013, has been normalized to exclude ARCT merger-related costs.

 

We define FFO, a non-GAAP measure, consistent with the National Association of Real Estate Investment Trust’s definition, as net income available to common stockholders, plus depreciation and amortization of real estate assets, plus impairments of real estate assets, reduced by gains on sales of investment properties and extraordinary items.

 

ADJUSTED FUNDS FROM OPERATIONS (AFFO)

 

 

(dollars in thousands, except per share amounts)

 

We define AFFO as FFO adjusted for unique revenue and expense items, which the company believes are not as pertinent to the measurement of the company’s ongoing operating performance.  Most companies in our industry use a similar measurement to AFFO, but they may use the term “CAD” (for Cash Available for Distribution) or “FAD” (for Funds Available for Distribution).

 

 

 

Three months

 

Three months

 

 

 

Ended 3/31/14

 

Ended 3/31/13

 

 

 

 

 

 

 

Net income available to common stockholders

 

 $

47,179

 

 $

62,735

 

Cumulative adjustments to calculate FFO (1)

 

87,341

 

40,953

 

FFO available to common stockholders

 

134,520

 

103,688

 

Amortization of share-based compensation

 

2,697

 

3,845

 

Amortization of deferred financing costs (2)

 

1,076

 

1,006

 

Amortization of net mortgage premiums

 

(2,385

)

(1,947

)

Loss on interest rate swaps

 

57

 

452

 

Capitalized leasing costs and commissions

 

(192

)

(413

)

Capitalized building improvements

 

(1,177

)

(1,265

)

Straight-line rent

 

(3,936

)

(3,204

)

Amortization of above and below-market leases

 

1,994

 

1,794

 

AFFO adjustments allocable to non-controlling interests

 

6

 

16

 

AFFO available to common stockholders, basic and diluted

 

 $

132,660

 

 $

103,972

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per common share:

 

 

 

 

 

Basic

 

 $

0.64

 

 $

0.61

 

Diluted

 

 $

0.64

 

 $

0.60

 

Distributions paid to common stockholders

 

 $

113,414

 

 $

84,977

 

AFFO in excess of distributions paid to common stockholders, basic and diluted

 

 $

19,246

 

 $

18,995

 

 

 

 

 

 

 

Weighted average number of common shares used for AFFO:

 

 

 

 

 

Basic

 

207,003,950

 

171,659,191

 

Diluted

 

207,007,341

 

172,053,880

 

 

(1)      See FFO calculation above for reconciling items.

 

(2)      Includes the amortization of costs incurred and capitalized when our notes were issued in March 2003, November 2003, March 2005, September 2005, September 2006, September 2007, June 2010, June 2011, October 2012 and July 2013. Additionally, this includes the amortization of deferred financing costs incurred and capitalized in connection with our assumption of our mortgages payable and the issuance of our term loan. The deferred financing costs are being amortized over the lives of the respective mortgages and term loan. No costs associated with our credit facility agreements or annual fees paid to credit rating agencies have been included.

 

6


 

HISTORICAL FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

 

(dollars in thousands, except per share amounts)

 

For the three months ended March 31,

 

2014

 

2013

 

2012

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

47,179

 

$

62,735

 

$

26,071

 

$

29,936

 

$

24,142

 

Depreciation and amortization

 

89,879

 

67,201

 

35,235

 

26,791

 

23,213

 

Provisions for impairment on investment properties

 

1,683

 

456

 

-

 

200

 

34

 

Gain on sales of investment properties

 

(3,878

)

(38,559

)

(611

)

(129

)

(703

)

Merger-related costs(1)

 

-

 

12,030

 

-

 

-

 

-

 

FFO adjustments allocable to non-controlling interests

 

(343

)

(175

)

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

134,520

 

103,688

 

60,695

 

56,798

 

46,686

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO per diluted share

 

$

0.65

 

$

0.60

 

$

0.46

 

$

0.48

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO

 

$

132,660

 

$

103,972

 

$

66,294

 

$

58,239

 

$

47,615

 

 

 

 

 

 

 

 

 

 

 

 

 

AFFO per diluted share

 

$

0.64

 

$

0.60

 

$

0.50

 

$

0.49

 

$

0.46

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends paid per share

 

$

0.547

 

$

0.514

 

$

0.437

 

$

0.433

 

$

0.429

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

207,007,341

 

172,053,880

 

132,703,954

 

119,109,044

 

103,686,440

 

 

(1)                     FFO for the three months ended March 31, 2013, has been normalized to exclude ARCT merger-related costs.

 

7


 

REALTY INCOME CORPORATION AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

March 31, 2014 and December 31, 2013

 

(dollars in thousands, except per share data)

 

 

 

2014

 

2013

 

ASSETS

 

(unaudited)

 

 

 

Real estate, at cost:

 

 

 

 

 

Land

 

$

2,917,117

 

$

2,791,147

 

Buildings and improvements

 

7,603,513

 

7,108,328

 

Total real estate, at cost

 

10,520,630

 

9,899,475

 

Less accumulated depreciation and amortization

 

(1,179,550

)

(1,114,888

)

Net real estate held for investment

 

9,341,080

 

8,784,587

 

Real estate held for sale, net

 

12,145

 

12,022

 

Net real estate

 

9,353,225

 

8,796,609

 

Cash and cash equivalents

 

14,142

 

10,257

 

Accounts receivable, net

 

40,329

 

39,323

 

Acquired lease intangible assets, net

 

986,063

 

935,459

 

Goodwill

 

15,598

 

15,660

 

Other assets, net

 

71,424

 

127,133

 

Total assets

 

$

10,480,781

 

$

9,924,441

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Distributions payable

 

$

41,543

 

$

41,452

 

Accounts payable and accrued expenses

 

70,340

 

102,511

 

Acquired lease intangible liabilities, net

 

155,195

 

148,250

 

Other liabilities

 

40,769

 

44,030

 

Line of credit payable

 

740,100

 

128,000

 

Term loan

 

70,000

 

70,000

 

Mortgages payable, net

 

822,270

 

783,360

 

Notes payable, net

 

3,185,796

 

3,185,480

 

Total liabilities

 

5,126,013

 

4,503,083

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock and paid in capital, par value $0.01 per share,

 

 

 

 

 

69,900,000 shares authorized and 25,150,000 shares issued and

 

 

 

 

 

outstanding as of March 31, 2014 and December 31, 2013

 

609,363

 

609,363

 

Common stock and paid in capital, par value $0.01 per share,

 

 

 

 

 

370,100,000 shares authorized, 207,631,143 shares issued and

 

 

 

 

 

outstanding as of March 31, 2014 and 207,485,073 shares issued

 

 

 

 

 

and outstanding at December 31, 2013

 

5,774,395

 

5,767,878

 

Distributions in excess of net income

 

(1,058,120

)

(991,794

)

Total stockholders’ equity

 

5,325,638

 

5,385,447

 

 

 

 

 

 

 

Noncontrolling interests

 

29,130

 

35,911

 

Total equity

 

5,354,768

 

5,421,358

 

Total liabilities and equity

 

$

10,480,781

 

$

9,924,441

 

 

8


 

Realty Income Performance vs. Major Stock Indices

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

NASDAQ

 

 

 

Realty Income

 

REIT Index (1)

 

DJIA

 

S&P 500

 

Composite

 

 

 

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

 

Dividend

 

Total

 

 

 

yield

 

return (2)

 

yield

 

return (3)

 

yield

 

return (3)

 

yield

 

return (3)

 

yield

 

return (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/18 to 12/31/1994

 

10.5%

 

 

10.8%

 

 

7.7%

 

 

0.0%

 

 

2.9%

 

 

(1.6%

)

 

2.9%

 

 

(1.2%

)

 

0.5%

 

 

(1.7%

)

 

1995

 

8.3%

 

 

42.0%

 

 

7.4%

 

 

15.3%

 

 

2.4%

 

 

36.9%

 

 

2.3%

 

 

37.6%

 

 

0.6%

 

 

39.9%

 

 

1996

 

7.9%

 

 

15.4%

 

 

6.1%

 

 

35.3%

 

 

2.2%

 

 

28.9%

 

 

2.0%

 

 

23.0%

 

 

0.2%

 

 

22.7%

 

 

1997

 

7.5%

 

 

14.5%

 

 

5.5%

 

 

20.3%

 

 

1.8%

 

 

24.9%

 

 

1.6%

 

 

33.4%

 

 

0.5%

 

 

21.6%

 

 

1998

 

8.2%

 

 

5.5%

 

 

7.5%

 

 

(17.5%

)

 

1.7%

 

 

18.1%

 

 

1.3%

 

 

28.6%

 

 

0.3%

 

 

39.6%

 

 

1999

 

10.5%

 

 

(8.7%

)

 

8.7%

 

 

(4.6%

)

 

1.3%

 

 

27.2%

 

 

1.1%

 

 

21.0%

 

 

0.2%

 

 

85.6%

 

 

2000

 

8.9%

 

 

31.2%

 

 

7.5%

 

 

26.4%

 

 

1.5%

 

 

(4.7%

)

 

1.2%

 

 

(9.1%

)

 

0.3%

 

 

(39.3%

)

 

2001

 

7.8%

 

 

27.2%

 

 

7.1%

 

 

13.9%

 

 

1.9%

 

 

(5.5%

)

 

1.4%

 

 

(11.9%

)

 

0.3%

 

 

(21.1%

)

 

2002

 

6.7%

 

 

26.9%

 

 

7.1%

 

 

3.8%

 

 

2.6%

 

 

(15.0%

)

 

1.9%

 

 

(22.1%

)

 

0.5%

 

 

(31.5%

)

 

2003

 

6.0%

 

 

21.0%

 

 

5.5%

 

 

37.1%

 

 

2.3%

 

 

28.3%

 

 

1.8%

 

 

28.7%

 

 

0.6%

 

 

50.0%

 

 

2004

 

5.2%

 

 

32.7%

 

 

4.7%

 

 

31.6%

 

 

2.2%

 

 

5.6%

 

 

1.8%

 

 

10.9%

 

 

0.6%

 

 

8.6%

 

 

2005

 

6.5%

 

 

(9.2%

)

 

4.6%

 

 

12.2%

 

 

2.6%

 

 

1.7%

 

 

1.9%

 

 

4.9%

 

 

0.9%

 

 

1.4%

 

 

2006

 

5.5%

 

 

34.8%

 

 

3.7%

 

 

35.1%

 

 

2.5%

 

 

19.0%

 

 

1.9%

 

 

15.8%

 

 

0.8%

 

 

9.5%

 

 

2007

 

6.1%

 

 

3.2%

 

 

4.9%

 

 

(15.7%

)

 

2.7%

 

 

8.8%

 

 

2.1%

 

 

5.5%

 

 

0.8%

 

 

9.8%

 

 

2008

 

7.3%

 

 

(8.2%

)

 

7.6%

 

 

(37.7%

)

 

3.6%

 

 

(31.8%

)

 

3.2%

 

 

(37.0%

)

 

1.3%

 

 

(40.5%

)

 

2009

 

6.6%

 

 

19.3%

 

 

3.7%

 

 

28.0%

 

 

2.6%

 

 

22.6%

 

 

2.0%

 

 

26.5%

 

 

1.0%

 

 

43.9%

 

 

2010

 

5.1%

 

 

38.6%

 

 

3.5%

 

 

27.9%

 

 

2.6%

 

 

14.0%

 

 

1.9%

 

 

15.1%

 

 

1.2%

 

 

16.9%

 

 

2011

 

5.0%

 

 

7.3%

 

 

3.8%

 

 

8.3%

 

 

2.8%

 

 

8.3%

 

 

2.3%

 

 

2.1%

 

 

1.3%

 

 

(1.8%

)

 

2012

 

4.5%

 

 

20.1%

 

 

3.5%

 

 

19.7%

 

 

3.0%

 

 

10.2%

 

 

2.5%

 

 

16.0%

 

 

2.6%

 

 

15.9%

 

 

2013

 

5.8%

 

 

(1.8%

)

 

3.9%

 

 

2.9%

 

 

2.3%

 

 

29.6%

 

 

2.0%

 

 

32.4%

 

 

1.4%

 

 

38.3%

 

 

Q1 YTD 2014

 

5.3%

 

 

10.9%

 

 

3.6%

 

 

3.3%

 

 

2.2%

 

 

(0.1%

)

 

2.0%

 

 

1.8%

 

 

1.2%

 

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compounded Average
Annual Total Return (5)

 

16.7%

 

 

 

 

 

10.9%

 

 

 

 

 

10.1%

 

 

 

 

 

9.4%

 

 

 

 

 

9.1%

 

 

 

 Note:       All of these dividend yields are calculated as annualized dividends based on the last dividend paid in applicable time period divided by the closing price as of period end.  Dividend yield sources: NAREIT website and Bloomberg, except for the 1994 NASDAQ dividend yield which was sourced from Datastream / Thomson Financial.

 

(1)       FTSE NAREIT US Equity REIT Index, as per NAREIT website.

 

(2)       Calculated as the difference between the closing stock price as of period end less the closing stock price as of previous period, plus dividends paid in period, divided by closing stock price as of end of previous period.  Does not include reinvestment of dividends for the annual percentages.

 

(3)       Includes reinvestment of dividends.  Source:  NAREIT website and Factset.

 

(4)       Price only index, does not include dividends.  Source:  Factset.

 

(5)       All of these Compounded Average Annual Total Return rates are calculated in the same manner: from Realty Income’s NYSE listing on October 18, 1994 through March 31, 2014, and (except for NASDAQ) assuming reinvestment of dividends. Past Performance does not guarantee future performance.  Realty Income presents this data for informational purposes only and makes no representation about its future performance or how it will compare in performance to other indices in the future.

 

9


 

Property Type Diversification

 

The following table sets forth certain property type information regarding Realty Income’s property portfolio as of March 31, 2014 (dollars in thousands):

 

 

 

 

 

 

Approximate

 

Rental Revenue for

 

Percentage of

 

 

 

Number of

 

Leasable

 

the Quarter Ended

 

Rental

 

Property Type

 

Properties

 

Square Feet

 

March 31, 2014

(1)

Revenue

 

Retail

 

4,056

 

43,720,800

 

$

166,573

 

77.9

%

Industrial and distribution

 

81

 

16,007,300

 

22,962

 

10.7

 

Office

 

43

 

3,240,300

 

13,975

 

6.5

 

Manufacturing

 

13

 

3,715,200

 

5,278

 

2.5

 

Agriculture

 

15

 

184,500

 

5,209

 

2.4

 

Totals

 

4,208

 

66,868,100

 

$

213,997

 

100.0

%

 

(1)            Includes rental revenue for all properties owned by Realty Income at March 31, 2014, including revenue from properties reclassified as discontinued operations of $13.  Excludes revenue of $44 from properties owned by Crest and $94 from sold properties that were included in continuing operations.

 

 

 

 

 

Tenant Diversification

 

 

The largest tenants based on percentage of total portfolio rental revenue at March 31, 2014 include the following:

 

Walgreens

 

5.4%

 

Northern Tier Energy/Super America

 

2.3%

FedEx

 

5.2%

 

Rite Aid

 

2.0%

Dollar General

 

5.0%

 

Regal Cinemas

 

2.0%

Family Dollar

 

4.7%

 

CVS Pharmacy

 

2.0%

LA Fitness

 

4.6%

 

The Pantry

 

1.7%

AMC Theatres

 

2.9%

 

Circle K

 

1.6%

Diageo

 

2.8%

 

Walmart/Sam’s Club

 

1.5%

BJ’s Wholesale Clubs

 

2.7%

 

 

 

 

 

10


 

Industry Diversification

 

The following table sets forth certain information regarding Realty Income’s property portfolio classified according to the business of the respective tenants, expressed as a percentage of our total rental revenue:

 

 

Percentage of Rental Revenue(1)

 

For the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

For the Years Ended

 

 

March 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

Dec 31,

 

 

2014

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Retail industries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Apparel stores

 

1.8

%

 

1.9

%

 

1.7

%

 

1.4

%

 

1.2

%

 

1.1

%

 

1.1

%

 

Automotive collision services

 

0.8

 

 

0.8

 

 

1.1

 

 

0.9

 

 

1.0

 

 

1.1

 

 

1.0

 

 

Automotive parts

 

1.2

 

 

1.2

 

 

1.0

 

 

1.2

 

 

1.4

 

 

1.5

 

 

1.6

 

 

Automotive service

 

1.8

 

 

2.1

 

 

3.1

 

 

3.7

 

 

4.7

 

 

4.8

 

 

4.8

 

 

Automotive tire services

 

3.3

 

 

3.6

 

 

4.7

 

 

5.6

 

 

6.4

 

 

6.9

 

 

6.7

 

 

Book stores

 

*

 

 

*

 

 

0.1

 

 

0.1

 

 

0.1

 

 

0.2

 

 

0.2

 

 

Child care

 

2.3

 

 

2.8

 

 

4.5

 

 

5.2

 

 

6.5

 

 

7.3

 

 

7.6

 

 

Consumer electronics

 

0.3

 

 

0.3

 

 

0.5

 

 

0.5

 

 

0.6

 

 

0.7

 

 

0.8

 

 

Convenience stores

 

10.3

 

 

11.2

 

 

16.3

 

 

18.5

 

 

17.1

 

 

16.9

 

 

15.8

 

 

Crafts and novelties

 

0.5

 

 

0.5

 

 

0.3

 

 

0.2

 

 

0.3

 

 

0.3

 

 

0.3

 

 

Dollar stores

 

9.1

 

 

6.2

 

 

2.2

 

 

-

 

 

-

 

 

-

 

 

-

 

 

Drug stores

 

9.5

 

 

8.1

 

 

3.5

 

 

3.8

 

 

4.1

 

 

4.3

 

 

4.1

 

 

Education

 

0.4

 

 

0.4

 

 

0.7

 

 

0.7

 

 

0.8

 

 

0.9

 

 

0.8

 

 

Entertainment

 

0.6

 

 

0.6

 

 

0.9

 

 

1.0

 

 

1.2

 

 

1.3

 

 

1.2

 

 

Equipment services

 

0.1

 

 

0.1

 

 

0.1

 

 

0.2

 

 

0.2

 

 

0.2

 

 

0.2

 

 

Financial services

 

1.4

 

 

1.5

 

 

0.2

 

 

0.2

 

 

0.2

 

 

0.2

 

 

0.2

 

 

General merchandise

 

1.1

 

 

1.1

 

 

0.6

 

 

0.6

 

 

0.8

 

 

0.8

 

 

0.8

 

 

Grocery stores

 

2.8

 

 

2.9

 

 

3.7

 

 

1.6

 

 

0.9

 

 

0.7

 

 

0.7

 

 

Health and fitness

 

6.9

 

 

6.3

 

 

6.8

 

 

6.4

 

 

6.9

 

 

5.9

 

 

5.6

 

 

Health care

 

1.1

 

 

1.1

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

Home furnishings

 

0.8

 

 

0.9

 

 

1.0

 

 

1.1

 

 

1.3

 

 

1.3

 

 

2.4

 

 

Home improvement

 

1.3

 

 

1.6

 

 

1.5

 

 

1.7

 

 

2.0

 

 

2.2

 

 

2.1

 

 

Jewelry

 

0.1

 

 

0.1

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

Motor vehicle dealerships

 

1.7

 

 

1.6

 

 

2.1

 

 

2.2

 

 

2.6

 

 

2.7

 

 

3.2

 

 

Office supplies

 

0.4

 

 

0.5

 

 

0.8

 

 

0.9

 

 

0.9

 

 

1.0

 

 

1.0

 

 

Pet supplies and services

 

0.8

 

 

0.8

 

 

0.6

 

 

0.7

 

 

0.9

 

 

0.9

 

 

0.8

 

 

Restaurants - casual dining

 

4.5

 

 

5.1

 

 

7.3

 

 

10.9

 

 

13.4

 

 

13.7

 

 

14.3

 

 

Restaurants - quick service

 

4.0

 

 

4.4

 

 

5.9

 

 

6.6

 

 

7.7

 

 

8.3

 

 

8.2

 

 

Shoe stores

 

0.1

 

 

0.1

 

 

0.1

 

 

0.2

 

 

0.1

 

 

-

 

 

-

 

 

Sporting goods

 

1.6

 

 

1.7

 

 

2.5

 

 

2.7

 

 

2.7

 

 

2.6

 

 

2.3

 

 

Theaters

 

5.4

 

 

6.2

 

 

9.4

 

 

8.8

 

 

8.9

 

 

9.2

 

 

9.0

 

 

Transportation services

 

0.1

 

 

0.1

 

 

0.2

 

 

0.2

 

 

0.2

 

 

0.2

 

 

0.2

 

 

Wholesale clubs

 

4.1

 

 

3.9

 

 

3.2

 

 

0.7

 

 

-

 

 

-

 

 

-

 

 

Other

 

0.1

 

 

0.1

 

 

0.1

 

 

0.1

 

 

0.3

 

 

1.1

 

 

1.2

 

 

Retail industries

 

80.3

%

 

79.8

%

 

86.7

%

 

88.6

%

 

95.4

%

 

98.3

%

 

98.2

%

 

 

11


 

Industry Diversification (continued)

 

 

 

Percentage of Rental Revenue(1)

 

 

For the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

For the Years Ended

 

 

March 31,

 

Dec 31,

 Dec 31,

 Dec 31,

 Dec 31,

 Dec 31,

 Dec 31,

 

 

2014

 

2013

 2012

 2011

 2010

 2009

 2008

Non-retail industries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace

 

1.2

 

1.2

 

0.9

 

0.5

 

-

 

-

 

-

 

Beverages

 

2.9

 

3.3

 

5.1

 

5.6

 

3.0

 

-

 

-

 

Consumer appliances

 

0.5

 

0.6

 

0.1

 

-

 

-

 

-

 

-

 

Consumer goods

 

1.0

 

1.0

 

0.1

 

-

 

-

 

-

 

-

 

Crafts and novelties

 

0.1

 

0.1

 

-

 

-

 

-

 

-

 

-

 

Diversified industrial

 

0.2

 

0.2

 

0.1

 

-

 

-

 

-

 

-

 

Electric utilities

 

0.1

 

*

 

-

 

-

 

-

 

-

 

-

 

Equipment services

 

0.5

 

0.4

 

0.3

 

0.2

 

-

 

-

 

-

 

Financial services

 

0.5

 

0.5

 

0.4

 

0.3

 

-

 

-

 

-

 

Food processing

 

1.4

 

1.5

 

1.3

 

0.7

 

-

 

-

 

-

 

General merchandise

 

0.2

 

-

 

-

 

-

 

-

 

-

 

-

 

Government services

 

1.3

 

1.4

 

0.1

 

0.1

 

0.1

 

0.1

 

-

 

Health care

 

0.8

 

0.8

 

*

 

*

 

-

 

-

 

-

 

Home furnishings

 

0.2

 

0.2

 

-

 

-

 

-

 

-

 

-

 

Insurance

 

0.1

 

0.1

 

*

 

-

 

-

 

-

 

-

 

Machinery

 

0.2

 

0.2

 

0.1

 

-

 

-

 

-

 

-

 

Other manufacturing

 

0.6

 

0.6

 

-

 

-

 

-

 

-

 

-

 

Packaging

 

0.8

 

0.9

 

0.7

 

0.4

 

-

 

-

 

-

 

Paper

 

0.1

 

0.2

 

0.1

 

0.1

 

-

 

-

 

-

 

Shoe stores

 

0.8

 

0.9

 

-

 

-

 

-

 

-

 

-

 

Telecommunications

 

0.6

 

0.7

 

0.8

 

0.7

 

-

 

-

 

-

 

Transportation services

 

5.2

 

5.3

 

2.2

 

1.6

 

-

 

-

 

-

 

Other

 

0.4

 

0.1

 

1.0

 

1.2

 

1.5

 

1.6

 

1.8

 

Non-retail industries

 

19.7%

 

20.2

%

13.3

%

11.4

%

4.6

%

1.7

%

1.8

%

Totals

 

100.0%

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

*          Less than 0.1%

 

(1)       Includes rental revenue for all properties owned by Realty Income at the end of each period presented, including revenue from properties reclassified as discontinued operations. Excludes revenue from properties owned by Crest Net Lease, Inc., or Crest.

 

12


 

Lease Expirations

 

The following table sets forth certain information regarding Realty Income’s property portfolio regarding the timing of the lease term expirations (excluding rights to extend a lease at the option of the tenant) on our 4,116 net leased, single-tenant properties as of March 31, 2014 (dollars in thousands):

 

 

Total Portfolio

 

Initial Expirations(3)

 

Subsequent Expirations(4)

 

 

 

 

 

 

 

Rental

 

 

 

 

 

Rental

 

 

 

 

 

Rental

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

Revenue

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

for the

 

 

 

 

 

for the

 

 

 

 

 

for the

 

 

 

 

 

 

 

 

 

Quarter

 

% of

 

 

 

Quarter

 

% of

 

 

 

Quarter

 

% of

 

 

 

Number

 

Approx.

 

Ended

 

Total

 

Number

 

Ended

 

Total

 

Number

 

Ended

 

Total

 

 

 

of Leases

 

Leasable

 

Mar 31,

 

Rental

 

of Leases

 

Mar 31,

 

Rental

 

of Leases

 

Mar 31,

 

Rental

 

Year

 

Expiring

(1)

Sq. Feet

 

2014

(2)

Revenue

 

Expiring

 

2014

 

Revenue

 

Expiring

 

2014

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

119

 

846,900

 

$

2,952

 

1.4

%

39

 

$

1,348

 

0.6

%

80

 

$

1,604

 

0.8

%

2015

 

173

 

876,600

 

3,950

 

1.8

 

66

 

1,767

 

0.8

 

107

 

2,183

 

1.0

 

2016

 

204

 

1,231,400

 

4,947

 

2.3

 

121

 

2,812

 

1.3

 

83

 

2,135

 

1.0

 

2017

 

181

 

2,069,900

 

6,040

 

2.9

 

47

 

3,194

 

1.5

 

134

 

2,846

 

1.4

 

2018

 

284

 

3,576,000

 

11,155

 

5.3

 

166

 

7,890

 

3.7

 

118

 

3,265

 

1.6

 

2019

 

208

 

3,123,200

 

11,024

 

5.3

 

163

 

9,832

 

4.7

 

45

 

1,192

 

0.6

 

2020

 

113

 

3,513,000

 

9,137

 

4.3

 

101

 

8,461

 

4.0

 

12

 

676

 

0.3

 

2021

 

192

 

5,340,500

 

13,803

 

6.5

 

184

 

13,291

 

6.3

 

8

 

512

 

0.2

 

2022

 

226

 

7,250,700

 

14,780

 

7.0

 

217

 

14,500

 

6.9

 

9

 

280

 

0.1

 

2023

 

362

 

6,341,400

 

20,510

 

9.7

 

349

 

19,847

 

9.4

 

13

 

663

 

0.3

 

2024

 

148

 

2,407,900

 

7,647

 

3.6

 

148

 

7,647

 

3.6

 

-

 

-

 

-

 

2025

 

299

 

4,120,200

 

17,583

 

8.4

 

294

 

17,456

 

8.3

 

5

 

127

 

0.1

 

2026

 

237

 

3,471,200

 

12,524

 

5.9

 

234

 

12,441

 

5.9

 

3

 

83

 

*

 

2027

 

461

 

4,755,500

 

15,346

 

7.3

 

459

 

15,306

 

7.3

 

2

 

40

 

*

 

2028

 

288

 

5,913,900

 

15,833

 

7.5

 

286

 

15,780

 

7.5

 

2

 

53

 

*

 

2029 - 2043

 

621

 

10,567,600

 

43,800

 

20.8

 

613

 

43,592

 

20.7

 

8

 

208

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

4,116

 

65,405,900

 

$

211,031

 

100.0

%

3,487

 

$

195,164

 

92.5

%

629

 

$

15,867

 

7.5

%

 

*  Less than 0.1%

 

(1) Excludes 19 multi-tenant properties and 73 vacant unleased properties, one of which is a multi-tenant property. The lease expirations for properties under construction are based on the estimated date of completion of those properties.

 

(2) Includes rental revenue of $13 from properties reclassified as discontinued operations and excludes revenue of $2,965 from 19 multi-tenant properties and from 73 vacant and unleased properties at March 31, 2014, $94 from sold properties included in continuing operations and $44 from properties owned by Crest.

 

(3) Represents leases to the initial tenant of the property that are expiring for the first time.

 

(4) Represents lease expirations on properties in the portfolio, which have previously been renewed, extended or re-tenanted.

 

13


 

Geographic Diversification

 

The following table sets forth certain state-by-state information regarding Realty Income’s property portfolio as of March 31, 2014 (dollars in thousands):

 

 

 

 

 

 

 

Approximate

 

Rental Revenue for

 

Percentage of

 

 

 

Number of

 

Percent

 

Leasable

 

the Quarter Ended

 

Rental

 

State

 

Properties

 

Leased

 

Square Feet

 

March 31, 2014

(1)

Revenue

 

Alabama

 

127

 

98

%

1,029,300

 

$

3,252

 

1.5

%

Alaska

 

2

 

100

 

128,500

 

307

 

0.1

 

Arizona

 

114

 

96

 

1,235,000

 

5,564

 

2.6

 

Arkansas

 

54

 

96

 

793,200

 

1,556

 

0.7

 

California

 

161

 

98

 

4,780,800

 

22,716

 

10.6

 

Colorado

 

69

 

99

 

792,100

 

2,885

 

1.4

 

Connecticut

 

24

 

96

 

490,500

 

2,061

 

1.0

 

Delaware

 

16

 

100

 

29,500

 

420

 

0.2

 

Florida

 

320

 

99

 

3,363,700

 

12,995

 

6.1

 

Georgia

 

229

 

98

 

2,917,600

 

8,976

 

4.2

 

Hawaii

 

--

 

--

 

--

 

--

 

*

 

Idaho

 

12

 

100

 

87,000

 

427

 

0.2

 

Illinois

 

158

 

99

 

4,249,400

 

12,283

 

5.7

 

Indiana

 

105

 

99

 

1,166,100

 

4,950

 

2.3

 

Iowa

 

35

 

97

 

2,751,700

 

3,353

 

1.6

 

Kansas

 

82

 

99

 

1,638,200

 

3,404

 

1.6

 

Kentucky

 

54

 

98

 

886,900

 

3,046

 

1.4

 

Louisiana

 

88

 

97

 

954,300

 

2,700

 

1.3

 

Maine

 

9

 

100

 

126,400

 

837

 

0.4

 

Maryland

 

32

 

100

 

654,100

 

3,709

 

1.7

 

Massachusetts

 

84

 

96

 

761,000

 

3,192

 

1.5

 

Michigan

 

105

 

98

 

955,200

 

3,221

 

1.5

 

Minnesota

 

155

 

100

 

1,153,200

 

7,346

 

3.4

 

Mississippi

 

121

 

98

 

1,551,500

 

3,677

 

1.7

 

Missouri

 

131

 

98

 

2,554,000

 

7,788

 

3.6

 

Montana

 

1

 

100

 

5,400

 

13

 

*

 

Nebraska

 

31

 

100

 

708,700

 

1,663

 

0.8

 

Nevada

 

22

 

95

 

413,000

 

1,287

 

0.6

 

New Hampshire

 

20

 

100

 

320,100

 

1,238

 

0.6

 

New Jersey

 

65

 

98

 

497,000

 

2,642

 

1.2

 

New Mexico

 

26

 

100

 

208,000

 

563

 

0.3

 

New York

 

85

 

95

 

2,048,900

 

10,185

 

4.8

 

North Carolina

 

147

 

99

 

1,496,900

 

5,548

 

2.6

 

North Dakota

 

7

 

100

 

66,000

 

117

 

0.1

 

Ohio

 

211

 

98

 

5,004,600

 

11,840

 

5.5

 

Oklahoma

 

124

 

100

 

1,583,700

 

3,777

 

1.8

 

Oregon

 

25

 

100

 

525,400

 

1,747

 

0.8

 

Pennsylvania

 

146

 

99

 

1,747,500

 

6,943

 

3.3

 

Rhode Island

 

4

 

100

 

157,200

 

459

 

0.2

 

South Carolina

 

133

 

99

 

963,700

 

4,368

 

2.1

 

South Dakota

 

11

 

100

 

133,500

 

244

 

0.1

 

Tennessee

 

191

 

97

 

2,994,700

 

5,995

 

2.8

 

Texas

 

415

 

98

 

7,369,800

 

20,892

 

9.8

 

Utah

 

13

 

100

 

749,000

 

1,337

 

0.6

 

Vermont

 

6

 

100

 

100,700

 

499

 

0.2

 

Virginia

 

140

 

97

 

2,628,600

 

6,883

 

3.2

 

Washington

 

38

 

100

 

415,300

 

1,556

 

0.7

 

West Virginia

 

12

 

100

 

261,200

 

882

 

0.4

 

Wisconsin

 

41

 

95

 

1,370,600

 

2,442

 

1.1

 

Wyoming

 

3

 

100

 

21,100

 

63

 

*

 

Puerto Rico

 

4

 

100

 

28,300

 

149

 

0.1

 

Totals\Average

 

4,208

 

98

%

66,868,100

 

$

213,997

 

100.0

%

 

*  Less than 0.1%

 

(1) Includes rental revenue for all properties owned by Realty Income at March 31, 2014, including revenue from properties reclassified as discontinued operations of $13.  Excludes revenue of $44 from properties owned by Crest and $94 from sold properties that were included in continuing operations.

 

14